Trustco Group Holdings (Trustco) yesterday confirmed that the Johannesburg Stock Exchange (JSE) has lifted the suspension on the trading of Trustco shares, effective immediately. The trading of Trustco shares on its secondary markets in Windhoek (NSX) and New York (OTCQX) has also commenced.
“We are pleased to have our shares reinstated for trading on behalf of all our investors,” said Trustco CEO Quinton van Rooyen.
“Trustco always strives for investing excellence, and looks forward to announcing even more exciting updates on our investment portfolios in the near future!”
The lifting of the suspension follows the publication of Trustco’s restated audited Annual Financial Statements (AFS) for the period ending 31 August 2022, on 28 February 2023, with independent auditors issuing an unmodified audit report.
“With a petition to appeal to the Supreme Court of Appeal (South Africa) having been lodged, the restatement was made without prejudice to Trustco’s rights in law,” read a Trustco statement.
The statement, issued by Trustco spokesperson Neville Basson, added that the restated financials, which the JSE assessed before lifting the
suspension, include the reinstatement of a N$1.5 billion loan in favour of Next Capital, the investment vehicle of the Van Rooyen family.
“In these restated financials, Trustco reported an increase in basic earnings of 276% to N$1.4 billion in earnings, compared to the basic loss of N$815 million in the prior
The group’s net asset value also increased by 362% to N$1.8 billion, and profit after tax increased by 257% to N$1.4 billion, while basic earnings per share increased by 268% to 145.89 cents, compared to a loss per share of 86.66 cents in the prior year,” the statement reads.
Basson added that as a result of the restatement, the total issued shares of Trustco are now 987,238,581. The full effect and consequences of the restated AFS are available, and can be viewed on the company’s website.
“The Trustco board remains dedicated to positively cooperate with forward-thinking regulators that serve businesses, their clients, the public and investors across all regions where Trustco invests. This cooperation ensures that Trustco meets the highest standards and requirements not only of its regulators, but also of its co-investors,” Basson stated.
He continued that Trustco is taking measures, in consultation with its over 5 100 individual and institutional investors, to address any potential impact of the restatements, and emphasised that the board is confident these measures will ensure the growth in Trustco that investors have become accustomed to.
In August last year, the South African courts restrained the JSE from suspending Trustco from the bourse, pending a review.
The JSE had accused Trustco of inflating its profits by N$2.1 billion, and castigated the Namibian company for not complying with listings requirements in relation to annual
financial statements for the year ended 31 March 2019, and interim results for the six months ended 30 September 2019.