Capricorn Investment FY2018 financial results analysis

By Published On: August 24th, 2018Categories: Articles

Capricorn Investment Group Limited (previously Bank Windhoek Holdings Limited) (Incorporated in the Republic of Namibia) (Date of Registration: 5 September 1996) (Registration Number: 96/300)

Share code: CGP ISIN: NA000A1T6SV9(“Capricorn Group” or “the group”)

REVIEWED CONSOLIDATED GROUP FINANCIAL RESULTSfor the year ended 30 June 2018

Group financial performance

With the Namibian economy still in a technical recession, Capricorn Group (the group) delivered resilient results with total comprehensive income increasing by 5.9% year on year. Bank Windhoek Limited continued to be a solid performer for the group, while other operations in Namibia and Botswana delivered good growth. The results from the Zambian operations were, however, disappointing. The group has taken the necessary steps and implemented appropriate actions to enhance the performance of Cavmont Bank and improve the contribution by the Zambianoperations to the group’s results.

Any reference to “normalised” in this announcement meansthat, for the sake of meaningful comparison, the effect of the following significant once-off transactions and acquisitions have been adjusted against actual account balances, to arrive at normalised balances:

  • -Prior year financial results have been adjusted to include the results, assets and liabilities of the Botswana and Zambia subsidiaries as if they were acquired at the beginning of the prior reporting period.
  • -Capital profit on the partial sale of the Visa Inc. shareholding, in line with the group strategy to realise non-core investments, has been excluded from the current financial year’s results.
  • -Results have been adjusted to exclude any gain realised in the acquisition of a controlling interest in Entrepo Holdings (Pty) Ltd (Entrepo) in the current financial year, and to exclude the assets and liabilities of Entrepo at 30 June 2018.

After these adjustments, normalised total comprehensive income decreased by 5.5% when compared to the year ended 30 June 2017. The decrease is to some extent reflective of the challenging economic conditions but was largely caused by the disappointing result of the Zambian operations.

Strategic transactions during the year…

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