COMPANY NEWS IN BRIEF
Momentum buys RMI Investment stakeInsurance and investment group Momentum Metropolitan Holdings (MMH) has agreed to buy OUTsurance’s remaining stake in RMI Investment Managers Group.
OUTsurance was previously a subsidiary of investment holding company Rand Merchant Investment Holdings (RMIH) until the short-term insurer took over the listing of its former parent in December 2022. That process saw RMIH collapse its holding company structure, enabling shareholders to be directly invested in OUTsurance, which was the crown jewel in its investment portfolio.
The transaction between OUTsurance and MMH, which was signed on Monday, will allow the diversified insurance and investment group to significantly boost its presence in the asset management industry though the deal remains subject to conditions including approval by competition authorities.
MMH has been a minority shareholder in RMI Investment Managers Group alongside RMIH since 2015. The expanded stake in RMI Investment Managers Group will increase MMH’s minority stake in a range of independent, owner-managed investment businesses with good growth potential.
The deal comes just over a month after MMH named asset management industry veteran Jeanette Marais as its new group CEO, making her the first female leader of a major SA listed life insurance and asset management group. Marais officially took over on August 1 from outgoing CEO Hilgard "Hillie" Meyer who is set to retire at the end of this month.-Fin24
Virgin Active to expand office space
Virgin Active is investing millions to turn parts of their gyms into workspaces, which will include offices and meeting rooms.
The work-from-home shift in recent years has changed how people view gyms, the company found.
As they were not going into the office, people were looking for a different "second space" away from their homes between 08:00 to 20:00, says Virgin South Africa CEO Dean Kowarski.
"That is a space where you can work out, have a coffee, and meet people. People are no longer going into the office, and they want flexibility in a space where they can do everything," he said. An increasing number of members started to do work from the gym as well, which is why the company is directing part of a new R403 million investment into its gyms towards expanding office space and meeting rooms.
To ensure that members can work and gym throughout load shedding, the group is also equipping gyms with inverters, generators and upgrading lights to reduce electricity consumption by 2 million KWh. To date, 100 out of 129 clubs have been fitted with alternative power solutions, while the rest will be equipped in the next six months.
Some of the new investment will be used to equip gyms with dedicated yoga, pilates, and boxing studios.-Fin24
Metrofile books double-digit revenue growth
Document and storage management specialist Metrofile said on Monday a return of clients to the office helped it deliver double-digit revenue growth in its year to end-June.
Revenue increased by 16% to about R1.1 billion, but profit only rose 3.2% to about R138 million, with the company reporting net finance costs were 18% higher at R58 million. Net debt rose by 11% to R496 million.
The company kept its dividend for the year unchanged at 18c but bought back about R33.7 million worth of its shares during the year, or about 2.3%.
Valued at about R1.3 billion on the JSE, Metrofile operates from 71 facilities at 36 locations, owning the equivalent of about 17 soccer fields in storage space. It also operates in Kenya, Botswana, Mozambique and the Middle East.
The 2023 financial year saw the return to offices by some of clients, which has increased the demand for both its products and services, Metrofile said - adding that actions taken towards the end of the previous year, including the investment in the go-to-market industry team, yielded positive results with growth in storage, image processing and products and solutions.-Fin24