Trustco continues to demonstrate its ability to generate above-average investment returns. During the interim review period, Trustco’s Net Asset Value (NAV) increased by 9.5% from N$1.15 billion (USD 62 million) to N$1.26 billion (USD 68 million) during the last six months.
The NAV per share similarly grew to 128.2 cents, from 117.1 cents. The Group’s profit for the 6 months ended 29 February 2024 was N$110 million (USD 6 million), compared to a loss of N$250 million (USD 13 million) in the previous corresponding period. Basic and headline earnings per share were 11.17 cents, a significant improvement from the previous interim period.
Trustco’s portfolio valuations showed mixed performance across various sectors. The micro-finance portfolio reduced by N$90.7 million (USD 4.8 million), while the commercial banking and education portfolios decreased by N$1.3 million (USD 70 thousand) and N$20.7 million (USD 1.1 million), respectively. The insurance portfolio also recorded a decline of N$50.9 million (USD 2.7 million), primarily due to market volatility and higher interest rates. However, the real estate portfolio increased by N$70.7 million (USD 3.8 million), driven by rising demand for prime real estate in Namibia. The mining portfolio grew by N$154.5 million (USD 8.3 million), thanks to sector resilience, increased commercial production, and favourable exchange rates.
“The past period demonstrated why we pursue a generational multi-sector investment strategy. When one portfolio faced challenges, other portfolios compensated for it,” said Quinton Z van Rooyen, Deputy CEO of Trustco Group. “This balanced approach is key to Trustco’s consistent delivery of superior value.”
The Group has entered into an agreement with the US-based long-term shareholder Riskowitz Value Fund, providing access up to USD 100 million in hybrid capital, enabling Trustco to seize immediate investment opportunities across its world-class basket of investment portfolios, as well as new prospects. Additionally, Trustco has announced the acquisition of an additional 11.35% interest in Legal Shield Holdings Limited for N$468 million (USD 25 million) in shares at N$1.17 per share, increasing its holding to 91.35% and strengthening its investment footprint in Namibia’s insurance and real estate sectors.
The Trustco board is also finalizing the agreement for the debt-to-equity conversion with the founding family, Next Capital, as previously announced. This transaction aims to convert N$4.4 billion (USD 235 million) debt and equity liabilities from the Statement of Financial Position, into equity. Full details will be shared with shareholders once the terms are finalized, and all these transactions will follow the required full circular and regulatory processes.
Trustco’s diversified investment portfolio, combined with Namibia’s robust economic growth prospects, positions the Group for sustained success and long-term value creation for its investors.