Long4Life, which has raised R2-billion in capital since its listing on the JSE in April last year, has declared a maiden dividend of 5.4c a share for the 11 months to February 28.
The company on Wednesday reported that it had, in the period under review, acquired Sportsmans Warehouse, Outdoor Warehouse, Performance Brands, Sorbet and Inhle Beverages, and earned revenue of R730.66-million from these acquisitions in the four months to February 28.
The group’s operating profit for the four months ended February 28 totalled R117.04-million.
Basic earnings attributable to shareholders was R168.95-million with headline earnings at R170.39-million. This translates into basic earnings a share and headline earnings a share of 30c and 30.2c, respectively.
“Our focus since listing has been on the constitution of the board and bringing together an executive team that has a proven entrepreneurial business record and operating philosophy,” commented Long4Life CEO Brian Joffe.
He added that the foundation assets, primarily in the leisure and lifestyle sector, were targeted and acquired, and positioned into the company’s decentralised divisional structures of sport and recreation, personal care and wellness, and beverages.
The company additionally reiterated its commitment to enhancing black economic empowerment (BEE) and participation and, to this end, is currently negotiating the introduction of additional broad-based BEE (BBBEE) shareholders.
If successfully implemented, it is anticipated that this will increase existing effective BBBEE ownership in Long4Life to about 20%.
Further, the recently approved allocation of R100-million to venture capital opportunities will provide seed funding in selected opportunities aimed at enhancing Long4Life’s vision in leisure and lifestyle.
An early investment for the fund is the acquisition of a 49% stake in lifestyle footwear company, Veldskoen Shoes, which owns the Veldskoen and Plakkies trademarks.
Meanwhile, as the South African economy transforms further under its new political leadership, Long4Life is ideally positioned to take advantage of the opportunities that will come about as a result, the company noted.
This relates not only to the current portfolio of assets that have the capability of expansion and an ability to enhance efficiencies to adapt to current market circumstances, but also to pursuing other value enhancing businesses.
“We have had a small, but exciting and successful start, and our big vision of creating a growth-focused investment company that delivers superior growth to shareholders, and benefits to all our other stakeholders, remains firmly intact. We continue to actively assess investment opportunities, which complement the existing assets, as well as other opportunistic possibilities,” Joffe concluded.