REVIEWED CONDENSED ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2026
CORPORATE ADMINISTRATION
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
Incorporated in the Republic off South Affrica Registration number: 1973/007111/06
Share code: HCI
ISIN: ZAE000003257
("HCI" or "the Company" or "the Group")
Directors:
J6 Copєlyn (Chiєff Exєcutivє Offficєr)
AF Pereira (Financial Director) TG Govender
Y Shaik
MH Ahmed* MF Magugu* L McDonald**
VE Mphande* (Chairperson) JG Ngcobo*
A Singh** RD Watson*
* Independent non-executive ** Non-executive
Company secretary:
HCI Managerial Services Proprietary Limited
Registered office:
Suite 801, 76 Regent Road, Sea Point, Cape Town, 8005 PO Box 5251, Cape Town, 8000
Telephone: 021 481 7560
Auditors:
Forvis Mazars
Rialto Road, Grand Moorings Precinct Century City, 7441
PO Box 134, Century City, 7446
Transfer secretaries:
Computershare Investor Services Proprietary Limited Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Private Bag X9000, Saxonwold, 2132
Sponsor:
Investec Bank Limited
100 Grayston Drive, Sandton, Sandown, 2196
Website address:
https://www.hci.co.za
Deneb Investments
Platinum Group Metals
La Concorde Holdings
Inrange Golff
Frontier Transport Holdings
Affrica Energy
Impact Oil & Gas
HCI Properties (division)
HCI Resources
eMedia Holdings
Southern Sun
Tsogo Sun
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||
Reviewed 31 March 2026 R'000 | Audited 31 March 2025 R'000 | |
ASSETS | ||
Non-current assets | 53 484 058 | 56 253 022 |
Property, plant and equipment | 16 742 745 | 16 444 465 |
Right-off-use assets | 240 062 | 220 510 |
Investment properties | 2 741 007 | 5 559 873 |
Goodwill | 5 636 509 | 5 738 002 |
Investments in associates and joint ventures | 6 932 880 | 5 707 820 |
Othєr financial assєts | 1 688 355 | 2 087 793 |
Intangible assets - minerals | 11 919 709 | 12 710 558 |
Intangible assets - other | 7 337 510 | 7 505 941 |
Defferred taxation | 198 238 | 224 866 |
Other | 47 043 | 53 194 |
Current assets | 7 012 984 | 7 889 715 |
Inventories | 851 509 | 956 353 |
Programme rights | 1 350 626 | 1 395 131 |
Othєr financial assєts | 156 557 | 179 233 |
Trade and other receivables | 2 044 082 | 2 149 584 |
Taxation | 44 174 | 40 105 |
Bank balances and deposits | 2 566 036 | 3 169 309 |
Non-current assets and disposal group assets held ffor sale | 3 684 950 | 126 800 |
Total assets | 64 181 992 | 64 269 537 |
EQUITY AND LIABILITIES | ||
Equity | 39 549 868 | 38 765 667 |
Equity attributable to equity holders off the parent | 25 312 736 | 24 419 685 |
Non-controlling interest | 14 237 132 | 14 345 982 |
Non-current liabilities | 18 353 160 | 19 843 416 |
Defferred taxation | 7 751 480 | 7 971 110 |
Borrowings | 10 016 485 | 11 275 150 |
Lease liabilities | 228 732 | 263 981 |
Provisions | 85 076 | 84 505 |
Other* | 271 387 | 248 670 |
Current liabilities | 5 978 696 | 5 660 454 |
Trade and other payables | 2 666 253 | 2 792 201 |
Borrowings | 2 819 740 | 2 390 781 |
Taxation | 44 824 | 29 346 |
Provisions | 209 774 | 242 904 |
Bank overdraffts | 151 723 | 94 076 |
Other* | 86 382 | 111 146 |
Disposal group liabilities held ffor sale | 300 268 | - |
Total equity and liabilities | 64 181 992 | 64 269 537 |
* Othєr liabilitiєs includє post-rєtirєmєnt bєnєfit liabilitiєs, long-tєrm incєntivє plans, financial liability ffor put option with non-
controlling interest, and defferred revenue and income.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Reviewed | Audited | |
31 March | 31 March | |
% | 2026 | 2025 |
change | R'000 | R'000 |
Revenue | 14 232 201 | 13 427 268 | |
Net gaming win | 9 132 106 | 9 245 388 | |
Property rental income | 808 186 | 764 124 | |
Income | 3.1% | 24 172 493 | 23 436 780 |
Other operating expenses and income | (18 743 547) | (18 195 260) | |
EBITDA | 3.6% | 5 428 946 | 5 241 520 |
Depreciation and amortisation | (1 143 204) | (1 133 606) | |
Investment income | 245 803 | 288 099 | |
Finance costs | (1 187 745) | (1 397 258) | |
Equity-accounted earnings off associates and joint ventures | 523 687 | 77 439 | |
Gain on bargain purchase | 2 378 | - | |
Fair value adjustment on associate on gaining control | 23 406 | 4 547 307 | |
Invєstmєnt (dєficit)/surplus | (61 494) | 789 280 | |
Fair value adjustments on investment properties | 388 489 | 310 641 | |
Impairment reversals | 793 716 | 706 362 | |
Asset impairments | (458 596) | (1 839 315) | |
Fair valuє adjustmєnts on financial instrumєnts | (14 997) | (25 012) | |
Impairment off investments | - | (5 951) | |
Profit bєfforє taxation | (39.9%) | 4 540 389 | 7 559 506 |
Taxation | (1 053 258) | (537 345) | |
Profit ffor thє yєar | 3 487 131 | 7 022 161 | |
Attributable to: | |||
Equity holders off the parent | 2 538 489 | 6 724 053 | |
Non-controlling interest | 948 642 | 298 108 | |
3 487 131 | 7 022 161 | ||
Earnings per share (cents) | |||
Basic | (61.4%) | 3 212.50 | 8 313.82 |
Diluted | (60.9%) | 3 195.44 | 8 171.86 |
CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME | ||
Reviewed 31 March 2026 R'000 | Audited 31 March 2025 R'000 | |
Profit ffor thє yєar | 3 487 131 | 7 022 161 |
Other comprehensive income net off tax: | ||
Items that will subsequently be reclassified to profit or loss | ||
Foreign currency translation difffferences | (932 022) | (192 493) |
Forєign currєncy translation diffffєrєncєs rєclassifiєd to profit or loss on deemed disposal off equity-accounted investments | - | (842 254) |
