Pick n Pay has released details of a strategic response to the situation in which the company finds itself. Under the leadership of Sean Summers, the group intends to implement a two-step recapitalisation plan which will comprise a Rights Offer to existing shareholders of up to R4 billion, providing near-term liquidity, followed by an offering and listing of the Boxer business on the JSE. The rights offer is expected to take place mid-2024 followed by the IPO towards the end of 2024. The group intends to retain a majority stake in Boxer after the IPO.
Vukile Property Fund has raised R1 billion via an accelerated bookbuild. The company placed 68,493,151 shares at R14.60 per share, representing a 0.75% discount to the pre-launch share price on 19 February and a 4.85% discount to the 10-day VWAP.
Copper 360 has successfully raised just short of R100 million, placing 29,411,764 shares at R3.39 per share. This represents a 9.1% discount to the VWAP for the 30 trading days up to February 14. The company has indicated that it has negotiated a buy-back option with the investor (after six months) which would reduce the dilution effect of the issue. Proceeds will be used to fund its expansion strategy and short-term working capital requirements.
Primeserv has advised that during the period 12 December 2023 to 19 February 2024, the company repurchased an aggregate of 519,473 ordinary shares for a total value of R667,033. The shares, repurchased at an average price of R1.22 per share, represent 0.45% of the issued share capital of the company.
Prosus and Naspers continued with their open-ended share repurchase programmes. During the period 12 – 16 February 2024, a further 3,484,866 Prosus shares were repurchased for an aggregate €101,93 million and a further 272,075 Naspers shares for a total consideration of R913,4 million.
AB InBev has repurchased a further 562,205 shares at an average price of €58.57 per share for an aggregate €32,93 million. The shares were repurchased over the period 12 – 16 February 2024.
A2X will welcome its first inward listing when LSE-listed Neo Energy Metals plc opens for trade on the local bourse on 27 February 2024. Neo Energy Metals is a mining and development company focused solely on uranium and strategic metals supply. The company’s main project, Henkries, is a low-cost eco-friendly uranium project located in the Northern Cape.
Four companies issued profit warnings this week: Northam Platinum, Super Group, Sibanye-Stillwater and Caxton and CTP Publishers and Printers.
Four companies issued, renewed, or withdrew cautionary notices this week: Salungano, Telkom SA SOC, Tongaat Hulett and Pick n Pay,
In recent years, there has been a notable increase in sell-side auction activity in South Africa, although it has yet to reach the levels observed in the United States and European markets. There is also a growing trend of increased auction activity in other countries across the continent. In the fast-paced world of mergers and acquisitions (M&A), the sell-side auction has become a key strategy for companies aiming to enhance value and orchestrate competitive transactions.
In the context of M&A, a sell-side auction refers to a process where a company that is seeking to be acquired, or to sell a lucrative asset, solicits bids from multiple potential buyers.
Strategic evaluation: advantages and disadvantages of a sell-side auction
In the realm of M&A, the utilisation of sell-side auctions presents a nuanced landscape with distinct advantages and potential pitfalls.
Foremost among its merits is the promise of maximised value, as the competitive environment, filled by multiple bidders, often leads to more lucrative deals. The efficiency and timeliness inherent in structured auction processes can expedite transactions, allowing companies to capitalise promptly on favourable market conditions. Casting a wide net during a sell-side auction ensures a diverse pool of potential buyers, increasing the likelihood of finding a party with optimal synergies. In addition, a sell side auction process enables the seller to take the lead in the transaction, streamline the selling process and accelerate decision-making. The competitive atmosphere encourages swift responses from bidders, potentially leading to faster transactions. The inherent characteristics of sell-side auctions frequently result in the formulation of inventive deal structures. This stems from the diverse perspectives brought by each potential buyer to the transaction, and their eagerness to enhance the appeal of their bids.
However, this approach is not without its challenges, as the resource-intensive nature of organising an auction demands careful consideration, and it may strain internal resources, both human and financial.
To best present its asset, the sell-side ordinarily finds itself compelled to conduct its own due diligence investigations, spare financial resources to regularise any red-flag outcomes identified during the due diligence investigations, and spend time and money on financial, legal and tax advisers. In addition, the risk of proprietary and strategic information being disclosed, uncertain outcomes that may be influenced by various external factors beyond the seller’s control, coupled with the potential for disruption within the organisation, introduces complexities that warrant meticulous evaluation. Despite these considerations, the strategic advantages of sell-side auctions, including enhanced negotiation leverage and confidentiality control for the seller, underscores its significance in the M&A landscape. As legal practitioners navigate this dynamic terrain, a judicious assessment of these advantages and disadvantages becomes imperative to guide our clients through successful transactions.
Sell-side auction processes and timelines
The sell-side auction normally involves the following key steps:
The seller assembles professional internal and external deal teams, which consist of lawyers and investment bankers/financial advisors;
The seller conducts a vendor due diligence investigation and prepares a report (VDD);
Pursuant to the VDD, the third step involves the preparation of a value proposition in the form of a confidential information memorandum (CIM) to offer potential buyers an overview of the asset on sale. The process also includes having a non-disclosure agreement (NDA) in place to protect the proprietary interest of the selling company.
The fourth step is strategic, and involves the seller identifying potential buyers and inviting them to take part in the auction. This is to increase the likelihood of receiving bids from multiple parties.
The Seller exchanges the NDA, and distributes the CIM to potential buyers. The potential buyers would then submit non-binding indications of interest, which the seller uses to narrow the list of potential buyers.
After gauging the interest in the asset and the quality of potential buyers, the sixth step usually involves drafting a definitive agreement for comments and review by shortlisted bidders, setting up a data room to facilitate and enable potential buyers to conduct their due diligence investigations and, where the seller would like to have a ‘clean exit’, the seller will shop for warranty and indemnity insurance, and negotiate the parameters of liability and non-binding indicators with the insurer for inception by a successful bidder.
At this point, shortlisted bidders are given access to the data room to conduct a detailed due diligence investigation, review and comment on the draft definitive agreement, and submit a binding offer.
In the final step, once the shortlisted bidders have all submitted their bids, the sell-side will consider the binding offers, having regard to, amongst other things, the price offered for the asset and the nature and extent of the proposed changes to the draft definitive agreement, including conditions to implement the transaction and the likelihood of fulfilling such conditions. The Seller would then select a successful bidder and exclusively negotiate the final terms of the deal with this Buyer.
