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Investec plans to tap unexplored markets

Investec, an international specialist banking and asset management group which provides a range of financial products and services to a client base in three principal markets in the UK and Europe, Southern Africa, and Asia-Pacific has through its unconsolidated results highlighted that it is planning on tapping into unexplored markets while continuing to give good service to its client.

The entity listed in the Botswana Stock Exchange (BSE), Johannesburg Stock Exchange (JSE) and London stock Exchange (LSE) has registered an Ongoing operating profit which increased by  5.6 percent to GBP 701.0 million (2017: GBP663.7 million)― an increase of 1.2 percent on a currency neutral basis

The results show that statutory operating profit before goodwill, acquired intangibles, non-operating items and taxation and after other non-controlling interests increased 1.4 percent to GBP 607.5 million compared to GBP 599.1 million of 2017, a decrease of 3.5 percent on a currency neutral basis. They further highlighted that effective tax rate amounted to 9.6 percent compares to 2017’s 18.5 percent which was  mainly impacted by the lower rate in South Africa following the release of provisions no longer required.

Their Statutory adjusted earnings per share (EPS) before goodwill, acquired intangibles and non-operating items increased 10.1 percent from 48.3 pence to 53.2 pence, an increase of 4.1percent on a currency neutral basis. Ongoing adjusted EPS before goodwill, acquired intangibles and non-operating items increased 13.3 percent from 54.1 pence to 61.3 pence an increase of 8.1 percent on a currency neutral basis. The Group has also reported that annuity income as a percentage of total operating income amounted to 76.3 percent, an increase from 72.0 percent of 2017.

It has also been noted as compared to 2017’s 0.29 percent credit loss charge as a percentage of average gross core loans and advances amounted to 0.26 percent, remaining at the lower end of the group’s long term range despite an increase in impairments. Third party assets under management increased 6.5 percent to GBP160.6 billion compare to GBP150.7 billion on 31 March 2017, an increase of 6.2 percent on a currency neutral basis. The results highlight that Customer accounts (deposits) increased 6.5 percent to GBP31.0 billion (31 March 2017: GBP29.1 billion) an increase of 5.9 percent on a currency neutral basis.

Core loans and advances increased 11.6 percent to GBP24.8 billion (31 March 2017: GBP22.2 billion) -an increase of 11.0 percent on a currency neutral basis. The United Kingdom legacy portfolio continues to be actively managed down. The Group has noted that the Total balance sheet impairment allowance and provisions are expected to increase by approximately GBP106 million from GBP158 million as at 31 March 2018 to approximately GBP264 million as at 1 April 2018.

They noted that this is driven by an increase in legacy impairments of approximately GBP57 million and an increase in ongoing impairments of approximately GBP70 million, partially offset by a reduction of approximately GBP21 million as a result of changes in classification and measurement of certain of the group’s financial assets to fair value. The increase in impairment allowance and provisions is expected to reduce the CET 1 ratio by approximately 66bps on a fully loaded basis, or approximately 3bps on a day one impact transitional basis.

Chief Executive Officer (CEO) of Investec Stephen Koseff noted that over the last 40 years the firm has been building a platform that is capable of being leveraged for further growth. He highlighted that Investec is now a meaningful player across many business areas, both in the UK and South Africa. “We believe the platform is robust, relevant and well positioned for future value creation. We are confident that Hendrik du Toit and Fani Titi, as joint chief executives from October, will lead Investec to new successes for the benefit of shareholders and all our stakeholders”

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China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

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Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

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Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

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