The business

Thembeka Capital (“Thembeka”) is a broad-based black owned and controlled investment holding company that focuses on private equity investments and BEE transactions. It has more than 500 black shareholders with more than 10 000 beneficiaries.

Performance

Thembeka’s intrinsic value continued to increase along with the increase in share prices of its largest investments namely PSG Group, Capitec Bank and JSE Ltd. Strong growth in the share price of PSG and Capitec boosted Thembeka's intrinsic value by 83.6% to R80.3 per share and headline earnings by 63.7% to R441.7 million. Recurring headline earnings also increased by 123.4% to R46.1 million on the back of continued exceptional performance by Capitec Bank.

Prospects

Thembeka’s diverse portfolio consists of several investments with good growth prospects specifically in the agriculture, food and beverages sectors.

Financial Highlights

Year ended February	2009	2010	2011
Headline (loss) / earnings (Rm)	(185,7)	269,8	441,7
Recurring headline earnings (Rm)	7,4	20,6	46,1
Growth in recurring headline earnings (%)		178,9	123,4
Intrinsic value (Rm)	206,3	590,0	1 082,8
Intrinsic value per share (Rand)	17,7	43,7	80,3
Growth in intrinsic value per share (%)	(58,9)	147,5	83,6

Thembeka's investment profile consist of the following investments at 28 February 2011:

Listed investments	Percentage holding
PSG Group Ltd	6,0%
Capitec  Bank Holdings Ltd	3,7%
JSE Ltd	4,2%
IQuad Group Ltd	8,2%
MTN Zakhele	1,3%
Sasol Inzalo	0,3%
Unlisted Investments
Greymatter & Finch (Pty) Ltd	51,0%
Bontebok Limeworks (Pty) Ltd	26,0%
Precrete-Nozala (Pty) Ltd	26,0%
Spirit Capital (Pty) Ltd	25,0%
Kaap Agri Ltd	15,0%
Green Square Mining and Mining Contracting (Pty) Ltd	21,8%
Overberg Agri Ltd	10,2%
MGK Business Investments Ltd	11,2%
GRW Engineering (Pty) Ltd	25,1%
Access Fright Logistics (Pty) Ltd	25,1%
BKB Ltd	5,1%