Cash Ğow hєdgє rєsєrvєs | - | (11 028) |
Share off other comprehensive losses off equity-accounted investments | (13 356) | (8 986) |
Rєclassification off єquity-accountєd fforєign currєncy translation rєsєrvєs on dilution off interests in equity-accounted investments | 7 236 | - |
Items that will not subsequently be reclassified to profit or loss | ||
Revaluation off owner-occupied land and buildings on transffer to investment properties | - | 5 405 |
6ctuarial lossєs on post-єmploymєnt bєnєfit liabilitiєs | (13 457) | (2 369) |
Fair value adjustments on equity instruments designated at ffair value through other comprehensive income | (43 352) | (184 444) |
Share off other comprehensive income off equity-accounted investments | 841 | - |
Total comprehensive income | 2 493 021 | 5 785 992 |
Attributable to: | ||
Equity holders off the parent | 1 918 603 | 5 585 334 |
Non-controlling interest | 574 418 | 200 658 |
2 493 021 | 5 785 992 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||
Reviewed | Audited | |
31 March | 31 March | |
2026 | 2025 | |
R'000 | R'000 | |
Balance at the beginning off the year | 38 765 667 | 28 193 640 |
Shares repurchased | (801 691) | (46 538) |
Total comprehensive income | 2 493 021 | 5 785 992 |
Equity-settled share-based payments | 33 344 | 31 442 |
Share off direct equity movements off equity-accounted investments | 1 988 | (23 961) |
Non-controlling interest recognised on acquisition off subsidiaries | 75 805 | 6 166 550 |
Disposal off subsidiaries | 54 828 | 6 625 |
Effffects off changes in holding* | (538 721) | (2 627) |
Financial liability arising ffrom put option over non-controlling interest | (10 276) | - |
Extinguishment off borrowings ffrom non-controlling interests | 31 749 | - |
Dividends | (555 846) | (1 345 456) |
Balance at the end off the year | 39 549 868 | 38 765 667 |
* Includes R509 million in respect off a change in the Group's effffective holding in Tsogo Sun Limited, primarily attributable to shares repurchased by the subsidiary during the year.
Reviewed 31 March 2026
% Gross
Net
Audited
31 March 2025
Gross
Net
change
R'000
R'000
R'000
R'000
Earnings attributable to equity holders off the parent | (62.2%) | 2 538 489 | 6 724 053 | ||
Gains on disposal off plant and equipment | (6 138) | (4 266) | (9 680) | (4 548) | |
Impairment off property, plant and equipment | 306 968 | 113 477 | 231 050 | 70 896 | |
Write-offff off non-current assets held ffor sale | - | - | 1 410 | 767 | |
Gain on bargain purchase | (2 378) | (2 146) | - | - | |
Losses on disposal off subsidiaries | 58 763 | 58 763 | 3 430 | 1 717 | |
Foreign currency translation reserve recycled on deemed disposal off equity-accounted investments | - | - | (842 254) | (842 254) | |
Fair value adjustment on associate on gaining control | (23 406) | (21 119) | (4 547 307) | (4 547 307) | |
Losses/(gains) on changes in holdings off equity-accounted investments | 2 020 | (4 419) | 53 517 | 56 177 | |
Foreign currency translation reserves recycled on dilution off interests in equity-accounted investments | 7 236 | 7 236 | - | - | |
Net impairment reversals on interests in equity-accounted investments | (793 716) | (729 497) | (700 411) | (643 426) | |
Impairment off intangible assets | 151 628 | 56 729 | 1 608 265 | 585 997 | |
Write-offff off intangible assets | 2 751 | 1 083 | - | - | |
Write-offff off equity-accounted investments | - | - | 1 074 | 945 | |
Gains on disposal off investment properties | (6 525) | (4 300) | (3 973) | (2 441) | |
Fair value adjustments on investment properties | (388 489) | (215 232) | (310 641) | (171 501) | |
Insurance claims ffor capital assets | (16 160) | (7 059) | (15 077) | (7 381) | |
Remeasurements included in equity-accounted earnings off associates and joint ventures | (12 448) | (11 445) | (9 682) | (8 901) | |
Losses/(gains) on disposal off plant and equipment | 1 287 | 1 183 | (340) | (313) | |
Impairment off property, plant and equipment | 39 260 | 36 092 | 81 984 | 75 370 | |
Impairment reversal off interests in equity-accounted investments | - | - | (14 352) | (13 194) | |
Fair value adjustments on investment properties | (27 974) | (25 718) | (52 880) | (48 614) | |
Reversal off impairment off assets | (25 021) | (23 002) | (24 094) | (22 150) | |
Headline earnings | 46.5% | 1 776 294 | 1 212 793 | ||
Net asset carrying value per share (cents) | 33 597 | 30 318 | |||
Headline earnings per share (cents) | |||||
Basic | 49.9% | 2 247.93 | 1 499.53 | ||
Diluted | 51.7% | 2 235.99 | 1 473.93 | ||
Weighted average number off shares in issue ('000) | |||||
Basic | 79 019 | 80 878 | |||
Diluted | 79 441 | 82 283 | |||
Actual number off shares in issue at the end off the year (net off treasury shares) ('000) | 75 342 | 80 546 | |||
Reviewed 31 March
2026
R'000
Audited 31 March
2025
R'000
Cash ½ows ffrom operating activities | 3 053 280 | 1 358 551 |
Cash generated by operations | 5 470 105 | 5 274 972 |
Interest income | 154 212 | 162 220 |
Finance costs | (1 175 311) | (1 375 134) |
Changes in working capital | 157 772 | (438 362) |
Taxation paid | (1 004 611) | (924 488) |
Dividends paid | (548 887) | (1 340 657) |
Cash ½ows ffrom investing activities | (921 740) | 1 132 573 |
Business combinations and disposals | (44 737) | 327 756 |
Net investments disposed/(acquired) | 110 533 | (6 385) |
Dividends received | 206 996 | 156 435 |
Loans and receivables repaid | 5 848 | 39 |
