LAUREATE LEADER JSE
LAUREATE LEADER JSE LIMITED: 2020 RESULTS Earnings before interest and tax, depreciation and amortisation (EBITDA) increased by 19% while net profit after tax (NPAT) grew by 12% to R778-million (2019: R695-million). The JSE’s strong balance sheet and sustained quality of earnings and cash generation underpinned its financial resilience during the pandemic. Dr Fourie says: “Resilience during a crisis is neither accidental nor coincidental. The JSE’s operational dependability demonstrated throughout the Covid-19 pandemic is a direct result of its multi-year investment in technology infrastructure, key skills and a focus on building lasting relationships of trust with clients and stakeholders. That is why I am pleased to share a strong set of results for 2020. As much as these results reflect the near-term impact of market volatility, they also echo the enduring value created by the exchange.” The performance of the JSE’s various markets was as follows: Primary markets: Revenue increased by 3% to R152-million (2019: R147-million). Initial public offerings (IPOs) remained under pressure in 2020, with fewer deals for the year (four in 2020 versus five in 2019) owing to uncertain market conditions. However, the JSE saw a growing demand for green bonds in emerging markets, driven by private borrowers looking for investments in sustainable energy, cleaner water, transport and smart buildings. There were 20 de-listings (2019: 24), which were largely the result of corporate actions and schemes of arrangement in mostly small-to-mid-sized, illiquid counters. Although the number of listed entities declined, the aggregate market capitalisation of all entities listed on the JSE increased by 2% during 2020. Equity Market: Revenue increased by 14% to R493-million (2019: R433-million) owing to a 7% increase in billable value traded and more central order book activity. The JSE’s headline All Share Index (ALSI) a low of -33.5% on 19 March 2020 and ended the year up 4.07%. Colocation activity contributed 50% (2019: 42%) of overall value traded with 40 racks (2019: 32). Foreigners remained net sellers of equities in 2020. Total revenue increased by 13% to R2.5-billion (2019: R2.2-billion), with both operating income and total revenue at record highs. The JSE remained in a healthy position with regard to cash and capital, with net cash generation in 2020 supporting a stable cash balance of R2.5-billion at the end of December (2019: R2.6-billion). Accordingly, the Board has declared an ordinary dividend of 725 cents per ordinary share, an increase of 5% over the 2019 ordinary dividend of 690 cents per share. This corresponds to an ordinary dividend pay-out of distributable profits of 83% in 2020 (2019: 87%). Equity Derivatives Market: Revenue increased by 1% to R145-million (2019: R143-million) owing to increased activity and a more diverse product mix. Overall, the Equity Derivatives Market came under pressure in the face of greater market volatility in 2020. Value traded was down 7% owing to weaker activity in the JSE Top 40 Index, which commands the largest percentage of contracts traded, as well as Single-Stock Futures (SSFs) with dividend risk. FUTURE FOCUS “The JSE’s focus is underpinned by a resilient and responsive core business alongside a promising inorganic growth strategy. With this in mind, we will execute our strategy with speed and discipline and continue to rapidly improve our service offerings and technology to serve our clients with consistent excellence. As such, the JSE remains committed to providing a trusted market infrastructure,” asserts Dr Fourie. 22 | www.opportunityonline.co.za
Your trade and investment facilitation company Cluff Trade & Investments is an African pedigree trade and investment advisory company Cluff Trade & Investments is an African pedigree trade and investment advisory company, with its core business to serve as a special purpose vehicle between African countries and foreign companies. We assist companies to enter the Sub-Saharan Africa and Indian Ocean islands markets successfully in the context of their global strategies. Our extensive knowledge of the Sub-Sahara economic landscape allows us to assist and launch companies into emerging African markets. The firm benefits clients through market intelligence information gleaned from decades of experience in various industries as well as direct deal structuring and representation to companies and governments. For strategic reasons, we are situated in Johannesburg, South Africa, to facilitate our international and local clients through easy access to our offices by means of effective and convenient communication. Our services Our range of expertise boasts a team of multi-disciplined professionals and technical partnerships including specialised consulting firms to successfully execute any business and/or project venture. In today’s global economy, the long-term growth strategies of successful businesses in emerging market countries often include plans for expansion into international markets. Those businesses look to grow by entering strategic alliances, opening plants and facilities, and planning acquisitions and other investment transactions. investor and the business opportunity in the private sector and government level in any African country. Our facilitatory services • Evaluating market entry options (FDI) • Sourcing and matching of companies (M&A) • Identifying and screening potential foreign investors • Strategic planning for mergers and acquisitions • Conducting contract negotiations and agreement closing • Research and analysis of venture acquisitions for FDI in mining, agriculture and industrial development projects • Monitoring state-owned privatisation and economic legislation • Emerging markets analysis • Competitive/market intelligence Vision to become a major role-player in the economic transformation process of Africa, and to be a participating vehicle to mobilise the African economy towards the mainstream of global competition. Mission To eradicate the bondage of economic disenfranchisement in Africa and to collectively assist in the realisation of the NEPAD vision in promoting and transformation of economic development and sustainable growth. PROFILE Our areas of expertise • Foreign direct investments • Mergers and acquisitions • Joint ventures facilitation • Business/industrial development • Commodity trading • Economic environment analysis • Business research Investment facilitation Cluff Trade & Investments believes that our extensive knowledge and experience, coupled with our understanding of global geo-economic issues, offers us the best facilitating machinery to lead any serious-minded investor to genuine and sincere business deals. We primarily perform as a facilitating link between the ____ ___ _ Winston R Cluff, Managing Director Winston R Cluff is a seasoned entrepreneur and industry strategist, covering the African theatre. He has been involved with several business ventures in foreign direct investments, mergers and acquisitions, joint ventures facilitation activities and commodities trading in Africa and internationally. Cluff has gained extensive experience in African markets and business development in African emerging industries since the mid-Nineties. He is well-versed in utilising various techniques and approaches that incorporate emerging market intelligence gathering, research and political risk, as well as regional economic impact trends. Cluff was previously the managing director of Russet Trade and Investment and Pan African International. At these companies, he dealt extensively with banking/financial institutions and development agencies. Cluff also brings extensive experience in high-level relationship management at government level. His areas of speciality in commodities, mining, petroleum products, power generation, agriculture, ICT, industrial and infrastructure development have gained him recognition by international industry players. CLUFF TRADE & INVESTMENTS Cell: +27 (0) 61 428 6505 | E-mail: winston.cluff@cluffinvest.com
