Long4Life, Brian Joffe’s investment group, is focusing on preserving cash during Covid-19, which it says may allow it to make acquisitions even as the pandemic creates unprecedented economic uncertainty.
The group, whose brands include Sportsmans Warehouse and the Sorbet beauty and grooming chain, grew headline earnings per share 5% to R367.2m in its year to end-February, amid a solid performance from its personal-care and wellness businesses.
Headline earnings are a widely used profit measure in SA, stripping out once-off items to give a better indication of underlying performance.
Trading profit in the group’s personal-care and wellness division jumped 72.7% to R67.2m, with the group citing recent acquisitions, while Sorbet grew treatment revenue by double digits.
Trading profit in the group’s beverages division decreased 9% to R139.8m, with the group describing the performance of Chill Beverages as disappointing. Increased investment in facilities upgrades and marketing initiatives at Chill Beverages did not yield the expected revenue rise, the group said, adding that increasing competition and pricing pressure affected margins.
“The short-term preservation of cash is critical, and a significant focus is being placed on ensuring a continued robust financial position,” the group said.
“This will ultimately enable management to take advantage of any acquisition opportunity that may arise.”
The group has not paid a dividend, citing its share buyback programme. During the year, the group acquired 104.1-million shares at an average price of R4.09 a share, amounting to R426.5m.
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