Marc Hasenfuss Editor-at-large

Most readers know my cynical views on Namibian investment company Trustco Group Holdings. These have been articulated several times in the FM over the past two years. There are, of course, punters who think I am wrong, and I accept there is always another side to a story. Still, my many years in financial journalism have taught me one key lesson — make damn sure profits translate convincingly into cash flows. Otherwise be wary … very wary. Turning profits on the income statement with the help of asset revaluations is a dangerous game — especially when the market senses that such valuations might not be rooted in economic reality. Nevertheless, I feel obliged to offer the views of insurance company Conduit Capital, one of the larger shareholders in Trustco along with several other related parties. In its latest results Conduit argues that the qualitative aspects of Trustco are not immediately obvious from the financial statements. The group offers this: "An investor needs to do the w...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.