The group, which holds a 45% stake in Sable Homes, reported an operating profit of R2,6m, a substantial drop from R14,01m last year. The net profit for the year was R4,4m compared with R9,5m in the previous year.

Headline losses of R5,9m were also recorded this year compared with R8,4m in headline earnings last year.
 
According to Gavin Bowes, Sable's financial controller, said two components which formed part of the operating profit were property investments and trading and treasury investments.
 
The property investments and trading division performed well and increased substantially from R7,8m to R11,2m as a result of historical property investment acquisitions having now traded for a complete year, Bowes said.
 
However, on the treasury investment side Sable has an offshore hedge fund which is meant to be utilised for future local South African property acquisitions.
 
While treasury investments showed a growth of R6,2m last year as a result of significant rand depreciation, this year's significant rand appreciation of the currency resulted in a negative growth of R8,5m.
 
The group's net interest paid component increased from R2,08m to R7,94m as a result of long-term borrowings generated by the acquisition of property investments.
 
The depreciation of tenant insulation costs, which is part of the property investments and trading division, remained reasonably static, Bowes said.
 
Headline losses were also due to the decrease in offshore fund.
 
Even the depreciation of the treasury investment had not affected Sable significantly.
 
"The treasury investment side of things is a home for surplus cash to be used in future local acquisitions and it is still significantly above the original investment value of R25m," Bowes said.
 
"We are still above what we put into the investment initially."