Listed investment group Enterprise Risk Management said on Friday that it would shift its focus to enter the property development market.

The company, which announced its results for the year ended February, said a number of changes to the board of directors and a change in one of the company's major shareholders had led to the planned shift.

"To facilitate the proposed new strategic direction, towards the end of the period under review, the company decreased its listed investment portfolio in anticipation of investing in the property development market," said Enterprise Risk Management.

The company's board said it had resolved not to declare any dividend to shareholders for the period under review.

Earnings a share rose to 30,8c from 0c last year. Headline earnings a share of 5,2c were a significant improvement on the 0c a share reported the previous year.

Net asset value also increased from 139,1c to 183,7c a share.

The company said the increase in the net asset value was mainly the result of income from investments as well as realised and unrealised capital gains on listed investments.

But it said it was involved in a dispute with the South African Revenue Service (SARS) over an amount of R9,27m.

Because of an "arbitrated reduction in income of the prior years" it believed an amount of R9,27m was refundable to it by SARS.

The revenue service, it said, cliamed the amount gave rise to an assessed loss, not a refund.

The company said it had lodged an appeal, and that the amount had been included in the item deferred tax asset.

Enterprise Risk Management said it was still defending claims of about R1m from three former executive employees relating to their service agreements with the company.

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge