GRAND PARADE LIFTS ITS NET ASSET VALUE BY 8% AND TAKES CONTROL OF ITS LIMITED PAYOUT MACHINE INVESTMENTS
Highlights of the results include:
Against recessionary trends GPI was able to:
- Invest R192m and become a leading slots operator in South Africa.
- Play a key role in bringing the FIFA FanFest to Cape Town.
- Invest R28m in increasing its direct stake in SunWest to over 30%.
- Invest R4m in increasing its stake in Worcester Casino to 44.4% and achieve joint control.
- Grow its indirect stake in Sibaya through Akhona GPI’s increased stake in Dolcoast, which increased from 18.5% to 23%.
- Maintain its commitment of being dividend active in matching last year’s 7,5 cents declaration.
- Increase its net asset base by 8% and contained its decline in adjusted headline earnings per share to 7%.
According to chairman Hassen Adams: “The highlight of our financial year was undoubtedly taking control of GPI’s Limited payout slots machine (LPM) interests. This acquisition became unconditional on 30 June and signalled the start of our planned transition from being purely an investment holding company to an operating company with investments. The R192-million acquisition not only increases our exposure to the LPM market, but also offers us a platform to manage and operate the business and to develop GPI’s technology driven gaming strategies.”
Adams added: “Another highlight close to my heart was our partnership with WorldSport and VWV in securing the contract to manage the FIFA FanFest on the Grand Parade during the 2010 World Cup. Over half a million people attended the FanFest and it played a crucially important part in raising the profile of Cape Town globally. It was befitting that GPI was instrumental in transforming its spiritual home, the Grand Parade in Cape Town, into an international showcase.”
GPI’s Chief Executive, Adrian Funkey reflected on another important development in the evolution of GPI into a major and respected force in the African gaming and leisure sector. “During the year, we increased GPI’s shareholding in SunWest from 29.24% to 30.04% and reclassified this investment to more correctly reflect its substance as that of a jointly controlled entity.
We were only able to achieve this through the ongoing commitment and faith of GPI shareholders by convincing a number of our black shareholders to agree to lock up their shares to achieve the required 35%. In so