Hosken Consolidated Investments Limited (HCI) is a notable player in the South African financial landscape. Its recent financial statements for the year ended 31 March 2024 provide valuable insights for investors and stakeholders.
Financial Performance
HCI’s financial performance for the fiscal year 2024 reflects both stability and growth across key metrics.
Revenue and Net Gaming Win
- Revenue increased by 6% from R12.58 billion in 2023 to R13.31 billion in 2024.
- Net gaming win remained steady at R9.67 billion, showcasing resilience in this segment.
Profitability and Dividends
- EBITDA grew by 7%, reaching R6.05 billion, indicating improved operational efficiency.
- Despite a decline in earnings per share by 80%, a significant dividend increase of 100% was declared.
Segment Analysis
HCI’s diversified portfolio includes media, gaming, hotels, transport, properties, and mining, among others.
| Segment | Headline Earnings (R’000) |
|---|---|
| Media and broadcasting | 212,088 |
| Gaming | 880,364 |
| Hotels | 309,603 |
| Transport | 321,004 |
| Properties | 75,347 |
| Coal mining | 226,840 |
| Others | (384,330) |
Notably, gaming and transport segments show robust earnings, contributing significantly to HCI’s overall profitability.
Dividend Declaration
HCI’s board declared a final dividend of R1.00 per share, doubling from the previous year, reflecting the company’s confidence in its financial position and future prospects.
| Key Dates for Dividend |
|---|
| Last day to trade cum dividend: Tuesday, 23 July 2024 |
| Commence trading ex-dividend: Wednesday, 24 July 2024 |
| Record date: Friday, 26 July 2024 |
| Payment date: Monday, 29 July 2024 |
Tax Implications
Shareholders should be aware of the Dividends Tax (DT) implications:
- Local DT rate: 20%
- DT amounts to 20 cents per share.
- Net local dividend amount after DT: 80 cents per share.
Auditor’s Review and Director’s Statement
HCI’s financial statements were reviewed by Mazars, with an unmodified conclusion, indicating transparency and reliability. The directors’ statement underscores their accountability and confidence in the financial disclosures.
Investor Considerations
For investors considering HCI, several key points should be noted:
- Diversification: HCI’s diversified portfolio mitigates risks associated with individual sectors, offering stability.
- Profitability: Despite sectoral variations, HCI demonstrates profitability across key segments, ensuring a balanced income stream.
- Dividend Growth: The substantial increase in dividends signals HCI’s commitment to rewarding shareholders.
- Tax Efficiency: Understanding DT implications is crucial for maximizing returns and managing tax liabilities.
Conclusion
Hosken Consolidated Investments Limited’s financial performance for 2024 reflects resilience and strategic growth. With a robust dividend declaration, diversified portfolio, and transparent financial reporting, HCI remains an attractive prospect for investors seeking stability and potential returns in the South African market. Understanding the nuances of its financial statements and tax implications empowers investors to make informed decisions, aligning with their investment objectives and risk tolerance.