growth
Investor overview
Profile
Grand Parade Investments is a Western Cape-based black owned and managed (as defined in the Codes of Good Practice) holding company having investments in the South African gaming and leisure industry.
Listed on the JSE Limited main board on 6 June 2008, the investment portfolio has been consistently grown to the benefit of its shareholders year on year (over the last 12 years, GPI’s share value has grown by a phenomenal 1 687%, from the original investment of R28 million to a net asset value of R1,6 billion).
Highlights for the 6 months ended December: |
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| 2010 | 2009 | 2008 | |
| Headline earnings (R’000s): | 53,423 (up 36.6%) | 39,832 (down 16.5%) | 47,720 |
|---|---|---|---|
| Adjusted Headline Earnings (R’000s): | 54,765 (up 37.5%) | 39,832 (down 16.5%) | 47,720 |
| HEPS (cents): | 11.56 (up 30.5 %) | 8.86 (down 13.8%) | 10.28 |
| Adjusted HEPS (cents): | 12.00 (up 33.6%) | 8.98 (down 12.6%) | 10.28 |
| NAV (cents): | 383 (up 5.5%) | 363 (up 2.5%) | 354 |
| Adjusted NAV (cents): | 388 (up 5.4%) | 368 (up 3.9%) | 354 |
Highlights for the year ended June |
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| 2010 | 2009 | 2008 | |
| Headline Earnings (R’000s): | 70,226 (down 27.2%) | 96,473 (up 13.8%) | 84,763 |
| Adjusted Headline Earnings (R’000s): | 87,596 (down 9.2%) | 96,516 (up 13.9%) | 84,763 |
| HEPS (cents): | 15.45 (down 26.0%) | 20.88 (down 9.9%) | 23.17 |
| Adjusted HEPS (cents): | 19.52 (down 6.6%) | 20.89 (down 9.86%) | 23.17 |
| NAV (cents): | 383 (up 4.9%) | 365 (up 9.0%) | 335 |
| Adjusted NAV (cents): | 388 (up 4.9%) | 370 (up 10.4%) | 335 |
Operating highlights |
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Business philosophy
The corporate business philosophy is to invest in transformation over and above the standard financial and regulatory aspects of corporate governance, focused on consolidating and leveraging the full value of the existing investments. GPI has consistently been driven by two passions - to be a profitable and successful enterprise in the gaming and leisure industry, while at the same time uplifting and rewarding its thousands of shareholders.
- A focus on consolidating and leveraging full value from existing investments and operations, as well as bedding down recent acquisitions.
- A continual seeking out of opportunities to acquire further high-quality assets to complement the existing portfolio.
- The pursuit of further opportunities in the LPM market, which is still very much in the 'greenfield' stage of its life cycle.
Read more on the investment philosophy.
Investments
All of GPI’s investments are quality assets in the leisure and gaming industry that have shown strong growth and solid earnings performance over the years.
- SunWest (34.30%) owns and operates the GrandWest Casino and the Table Bay Hotel, and also owns a stake in the CTICC.
- GrandWest provides its guests with the latest state-of-the-art gaming and non-gaming entertainment facilities..
- The Table Bay Hotel provides its guests with a luxury hotel experience in one of the most beautiful settings in the world.
- The CTICC has proven to be of enormous economic value and is rated as one of the top convention centres in the world.
- Worcester Casino – the Golden Valley Casino provides guests with an intimate gaming and hotel experience.
- Through RAH, GPI has increased its exposure to SunWest and other high-quality 'urban casino' assets, namely Carnival City, Sibaya Casino and Boardwalk Casino.
- Grandslots is the trading brand of Thuo Gaming WC in which GPI has taken control of the LPM acquisition.
GPI owns a 92.5% stake in Thuo Gaming KZN and Kingdomslots is the trading brand for this market.
View the full structure.
Operations
| Fully controlled assets through our LPM interests | Jointly-controlled assets | Significantly influenced assets | ||
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Grandslots |
GrandWest Casino** 2 524 slots (50.01% Voting & 34.30% Economic Interest) Golden Valley Casino 228 slots (50% Voting & 46.3% Economic Interest) |
Sibaya Casino* 1 018 slots (80.5% Economic Interest) Carnival City* 1 750 slots (6.6% Economic Interest) Broadwalk Casino 783 slots (2.46% Economic Interest) |
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Table Bay Hotel** 392 rooms (50.01% Voting & 34.30% Economic Interest) Golden Valley Lodge 98 rooms (50% Voting & 46.3% Economic Interest) Grand Hotel 40 rooms (50.01% Voting & 34.30% Economic Interest) |
Sibaya Lodge* 154 rooms (8.05% Economic Interest) Carnival Club Hotel* 105 rooms (6.6% Economic Interest) |
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GPIMS (100% Voting & Econoic Interest) | Western Cape Manco (50.00% Voting & 57.08% Economic Interest) |
Afrisun KZN Manco* (12.57% Economic Interest) Gauteng Manco* (14.12% Economic Interest) Emfuleni Manco* (11.18% Economic Interest) Grand World Vision Events (33.3% Voting & Economic Interest) |
| * | Significantly influenced assets through RAH and Akhona GPI. |
| ** | Jointly-controlled assets through GPI's stake in SunWest. |
Gambling and regulatory industry
Since the legalisation of gambling in 1996 and the award of the first casino operators’ licences in 1997, the industry has successfully grown from strength to strength, making invaluable contributions on various levels within the economy in general. Apart from the direct investment and job creation that can be attributed to the industry, the gaming industry itself has advanced transformation in the tourism and leisure industry substantially.
In promoting the culture of responsible gambling, a body comprising regulators, civil society and industry called 'South African Advisory Council on Responsible Gambling' (SAACREG) has been created at the instance of the National Gambling Board. Together with the National Responsible Gambling Programme (NRGP), which is managed by the South African Responsible Gambling Trust, the industry has committed itself to the promotion of responsible gambling in communities. In the Western Cape, all sectors of the licensed gaming industry make contributions towards the funding of this programme, including GPI’s underlying investments.
The National Gambling Act regulates all aspects of gambling and gaming in South Africa, as well as the granting of casino operating licences in respect of the latter. BEE and the Codes of Good Practice are aligned with and work symbiotically with the National Gambling Act, to ensure that BEE principles are advanced in application of the aforementioned Act..
The Western Cape and KwaZulu-Natal Gambling and Racing Law, under which authority GPI operates, has allowed for the gradual roll-out of licensed LPMs at carefully selected venues in their respective provinces. GPI is already heavily invested in such machines through its Grandslots and Kingdomslots operations. This is a relatively new development that has seen the conservative introduction of such machines and has had the effect of boosting small business where these machines are located.