Proceeds ffrom insurance claims ffor capital assets | 16 160 | 15 077 |
Government grants received | 5 991 | 23 653 |
Intangible assets | ||
- Additions | (117 558) | (87 566) |
- Disposals | - | 1 748 083 |
Investment properties | ||
- Additions | (215 592) | (96 547) |
- Disposals | 279 325 | 69 319 |
Property, plant and equipment | ||
- Additions | (1 189 728) | (1 092 791) |
- Disposals | 21 022 | 75 500 |
Cash ½ows ffrom financing activities | (2 567 855) | (1 085 952) |
Ordinary shares repurchased | (801 691) | (38 500) |
Transactions with non-controlling shareholders | (538 710) | 9 004 |
Principal paid on lease liabilities | (95 242) | (92 370) |
Net ffunding repaid | (1 132 212) | (964 086) |
(Decrease)/increase in cash and cash equivalents Cash and cash equivalents At the beginning off the year Foreign exchange difffferences | (436 315) 3 075 233 (99 420) | 1 405 172 1 605 451 64 610 |
At the end off the year | 2 539 498 | 3 075 233 |
Bank balances and deposits | 2 566 036 | 3 169 309 |
Bank overdraffts | (151 723) | (94 076) |
Cash in disposal groups held ffor sale | 125 185 | - |
Cash and cash equivalents | 2 539 498 | 3 075 233 |
Revenue 31 March | Net gaming win 31 March | ||
2026 | 2025 | 2026 | 2025 |
R'000 | R'000 | R'000 | R'000 |
Media and broadcasting | 2 990 723 | 3 155 470 | - | - |
Gaming | 1 801 540 | 1 714 675 | 9 132 106 | 9 245 388 |
Transport | 2 838 961 | 3 035 042 | - | - |
Properties | 442 602 | 327 206 | - | - |
Coal mining | 1 686 105 | 1 469 603 | - | - |
Branded products and manuffacturing | 4 195 230 | 3 612 488 | - | - |
Other | 277 040 | 112 784 | - | - |
Total | 14 232 201 | 13 427 268 | 9 132 106 | 9 245 388 |
Property rental income 31 March | EBITDA 31 March | |
2026 2025 | 2026 | 2025 |
R'000 R'000 | R'000 | R'000 |
Media and broadcasting | 21 135 | 18 893 | 539 559 | 576 161 |
Gaming | 214 714 | 187 988 | 3 428 347 | 3 426 427 |
Transport | 2 014 | 1 961 | 673 775 | 652 530 |
Properties | 418 813 | 400 692 | 363 435 | 328 393 |
Coal mining | - | - | 264 679 | 115 886 |
Branded products and manuffacturing | 132 324 | 136 742 | 451 407 | 365 420 |
Oil and gas prospecting | - | - | (116 426) | (91 541) |
Other | 19 186 | 17 848 | (175 830) | (131 756) |
Total | 808 186 | 764 124 | 5 428 946 | 5 241 520 |
Depreciation and amortisation 31 March | Interest income 31 March | |
2026 2025 | 2026 | 2025 |
R'000 R'000 | R'000 | R'000 |
Media and broadcasting | (107 970) | (112 165) | 18 171 | 19 625 |
Gaming | (712 158) | (710 485) | 34 651 | 52 417 |
Transport | (121 506) | (119 291) | 32 055 | 33 723 |
Properties | (12 053) | (10 717) | 25 717 | 21 116 |
Coal mining | (57 809) | (71 415) | 4 182 | 7 537 |
Branded products and manuffacturing | (115 285) | (103 432) | 5 735 | 3 842 |
Oil and gas prospecting | (3 191) | (2 371) | 28 079 | 35 878 |
Other | (13 232) | (3 730) | 42 381 | 39 611 |
Total | (1 143 204) | (1 133 606) | 190 971 | 213 749 |
Finance costs | Equity-accounted earnings/(losses) | ||
31 March | 31 March | ||
2026 | 2025 | 2026 | 2025 |
R'000 | R'000 | R'000 | R'000 |
Media and broadcasting | (36 245) | (53 153) | 14 185 | 10 540 |
Gaming | (602 659) | (760 633) | 6 458 | 1 745 |
Hotels | - | - | 555 683 | 461 341 |
Transport | (63 652) | (34 616) | 1 487 | 4 089 |
Properties | (175 267) | (197 923) | - | (76) |
Coal mining | (3 384) | (4 904) | - | - |
Branded products and manuffacturing | (92 263) | (112 663) | - | - |
Oil and gas prospecting | (225) | (362) | (26 137) | (363 078) |
Palladium prospecting | - | - | (25 340) | (21 394) |
Other | (214 050) | (233 004) | (2 649) | (15 728) |
Total | (1 187 745) | (1 397 258) | 523 687 | 77 439 |
Impairment of assets and investments
31 March
Profit/(loss) before tax 31 March
2026
R'000
2025
R'000
2026
R'000
2025
R'000
Media and broadcasting | - | - | 427 700 | 441 008 |
Gaming | (454 320) | (1 836 977) | 1 759 520 | 282 324 |
Hotels | - | - | 1 338 413 | 1 167 703 |
Transport | (4 276) | (2 338) | 517 883 | 534 097 |
Properties | - | - | 545 280 | 404 558 |
Coal mining | - | - | 239 965 | 80 146 |
Branded products and manuffacturing | - | - | 289 785 | 165 173 |
Oil and gas prospecting | - | - | (134 225) | 4 968 087 |
Palladium prospecting | - | - | (25 340) | (21 394) |
Other | - | (5 951) | (418 592) | (462 196) |
Total | (458 596) | (1 845 266) | 4 540 389 | 7 559 506 |
Taxation 31 March | Headline earnings/(loss) 31 March | |
2026 | 2025 | 2026 2025 |
R'000 | R'000 | R'000 R'000 |
Media and broadcasting | (101 691) | (113 200) | 185 840 | 187 219 |
Gaming | (516 024) | (123 004) | 794 651 | 747 448 |
Hotels | - | - | 499 409 | 415 222 |
Transport | (127 375) | (134 544) | 318 575 | 315 277 |
Properties | (125 052) | (93 442) | 119 926 | 83 333 |
Coal mining | (61 036) | (16 199) | 178 639 | 63 756 |
Branded products and manuffacturing | (75 034) | (40 691) | 154 114 | 99 233 |
Oil and gas prospecting | - | - | (66 375) | (296 532) |
Palladium prospecting | - | - | (25 340) | (21 394) |
Other | (47 046) | (16 265) | (383 145) | (380 769) |
Total | (1 053 258) | (537 345) | 1 776 294 | 1 212 793 |
Borrowings (non-current) 31 March
Borrowings (current) 31 March
2026
R'000
2025
R'000
2026
R'000
2025
R'000
Media and broadcasting | 512 274 | 485 319 | 54 496 | 62 923 |
Gaming | 4 715 986 | 6 362 757 | 2 019 256 | 1 066 326 |
Transport | 580 681 | 327 968 | 183 127 | 95 665 |
Properties | 1 114 286 | 1 325 700 | 512 615 | 480 883 |
Branded products and manuffacturing | 349 706 | 71 373 | 45 721 | 630 028 |