The timelines involved in a sell-side auction vary, but it can take anywhere between six and 12 months to implement such a transaction, once the seller goes out to market and there is immediate interest shown in the asset.
Risk versus reward
The decision to embark on a sell-side auction is indeed a calculated risk that warrants careful consideration. While the potential for maximising value and securing favourable terms through heightened competition is enticing, the resource-intensive nature of the process and the risk of confidential and/or sensitive information leakage during selection poses inherent risks. One must weigh these potential drawbacks against the strategic advantages, taking into account the specific goals and circumstances of the selling company. For organisations seeking swift transactions, a diverse pool of potential buyers and maximum value, the benefits may outweigh the challenges. However, for those not willing to spend resources, preferring to engage and negotiate with a single potential buyer, safeguarding their confidential information, and with minimal disruption, a traditional approach may be more suitable. Ultimately, the decision to pursue a sell-side auction should align closely with the overarching objectives of the selling company and its tolerance for the financial and resource intensive exercise inherent in a sell-side auction process. Legal and financial advisers play a crucial role in guiding clients through this evaluation, ensuring that the risks undertaken align with the potential rewards in the pursuit of successful transactions.
In conclusion, the decision to embark on a sell-side auction in M&A demands a balancing act between potential risks and rewards. Ultimately, the determination of whether a sell-side auction is a risk worth taking hinges on aligning the chosen approach with the circumstances of the selling company, its unique goals, risk tolerance, and the human and financial resources at its disposal.
Gabi Mailula is an Executive, Kamohelo Masubele, an Associate and Asanda Lembede a Candidate Legal Practitioner in Corporate and Commercial | ENS.
This article first appeared in DealMakers, SA’s quarterly M&A publication.
Deon Lewis (co-founder of Futureneers) and James Rothmann (Projects Director and Tax Innovation Officer at Futureneers) joined The Finance Ghost to talk about the 12BA Renewable Energy Partnership and the opportunity it offers investors for a tax-enhanced investment in solar.
Listen to the show here:
On this podcast, we talked about topics including:
The background of Futureneers and the investment track record.
The return profile of the solar projects both with and without the tax benefits.
The way the tax works further down the line when there’s a potential sale of the project.
Whether this opportunity is relatively more attractive for potential investors who are in higher tax brackets.
The protections in place for investors.
For more information on Futureneers and to apply for this opportunity, you can follow this link.
As always, ensure that you do your own research and consult with your financial advisor. The Finance Ghost has no affiliation with Futureneers or involvement in the underlying investments and does not accept any responsibility for the financial returns. Futureneers is a registered Financial Services Provider (FSP 46996) and registered Section 12J Venture Capital Company.
Get the latest recap of JSE news in the Ghost Wrap podcast, brought to you by Mazars:
It doesn’t get more sideways than Adcock Ingram (JSE: AIP)
If you like small percentages, here’s one for you
Look, Adcock Ingram certainly isn’t going to set your hair on fire. For the six months ended December 2023, revenue was up 1%. Exciting, hey? Gross profit fell 2%, trading profit was down 1% and HEPS increased by 1%.
I actually can’t remember seeing a cluster of such small numbers! Normally, when revenue is so sideways, trading profit takes a dive. Not so in this case.
Once you get to segmental numbers, it does get more interesting at trading profit level. The biggest segment is Prescription, thanks to a 13% increase in trading profit despite flat revenue. Conversely, OTC saw profits drop 9% off flat revenue. Consumer maintained its margins, with both revenue and trading profit up 2%. The Hospital division is the smallest part of the group and saw profits fall 16% despite a 5% increase in revenue.
In a final nod to the sideways journey, the dividend of 125 cents per share is identical to the prior period.
Bidcorp just keeps marching on (JSE: BID)
Growth remains strong, although there’s a question mark around margins
Global food service giant Bidcorpis an excellent way to give your money a passport without leaving the JSE. The company only earns a fraction of its income from South Africa, with the largest markets being Europe and the UK. The food service industry is lucrative once a business reaches scale, as is the case at Bidcorp.
The pandemic obviously threw quite the spanner in the works. This chart is historically significant, showing how H2’20 earnings were literally non-existent:
The other thing to take from the chart is that earnings have grown beautifully if we look through the pandemic distortions. In the six months to December 2023, revenue was up 24% and trading profit increased by 20.8%. Now, this does mean some operating margin contraction, caused by operating expenses growing slightly faster than gross profit.
Still, 18.6% growth in HEPS and a 19.3% increase in the dividend per share isn’t anything to complain about.
If you look segmentally, the trading profit story does reveal a significant headache in the UK in particular. Revenue increased by 21.2% in that market and trading profit fell 15%. Gross margin pressure in that market is a direct result of the tough conditions being faced there in the hospitality sector. Again, the grass isn’t always greener!
The strategy going forward remains the same: organic growth plus the use of bolt-on acquisitions to expand either geographic reach or product range in existing markets.
What on earth is going on at Bytes? (JSE: BYI)
The share price fell 6% on very odd news of the CEO suddenly resigning
It’s never a good thing when an executive leaves out of the blue, especially the CEO. It’s even worse when a resignation comes through with immediate effect, as it suggests that something has gone badly wrong in the background. When the SENS announcement doesn’t give a good explanation for something like this (e.g. a health problem), speculation is rife.
So, the news of Bytes CEO Neil Murphy resigning with immediate effect (and with no explanation given) isn’t a happy thing, which is why the share price closed 6% lower. To add even more spice to this story, there have been trades in the company shares that he hadn’t disclosed to the company or the market.
As Alice cried, “Curiouser and curiouser!”
The jokes write themselves about the clarity of the situation, with Sam Mudd (MD of Phoenix Software and an executive director of the company) taking the role of interim CEO.
The only positive here is that trading for the year ending 29 February 2024 has been in line with expectations, with a trading update due in March.
Choppy results at Choppies (JSE: CHP)
The per-share numbers have been significantly impacted by the rights offer in June 2023
Retail group Choppieshas released a trading statement for the six months to December 2023. Earnings actually did rather well, with profit after tax from continuing operations up by between 36% and 46%. On a per-share basis, the picture looks very different, with HEPS expected to differ by between -3% and 7%.
This is because of the rights offer that was completed in June 2023 that resulted in more shares being in issue.
Glencore’s numbers are way down year-on-year (JSE: GLN)
This is another good example of mining cycles in action
At Glencore, revenue dropped by 15% in 2023 and adjusted EBITDA was down 50%. Funds from operations tanked by 67%. Clearly, the year-on-year story is typical of the hard correction we’ve seen in the commodity sector over the past 12 months.
