ZARCLEAR (ZCL) Shares
? Zarclear Holdings Ltd is an investment company focusing on delivering access to a portfolio of high-growth or high-return investments, focusing particularly on financial market infrastructure. As such, the company seeks to capitalize on companies that would benefit from the listed governance structures, access to liquid and flexible capital, a broad shareholder base, sector expertise and networks that the company’s management and board offer.
? The company was originally set up as an investment holding entity for Peregrine Holdings Limited, a diversified financial services group listed on the JSE, in order to house certain of the Peregrine Group’s proprietary investments.
? The Company was incorporated in South Africa on 28 June 2000, as PGR 29 Investments Proprietary Limited. In April 2011, the Company’s name was changed to Zarclear Holdings Proprietary Limited and on 11 September 2017 Zarclear Holdings was converted to a public company.
? Zarclear Holdings Ltd operates by sourcing high-value investment opportunities which it manages with a history of a proven track record across a broad-spectrum investment portfolio. It seeks to reward shareholders with strong returns from a unique set of private equity investment opportunities in financial services and above market related returns from a liquid and transparent portfolio.
? 38% of the company’s portfolio is invested in South Africa, to include Zarclear Securities Lending, and Peregrine Capital High Growth Hedge Fund, amongst others. 62% of the company’s portfolio is invested internationally, including Stenprop Limited shares and unlisted property investments
? In the second half of the year to 31 March 2019, in line with its revised investment strategy, the Group undertook two acquisitions. These transactions were executed in fulfilment of what is referred to as ‘the First Leg’ of the revised strategy – the creation and development of operational entities to exploit opportunities offering exceptional returns in financial-market and regulatory infrastructure.
? Data from the Group’s 2019 financial analysis shows a strong performance thus far, with 537 cents per share (“cps”) at 31 March 2019, reflecting an increase of 10% over the 487 cps as at 31 March 2018. The Group’s results for the financial year were positively impacted by a weakening in Rand exchange rates against the major world currencies.
? A significant portion of the Group’s assets, either directly or indirectly, are denominated in GBP, EURO or USD, against which the Rand weakened over the course of the year, by 13.6%, 11.2% and 22.1% respectively. Cash accounted for some 46% of NAV. At R 558 million, the closing balance of cash and cash equivalents represented a considerable increase over that of the year previously (2018: R76 million).
VISION & VALUES OF ZARCLEAR
- Much of Zarclear Holdings Ltd’s growth going forward will be driven by its revised investment strategy, with its focus on financial-market infrastructure investments and managing a liquid and flexible capital base that generates market-related returns, in South Africa and elsewhere.
- Targeted investments are in regulated exchanges, trade repositories, clearing houses, securities depositories and investment and technology platforms within the financial markets sector in general and South Africa in particular.
- Zarclear Holdings Ltd has three investments in this area: a 28% holding in Nala A2X Proprietary Limited (“Nala A2X”); 100% of Zarclear Proprietary Limited, providing infrastructure and regulation technology services to financial services companies, and 60% of Zarclear Securities Lending Proprietary Limited (“Zarclear Securities Lending”).
- All these businesses have required relatively low initial investments, rely heavily on new technologies and look to exploit the changing regulatory landscape by fulfilling market needs brought about by new legislation. All have high growth prospects.
MARKET PERFORMANCE OF ZARCLEAR
- Zarclear Holdings Ltd currently trades on the Johannesburg Stock Exchange (JSE), where investors can buy shares under the stock symbol -ZCL. The company has already logged a strong track record on the JSE thus far, delivering a stable share price and healthy dividends for investors who choose to purchase shares. This makes Zarclear Holdings Ltd a solid long-term buy-in today, with the company already recording a good performance based on its revised investment strategy.