Other | 2 743 552 | 2 702 033 | 4 525 | 54 956 |
Total | 10 016 485 | 11 275 150 | 2 819 740 | 2 390 781 |
Bank balances and deposits 31 March | Bank overdrafts 31 March | |
2026 2025 | 2026 | 2025 |
R'000 R'000 | R'000 | R'000 |
Media and broadcasting | 165 831 | 210 633 | - | - |
Gaming | 470 405 | 479 294 | 13 609 | 28 693 |
Transport | 724 977 | 537 675 | - | - |
Properties | 175 703 | 153 152 | - | - |
Coal mining | 46 149 | 120 575 | - | - |
Branded products and manuffacturing | 100 416 | 103 971 | 8 976 | 65 285 |
Oil and gas prospecting | 666 301 | 891 201 | - | - |
Other | 216 254 | 672 808 | 129 138 | 98 |
Total | 2 566 036 | 3 169 309 | 151 723 | 94 076 |
The Group's revenue streams per segment are as ffollows:
2026 | 2025 | |||
Sale of | Provision of | Sale of | Provision of | |
goods | services | goods | services | |
R'000 | R'000 | R'000 | R'000 | |
Revenue recognised at a point in time | ||||
Media and broadcasting | ||||
Revenue ffrom the sale off Openview boxes | 167 310 | - | 164 596 | - |
Gaming | ||||
Food and beverage revenue | - | 684 929 | - | 675 252 |
Transport | ||||
Revenue ffrom the sale off vehicles, spares, tyres and retreads | 323 974 | - | 503 757 | - |
Single-journey bus ticket revenue | - | 328 747 | - | 355 663 |
Revenue ffrom charter hire services | - | 127 185 | - | 122 739 |
Revenue ffrom automotive repair services | - | 12 107 | - | 11 915 |
Revenue ffrom operational contracts with the Department off Transport and the City off Capє Town ffor thє provision off bus sєrvicєs | - | 20 509 | - | - |
Other revenue | - | 4 154 | - | 2 464 |
Properties | ||||
Convention and exhibition revenue | - | 187 226 | - | 132 154 |
Development revenue | 63 739 | - | 20 000 | - |
Coal mining | ||||
Revenue ffrom the sale off coal | 1 686 105 | - | 1 469 603 | - |
Branded products and manufacturing | ||||
Revenue ffrom the sale off: | ||||
- Toys, electronic games and sports goods | 1 548 483 | - | 994 899 | - |
- Woven, knitted and non-woven products | 900 910 | - | 928 458 | - |
- Pressed, roll-fformed steel products | 1 029 787 | - | 1 086 314 | - |
- Stationєry, publishing and offficє suppliєs | 434 328 | - | 393 472 | - |
- Speciality chemicals | 237 948 | - | 198 598 | - |
- Filtration products | 28 893 | - | - | - |
Other | ||||
Food and beverage revenue | - | 58 471 | - | 40 025 |
Donations | - | 2 593 | - | 42 408 |
Bottling revenue | 108 202 | 79 169 | - | - |
The Group's revenue streams per segment are as ffollows (continued):
2026 2025
Sale of goods R'000
Provision of
services R'000
Sale of goods R'000
Provision of
services R'000
Revenue recognised over time | ||||
Media and broadcasting | ||||
Advertising revenue | - | 2 267 555 | - | 2 415 874 |
Licence ffees | - | 410 984 | - | 389 559 |
Facility income ffrom broadcasting and production services | - | 129 158 | - | 177 580 |
Content sales | - | 15 716 | - | 7 861 |
Gaming | ||||
Hotel room revenue | - | 602 256 | - | 535 661 |
Entrance ffees | - | 222 231 | - | 218 026 |
Tenant recoveries | - | 91 857 | - | 83 820 |
Cinema revenue | - | 40 730 | - | 46 279 |
Venue hire revenue | - | 31 271 | - | 29 232 |
Parking ffees | - | 28 918 | - | 29 440 |
Other revenue* | - | 99 348 | - | 96 965 |
Transport | ||||
Revenue ffrom operational contracts with the Department off Transport and the City off Capє Town ffor thє provision off bus sєrvicєs | - | 1 457 849 | - | 1 401 941 |
Multi-journey bus ticket revenue | - | 564 436 | - | 636 563 |
Properties | ||||
Tenant recoveries | - | 180 880 | - | 165 917 |
Other revenue | - | 10 757 | - | 9 135 |
Branded products and manufacturing | ||||
Revenue ffrom the sale off pressed, roll-fformed steel products | 14 881 | - | 10 747 | - |
Other | ||||
Internal audit ffees | - | 20 743 | - | 21 685 |
Tenant recoveries | - | 7 085 | - | 7 778 |
Other revenue | - | 777 | - | 888 |
6 544 560 | 7 687 641 | 5 770 444 | 7 656 824 |
* Othєr gaming rєvєnuє rєcognisєd ovєr timє most significantly includєs othєr hotєl and sundry rєvєnuє.
INDEPENDENT AUDITOR'S REVIEW REPORT ON THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
To the Shareholders off Hosken Consolidated Investments Limited
Wє havє rєviєwєd thє condєnsєd consolidatєd financial statєmєnts off Hoskєn Consolidatєd Invєstmєnts Limitєd, sєt out on pagєs 2 to 21, which comprisє thє condєnsєd consolidatєd statєmєnt off financial position as at 31 March 2026 and thє condєnsєd consolidatєd statєmєnt off profit or loss, condєnsєd consolidatєd statєmєnt off othєr comprєhєnsivє incomє, condєnsєd consolidatєd statєmєnt off changєs in єquity and condєnsєd consolidatєd statєmєnt off cash Ğows ffor thє year then ended, and selected explanatory notes.
DIRECTORS' RESPONSIBILITY FOR THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Thє dirєctors arє rєsponsiblє ffor thє prєparation and prєsєntation off thєsє condєnsєd consolidatєd financial statєmєnts in accordancє with thє rєquirєmєnts off thє JSE Limitєd Listings Rєquirєmєnts ffor condєnsєd consolidatєd financial statements, as set out in the "Basis ffor preparation and accounting policies" note to the condensed consolidated financial statєmєnts, and thє rєquirєmєnts off thє Companiєs 6ct off South 6ffrica, and ffor such intєrnal control as thє dirєctors dєtєrminє is nєcєssary to єnablє thє prєparation off condєnsєd consolidatєd financial statєmєnts that arє ffree ffrom material misstatement, whether due to ffraud or error.
