GAMBLING: Grand Parade's Tables Turned
Recent Western Cape Business News
BEE investment company Grand Parade Investments (GPI), which has GrandWest as its major asset, posted its interim results for the period ended December 2009 showing headline earnings decreasing by 16.5%, and HEPS declining by only 13.8% due to the benefits of last years share buy back programme.
According to chairman Hassen Adams: “Although headline earnings declined, GPI has demonstrated resilience in a restrained global market and despite this we managed to grow our net asset value per share by 4%. During this distressed time we are pleased to have been able to reach an agreement with the Tatts Group, our Australian partners in the Thuo Group of companies to acquire 100% of their interest in Carentan, the holding company of Thuo.
One of the key drivers behind the legalisation of gambling in South Africa was to use the industry as a platform from which the empowerment of the previously disadvantaged could take place and is do doing rectify passed imbalances. This transaction is from that perspective a significant milestone, as GPI has progressed from being an investor to an operator. This acquisition is important to GPI as it affords us the opportunity to develop our gaming interests more directly with increased control. ”
GPI’s income from associates decreased by 10.5% compared to the previous period, mainly as a result of the decrease in attributable earnings from SunWest and RAH.
The Table Bay Hotel, which is 100% owned by SunWest, was seriously affected by the economic crisis, contributing a R3.9 million decrease in income. The hotel experienced a particularly bad first quarter during the Cape Town winter, which was exacerbated by the Swine Flu epidemic. Pleasingly occupancies rebounded in the second quarter, but not enough to reduce the first quarter loss. On a more positive note, GrandWest demonstrated much greater resilience to the downturn posting a 5.7% decline in attributable earnings.
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