Trematon income gets boost from tax credit. Langebaan. West Coast
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Trematon income gets boost from tax credit. Langebaan. West Coast

TREMATON Capital Investments on Monday reported its comprehensive income for the six months ended February rose to R5.3m from R4m thanks to a R2.5m boost from a tax credit from property revaluations.

Trematon’s west coast leisure and casino unit Club Mykonos Langebaan reported a higher profit of R7.6m from R4.5m, its interim results statement said.

The resort was previously owned by Masterbond investors, but Trematon took full control in 2008, and “it’s been a good investment”, CEO Arnold Shapiro said.

The collapse of the Masterbond Group in the early 1990s left thousands of investors destitute — Club Mykonos was one of its properties.

Last week, the resort received an official four-star grading. “The resort continues to show improvement due to operational refinements and results of the refurbishment programme,” directors said in the interim results statement. “Both rental and timeshare occupancies are high by industry standards and revenues from commercial operations are showing good levels of growth.”

Trematon’s investments are mainly in three sectors — commercial and residential properties, and leisure assets, including casinos. The company also pursues short-term trading opportunities.

Trematon’s headline earnings fell 40% to 1.5c per share in the six months mainly because of a once-off charge arising from the settlement of a call option on shares at Club Mykonos Langebaan. The call option of 3.5-million shares arose from an incentive structure that was put in place to compensate a party that was instrumental in the original Club Mykonos transaction.

Trematon continued to own 100% of Club Mykonos Langebaan and there was no further exposure in this regard, directors said.

The Club Mykonos Marina was expanded, the number of jetties had been increased to the limits of the space available and the Mykonos Boatyard had become established as a value-added boating and general storage facility offering storage for 140 large and medium-sized crafts.

Net asset value remained unchanged since year-end, at 121c per share. “The group remains in a healthy financial position,” Trematon said. “On a consolidated basis, the group is in a net cash position although our property associates have appropriate gearing associated with specific investments .”

Equity accounted earnings from Arbitrage Property Fund and the Resi Investment Trust improved in the interim period.

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