Trustco announces profit of N$110 million

TRUSTCO Group Holdings has announced that it recorded a profit of N$110 million over the six-month period to the end of February this year.

The company’s net asset value (NAV) increased by 9,5%, reaching N$1,26 billion (US$68 million), compared to N$1,15 billion (US$62 million) previously, the group announced on Friday.

This growth translates to an increase in NAV per share from 117,1 cents to 128,2 cents.

The group said it moved from a loss of N$250 million (US$13 million) in the corresponding prior period to a profit of N$110 million (US$6 million) for the six months ended 29 February.

Trustco said while micro-finance, commercial banking and education faced headwinds, its real estate and mining business sectors saw significant gains.

Rising demand for prime Namibian property fuelled an increase of N$70,7 million (US$3,8 million) in the group’s real estate portfolio.

Meanwhile, the mining sector’s resilience, boosted production and favourable exchange rates led to a N$154,5 million (US$8,3 million) jump.

“The past period exemplifies the power of our multi-sector strategy,” said Trustco Group deputy chief executive Quinton Z van Rooyen.

“Challenges in one area are balanced by strength in others, ensuring consistent value creation for our investors,” he said.

Trustco also said it has ignited its growth trajectory by securing access to up to US$100 million in hybrid capital from the United States-based Riskowitz Value Fund.

The group said this move unlocks investment opportunities across Trustco’s diverse portfolio and opens doors to new ventures.

Additionally, the company solidified its presence in Namibia’s insurance and real estate sectors by acquiring an additional 11,35% stake in Legal Shield Holdings Limited, it said.

The Trustco board is finalising a previously announced debt-to-equity conversion agreement with founding shareholders Next Capital.

This transaction aims to convert N$4,4 billion (US$ 235 million) in debt and equity liabilities into equity.