Thє Listings Rєquirєmєnts rєquirє condєnsєd consolidatєd financial statєmєnts to bє prєparєd in accordancє with the fframework concepts and the measurement and recognition requirements off IFRS Accounting Standards as issued by the International Accounting Standards Board, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, and the Financial Pronouncements as issued by the Financial Reporting Standards Council and also contain the infformation required by the International Accounting Standard (IAS) 34 Interim Financial Reporting.
AUDITOR'S RESPONSIBILITY
Our rєsponsibility is to єxprєss a conclusion on thєsє condєnsєd consolidatєd financial statєmєnts. Wє conductєd our review in accordance with the International Standard on Review Engagements (ISRE) 2410, which applies to a review off historical infformation perfformed by the independent auditor off the entity. ISRE 2410 requires us to conclude whether anything has comє to our attєntion that causєs us to bєliєvє that thє condєnsєd consolidatєd financial statєmєnts arє not prєparєd in all matєrial rєspєcts in accordancє with thє applicablє financial rєporting fframєwork. This standard also requires us to comply with relevant ethical requirements.
6 rєviєw off condєnsєd consolidatєd financial statєmєnts in accordancє with ISRE 2410 is a limitєd assurancє engagement. We perfform procedures, primarily consisting off making inquiries off management and others within the entity, as appropriate, and applying analytical procedures, and evaluate the evidence obtained.
The procedures perfformed in a review are substantially less than those perfformed in an audit conducted in accordance with International Standards on Auditing. Accordingly, we do not express an audit opinion on these condensed consolidatєd financial statєmєnts.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statєmєnts off Hoskєn Consolidatєd Invєstmєnts Limitєd ffor thє yєar єndєd 31 March 2026 arє not prєparєd, in all material respects, in accordance with the requirements off the JSE Limited Listings Requirements ffor condensed financial statєmєnts, as sєt out in thє "Basis off prєparation and accounting policiєs" notє to thє condєnsєd consolidatєd financial statєmєnts, and thє rєquirєmєnts off thє Companiєs 6ct off South 6ffrica.
Forvis Mazars
Partner: Yolandie Ferreira Registered Auditor
Cape Town 26 May 2026
Rialto Road
Grand Moorings Precinct Century City 7441
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The results ffor the year ended 31 March 2026 have been prepared in accordance with the fframework concepts, the recognition and measurement requirements off IFRS® Accounting Standards, the disclosure requirements off IAS 34 Interim Financial Reporting, the SA Financial Reporting Requirements, the requirements off the South Affrican Companies Act, 2008 and the Listings Requirements off the JSE Limited.
As required by the JSE Limited Listings Requirements, the Company reports headline earnings in accordance with Circular 1/2023: Headline Earnings as issued by the South Affrican Institute off Chartered Accountants.
Thєsє financial statєmєnts wєrє prєparєd undєr thє supєrvision off thє financial dirєctor, Mr 6F Pєrєira C6(S6), and havє bєєn indєpєndєntly rєviєwєd by thє Group's auditors, who єxprєssєd an unmodifiєd rєviєw conclusion.
The accounting policies and methods off computation applied by the Group in the preparation off these condensed consolidatєd financial statєmєnts arє consistєnt with thosє appliєd by thє Group in its consolidatєd financial statements ffor the year ended 31 March 2025.
GOING CONCERN
The Company's central borrowings are subject to the ffollowing covenants:
combined Tsogo Sun Limited ("TSG") and Southern Sun Limited ("SSU") investment cover ratio off no less than 2.25;
total investment cover ratio off no less than 3; and
debt service cover ratio in respect off holding company income off no less than 2.
The Company is currently in compliance with these debt covenants in respect off central borrowings.
Gaming and Hotel operations, as well as all other major subsidiaries and associates off the Group, were in compliance with their debt covenants as at the reporting date.
Thє Company has assєssєd its cash Ğow fforєcasts and borrowings profilєs and is off thє viєw that thє Group has suffficiєnt liquidity to mєєt its obligations as currєntly fforєsєєn ffor thє fforєsєєablє ffuturє.
FAIR VALUE MEASUREMENT
Investment properties
Gaming
Fair valuє gains in rєspєct off invєstmєnt propєrtiєs rєlating to gaming opєrations amountєd to R5 million in thє currєnt year (2025: R40 million). The ffair values were determined by an independent valuer using the income capitalisation method and comparablє salєs ffor vacant land. Thє significant unobsєrvablє inputs usєd in thє currєnt yєar wєrє as ffollows:
projected average rental income off R153/sqm over a lettable area off 51 249 sqm;
capitalisation rate off 9.25% - 10.7%; and
vacancy rate off 0% - 10%.
Properties
Fair valuє gains in rєspєct off invєstmєnt propєrtiєs off propєrty opєrations amountєd to R343 million in thє currєnt yєar (2025: R264 million). R316 million off thє ffair valuє gains rєprєsєnt thє adjustmєnt off thє carrying valuє to thє sєlling pricє lєss cost to sєll and thє rєmaining R27 million wєrє dєtєrminєd by indєpєndєnt valuєrs by applying thє discountєd cash Ğow mєthod. Thє significant unobsєrvablє inputs wєrє as ffollows:
net income growth rate off 3.0% - 9.2%;
terminal capitalisation rate off 8.5% - 11.3%; and
risk-adjusted pre-tax discount rate off 13.0% - 15.5%.
Branded products and manuffacturing
Fair valuє gains on invєstmєnt propєrtiєs rєlating to brandєd products and manuffacturing amountєd to R33 million in the current year (2025: R8 million). The ffair values are determined by independent valuers using the income capitalisation mєthod. Thє significant unobsєrvablє inputs wєrє as ffollows:
capitalisation rate off 9% - 10.5%; and
vacancy rate off 0% - 12%.
Rental income and operating expenses were determined based on contractual and budgeted amounts ffor individual properties.
Financial assets at fair value through other comprehensive income
Gaming
The Group has a 20% equity interest in each off SunWest International Proprietary Limited ("SunWest") and Worcester Casino Proprietary Limited ("Worcester"). The Group has pre-emptive rights but no representation on the board off directors off either company and has no operational responsibilities or access to any infformation regarding the companiєs єxcєpt ffor that to which it has statutory rights as a sharєholdєr. Thєsє invєstmєnts arє classifiєd as lєvєl 3 ffair valuє mєasurєmєnts and havє bєєn accountєd ffor as financial assєts at ffair valuє through othєr comprєhєnsivє incomє.
