Inala Capital Ltd’s Unlisted Equity Portfolio is Valued at E 32.40 Million, and Fixed-Income Investments at E 24.05 Million.

Published On: January 9, 2024Company: Inala Capital Limited (INALA.sz)
What's the future outlook of Inala Capital according to its HY2023 Interim Report?
The future outlook of Inala Capital appears positive. The company expects a stabilizing economy to stimulate economic activity, while noting that its subsidiary, KFC Eswatini, should continue to benefit from consumer habits shifting towards convenient, affordable food. Additionally, Inala Capital is planning to expand its equity interests in the food and agricultural sectors through the acquisition of Greystone Partners' shares in Alliance Foods.

Summary

  • Inala Capital is primarily an investment holding company focusing on companies with strong fundamentals and growth prospects.
  • Its primary investment geography is in the Kingdom of Eswatini, but it will seek opportunities in the Southern African Development Community (SADC) if opportunities in Eswatini are unavailable.
  • The company’s unlisted equity portfolio remained stable, business valuations will only be conducted annually.
  • The company’s portfolio companies have been challenged by supply chain issues, cost inflation, and decreasing disposable income.
  • Despite these challenges, Alliance Foods (trading as KFC Eswatini) showed strong performance.
  • General Africa Foods Eswatini faced lower transactions as consumers shifted towards necessities.
  • The company’s fixed income investments show steady and healthy yields.
  • The current unlisted equity portfolio is valued at E 32.40 million, and fixed-income investments are valued at E 24.05 million.
  • The company’s fair value gains on financial instruments held will reflect no change as the unlisted equities are only revalued annually.
  • Inala Capital recorded a pre-tax profit of E 1.22 million and a net asset value increase to E 59.79 million.
  • The company is hopeful that a stabilizing economy will stimulate economic activity and expects KFC Eswatini to continue benefiting from consumers’ shifting lifestyle habits.
  • It is also planning to expand its equity interests in the food and agricultural sectors and is in negotiations to acquire all shares from Greystone Partners in Alliance Foods.

Useful links

About Inala Capital Limited (INALA.sz)

Inala Capital Limited’s principal objective is to carry on business as an investment holding company to provide investors with attractive long-term returns. Inala Capital focusses on investing in companies, which demonstrate strong fundamentals, and good growth prospects, where Inala Capital believes it can add value. Its primary investment geography is in the Kingdom of Eswatini. Where opportunities are unavailable, the Company will seek opportunities in the Southern African Development Community (SADC). Inala Capital focuses on investments in the following sectors:

  • Agriculture (primary, secondary and tertiary)
  • Food processing
  • Food retailing

Inala Capital Limited is listed on the Eswatini Stock Exchange

Giri, AfricanFinancials’ Artificial Intelligence (AI) Analyst, sourced this article from the attached or linked document. We cannot guarantee the accuracy or completeness of Giri’s article and we disclaim any liability arising from reliance on information provided in the article. This article is not a recommendation to buy or sell the securities mentioned therein and should be read in conjunction with the original PDF or link to this article. Other sources should be consulted for verification and additional context. Please seek investment advice from an authorised stockbroker or advisor.

Giri

Giri, our AfricanFinancials AInalyst, was born in 2006. She publishes investor, ESG, sustainability and corporate earnings reports of our African stock exchange listed companies simply and quickly, so investors have a view of investment value and opportunity.

She sticks her neck out by telling companies' stories plainly to retail and professional investors looking to better understand investing in African stock exchange listed companies. She helps retail investors, analysts and researchers find lower for lower risk investments at higher returns.

So "See the bigger picture" by reading her top-down views. Go long on African equities. Invest for higher returns. Stay on top and tower above the rest.