African Rainbow Minerals probably achieved double-digit interim HEPS growth (JSE: ARI)
The PGM segment is probably the highlight here
African Rainbow Minerals released a trading statement for the six months to December 2025. This was triggered by the move in earnings per share, which jumped by between 65% and 75% thanks to the profit on disposal of Sakura and a gain on remeasurement of the 50% in Nkomati Mine.
But what the market really cares about is HEPS, which increased by between 5% and 15% (not enough to trigger a trading statement). That suggests 10% at the mid-point, or just enough to be considered double-digit growth.
African Rainbow Minerals has various underlying interests, with PGMs as the highlight in this period. Investors will have to wait for 6th March to see how underlying operations performed.
Altron gives more details on a strong performance (JSE: AEL)
They are focusing on annuity opportunities that have higher margins
Altron believes that the year ending February 2026 marks the end of its “Accelerated Growth” strategy. They are now in “Transformative Growth” mode. These concepts always smell strongly of Eau de Management Consultant, but they are important for getting internal alignment in organisations that are going through change. Managing large groups of people who have different incentives isn’t easy.
Altron’s efforts are paying off though. Earlier this month, they released a trading statement that flagged growth in HEPS from continuing operations of more than 30%. In a voluntary operational update, they’ve given more details on how they got there.
It’s worth noting that HEPS from continuing operations for the first half of the year was up 22%, so they came into the second half with great momentum.
It’s also good to note that the discontinued operation is Altron Nexus, which was sold on 1 August 2025.
Double-digit EBITDA growth certainly helps, as does the low-to-mid-teens growth rate in operating profit (if you exclude the change in Netstar’s depreciation policy that distorts comparability).
The Platforms segment is doing the heavy lifting, with 45% of group revenue and around 90% of EBITDA and operating profit. This is clearly where you’ll find the best margins and a number of annuitised revenue streams.
Within Platforms, Netstar’s growth (mid-to-high teens EBITDA, and high-teens operating profit excluding the depreciation change) has been driven mainly by the South African business, as Australia’s recovery has been slower than anticipated. Altron FinTech is also in Platforms, achieving improving margins and high-twenties operating profit growth. Altron HealthTech, the third pillar in Platforms, achieved high-teens operating profit growth.
In IT Services, they struggled with a drop in revenue. The segment also clearly runs at a much lower margin. Altron Digital seems to be the biggest headache, but at least it was profitable in December 2025 and January 2026 after cost-cutting measures. Altron Security achieved double-digit revenue growth and operating profit growth in line with the interim performance. Altron Document Solutions achieved more than 30% growth in operating profit for the year, so that’s an example of where turnaround strategies can work.
Overall, annuity-based income is up to 65% of total revenue (both segments have this type of income). This gives great visibility on cash flow and helps with the valuation as well.
Double-digit growth in net operating income at NEPI Rockcastle (JSE: NRP)
They’ve hit the top end of revised guidance
NEPI Rockcastle released results for the year ended December 2025. Distributable earnings increased 6.7% and net operating income was up 11.2%. Tenant turnover across the Central and Eastern European portfolio increased by 3.6% on a like-for-like basis, while retail occupancies were up at 98.8%.
As you can see, there’s a good story to tell here – at least if you own dominant shopping centres in the region.
On a per-share basis, the growth isn’t quite as exciting. Distributable earnings per share increased by 3.1% for the year. When you keep issuing new shares, this is what happens.
Another important metric is like-for-like net operating income growth, which excludes acquisitions completed in 2024. Growth of 4.4% on this basis gives you a good idea of why distributable earnings per share growth was in the low single digits.
The fund welcomes Marek Noetzel as the new CEO on 1 April 2026. He takes the reins of an iconic property fund with a loan-to-value ratio of just 32.8%, below the 35% strategic threshold. That sounds to me like a good opportunity to hit the ground running.
Octodec will offload Killarney Mall for almost R400 million (JSE: OCT)
This is only slightly below the book value
Hot on the heels of a general operating update that dealt with Octodec’s portfolio and many of the unique challenges that they need to manage on a daily basis, the company has now announced that they have a buyer for Killarney Mall. With a relatively high vacancy rate, the new owner (AJPH Property) will have some work to do.
