Fri Oct 21 18:53:59 SAST 2016

Cash-in-transit heists put a damper on Mvelephanda Group's robust results

By unknown | Sep 06, 2007 | COMMENTS [ 0 ]

Lihle Z Mtshali

Lihle Z Mtshali

The high level of armed robberies Coin Security suffered during the year to the end of June pushed the profit of its holding company Mvelephanda Group down 8percent to R262million on the back of a 12percent rise in revenue to R3,5billion.

"Coin Security lost about R20million in the year under review due to the levels of crime in the country, although those did slow down in the second quarter," said Mvela chief executive Yolanda Cuba.

However, excellent growth in profit from operations was achieved by Protea Security Services. Cuba said the group planned to merge these two security companies.

"Operational changes at Coin Security, particularly in the assets-in-transit division, are expected to improve profitability," the results statement said.

Despite the drop in profit, Mvela upped its dividend 22percent to 22c per share.

Mvela is Tokyo Sexwale's empowered diversified investment trust formed through a merger of Mvela Holdings and Rebserve in December 2004.

Its net profit from its investments leaped 76percent to R1,5billion. Mvela owns a R1,8billion stake in Absa, R1,5billion worth of shares in unlisted Life Healthcare and also a R465million stake in engineering and construction firm Group Five. Excluding Coin Security, profit from operating subsidiaries increased by 18percent.

Protea Security, along with Trollope Mining Services, Novare and Zonke Monitoring Systems all performed well.

The group is active in financial services, healthcare, mining, general industry and real estate.

Cuba said the group was looking to expand into non-mining, resources and energy as well as telecoms, media and technology.


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