Glencore is quick to remind the market that although the year-on-year picture might look awful, the group remains highly cash generative. This supports the deal to acquire a 77% stake in Teck’s Elk Valley Resources business for $6.93 billion in cash is in the process of regulatory approvals, with an expected closing date no later than Q3 2024.
The focus is on deleveraging the balance sheet towards a $5 billion net debt cap before a demerger into a fossil fuels and transition metals structure could be considered. Glencore expects the deleveraging to occur within 24 months from transaction close.
This is why there is no “top-up” distribution at this point, with Glencore hoping that such distributions will happen again in the future. It’s a vague comment from the company that is surrounded by reminders that the real focus is on deleveraging, so don’t hold your breath for a high payout ratio over the next couple of years.
Profitability has collapsed at Sibanye-Stillwater (JSE: SSW)
The share price is back below R20
The good news is that Sibanye achieved revised production guidance for the year ended December 2023 at all operations other than US PGM recycling, which was impacted by deliveries of used autocatalysts remaining depressed as used vehicles are taking longer to be replaced in an environment of higher interest rates.
That’s where the good news ends.
Other than gold, commodity prices plummeted in 2023. This has led to substantial impairments being recognised on various operations, including even the SA gold operations due to the Kloof 4 shaft closure and the deferral of the Burnstone project.
Those impairments can’t even be blamed for the precipitous drop in HEPS, which will be over 90% lower year-on-year at between 60 cents and 66 cents.
The share price has lost almost half its value in the past 12 months.
Spar’s local volumes are still under pressure (JSE: SPP)
And in a shock to nobody, the SAP issues continue
Sparhas released a trading update for the 26 weeks to 16 February, showing an increase in turnover of 9.3% for the period. This number needs to be unpacked though, as Spar has operations in several countries.
SPAR Southern Africa remains the most important part of the business. Core grocery and liquor turnover growth was only 6.1% vs. internal inflation of 7.5%, so volumes moved in the wrong direction. The grocery wholesale business was only up 5.1% thanks to ongoing systems issues in the KZN region after the business gave itself the kiss of death: a SAP implementation.
To this day, I cannot think of a single SAP implementation at a retailer that hasn’t caused severe disruptions.
SPAR2U, the rather obscure online offering, is now available at 403 sites. Sales increased by 450% but that’s vs. a tiny base.
The star of the local business is TOPS at SPAR, which increased sales by 12.7%. Pharmacy at Spar was also solid, up 11.6%. Conversely, building materials and construction business Build it could only manage 0.5%.
Moving abroad, BWG Group in Ireland and South West England grew turnover by 7.1% in EUR and thus 19.1% in ZAR, with the rand depreciation helping massively here. Ditto for SPAR Switzerland, where a decline in turnover of 5.7% in CHF translated into a 9.2% increase in ZAR.
In Poland, an ongoing headache that Spar wants to sell, turnover was down 2.9% in PLN terms and up 16.1% in ZAR.
The group is considering various debt structuring options, with an optimised debt structure dependent on the outcome of the disposal of the interests in Poland.
Interim results for the six months ending March will be released on 5 June.
Stor-Age’s key metrics moved in the right direction (JSE: SSS)
The company has released a trading update for the four months to January 2024
Growth at Stor-Age comes from three sources: new developments, higher occupancy in existing developments and pricing increases charged to customers for the storage space. The company is very good at pulling all three of those levers.
In the four months to January 2024, group occupancy in the owned portfolio increased 230 basis points to 90.1%. The South African portfolio was the star here, up 280 basis points to 92.1%. The UK was up 40 basis points to 83.0%. The joint venture portfolio is a lot smaller and runs at a significantly lower occupancy rate, but this is increasing quickly as the properties mature.
Importantly, the South African portfolio saw average rentals up by 9.4% and the UK portfolio achieved 4.8% growth in that key pricing metric.
And with respect to the third lever (new developments), there are currently four developments underway – two in South Africa and two in the UK. Stor-age is also expanding certain existing properties to respond to demand.
There’s actually a bonus lever of growth which is still in its infancy: managing properties on behalf of third parties. This is a great way to increase return on equity, as the group is earning income off assets that it didn’t pay to build.
Little Bites:
Director dealings:
Sean Riskowitz, acting through Protea Asset Management, has bought more shares in Finbond (JSE: FGL) worth R758k.
A non-executive director of British American Tobacco (JSE: BTI) has acquired shares in the company worth £99k.
Brimstone Investment Corporation (JSE: BRT) released a trading statement dealing with the year ended December 2023. It’s based on EPS growing by between 49% and 59%, which really isn’t a useful measure for Brimstone’s investment holding company structure. Let’s wait and see what the movement in net asset value (NAV) is when results are released on 6 March.
Due to the process with the Prudential Authority taking longer than expected, Conduit Capital (JSE: CND) and the acquirer of the Copper Sunset Trading subsidiary (a deal worth R55 million) have agreed to extend the fulfilment date once more to no later than 31 March 2024.
The application to liquidate Afristrat Investment Holdings (JSE: ATI) was dismissed in the High Court, with costs. This has been going on for a while now and the company has earned itself some breathing room with this judgment.
Primeserv (JSE: PMV) has repurchased 0.45% of shares in issue between 12 December 2023 and 19 February 2024 for a total amount of R667k.
Following the standout performance of their initial 12BA Renewable Energy Partnership, which effortlessly hit its R135 million target,Futureneers is rolling out the much-anticipated sequel: Renewable Energy Partnership II. This isn’t just about making waves in the investment world; it’s about creating a ripple effect of change across South Africa’s energy sector.
With Partnership I rallying an impressive R96 million in debt and equity from August to December 2023 and a staggering R39 million in equity during the last 4 weeks, the stage is set for an encore that promises not only remarkable financial returns but also significant societal impact.
Your Investment, Amplified
Renewable Energy Partnership II isn’t your everyday investment. It’s a gateway to leveraging your tax in a way that contributes directly to South Africa’s green energy transition. And here’s the kicker: with the tax year concluding on 29 February 2024, this Partnership offers an exclusive chance to benefit from a 125% tax deduction. Yes, it’s a limited offer, but the potential? Limitless.
This is about putting your money where your heart is, blending financial wisdom with a commitment to sustainable development. With just R20 million up for grabs, it’s an opportunity that demands swift action, potentially achieving an Internal Rate of Return (IRR) of 21% pre-tax, and making a tangible difference in our energy crisis.
