By Nicola Mawson

JSE-listed Tradehold, which has retail and property investments in the UK, said on Monday it expected to break even by year-end after excluding exceptional items.

The company reported revenue of £66m for the half-year to August, down from £128m in the previous corresponding period, but said it had a “small trading loss” of £534000, down from a £7,7m loss.

The company said its latest results were not directly comparable as it deconsolidated the Instore stake after selling 29,8%% to UK company Seaham Investments.

Exceptional losses of £8,7m, and a further loss of £1,5m, representing its share of Instore’s losses after deconsolidation, resulted in a total loss of £10,9m. Last year, the company posted a total loss of £5,6m.

Exceptional items included a loss from the sale of Instore shares, a markdown of its Instore investment and the impairment of staff share loans. Its Instore stake, sold down to 34,7% from 64,5%, reported improved profitability and performance, although trading conditions weakened during the half with an “exceptionally” poor summer affecting sales.

Total sales increased 4,5% to £133,8m from £128m, while the existing business grew 4,3%.

The chain expanded its product range in certain categories such as homeware and consumables but also focused on reducing costs and improving the supply chain and product availability.

Tradehold’s property investment, vested in several Moorgarth companies which it controls, reported delayed transactions as a result of “a troubled time for the UK property market” and “considerable uncertainty in banking circles”.

The delays affected planning applications, and a number of large potential assignments at its project management business, Bowcliffe, were either deferred or cancelled.

Tradehold said Moorgarth managed to maintain high occupancy levels in its properties. It continues to refurbish several properties in its portfolios although no acquisitions were in the pipeline as the cost of borrowing had increased.

Tradehold chairman Christo Wiese was confident of the medium- to long-term potential of the company’s investments.

“The new leadership at Instore is succeeding in refocusing on the basic principles of the discount market while Moorgarth is establishing a sound, diversified portfolio aimed at long-term capital growth.”

Business Day