For Octodec shareholders, this means an exit from this asset at a price of R397.5 million. It remains subject to adjustments for working capital. This price is only slightly below the valuation of R407.6 million that was performed with an effective date of 31 August 2025.
Selling at a premium to book is obviously preferred, but companies need to sometimes get out and move on to new assets. It looks like Octodec is making a sensible decision here, with the proceeds being used to reduce debt and deploy into future projects.
RCL has given tighter guidance for a tough year (JSE: RCL)
As previously noted by the company, the pressure is in sugar
At the start of this month, RCL released a trading statement for the six months to December 2025. It noted an unpleasant drop in HEPS from total operations of at least 25% (or a decrease of at least 27.4 cents).
Most of this move (at least 21.8 cents) was thanks to the troubles in the sugar industry, with the stronger rand and ineffective sugar tariffs placing the local industry under even more strain. An additional issue for the year-on-year HEPS comparability is that there was a partial recovery of the sugar levy in the prior period. In more positive news, the initial trading statement noted that Groceries and Baking were expected to report improved underlying profitability.
We now have a further trading statement that gives a tighter range. HEPS from total operations is now expected to drop by between 29.2% and 32.1%.
Kudos to the company for keeping investors informed – an initial trading statement and subsequent further trading statement shows commitment to the market. It’s just a pity that the numbers have gone the wrong way.
Redefine’s pre-close update is full of nuggets (JSE: RDF)
Perhaps the most interesting is that large retail centres are doing well
Redefine Properties released a pre-close update dealing with the six months to February 2026. There’s a bullish narrative overall, with the company believing that they are in the strongest position they’ve been in during the post-pandemic period. Property fundamentals are showing positive signs and the balance sheet is in good shape, so they can take advantage of the opportunities out there.
But what do the numbers say? Well, in South Africa, negative rental reversions of -6.3% are worse than -5.2% in FY25. Renewal success rates are up though, so perhaps they are being slightly less strict on price in order to get the leases across the line.
The weighted average lease escalation of 6.4% is well above inflation in South Africa, although one must remember that property funds don’t deal with the CPI basket. They face municipal charges, as well as security, energy and other costs that tend to run above CPI.
Speaking of energy, Redefine’s solar projects generated 13.1% of the total energy demand in this period. They’ve invested heavily across the retail, office and industrial portfolios.
In the retail portfolio, Redefine notes that large-format centres have recovered. Turnover growth is now in line with convenience centres. Positive reversions in the retail portfolio of 2.4% were ahead of 1.0% in FY25. This is probably the bright spot in the update.
The office portfolio is where things got nasty. Reversions were -16.8%, even worse than -12.9% in FY25. This can be very lumpy though, with Redefine expecting it to moderate to -11% by the end of the year. Interestingly, of the 95 renewals in the period, 28 had negative reversions and 53 had positive reversions. The large tenants have the best bargaining power, as you might expect.
The industrial portfolio achieved positive renewals of 3.7%, up from 0.8% in FY25. This has been a solidly performing property asset class in South Africa.
In Poland (the EPP portfolio), like-for-like footfall increased by 0.8% and like-for-like turnover was up just 0.5%. Retail occupancies were steady at 98.2%, while office fell from 84.2% to 82.9%. At least rental reversions were up to 1.9% vs. 0.4% in FY25. In the ELI portfolio in Poland, which has the logistics assets, rental reversions were 1.8% – significantly lower than 6.9% in FY25.
They are looking to dispose of a number of assets in Poland as part of a broader plan to simplify the joint ventures in that country. They are also looking to build a strong self-storage platform in the country, taking advantage of trends like urbanisation and eCommerce.
Looking at the balance sheet, the group weighted average cost of debt has been maintained at 7.0%. There are various refinancing negotiations underway, with one of the primary goals being to address the maturity concentration risk in FY28. The loan-to-value (LTV) of 41.4% (calculated in line with the covenant of 50%) is in a healthy space. The see-through LTV of 47.2% is in line with what we’ve seen in recent years.
Overall, for FY26, they think that the upper end of the 4% – 6% guidance for growth in distributable income per share is in play.