Investment Highlights:
Exclusivity at Its Finest: With only R20 million available, this opportunity is as rare as it is impactful.
Unprecedented Tax Advantage: Secure your spot for the last chance at a 125% tax deduction for this tax year, exclusively through Futureneers.
Diverse Investor Appeal: Whether you’re an individual looking to maximize tax efficiency or a corporation aiming for impactful investment, this is for you.
Solid Returns: A projected pre-tax IRR of 21% (13% post-tax) marks this as a standout choice for serious investors.
Strategic Entry: A minimum investment of R500,000 with options for early exit provides both commitment and flexibility.
Make Your Move
As we approach the tax year deadline, the window for this unique investment narrows. It’s not just an opportunity for financial growth but a step towards contributing to a sustainable and energy-secure future for South Africa.
Position yourself at the forefront of change and investment excellence. Together, let’s turn the tide towards a greener, more prosperous tomorrow.
Get the latest recap of JSE news in the Ghost Wrap podcast, brought to you by Mazars:
You need to read the BHP numbers carefully (JSE: BHG)
For one things, there are massive impairments in the results
Mining giant BHP released results for the six months to December 2023 and the words “underlying profit” appear often. The key difference between underlying profit and attributable profit is the impairment of Western Australia Nickel ($2.5 billion) and a further charge related to the Samarco dam failure ($3.2 billion). This smashes attributable profit from $6.5 billion in the comparable period to just $0.9 billion in this period.
Although these are non-cash charges for now, the reality is that the Samarco provision is an estimated future outflow and the Western Australia Nickel impairment talks to capital allocation. I wouldn’t just ignore these as being inconsequential.
To get closer to the core mining results, we can look at revenue (up 6%) and underlying EBITDA (up 5%), with slightly contraction in underlying EBITDA margin from 53.5% to 53.3%.
Net operating cash flow is a much more exciting story, up 31% thanks to the increase in EBITDA and lower income tax and royalty tax payments as well, which aren’t captured in EBITDA.
Of net operating cash flow of $8.9 billion, BHP invested $5.1 billion in various capital projects and thus generated $3.8 billion in free cash flow. Some capital expenditure was also funded from debt, which is why net debt increased from $11.2 billion as at June 2023 to $12.6 billion as at December 2023.
This is still within BHP’s targeted range for net debt of $5 billion to $15 billion.
An interim dividend of $0.72 per share has been declared, which is a 56% payout ratio.
Although there’s lots of noise in the numbers around timing of projects and other things, it’s quite fun to compare Return on Capital Employed (ROCE) across the various business units. Copper came in at 10%, iron ore 85% and coal 15%. Thankfully for BHP shareholders, iron ore is the biggest part of the business.
Kumba cuts jobs along with the production outlook (JSE: KIO)
This is the inevitable outcome of failing infrastructure
Thanks to a period of strong cost savings (R1 billion) and a rebound in iron ore prices towards the end of the year, Kumba Iron Ore pulled off a decent set of numbers for the 2023 financial year. EBITDA margin actually increased from 50% to 53%, with attributable free cash flow coming in 43% higher. Return on capital employed increased from 76% to 82%.
It all sounds really good until you dig deeper, with the group having to cut back on production because Transnet simply cannot rail the stuff to port quickly and reliably enough. This didn’t do any good for unit costs at Sishen in particular, although cost initiatives helped unit costs at Kolomela move lower.
The logistics limitations have led to a lower expected production plan for 2024 to 2026, which means the workforce at the company is too bloated for expected production levels. To ensure they remain competitive, Kumba will need to reconfigure the business and this is expected to impact 490 jobs. A further 160 service providers and contractors are impacted.
It’s one thing when commodity prices lead to job losses, like in the PGM industry. It’s another thing altogether when government absolutely fails to support the private sector, forcing a more conservative approach that loses jobs rather than creates them.
As great as the HEPS increase of 26% is, Kumba needs to look ahead and ensure it is right-sized for conditions that may not be so favourable.
Record earnings at NEPI Rockcastle (JSE: NRP)
This is the highest distributable earnings per share (DEPS) result in the company’s history
Eastern Europe (with the obvious exception of Ukraine) has turned out to be a decent place to do business as a property company, particularly when you have NEPI Rockcastle’s portfolio and balance sheet. Smaller funds are struggling with funding costs, yet here we have NEPI as the big shot in the room with record DEPS for the year ended December 2023.
DEPS was up 9.3% year-on-year, which exceeded even recent expectations at the company. If you adjust for once-offs in the base related to litigation provisions, then recurring DEPS was up 17.1%. Net operating income was the driver of this result, up 21% year-on-year thanks to a 13% like-for-like increase and the rest from acquisitions. A high inflationary environment isn’t a problem when lease clauses have indexation clauses. Even better, new lettings achieved higher uplifts than indexation thanks to the way the properties have been managed.
Retailers clearly like the properties in the portfolio, with sales and footfall metrics moving in the right direction and the vacancy rate decreasing to 2.2%.
The balance sheet was further strengthened by a scrip dividend option (shareholders could receive more shares instead of cash dividends), with the loan-to-value ratio down to 32.2%.
DEPS for 2024 is expected to be 4% higher, with no expected change to the current payout ratio of 90%. This is a fairly modest growth outlook, particularly after such a strong year.
A not-very-super update at Super Group (JSE: SPG)
With a nasty correction in the share price of 10% for good measure
Super Group released a trading update for the six months to December that reflects a 16.2% decrease in HEPS despite an 11.9% increase in revenue. This is significant margin erosion, with EBITDA margin decreasing from 13.6% to 12.8%.
There were various challenges faced throughout the group, ranging from the Southern African Supply Chain business suffering from slow turnaround times at local ports through to the UK Dealerships business dealing with a drop in consumer demand and a substantial decrease in used vehicle trading margins. The German and UK Supply Chain businesses also had a tough time as higher interest rates worked through the system. It’s not always greener on the other side, you know.
The bright spots were the SG Fleet business in Australasia in particular, as well as the South African Dealerships business in a car sales environment that has already been through the pain of normalisation.
The balance sheet remains in decent shape, with net gearing of around 36.5%.
Looking ahead, the company expects conditions in the second half of the year to be broadly in line with the first half, with some room for improvement in the UK Dealerships operations.