Thє assєt has bєєn rєmєasurєd to R511 million at 31 March 2026, a R42 million dєcrєasє (2025: R171 million dєcrєasє). 6 discountєd cash Ğow valuation was usєd to єstimatє thє ffair valuє. Subduєd fforєcast growth in gaming win is thє main driver off the decrease in ffair value.
Thє significant unobsєrvablє inputs usєd in thє ffair valuє mєasurєmєnt off thє invєstmєnt in SunWєst and Worcєstєr at
31 March 2025 are shown below (these entities have a 31 December year-end):
incomє incrєasєs by 2% in thє 2026 financial yєar and bєtwєєn 3% and 4% thєrєafftєr (2025: 4.1% in 2025 and 4%
thereaffter);
opєrating єxpєnditurє incrєasєs by 4.0% in thє 2026 financial yєar and thєrєafftєr (2025: 4.5% in 2025 and thєrєafftєr);
risk-adjusted discount rate off 13.5% post-tax (2025: 14.5%); and
long-term growth rate off 4.0% (2025: 4.5%).
6n incrєasє or dєcrєasє off 1% in long-tєrm growth ratє would havє rєsultєd in an incrєasє off R49 million or dєcrєasє off R40 million, rєspєctivєly, in thє valuation. 6n incrєasє or dєcrєasє off 1% in discount ratє would havє rєsultєd in a dєcrєasє off R53 million or incrєasє off R65 million, rєspєctivєly, in thє valuation.
Changes to the carrying value off Sunwest and Worcester consisted only off ffair value adjustments in the current and prior year.
Listєd єquity instrumєnts valuєd at R66 million at yєar-єnd arє classifiєd as lєvєl 1 financial instrumєnts and comprisє the Group's investment in City Lodge Hotels Limited ("CLH"), a company listed on the Johannesburg Stock Exchange ("JSE"). The ffair value off these shares was determined with refference to its quoted price at 31 March 2025, resulting in a ffair valuє gain totalling R8 million bєing rєcognisєd in othєr comprєhєnsivє incomє. This invєstmєnt was classifiєd as held ffor sale at the reporting date.
Branded products and manuffacturing
Brandєd products and manuffacturing opєrations carry financial assєts at ffair valuє through othєr comprєhєnsivє incomє in thє amount off R42 million, R24 million off which havє bєєn dєsignatєd as lєvєl 1 ffair valuє mєasurєmєnts. Thє ffair valuє off thєsє is dєtєrminєd with rєffєrєncє to thє quotєd pricє on thє JSE, rєsulting in a gain off R5 million bєing rєcognisєd in thє currєnt yєar. Invєstmєnts in thє amount off R18 million havє bєєn dєsignatєd as lєvєl 3 ffair valuє measurements, the ffair value off which has been determined with refference to the most recent subscription prices paid by third-party investors, which are considered to represent the best available evidence off ffair value at the reporting datє. 6 ffair valuє loss off R9 million was rєcognisєd on thєsє invєstmєnts in thє currєnt yєar.
Financial assets at fair value through profit or loss
Oil and gas prospecting
6t thє rєporting datє thє Group accountєd ffor its invєstmєnt in Main Strєєt 1549 by way off R647 million as a financial assєt and R0.1 million as an invєstmєnt in associatє. In accordancє with an agrєєmєnt єntєrєd into during 6ugust 2020, Affrica Energy Corp. ("AEC") ffund 100% off Main Street 1549's ffunding requirements related to the Block 11B/12B gas prospect, offffshore Mossel Bay, by way off Class B share subscriptions, which provide a risk-adjusted return linked to the proceeds on any ffuture sale off Main Street 1549 or its interest in Block 11B/12B.
The Main Street 1549 shareholders' agreement provides priority dividend distribution entitlement by class off share. Sharєs that havє priority distribution єntitlєmєnts do not mєєt thє dєfinition off a financial instrumєnt hєld at amortisєd cost, and thєrєfforє thє majority off thє invєstmєnt in Main Strєєt 1549 was rєcordєd as a financial instrumєnt at ffair valuє through profit or loss. In ordєr to valuє thє financial assєt, thє Group єstimatєd thє priority dividєnd distributions to bє rєcєivєd as this rєprєsєnts ffair valuє off ffuturє cash Ğows to bє rєcєivєd by 6EC. Thє total procєєds єstimatєd to bє rєcєivєd by Main Strєєt 1549, to bє distributєd to its sharєholdєrs, wєrє basєd on a discountєd ffuturє cash Ğow modєl off thє Company's Block 11B/12B intєrєst. 6 loss on rєvaluation off thє financial assєt off R16 million was rєcognisєd during thє yєar. Thє ffollowing significant unobsєrvablє inputs wєrє appliєd in assєssing thє ffair valuє off thє financial asset at 31 March 2026:
pre-tax discount rate off 22.9% (2025: 22.9%);
base gas price off $8.45/mmbtu ($8.45/mmbtu); and
base Brent oil price off $70.30/bbl (2025: $70.00/bbl).
Mining and other
Cєrtain subsidiariєs hєld a total off R386 million surplus cash in yiєld-єnhancing unit trust ffunds, classifiєd as lєvєl 2 financial instrumєnts, as at yєar-єnd. Fair valuє gains off R34 million wєrє rєcognisєd on thєsє invєstmєnts in profit and loss during thє currєnt yєar. Thє undєrlying invєstmєnts off thєsє unit trust ffunds consist significantly off intєrєst-bearing instruments which are measured at ffair value by independent investment managers.
Other
Thє Group hєld sharєs in Montauk Rєnєwablєs Inc. ("MKR") to thє valuє off R34 million as at thє rєporting datє. This invєstmєnt is classifiєd as a lєvєl 1 financial instrumєnt. Fair valuє lossєs off R33 million wєrє rєcognisєd on thєsє invєstmєnts in profit and loss during thє currєnt yєar. Thєsє sharєs arє valuєd with rєffєrєncє to thєir quotєd pricє on Nasdaq and the JSE.
IMPAIRMENTS AND IMPAIRMENT REVERSALS
Gaming
Goodwill and casino licences
Casino licences are allocated and monitored on a casino precinct basis as these are the cash-generating units ("CGUs") to which they relate. Goodwill relating to the Group's gaming operations has been allocated to the TSG Group as a whole as the CGU to which it relates.
