Our opinion on the current state of SASFIN(SFN)Sasfin (SFN) is a banking group that specialises in various types of finance for small businesses and high net-worth individuals. It was listed on the JSE in 1987. The company has been investing heavily into its digital platforms and acquisitions.
The share was in a strong downward trend, and we advised investors to wait until there was a measurable turn in the price, such as an upside break through its long-term trendline, before investigating further. That upside break has not yet occurred, mainly because of the impact of COVID-19, but there are signs that the share is beginning to recover. On 16th October 2023, the company announced, "Sasfin has entered into binding heads of agreement to dispose of its capital equipment finance and commercial property finance businesses to African Bank Limited." This caused the share price to rise sharply.
On 27th February 2024, the company announced that it had received a civil summons from the South African Revenue Services (SARS) for a damages claim of R4,782bn plus interest and penalties in respect of income tax, value-added tax (VAT), and penalties allegedly owed by former foreign exchange clients of the bank. The company has a market capitalisation of just R484m.
In its results for the six months to 31st December 2023, the company reported headline earnings per share (HEPS) down 62.39% and net asset value (NAV) up 4.09% to 5191c per share. The company said, "The primary reasons for the decrease were negative adjustments to the Group's fair value loans and private equity portfolio as well as an increase in credit impairments, reflecting the challenging economic environment for businesses within South Africa."
The share is fairly thinly traded, with only about R110 000 worth of shares changing hands on average every day. On 15th July 2024, the company announced that it intended to delist from the JSE. Shareholders will be offered R30 per share - a 66% premium to the 30-day VWAP on 12th July 2024.