Peregrine writes down investment in Java Capital as deals dry up

Peregrine Holdings has written down the value of its investment in Java Capital by R100m as the corporate advisory house grapples with a slowdown in deal-flows in SA.

Java Capital’s attributable earnings in the year to end-March fell 60% to R15m because of “significantly reduced deal-flow in both the general corporate finance arena as well as in equity capital markets during the year”, Peregrine said.
The group bought 50% of Java Capital in 2014 for R205m.

Peregrine said on Thursday it made a profit of R523m in the year to end-March, a 24% decrease from the previous year.

Total revenue from continuing operations fell 10% to R1.6bn, even though assets under management grew by a fifth to R124bn.

Ongoing segmental headline earnings per share declined 7% to 152.9c “due to the significant drop in performance fees earned in Stenham and Peregrine Capital as well as earnings from Java Capital”.

Business Day TV spoke to Peregrine CEO Robert Katz about the group's annual financial results.
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