The recoverable amount off a CGU is determined based on the higher off the ffair value less cost off disposal and value in
usє. Thєsє calculations usє managєmєnt-approvєd cash Ğow projєctions basєd on fivє-yєar fforєcasts.
Impairmєnts off R138 million wєrє rєcognisєd in rєspєct off casino licєncєs. Discountєd cash Ğow valuations wєrє utilisєd
ffor this purpose.
Slow economic growth and high unemployment, coupled with the increased popularity off online gaming, have resulted in pressure on land-based casinos' share off consumer spend. Slower fforecast growth has thereffore impacted valuations off the casino licences and, whilst the effffect off that was partially offff-set by lower discount rates, the Group consequently recognised the ffollowing impairments, per casino precinct:
R'm
The Ridge Emnotweni
Blackrock
107
3
28
Total
138
In addition to thє abovє, propєrty, plant and єquipmєnt in rєspєct off Thє Ridgє (R64 million), Emnotwєni (R90 million), Goldfiєlds (R1 million), Blackrock (R61 million) and Calєdon Prєcincts (R42 million) wєrє impairєd ffollowing thє impairmєnt assessment.
Thє significant unobsєrvablє inputs usєd in thє tєsting off thє Group's casino licєncєs ffor impairmєnt at 31 March 2026
are shown below:
єxpєctєd gaming win and othєr incomє Ğuctuatєs bєtwєєn an incrєasє off 1.1% and 5.4% in thє 2027 financial yєar, thereaffter increases by an average off 2.7% to 3.8% over the ffollowing years (2025: between (5.8%) and 19.2% in 2026, average off 4.3% thereaffter);
opєrating єxpєnditurє Ğuctuatєs bєtwєєn an incrєasє off 2.3% and 5.8% in thє 2027 financial yєar, thєrєafftєr
increases on average by between 3.7% and 4.2% over the ffollowing years (2025: between (8.5%) and 11.9% in 2026,
4.5% thereaffter);
risk-adjusted pre-tax discount rate off 16.9% to 18.9% (2025: 18.1% to 20.3%); and
long-term growth rate off 4.0% (2025: 4.5%).
Hotels
Investments in associates and joint ventures
Due to improved trading the Group assessed the carrying value off its interest in SSU ffor a possible impairment reversal.
6 discountєd cash Ğow calculation, utilising thє most rєcєnt fforєcasts producєd by managєmєnt, was pєrfformєd to dєtєrminє valuє in usє. 6n impairmєnt rєvєrsal off R783 million was consєquєntly rєcognisєd, rєvєrsing all prior-yєar impairments recognised.
Thє significant unobsєrvablє inputs usєd in thє discountєd cash Ğow calculation wєrє as ffollows:
expected revenue increases by between 5.2% and 6.0% between 2027 and 2031 (2025: between 1.7% and 6.8% ffrom
2026 to 2030);
operating expenditure increases on average by 4.8% between 2027 and 2031 (2025: average off 5.4% between 2026
and 2030);
risk-adjusted discount rate off 15.2% pre-tax (2025: 18.0%); and
long-term growth rate off 4.5% (2025: 4.5%).
DISPOSAL GROUPS HELD FOR SALE
Branded products and manufacturing
During the current year properties off R296 million have been transfferred to assets held ffor sale and properties in an amount off R273 million wєrє disposєd off. Invєstmєnt propєrtiєs off R117 million rєmain classifiєd as disposal group assets held ffor sale at the reporting date.
Properties
As announced on the JSE Stock Exchange News Service ("SENS") on 4 July 2025, the Group entered into agreements to sєll its wholly-ownєd subsidiariєs which own Gallaghєr Estatє, Solly Sachs Housє, Rand Daily Mail Housє and an offficє building in Umhlanga to the Southern Affrican Textile and Workers Union ("SACTWU"). As at the reporting date certain conditions prєcєdєnt to this transaction rєmainєd outstanding. Thє assєts off R779 million and liabilitiєs off R296 million off thєsє єntitiєs arє consєquєntly classifiєd as disposal groups hєld ffor salє. This transaction rєmainєd subjєct to certain conditions precedent at the reporting date.
Following agreements entered into ffor the disposal off the Group's interests therein, The Point Centre, Whalecoast Village Mall, Kalahari Villagє Mall and thє Bluє Hills Cєntrє invєstmєnt propєrtiєs, totalling a carrying valuє off R2 638 million, havє bєєn classifiєd as hєld ffor salє at thє rєporting datє. Thєsє transactions rєmainєd subjєct to a numbєr off conditions precedent at the reporting date.
Gaming
The gaming operations' board off directors authorised the disposal off all the CLH shares owned by the Group by way off salє on thє JSE. Thє Group's intєntion is to sєll its rєmaining holding in CLH off R66 million within thє nєxt 12 months and thєrєfforє thє assєt has bєєn rєclassifiєd ffrom non-currєnt othєr financial assєts to assєts classifiєd as hєld ffor salє. This investment has been valued at ffair value less costs to sell. Fair value is its market price as listed on the JSE at the rєporting datє. During thє yєar thє Group sold 53 million CLH sharєs on thє JSE ffor a total considєration off R215 million.
During the year the gaming operations' board off directors also committed to a plan to dispose off the Group's interest in Goldfiєlds Casino and Entєrtainmєnt Cєntrє Propriєtary Limitєd. 6s at 31 March 2026 thє disposal mєt thє critєria ffor classification as hєld ffor salє in accordancє with IFRS 5 Non-current Assets Held ffor Sale and Discontinued Operations. Thє disposal group, consisting off assєts off R86 million and liabilitiєs off R4 million, was mєasurєd at ffair valuє lєss cost to sell. The sale transaction was still in progress at year-end pending certain conditions precedent.
BUSINESS COMBINATIONS AND DISPOSALS
Acquisitions
Branded products and manuffacturing
On 1 January 2026 the Group acquired an 80% shareholding in Dawning Manuffacturing KZN Proprietary Limited. Thє businєss opєratєs as Dawning Filtєrs, a group off industrial and procєss filtration companiєs spєcialising in filtration hardwarє and consumablєs ffor liquid, dust and air filtration applications.
As part off the acquisition the vendors hold an option to sell their remaining 20% shareholding to the Group during a six-month period commencing 48 months affter the transaction closing date, with the exercise price calculated at six timєs thє avєragє profit afftєr tax ffor thє prєcєding thrєє financial yєars. Thє option constitutєs a financial liability and is rєcognisєd at thє prєsєnt valuє off thє єstimatєd rєdєmption amount. Thє option was valuєd at R10 million on acquisition date.
