SIMPHIWE MBOKAZI

LONG4LIFE, the investment group started by Brian Joffe, said yesterday it had decided not to declare an annual dividend for the year to the end of February, in light of the Covid-19 disruption as it repositions and bolsters the company to take advantage of the more stable markets and economy in the future.

Last month, Long4Life announced it was undertaking a review of its corporate structure and strategic focus, in order to maximise shareholder value over the medium term, with a possible delisting from the JSE or the unbundling of certain focused assets.

The national lockdown in South Africa had knocked its business. Its earnings per share and its headline earnings per share decreased by 26 percent to 31.9 cents for the period, and revenue was down 12 percent to R3.58 billion in the reporting period.

“Trade in the three group divisions – sport and recreation, beverages, and Personal Care and Wellness – was severely restricted for the majority of the first half of the financial year,” said the group.

Long4Life owns firms such as Sportsman’s Warehouse, Chill Beverages, Inhle Beverages, Sorbet, Lime Light and ClaytonCare.

Sport and recreation revenue slid 10 percent to R2.1bn, while beverages revenue fell 13 percent to R1.3bn, hit by various national booze bans.

Personal care and wellness revenue tumbled 27 percent to R226 million, which Long4Life attributed mainly due to Sorbet, which had 11 store closures in the period, with the total number of stores at the financial year end at 209. However, its cash flow from operating activities improved by 15 percent to R674m.

Joffe, the chief executive of Long4Life, said: “Over the past year, the group’s management has focused on containing costs and asset management while improving and expanding online sales platforms and efficiencies.