Brian Joffe’s investment holding company Long4Life graduated from “a work in progress” to an owner of a portfolio of companies during the first half of its second financial year.
Long4Life has invested half of the R2bn cash it held at September 30 2017, its interim results released on Wednesday morning showed.
Regarding the remaining R1bn, Joffe said further acquisitions are “continually being assessed and anticipated to lead to the addition of exciting new opportunities”.
From generating no revenue in the first half of its first year on the JSE, Long4Life reported interim revenue of R1.5bn and net profit of R147m in the six months to end-August.
The group changed its financial year-end to February from March following its acquisition of Holdsport, and Wednesday’s results compared the six months to end-August 2018 to the six months to end-September 2017.
Holdsport — which owns retail chains Sportsmans Warehouse and Outdoor Warehouse — contributed 60% of the group’s revenue and 64% of trading profit before central expenses.
The group’s other acquisitions include beverage companies Chill and Inhle, and beauty salon chain Sorbet.
Its beverage division contributed 36% of the group’s revenue and 29% of trading profit before central expenses in the first half.
The personal care and wellness division generated 4% of the group’s revenue and 7% of trading profit before central expenses.
Subsequent to the reporting period, Long4Life moved into the private clinic market, acquiring 36% of Clayton, “a sub-acute rehabilitation medical group providing comprehensive inpatient treatment and care”.
“The acquisition is a strategic initiative and creates a platform for opportunities for Long4Life to enter into the high growth wellness space,” the company said in its results statement.
Long4Life, which paid a 5.4c dividend at the end of its 2018 financial year, opted not to pay an interim dividend.
It will restrict itself to final dividends until it is fully invested, the company said.
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