Our opinion on the current state of GRANPRADE(GPL)Grand Parade Investments (GPL) is an investment holding company with interests primarily in the gaming industry. It is a BEE company that has been listed on the JSE since 2008. In recent years, GPL has shifted its focus, terminating its Dunkin' Doughnuts and Baskin Robbins franchises in February 2019 and exiting Burger King in February 2020. The company also sold its remaining 10% stake in Spur Corporation back to Spur in June 2019.
On 15th June 2022, GPL announced that it had unbundled its 9.28% shareholding in Spur, with shareholders receiving 1 Spur share for every 56 GPL shares they held on 10th June 2022, the unbundling record date.
In its results for the year ending 30th June 2024, GPL reported headline earnings per share (HEPS) of 19.2c, a significant increase from the 2.56c in the previous period. The company explained, "The considerable improvement in the earnings per share and headline earnings per share for the current reporting period is mainly due to the reduction of the costs of the restructuring transactions associated with the exit of the non-core investments of the Group in the prior year."
Technically, the share has been moving sideways since 2017, with resistance at 383c. Despite some upward movement in the last six months, the stock remains in a consolidation phase. In our view, it does not currently present a particularly interesting investment opportunity until it breaks through key resistance levels.
GPL trade ideas
Our opinion on the current state of GRANPRADE(GPL)Grand Parade Investments (GPL) is an investment holding company primarily involved in the gaming industry. As a BEE company, it has been listed on the JSE since 2008. The company decided to exit its food franchises, including Dunkin' Doughnuts and Baskin Robbins in February 2019, and Burger King in February 2020. Additionally, GPL sold its remaining 10% stake in Spur Corporation back to Spur in June 2019. On 15th June 2022, GPL announced the unbundling of its 9.28% shareholding in Spur, where shareholders received 1 Spur share for every 56 GPL shares they held as of 10th June 2022 (the unbundling record date).
In its financial results for the six months ending 31st December 2023, GPL reported revenue of R12.7m and headline earnings per share (HEPS) increased to 11.9c from 9.8c in the previous period. The company attributed the improvement to a 34% reduction in net central costs, which dropped to R7.9m due to a restructuring of operations, the write-back of R11m in prescribed dividends, and various cost-saving initiatives.
On 20th October 2022, GPL gave a strong on-balance-volume (OBV) buy signal amid rumors of a potential takeover. On 25th October 2022, GBM Liquidity, a private company, acquired a 27.88% stake in GPL, later increasing this to 35.14%. Additionally, on 11th November 2022, Sun International boosted its stake to 10.56%. Another OBV buy signal emerged on 8th November 2022 at 330c, signaling heightened activity. Subsequently, on 11th April 2023, GPL announced that GBM Liquidity Corporation, a family trust of Greg Bortz, had secured control with 53.65% of the company's issued capital.
In a trading statement for the year ending 30th June 2024, GPL estimated HEPS between 18.94c and 19.46c, a significant improvement compared to 2.56c in the prior year. This improvement was largely driven by a reduction in restructuring costs associated with the exit from non-core investments in the previous year.
Despite these developments, GPL's share price has been moving sideways since 2017. From a technical perspective, it does not appear to offer a particularly compelling investment opportunity at this time.
Our opinion on the current state of GPLGrand Parade Investments (GPL) is an investment holding company primarily focused on the gaming industry, operating as a Black Economic Empowerment (BEE) entity. Listed on the JSE in 2008, the company has undergone significant changes in its portfolio over the years. Notably, it terminated its franchises with Dunkin' Doughnuts, Baskin Robbins, and Burger King in February 2019 and February 2020, respectively. Furthermore, GPL sold its remaining 10% stake in the Spur Corporation back to Spur in June 2019.
On June 15, 2022, GPL announced the unbundling of its 9.28% shareholding in Spur, with shareholders receiving 1 Spur share for every 56 GPL shares held on the unbundling record date of June 10, 2022. In its financial results for the six months ending December 31, 2023, GPL reported revenue of R12.7 million, with headline earnings per share (HEPS) increasing to 11.9c from 9.8c in the previous period. The company attributed the decrease in central costs to operational restructuring and cost-saving initiatives implemented during the review period.
