Trustco suffers mega-million loss
Trustco recorded revenues of N$618 million, a drop of 72% on a normalised basis.
Jo-Maré Duddy – Trustco Group Holdings suffered a total comprehensive loss of nearly N$466.9 million for the 18 months ended 30 September 2020, the diversified entity said on Friday.
Commenting on the drop of 148% - or 132% if normalised – Trustco said a significant portion of the loss or N$279 million was due to property revaluations triggered by adverse market conditions.
“The 18 month financial period reported on turned out to not only be a challenging period for Trustco, but also for Namibia and the world,” the group said.
“With the world at large experiencing worsening macro-economic conditions due to the Covid-19 pandemic, Namibia’s recessionary environment deteriorated. Trustco would not emerge unscathed from this financial period,” it said.
Referring to the impact of Covid-19, Trustco said: “The group has been impacted by the pandemic from a cash flow perspective as some clients applied and were approved for payment holidays of up to 3 months.”
Trustco said it implemented several measures to minimise the impact of external conditions on the group.
“During this reporting period, the group restructured its debt with its international funders, with interest payments, capital holidays as well as term extensions up to seven years being negotiated. The group also negotiated a term loan facility of US$20 million with an existing international funder to provide student financing and debt relief to students during the pandemic,” it said.
FIGURES
Trustco changed its financial year end from 31 March to 30 September. One of the reasons for the move, according to Trustco, is that the group’s capital and funding base is predominantly based in the Northern hemisphere. Trustco aims to time the release of full-year results to coincide with the working calendars of those regions, it said.
Trustco said while the change of the financial year end “served to minimise the impact on stakeholders, it unfortunately did not nullify it”.
The group recorded revenues of N$618 million, down 57% from the previous period, or 72% down if normalised to 12 months.
Basic earnings per share (EPS) recorded a loss of 19.95c for the 18 months under review, compared to a positive EPS of 65.21c from the previous period. Headline earnings per share (HEPS), a profitability gauge, came in at -19.06c compared to 64.21.
Trustco’s insurance and investments segment suffered a loss of nearly N$1.04 billion after tax during the 18 months under review, compared to a profit of around N$229.9 million in the 12 months ended 31 March 2019.
Its banking segment, which includes Trustco Bank Namibia, Trustco Finance and Trustco Capital, reported a loss nearly N$461.9 million after tax compared to a loss after tax of some N$52.3 million in its previous financial year.
The group’s resources or diamond mining segment made a profit after tax of nearly N$1.2 billion compared to a profit of around N$485.6 million previously.
ASSETS
Trustco’s total assets at the end of the 18 months under review totalled about N$5.6 billion, while total liabilities amounted to nearly N$2.5 billion. At the end of its 2019 financial year, assets totalled nearly N$6.4 billion and liabilities about N$2.8 billion.
In the past reporting period, directors’ emoluments totalled about N$38.4 million compared to nearly N$23.3 million in the 2019 book-year.
“The directors have considered the group’s liquidity requirements and, based on these factors, along with a robust review of the budget and cash flow forecast, are confident that the group will remain a going concern for the foreseeable future,” Trustco said.
Commenting on the drop of 148% - or 132% if normalised – Trustco said a significant portion of the loss or N$279 million was due to property revaluations triggered by adverse market conditions.
“The 18 month financial period reported on turned out to not only be a challenging period for Trustco, but also for Namibia and the world,” the group said.
“With the world at large experiencing worsening macro-economic conditions due to the Covid-19 pandemic, Namibia’s recessionary environment deteriorated. Trustco would not emerge unscathed from this financial period,” it said.
Referring to the impact of Covid-19, Trustco said: “The group has been impacted by the pandemic from a cash flow perspective as some clients applied and were approved for payment holidays of up to 3 months.”
Trustco said it implemented several measures to minimise the impact of external conditions on the group.
“During this reporting period, the group restructured its debt with its international funders, with interest payments, capital holidays as well as term extensions up to seven years being negotiated. The group also negotiated a term loan facility of US$20 million with an existing international funder to provide student financing and debt relief to students during the pandemic,” it said.
FIGURES
Trustco changed its financial year end from 31 March to 30 September. One of the reasons for the move, according to Trustco, is that the group’s capital and funding base is predominantly based in the Northern hemisphere. Trustco aims to time the release of full-year results to coincide with the working calendars of those regions, it said.
Trustco said while the change of the financial year end “served to minimise the impact on stakeholders, it unfortunately did not nullify it”.
The group recorded revenues of N$618 million, down 57% from the previous period, or 72% down if normalised to 12 months.
Basic earnings per share (EPS) recorded a loss of 19.95c for the 18 months under review, compared to a positive EPS of 65.21c from the previous period. Headline earnings per share (HEPS), a profitability gauge, came in at -19.06c compared to 64.21.
Trustco’s insurance and investments segment suffered a loss of nearly N$1.04 billion after tax during the 18 months under review, compared to a profit of around N$229.9 million in the 12 months ended 31 March 2019.
Its banking segment, which includes Trustco Bank Namibia, Trustco Finance and Trustco Capital, reported a loss nearly N$461.9 million after tax compared to a loss after tax of some N$52.3 million in its previous financial year.
The group’s resources or diamond mining segment made a profit after tax of nearly N$1.2 billion compared to a profit of around N$485.6 million previously.
ASSETS
Trustco’s total assets at the end of the 18 months under review totalled about N$5.6 billion, while total liabilities amounted to nearly N$2.5 billion. At the end of its 2019 financial year, assets totalled nearly N$6.4 billion and liabilities about N$2.8 billion.
In the past reporting period, directors’ emoluments totalled about N$38.4 million compared to nearly N$23.3 million in the 2019 book-year.
“The directors have considered the group’s liquidity requirements and, based on these factors, along with a robust review of the budget and cash flow forecast, are confident that the group will remain a going concern for the foreseeable future,” Trustco said.
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