Vukile had no problems raising capital (JSE: VKE)
As mentioned earlier this week, Vukile is taking advantage of positive investor sentiment
In the heydays of the property market on the JSE (around 2015 – 2016), property funds could raise literally billions of rands in the time it takes you to finish your breakfast. These accelerated bookbuilds were heavily oversubscribed and in most cases, the company didn’t even tell investors exactly what the capital would be used for.
When times are tougher, it’s a lot more difficult to raise capital at all. On the rare occasions where we see an equity raise, the REIT has to submit two blood samples and a lifelong history of the asset being acquired. In short: the equity raising trends on the JSE tell us a lot about where we are in the cycle.
Vukile is certainly one of the better local REITs, so it’s not a huge surprise that it is leading the way in taking us back to the glory years of capital raising. In an equity raise that was intended to be 5% of the market cap (around R750 million), Vukile was able to increase the size of the raise to R1 billion, placing the shares at only a 0.75% discount to the pre-launch share price (and a 4.85% discount to 10-day VWAP).
Most impressively, they could place the shares and raise the money for acquisitions that haven’t even been announced yet. For now, they are just building a war chest for future deals – and the market was quite happy to provide that blank cheque.
Keep an eye on this trend as a potential sign that the best days of the property sector recovery may be behind us. Sadly, Vukile’s share price is still down 28% over the past five years. It has approximately doubled over the past three years in a post-pandemic recovery.
WBHO moves in the right direction (JSE: WBO)
HEPS from continuing operations has increased by between 5% and 15%
Wilson Bayly Holmes-Ovcon, or WBHO as everyone knows the group, has seen its profits head in the right direction for the six months to December 2023. This has been driven by a strong order book in Africa and improvements in the UK as well. For the six month period, HEPS from continuing operations should be up by between 5% and 15%. Total HEPS should be up by between 35% and 45%.
Those of you who keep falling into potholes will be pleased to learn that the roads and earthworks division has increased revenue by at least 50%, so roads are being improved somewhere at least. Operating profit is up by at least 60%.
The building and civil engineering side has grown revenue by at least 15% and profits by at least 5%.
Despite the company complaining about procurement of new work in the UK being difficult, revenue is up by between 15% and 20% and operating profit is up by at least 40%.
The construction materials and property developments segment has performed in line with the prior period at operating profit level.
Share of profits from associates and joint ventures has decreased by at least 60% due to once-off effects of the refinancing of the Gigawatt Power Station in Mozambique.
Australia remains a headache, with the loss from discontinued operations down by at least 90% but many ongoing processes in that country in relation to the exit from that country.
Little Bites:
Director dealings:
An executive director of Richemont (JSE: CFR) has sold shares worth a substantial R22 million.
Kibo Energy (JSE: KBO) has sold nearly £21k worth of shares in Mast Energy Developments, with the proceeds used to reduce the debt with RiverFort Global Opportunities PCC. Selling down an investment to reduce debt isn’t a pretty picture.
Copper 360 (JSE: CPR) has released one of those announcements that only really makes sense to geologists and perhaps mining engineers. The rest of us have to rely on the flavour of the narrative in the commentary by the CEO. Long story short, the historically mined Tweefontein Mine had the highest grade mine in the entire copper district and there could be a new copper mine adjacent to this historically mined area. Magnetic drone surveys and surface sampling results are encouraging. They have three more copper “anomalies” to test, all of which are bigger than the first anomaly that has been tested.
In the unlikely event that you are a shareholder in Marshall Monteagle PLC (JSE: MMP), one of the more unusual local stocks, you’ll want to know that the circular for the disposal of property in California worth $26.5 million has been released to shareholders.
Zeder (JSE: ZED) has reminded shareholders that the SARB approval for the special distribution of 20 cents per share hasn’t been obtained yet. The timetable will need to be revised accordingly.
This is a big year for South Africa. Load shedding returned literally straight after the State of the Nation Address, creating a difficult foundation for the Budget Speech. The headlines are full of political activity in the build-up to elections. There’s a lot going on.
Tertius Troost is in the Tax Consulting team at Mazars, so this is a busy month to say the least. He took time away from a hectic February tax diary to share insights as a preview to the Budget Speech.
Why is this important? Well, as a South African, the Budget Speech directly impacts you in many different ways, ranging from direct changes to your taxes to the way in which your taxes are spent in the country. It’s critical to understand the key pressure points for our fiscus.
With the cosmic game of Jenga that global markets have been playing for the past three years, it’s reasonable to be rattled about investment instability.
Investors are finding it more difficult to spot attractive investment opportunities that will deliver secure, acceptable returns. Even the so-called equity ‘golden oldies’ no longer deliver consistently on investor expectations.
This prompts investors to question the overall viability of investments, but perhaps that line of questioning should be extended to investment strategies, and maybe even the way we assess investment options too. It’s probably time to rethink our existing investment perceptions and expectations and explore fresh ways to preserve capital, generate income and build wealth.
Traditional Thinking
Back in the day, portfolios were typically constructed by cherry-picking equities and bonds from the JSE and allocating them based on risk appetite, leaving investors to sit back and watch yields climb. Growth was the focus, and for the most part, stability lay simply in selecting a collection of traditional, albeit unimaginative, top performing assets, and ensuring they were stacked securely.
With little disruption to worry about, there was no compelling reason to look beyond the tried and trusted with few even thinking about alternative investment options. So, investors and their financial advisors continued to look forward to the annual portfolio review lunch, confident they’d be breaking out the good stuff.
But a new pattern had already started emerging by the time COVID-19 hit. It has since become undeniable and the corks have stopped popping. As conventional investment strategies failed to deliver the expected returns, the mutual backslapping quickly morphed into the Heimlich maneuver, and several critical shortcomings were revealed.
One, the misplaced belief that a Jenga tower built exclusively from the JSE’s top stocks and bonds could be an effective bulwark against market instability;
two, the reluctance to accept that a properly balanced portfolio should include a diversified range of investments beyond just the familiar; and,
three, the blinkers that resulted in many overlooking the potential of including alternative asset classes and fixed investments in balanced portfolios. Especially in rocky times.
Best of both worlds
Much like a real-life Jenga game, you need proper planning and a good mix of pieces in the right places. And much like with your investment portfolio, if you lean too heavily in any one direction, the slightest bump of the table will send the whole thing tumbling. It’s all about balance.
This approach has served Fedgroup well over the years by balancing innovation with a foundation of tried and tested financial wisdom to offer investors the best of both worlds.
