BlackStar Group has announced results for the year ended 31 December 2014. Over the year its net asset vale rose from 93p to 99p. They are paying a dividend for the year of 0.77p. The weakness of the Rand relative to sterling held back results. BlackStar is in the process of finalising two large transactions (the Tiso deal and purchase of Times Media Group) that will have a big impact on the shape of the group.
They say their newly merged steel business, Consolidated Steel Industries Proprietary Limited, performed way above expectations. They had £3.3m from Robor Proprietary (by way of a dividend and a management buy in) and increased their stake in that company. However Robor has experienced a decline in sales which they attribute to the weak South African economy. They are valuing this company at £4.4m – less than their attributable share of tangible net assets Since the year end they have sold their investment in Cadiz Holdings, realising £2m. They have also acquired two additional properties for their BlackStar Real Estate company. BRE also started a development on vacant land in an industrial development near the King Shaka airport in KwaZulu-Natal. This development will be completed by May 2015 and we expect to secure tenants in the next few weeks. They say Blackstar’s remaining investments performed to expectations and are earmarked for sale at the right valuation.
BLCK : BlackStar asset value climbs despite Rand weakness