Long4Life, which has a portfolio of assets in the leisure and lifestyle sector incorporating retail, wholesale, manufacturing, service, merchandising, distribution and ecommerce, delivered satisfactory results for the first half of its financial year.
The performance was in line with expectations, notwithstanding the prevailing challenging economic climate. Revenue of R1.53 billion and trading profit of R174.9 million was generated during the six months.
Net finance income totalled R40.3 million with cash and cash equivalents of R1.05 billion on hand at period end.
Headline earnings amounted to R143.7 million, translating into 15.8 cents per share based on the 912 205 863 weighted average number of shares in issue.
None of the Company’s acquisitions had become effective by 30 September 2017, rendering the half year comparatives largely incomparable.
Long4Life’s three main business segments operate in the consumer and retail market, which are traditionally seasonal.
Revenue and associated profit generation is typically lower in the first of the year, while the second half gains significantly from the holiday season spending.
The first half trading profit margin, before corporate costs, was satisfactory at 13.2% for the first half year period.
Working capital is typically absorbed in the first half of the year as the businesses rampup for the season’s trading, negatively impacting operating cash flows.
Long4Life is not paying an interim dividend, saying it will stick to final dividends until such time as it’s fully invested. It ended the period with just over R1 billion in cash and cash equivalents.
The share price of Long4Life was R 4.60 as at 30 October 2018. The Net Asset Value is currently R 5.19, meaning that Long4Life is trading at a discount to its asset value.
The P/E ratio is 12.31 according to information shared by Moneyweb