With an unblemished track record of the performance of our fixed investments and a pioneering spirit, we’ve shown that it’s possible to constantly challenge industry norms for the benefit of investors. The result? Smooth investment journeys for investors and a consistent delivery on their financial security and growth objectives by incorporating innovative and competitive investment solutions into their portfolios.
How is this possible, you might ask?
Through a combination of fixed-term investments that could withstand a battering even when more traditional assets in investor portfolios might be reeling, providing a stable foundation, no matter the level of market volatility.
This approach to stability is rooted in the simple truth that, even the most aggressive investor, in the most bullish of markets, wants reassurance that a portion of their money is safe. And that’s truer still when the bears come out of hibernation, ready to deliver a COVID-sized klap.
This level of security is provided by fixed investments like our Secured Investment – and the more recently launched Fixed Endowment. They are perfectly positioned to offer investors certainty, from day one, of the exact returns they’ll receive at the end of the fixed term – making them great investment products regardless of whether you’re new to investing or an experienced, qualified investor.
Get the latest recap of JSE news in the Ghost Wrap podcast, brought to you by Mazars:
Farewell to the good times at Anglo American Platinum (JSE: AMS)
The PG in PGMs should stand for Parental Guidance required to read these sector results
As you will also see in the Northam numbers further down, the PGM sector is doing what it does best at the moment: blikseming people. Anglo American Platinum (or Amplats) has reported 2023 numbers and they reflect a 26% decrease in the rand basket price and a 1% drop in refined PGM production. Sales volumes only increased 2% as they dug into the refined stockpile.
You don’t need too much experience in the market to know what that combination looks like for the financials.
Revenue is down 24%, adjusted EBITDA has fallen 67% and HEPS has tanked by 71%. Despite this, mining EBITDA margin was still a rather lucrative 35% – it’s just come down a lot from 57% last year.
The dividend has followed suit, down 81% to R21.30 per share.
Along with initiatives to save costs and reduce capex, the group is embarking on a section 189 process that could impact 3,700 jobs. A review of contractors and vendors could impact 620 service providers.
Aveng reports in Aussie dollars for the first time (JSE: AEG)
This tells us a lot about the focus going forward
Aveng has released results for the six months to 31 December 2023. This is the first time that the reporting currency has been changed from the South African rand to the Australian dollar. Importantly, you also need to look at continuing operations as this excludes Trident Steel in the prior period.
Revenue from continuing operations increased from A$1.1 billion to A$1.5 billion. That’s a 39% increase on the top line of the income statement, driving a 99% improvement in operating earnings i.e. earnings nearly doubled.
McConnell Dowell is the key business, achieving operating earnings of A$24.2 million vs. just A$1.9 million at Moolmans. McConnell Dowell repaid A$10 million of debt in this period and has a remaining balance of A$13 million that the company expects to settle by the end of June 2024.
Moolmans is currently an exclusively South African business, with the group hoping to diversify the exposure going forward.
Current Group CEO Sean Flanagan will retire in March 2024, with McConnell Dowell CEO Scott Cummins set to take the group’s top job. He certainly inherits a group that is in much better shape than before, with work in hand covering 100% of 2024 full year revenue and more than 60% of 2025 revenue. Of course, what really matters is how well the projects are delivered in terms of margins, which are usually very tight and have the potential to easily go into the negative if things aren’t managed properly.
For now at least, HEPS of A$8.8 cents (R1.06) for the interim period is a solid improvement. The share price closed 6% lower at R7.28.
4Sight more than doubles HEPS (JSE: 4SI)
Plus, there’s a dividend!
4Sight has been getting the JSE small cap enthusiasts excited and with good reason:
Has there ever been a more aptly named company, as you wish you had the foresight to see what would happen here?
The driver of the increase has been revenue growth of 34.9% in the year ended December 2023 that has powered a 70.6% increase in operating profit and a 127.8% jump in HEPS. Importantly, there’s now a dividend of 2.5 cents per share based on HEPS of 5.42 cents.
What does the company do? Well, the magic words “Artificial Intelligence” are involved and that always gets the crowd jumping, especially in South Africa where our exposure to the 4th Industrial Revolution is generally limited to the lights coming back on after load shedding.
Italtile: a casualty of this economy (JSE: ITE)
Much like at Cashbuild, there really isn’t much that they can do
Italtile is another great barometer for the state of our economy. Spoiler alert: the operating environment isn’t nearly as pretty as the fancy tiles.
System-wide turnover is down 2%, trading profit has fallen by 17% and HEPS has taken a 15% knock. The dividend has largely followed suit, down 16%.
The outlook doesn’t paint an appealing picture either, noting that consumers are likely to remain under pressure and that the business will find things difficult until interest rates decline and consumer confidence is restored.
One of the reasons why Italtile struggles is that there is a substantial manufacturing element to the business. When capacity utilisation moves in the wrong way due to weak demand, manufacturing businesses take a significant knock to their margins.
As another reminder of what we are dealing with in this economy, Italtile Retail (which focuses on higher income consumers) noted that the size of its market has declined over recent years, in line with “sustained emigration” – exactly what a business like this doesn’t need to see. It’s not much better in the mid-market either, with CTM’s sales and profits down mid-single digits. Yet, in the entry-level market, the TopT brand achieved low single-digit growth in sales and profits.
In summary, South African consumers who are coming through the income ranks at a lower level seem to be a source of growth. As for the rest of the income brackets, people are either emigrating or maintaining a flexible enough asset base that emigration is an option.
The PGM basket price hammered Northam Platinum (JSE: NPH)
In the latest news from the PGM jungle, HEPS at Northam has all but collapsed
The PGM sector has a reputation for hurting people. With a 42.3% decrease in the 4E basket price for the six months to December 2023, Northam Platinum is the latest casualty. Even a 10.4% increase in sales volumes does little to offset this pain.
It also doesn’t help when mining costs are subject to inflationary pressures, with a 6.7% increase in group unit cash cost per equivalent refined 4E oz despite the increase in production. When combined with what happened to PGM prices, the result is a 73.3% decrease in gross profit.
From there, it’s hard for the income statement to be anything other than hideous. And indeed, HEPS is expected to be between 87.5% and 97.5% lower.
The silver lining here must be the balance sheet, with net debt improving to R2.4 billion at the end of December. The rolling 12-month net debt to EBITDA ratio is 0.24x. Cash and cash equivalents were R11.8 billion and the company has access to undrawn facilities of R11.0 billion.