Significant changes occurred in GPL's ownership structure, with GBM Liquidity, a private company, acquiring a 27.88% stake in the company on October 25, 2022, later increased to 35.14%. Additionally, Sun International increased its holding to 10.56% on November 11, 2022. On April 11, 2023, GBM Liquidity Corporation, a family trust of Greg Bortz, obtained control with 53.65% of the company's issued capital.
Despite these ownership changes and potential takeover rumors, GPL's share performance has been relatively stagnant since 2017, moving sideways and not presenting an attractive investment opportunity from a technical perspective.
Our opinion on the current state of GPLGrand Parade Investments (GPL) is an investment holding company with interests in the gaming industry. The company is a BEE company which was listed on the JSE in 2008. It decided to terminate its Dunkin' Doughnuts and Baskin Robbins franchises in February 2019 and Burger King in February 2020. It had sold its remaining 10% in the Spur Corporation back to Spur in June 2019. On 15th June 2022, the company announced that it had unbundled its 9.28% shareholding in Spur on the basis that shareholders in GPL received 1 Spur share for every 56 GPL shares that they held on Friday 10th June 2022 (the unbundling record date).
In its results for the six months to 31st December 2022, the company reported revenue dropped to R3.8m from R8.4m in the previous period and headline earnings per share (HEPS) increased to 9.9c from the 4.8c in the previous period. The company said, "The performance was driven primarily by the continued improvement of the hospitality sector and the associated performance of the Group’s gaming investments coupled with a reduction in corporate head office costs over the period."
On 20th October 2022, the share gave a strong on-balance volume (OBV) buy signal and it was rumored that it might be the subject of a takeover. On 25th October 2022, the company reported that GBM Liquidity, a private company, had bought a 27.88% stake in the company. That has now been increased further to 35.14%. Then on 11th November 2022, the company announced that Sun International had increased its holding to 10.56%. The share gave another strong OBV buy signal on 8th November 2022 at 330c. Clearly, something was going on.
On 11th April 2023, the company announced that GBM Liquidity Corporation (a family trust of Greg Bortz) had obtained control with 53.65% of the company's issued capital. In a trading statement for the six months to 31st December 2023, the company estimated that HEPS would increase by between 11% and 31% compared with the previous year.
Our opinion on the current state of GPLGrand Parade Investments (GPL) is an investment holding company with interests in the gaming industry. The company is a BEE company which was listed on the JSE in 2008. It decided to terminate its Dunkin' Doughnuts and Baskin Robbins franchises in February 2019 and Burger King in February 2020. It had sold its remaining 10% in the Spur Corporation back to Spur in June 2019. On 15th June 2022, the company announced that it had unbundled its 9,28% shareholding in Spur on the basis that shareholders in GPL received 1 Spur share for every 56 GPL shares that they held on Friday 10th June 2022 (the unbundling record date). In its results for the six months to 31st December 2022 the company reported revenue dropped to R3,8m from R8,4m in the previous period and headline earnings per share (HEPS) increased to 9,9c from the 4,8c in the previous period. The company said, "The performance was driven primarily by the continued improvement of the hospitality sector and the associated performance of the Group’s gaming investments coupled with a reduction in corporate head office costs over the period". On 20th October 2022, the share gave a strong on balance volume (OBV) buy signal and it was rumoured that it might be the subject of a take-over. On 25th October 2022, the company reported that GBM Liquidity, a private company, had bought a 27,88% stake in the company. That has now been increased further to 35,14%. Then on 11th November 2022 the company announced that Sun international had increased its holding to 10,56%. The share gave another strong OBV buy signal on 8th November 2022 at 330c. Clearly, something was going on. On 11th April 2023 the company announced that GBM Liquidity Corporation (a family trust of Greg Bortz) had obtained control with 53,65% of the company's issued capital. In a trading statement for the year to 30th June 2023 the company estimated that HEPS would be between 2,24c and 2,88c compared with a loss of 2,73c in the previous year.