Super Group pulled off an exceptional interim period (JSE: SPG)
Leaning into Chinese and Indian cars has worked
If you’re going to panic, panic quickly. This is some of the best advice you can ever be given. Instead of clinging to a sinking ship, get yourself onto something else as quickly as possible.
Super Group is proof of this, with the share price closing 5.4% higher thanks to the group achieving great interim numbers. Revenue was up 7% and operating profit increased by 8.7% as margins improved. By the time you reach HEPS from continuing operations, you find a fantastic outcome of 28% growth.
Cash generated from operations increased by 39.4%, so these results aren’t just pretty on paper. They are pretty in the bank account as well.
To understand the numbers, we need to dig into the segments.
The Supply Chain segment grew revenue by 6.3% and operating profit by 14.9%. This is the largest segment in the group, with operating profit of R695 million. The highlight within the segment was surely Ader in Spain, with revenue growth of 17.2% and EBITDA up by a rather ridiculous 225.6%. This is what can happen in low margin businesses when revenue heads in the right direction. Another useful outcome in this segment is that the cross-border transport business achievied a 90% reduction in trading losses.
Fleet Africa grew revenue by 15.3%, but operating profit could only manage a 4.2% increase due to pressure on margins from lower rental volumes. Operating profit was R156 million in this period.
Dealerships SA certainly deserves a mention, with the company leaning into Chinese and Indian brands for growth. 29.7% of new vehicle sales volumes are attributable to these brands, as Super Group’s volumes in this space more than doubled year-on-year. The profile of cars on our roads is changing dramatically. Operating profit improved from R193 million to R209 million, an excellent change in trajectory.
Dealerships UK managed to achieve a decent performance in Ford, while also taking advantage of the new Chinese brands. Operating profit growth jumped by 50.4% to R62 million thanks to the initiatives in this space. But I must point out that operating profit is at roughly half the levels we saw in interim 2024.
The discontinued operations still have some tough areas, like UK automotive logistics that is exposed to the broader automotive manufacturing environment in the UK and Europe (which is in enormous trouble). They are also looking to sell the UK KIA dealerships, having shut Hyundai and Suzuki. I’m old enough to remember when the new South Korean brands (KIA and Hyundai) were the disruptors rather than the disruptees.
Kudos to the group – they changed what needed to be changed. There’s a lesson in here for all of us about the importance of not ignoring disruption.
Give me your views on where the automotive sector is headed:
Nibbles:
- Director dealings:
- An associate of a director of Dis-Chem (JSE:DCP) bought shares worth R1.45 million.
- A director of a major subsidiary of Stefanutti Stocks (JSE: SSU) bought shares worth nearly R45k.
- Incoming CEO Magen Naidoo has bought another R9.6k worth of shares in Mantengu (JSE: MTU).
- The Competition Commission has given Transpaco (JSE: TPC) a bloody nose. The regulator has prohibited the acquisition of Premier Plastics, a deal that was announced on 6 November 2025. Premier produces retail plastic carrier bags, so there’s immense overlap with Transpaco’s existing business. This is why the regulator wasn’t so keen on this R128 million transaction. Transpaco is considering its options based on the commission’s decision.
- Reunert (JSE: RLO) announced that incoming CEO Anthonie de Beer will be appointed as an executive director from 1 March 2026.
- Marshall Monteagle (JSE: MMP) concluded a rights offer back in November 2025 for $10.7 million. The raise was significantly oversubscribed, leaving many unfufilled excess applications. The company then used its general authority to issue shares, in order to give those applicants the opportunity to apply for new shares. This has led to an additional issue of shares worth $2 million.
- Numeral (JSE: XII) is trying to raise R100 million (a large number). With only a partial underwrite of roughly R32 million, they are looking to close a huge gap. I’m not surprised to see that the closing date for this offer has been extended all the way out to 31 August 2026. This isn’t the kind of thing you see when people are queueing up to invest.
- Blu Label (JSE: BLU) announced that Lindsay Ralphs, who previously served as the CEO of Bidvest (JSE: BVT), will be appointed as independent director and chairman designate with effect from 24 February 2026.
- In case you were holding your breath, which I’m sure you weren’t, Trustco (JSE: TTO) has renewed the cautionary announcement regarding the potential delisting from the JSE. This is based on their ongoing assessment of the Simplified Listings Requirements.
