By Nick Wilson

Unlisted empowerment investment company Grand Parade Investments, which focuses on investing in gaming and leisure stock, on Monday reported that its earnings per share increased 70% to 86c for the year to June.

The company, which announced a dividend of 30c per share — 67% higher than last year — ascribed the positive results to the continued good showing by SunWest, in which it holds a significant investment, and lower interest costs.

Grand Parade chairman Hassen Adams said the company received a much improved dividend from its investment in SunWest and that Grand Parade had been able to repay a lot of its debt, which reduced its interest costs.

Adams said the firm was confident it could improve on the results, as it would also soon have an increased shareholding in SunWest.

He said the investment Grand Parade had made in the Golden Valley Casino in Worcester, Western Cape, should also start to contribute more to the earnings.

“This year Worcester contributed nothing to the earnings because it was in its first year of operation. We would expect some contribution in the 2008 financial year,” said Adams.

Last week, Grand Parade announced it had concluded a R231m deal that would enable it to acquire a further 10% interest in SunWest from Sun International.

The deal will give Grand Parade 30% of SunWest and voting control.

Adams said this would set the stage for a listing because, in terms of JSE listing requirements, a company has to be in control of its biggest asset in order to list.

SunWest owns the GrandWest casino and the Table Bay Hotel in Cape Town.

Business Day