Included in earnings per share (not HEPS) is a R799.7 million loss on the disposal of Impala Platinum shares that were received as consideration for the disposal of Royal Bafokeng Platinum. You may recall that Northam Platinum was in a bidding war for Royal Bafokeng, before pulling out and letting Impala win that battle as PGM prices kept falling.
It’s concerning that based on the price achieved in this period, only the Booysendal mine actually made a profit. Zondereinde and Eland both lost money per ounce sold.
In an environment of depressed PGM prices, the group has trimmed back its capex plans, investing R2.4 billion in this period vs. R2.6 billion in the comparable period. R1.6 billion of that capex was expansionary spend.
Telkom manages a flat EBITDA performance (JSE: TKG)
At least Swiftnet is putting in decent numbers at just the right time
Telkom released a trading update for the third quarter that reflects revenue growth of 2% and stable group EBITDA. It’s not growing, but it’s not shrinking either. EBITDA margin contracted to 21.9%, impacted by BCX (EBITDA fell by 27%) and pressure on enterprise customers.
There were some highlights, like Telkom Consumer and Openserve growing operating earnings by 20.6% and 7.0% respectively. This was driven by metrics like Telkom Mobile subscribers growing by 6.4% (and data revenue up by 11.5%), as well as data revenue at Openserve increasing by 6.2% as the number of connected homes increased by 20.8%. Yes, it would be nice to see revenue at Openserve increasing at a rate in line with the number of connected homes. The bigger challenge at Openserve is the decline in total fixed voice revenue in the legacy side of the business, leading to overall revenue declining by 3.1%.
Swiftnet is thankfully doing well at the right time, as Telkom seems to be getting closer to a potential deal to dispose of the business. The bidder consortium is working towards meeting agreed milestones under the exclusivity arrangement. The company hopes to be able to make a more detailed announcement soon. Having said that, there’s still no guarantee at all that the parties will agree commercial terms or that a deal will go ahead. In the meantime, total revenue grew 4.7% at Swiftnet and EBITDA was up 11.3% as tower operating costs fell
Transpaco’s margin goes the wrong way (JSE: TPC)
And so did the share price
Transpaco has a market cap of under R1 billion, so it falls into that area of the JSE that is about as liquid as the dunes of Dubai. The share price fell 13.18% yesterday, which sounds spectacular at first blush, yet that can easily be the bid-offer spread when it comes to small caps.
It wouldn’t have helped that revenue for the six months to December 2023 fell by 4.5% and operating profit fell 12.3%. This is a classic case of operating leverage working against a manufacturing group. Operating margin contracted from 10.0% to 9.2%. HEPS was 5.6% lower at 299.1 cents and the dividend was 5.9% lower at 90.0 cents.
The usual suspects are blamed for the results (load shedding / the economy / interest rates), with the company commenting that share buybacks helped to cushion the blow. With HEPS falling by a significantly lower percentage than operating profit, you can see how having fewer shares in issue helped.
The Plastics division suffered most, with revenue down 10.1% vs. a 2.6% drop in the Paper and Board division.
Vukile taps the market for capital (JSE: VKE)
The group is looking at opportunities in both its markets of operation
Vukile has proven to be one of the better REITs of the post-pandemic era, so the company is doing exactly what it should be doing while sentiment is good: raising capital from investors. You always want to raise when you have the gold star on your forehead and you sit at the front of the class. Raising from the naughty corner ain’t easy.
The group has a portfolio in South Africa and Spain and is looking at a pipeline of opportunities in both markets. This is a cheeky capital raise, as the company is so confident of its abilities to raise the capital that details on the opportunities haven’t been given. Instead, the proceeds of the bookbuild will be used to temporarily reduce borrowings ahead of doing deals.
The extent of the raise? Approximately 5% of the company’s market cap, which implies over R750m in fresh capital.
Keep a close eye on what they do with the money. We really don’t have to dig very far back in the history books to a time when REITs raised billions in the time it takes you to drink your coffee, before deploying the money into overpriced properties.
Little Bites:
Director dealings:
An executive member of the board of Richemont (JSE: CFR) has shown us what real money looks like, with a disposal of shares worth R47 million.
Sean Riskowitz, acting through Protea Asset Management as usual, has bought another R754k worth of shares in Finbond (JSE: FGL).
The same director of Afine Investments (JSE: ANI) who executed an odd buy and sell trade the other day has now sold shares worth R48.5k, also at R5 per share.
Directors of Nictus (JSE: NCS) bought shares worth R15.6k in an off-market trade.
In a trading statement for the six months to March 2024 that isn’t nearly as useful as a trading statement usually is, Life Healthcare (JSE: LHC) noted that EPS will be at least 20% higher. This is thanks to the gain on disposal of Alliance Medical Group. Such a gain is excluded from HEPS and there are still weeks of trading left, so the group hasn’t commented on HEPS. In other words, as trading statements go, this is an anomaly that was required to meet JSE rules. It doesn’t tell us anything at all about core operating performance.
Copper 360 (JSE: CPR) has raised just under R100 million through the issue of shares for cash. It looks like there’s a buyback option linked to this raise to potentially limit dilution to existing shareholders. In total, the company has raised R374 million through various debt and equity issuances.
African Equity Empowerment Investments (JSE: AEE) announced that a fraud in November 2023 of $820k has led to the CEO of Premier Fishing and Brands being found guilty of negligence (not the theft itself). Efforts to recover the misappropriated funds are ongoing.
Watching a blockbuster film in a full cinema is arguably one of life’s finest experiences – and certainly one worth preserving. But will cinemas as we know them be able to keep up in the streaming race – or will they have to change their use case entirely?
The fourth quarter of 2023 was Netflix’s most explosive period for subscriber growth since Q1 2020. In case these dates are too vague for you, let me colour in the picture a little better: the last time Netflix saw numbers better than the ones they just released, a global pandemic had just forced the entire world indoors with nothing better to do than to watch TV. I stand to be corrected, but I think the only companies who had anywhere near the same levels of success as Netflix during the pandemic were those who were making either vaccines or video meeting platforms.
While Netflix has certainly been minting it lately (even their crackdown on password sharing, which many users criticised as draconian, has ultimately resulted in an uptick in new paying subscribers), the same can’t be said for the big screen. The cinema business has been haemorrhaging for a good long while now, with COVID-19 striking what many thought might be the deathblow. Fortunately, major movie houses have managed to hang on by their fingernails – but for how much longer will this continue?
As a self-proclaimed cinephile, the thought of a future without the opportunity to see a film on a big screen with a tub of overly-salted popcorn on my lap is too bleak to even entertain. What will it take to save our cinemas?
From silver screen to couch stream
It took a long while for humanity to progress from being able to create simple moving pictures to screening 2-hour-long blockbusters on IMAX screens. I won’t bore you with the full history – instead, I’d like to tell you about cinema’s golden age.
The 1930s and 40s represent the peak of cinema attendance. There are many reasons for this, but two stand out as major contributors. Firstly, this was the time when most films featured both colour and sound, thereby offering a vastly improved viewing experience to the silent black-and-white films that came before. And secondly, this was the time when cinema was considered the principal form of popular entertainment.
Going to the movies was so popular at the time that most people would attend the cinema as often as twice a week. As is always the case in business, demand drives supply, and in this case, the public’s demand for movies led to the building of ornate “supercinemas”, also known as picture palaces, in major cities and large towns. I’m not talking about the kind of in-mall cinemas that we’re used to seeing nowadays – these picture palaces were standalone buildings, large enough to fit multiple screening rooms, as well as cafés and ballrooms, all under one roof. Some of these supercinemas were large enough to accommodate up to 3,000 viewers in front of one screen.
Fast forward about 8 decades into the future, and North American box office revenues peaked in 2018 at $11.9 billion, followed by a slight decline to $11.4 billion in 2019, as reported by Comscore. Numbers have only continued to decline since then. In 2020, the onset of COVID-19 led to a drastic 80% drop in domestic box office earnings, plummeting to just $2.3 billion. Remarkably, $1.8 billion of that total was generated in the first three months of the year, before the pandemic fully disrupted normal life.
Keep in mind that the pandemic threw a wrench into both the making and showing of films, stashing away movies for extended periods while keeping audiences away from theatres. However, besides the direct disruptions caused by the pandemic, North America still faces the problem of having an excess of movie screens, which makes it difficult to get theatres to capacity. Moreover, the array of choices for streaming films at home has expanded, with new releases arriving much sooner than they did previously. Suddenly, staying home and streaming a movie on the couch is as appealing an option as a night out at the movies – and at a much lower cost.
There’s nothing like a full house
I absolutely love the feeling of being in a full cinema. For me, that’s where the magic of the movies always came from – that feeling of experiencing something as part of a crowd. Sure, you might feel something similar in a sports stadium or at a concert, but there’s just something about a group of people leaving reality behind for a couple of hours and stepping into an alternative world together that keeps me coming back for more.
I’ll never forget the experience I had while watching a horror film in a Cape Town cinema years ago, when a particularly nasty jump scare prompted a gentleman in the row in front of me to exclaim “djy!” at full volume. I remember the collective gasp in a full cinema during the screening of one of the latest Star Wars films, when fans of the franchise saw the Millennium Falcon on the big screen for the first time since 1983. And of course, there was no other way that I was going to see the atomic epic Oppenheimer than on the biggest, loudest IMAX screen I could find. Mankind’s biggest bomb just doesn’t resonate as well on a TV.
Usually when I write these articles, I try to find something that we can all learn from some clever business strategy or founder’s innovation. Today, I’m just writing to make a case for a business that I believe deserves to continue existing. And I’m not alone in this line of thinking either. When cinemas in North America closed their doors during the COVID-19 pandemic, award-winning director Christopher Nolan said “When this crisis passes, the need for collective human engagement, the need to live and love and laugh and cry together, will be more powerful than ever. We need what movies can offer us.”
Now, you might call him a bit biassed, based on his career choice. I prefer to think of him as simply a fellow film enthusiast.
“Pivot!”
So, I believe we can collectively agree that movie theatres are cool and that we’d like them to stick around for the foreseeable future. But to survive the next few decades, cinemas will have to pivot in new directions in order to differentiate themselves from their streaming competition. It’s not just about screening exciting films anymore – while Barbie and Oppenheimer have shown us that hype will still drive turnout in record numbers, a feast-and-famine income model is simply not a sustainable strategy.
Herewith my 2c: a collection of suggestions that may or may not save our cinemas, some of which are already being tried out there.
Pivot 1: Up the experience
If you’re asking an audience member to leave their home in order to see a film that they could just as easily view on their couch (in a few weeks’ time), then you need to make the experience of being out of the house worth their while. An average seat and standard snacks are easy to replicate at home. But change that to a plush reclining seat and gourmet snacks – potentially even alcoholic drinks and a menu of delicacies that can be served in-cinema – and the offering becomes that much more appealing.
Pivot 2: Bring back the classics
When the original Jurassic Park was showing audiences the magic of computer generated dinosaurs for the first time in 1993, I was less than a year old – not exactly the ideal movie-going age. I also completely missed my opportunity to see such classics as Jaws, the original Star Wars trilogy, Gladiator and The Matrix on the big screen – which is why I’d be willing to pay big bucks if that chance came around again. With the recent focus on reinventing older movie franchises like Indiana Jones, Jurassic Park and Top Gun, I believe movie theatres could benefit from offering a re-screening of the original films that inspired the new releases. This isn’t as far fetched an idea as it might seem if you consider that it was already done by the Avatar franchise, which re-screened the original Avatar movie (2009) in tandem with the release of Avatar 2: The Way of Water (2022).
Pivot 3: Rent out the screen
If you tilt your head and squint at it, a movie theatre is really just a potential venue-for-hire that includes a great sound system and a really big screen. Renting a theatre can make for a unique and memorable experience for events like birthdays, anniversaries, proposals, or even just a special date night. Businesses may rent out theatres for team-building events, product launches, or employee appreciation events. Schools or educational institutions may rent theatres for special screenings tied to their curriculum or to reward students for achievements. And lastly, with the rise of esports and gaming culture, some individuals or organisations may rent theatres for gaming tournaments or to host video game release parties.
Just bring back the audiences now
In the age of streaming dominance, the allure of the big screen seems to wane, yet the essence of the cinema experience remains irreplaceable. As we reminisce on the golden age of cinema and ponder its uncertain future, one thing becomes clear: the magic of movies lies not just in the narrative unfolding on screen, but in the collective engagement of a captivated audience.
About the author:
Dominique Olivier is a fine arts graduate who recently learnt what HEPS means.Although she’s really enjoying learning about the markets, she still doesn’t regret studying art instead.
She brings her love of storytelling and trivia to Ghost Mail, with The Finance Ghost adding a sprinkling of investment knowledge to her work.
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