Thє acquirєd businєss contributєd rєvєnuє off R29 million and profit afftєr tax off R2 million to thє Group ffrom thє datє off acquisition to 31 March 2026. Had the acquisition been effffective on 1 April 2025, the contribution to revenue would havє bєєn R131 million and profit afftєr tax R17 million.
Thє nєt assєts acquirєd, ffor which thє purchasє pricє allocation has bєєn finalisєd, wєrє as ffollows:
R'm
Non-current assets | |
Intangible assets | (31) |
Other non-current assets | (8) |
Current assets | (68) |
Non-current liabilities | 11 |
Current liabilities | 23 |
Net assets acquired | (73) |
Non-controlling interests | 15 |
Goodwill on acquisition | (24) |
Cash and cash equivalents acquired | 19 |
Nєt cash outĞow | (63) |
Other
The Company, through its subsidiary, La Concorde South Affrica Proprietary Limited, acquired additional shares in its associatє invєstmєnt, Paarl-Vallєi Bottєlєringsmaatskappy Propriєtary Limitєd ("PBM"), ffor R5.9 million, rєsulting in a sharєholding off 52.7%. Thє єffffєctivє datє off acquisition was 23 Junє 2025 and a gain on bargain purchasє off R2 million was rєcognisєd. Thє acquirєd businєss contributєd rєvєnuє off R187 million and profit afftєr tax off R7 million to thє Group ffrom the date off acquisition to 31 March 2026. Had the acquisition been effffective on 1 April 2025, the contribution to rєvєnuє would havє bєєn R237 million and profit afftєr tax R7 million. Notє that PBM had bєєn carriєd as an invєstmєnt in associatє prior to acquisition and that thє Group's sharє off profit afftєr tax has єffffєctivєly bєєn includєd in thє currєnt year's results.
Thє nєt assєts acquirєd, ffor which thє purchasє pricє allocation has bєєn finalisєd, wєrє as ffollows:
R'm
Non-current assets | |
Property, plant and equipment | (151) |
Current assets | (85) |
Non-current liabilities | |
Borrowings | 32 |
Defferred tax | 28 |
Current liabilities | 47 |
Net assets acquired | (129) |
Non-controlling interests | 61 |
Fair value off investment in associate on date off gaining control | 60 |
Gain on bargain purchase | 2 |
Cash and cash equivalents acquired | 28 |
Nєt cash inĞow | 22 |
Disposal
Other
The Group's 75% interest in Gripp Advisory, its internal audit division, was sold to its management ffor a nominal
considєration on 31 March 2026. 6 loss on disposal off R59 million was rєcognisєd in this rєgard.
RESULTS
GROUP STATEMENT OF PROFIT OR LOSS AND SEGMENTAL ANALYSIS
Incomє incrєasєd by 3% to R24 172 million EBITD6 incrєasєd by 4% to R5 429 million Profit bєfforє tax R4 540 million
Hєadlinє єarnings R1 776 million
Headline earnings per share 2 248 cents
Media and broadcasting
The impact off load shedding on the television and radio advertising markets in recent years subsided in the current year, but has been replaced by that off political instability locally in the early part off the year and generally abroad. In addition, it appєars that an outdatєd, and thєrєfforє inaccuratє, tєlєvision audiєncє rating panєl has contributєd to the persistent decline in the television advertising market, recorded at 9% during the current year. The Group's television and radio advertising revenue decreased by 7%, while its leading prime time television market share ended on 32% as at the reporting date. The etv channel maintained its position at above 20% off prime time market share. The Group's licence ffee revenue increased by 6%, while property and ffacility revenue decreased by 27%, with Media Film Services particularly badly hit by uncєrtainty rєlating to filming rєbatєs and incєntivєs offffєrєd to intєrnational productions. 6ctivє sєt top boxєs havє incrєasєd to 3 828 000 during thє yєar. Programming costs wєrє wєll controllєd in light off reduced advertising revenue, while increased legal costs and a once-offff transmitter cancellation ffee in the prior year havє not rєcurrєd, rєsulting in EBITD6 dєcrєasing by only 6% in thє currєnt yєar. Profit bєfforє tax and hєadlinє єarnings rєductions wєrє positivєly impactєd by lowєr dєprєciation and amortisation and financє costs.
Gaming
Casino revenue and net gaming win, together with rental income, remained stable. The shifft ffrom land-based gambling to online products continue; however, trading during the current year has been encouraging during certain months and suggests this trend may be slowing down. While still modest, net gaming revenue off online betting operations incrєasєd by 24% to R313 million. Limitєd payout machinє incomє incrєasєd by 3%; howєvєr, Bingo opєrations' trading rєmains disappointing. EBITD6 rєmainєd static at R3 428 million, with a normalisєd EBITD6 margin off 31% also stablє compared to the prior year. Costs remained stagnant and were managed well to limit the impact off stagnant overall revenue throughout the gaming operations. Casino EBITDA decreased by 3% and that off Vukani increased by 3%. Galaxy Bingo and onlinє bєtting opєrations combinєd incrєasєd EBITD6 by 117%. Profit bєfforє tax off R1 760 million includєs impairmєnts off R454 million (2025: R1 837 million). Hєadlinє єarnings off R795 million is 6% highєr than thє prior yєar, assistєd by a R158 million rєduction in financє costs.
Hotels
Hotel operations as a whole traded well compared to the prior year. The perfformance was driven mainly by domestic operations in Gauteng and the Western Cape, marginally offff-set by the temporary closure off the Paradise Sun in Seychelles and subdued trading in Mozambique and Tanzania. Revenue, including rental income, increased by 9% to R7 190 million, ffollowing incrєasєs in rooms (8%) and ffood and bєvєragє (9%) rєvєnuє and rєntal incomє (8%). Intєrnally managed rooms sold increased by 4%, with average occupancy levels ffor these 62.9% in the current year, compared to 60.8%. The average room rate achieved increased by 4%. Operating expenses, particularly ffor infformation technology, utilities and channel ffacilities increased ahead off revenue growth, but were offff-set by well-contained employee costs. Hєadlinє profit off R499 million was rєcognisєd by thє Group in rєlation to hotєl opєrations during thє currєnt yєar, representing an increase off 20%.
Nєt borrowings havє dєcrєasєd by R352 million ffrom nєt dєbt off R266 million at 31 March 2025 to a nєt cash position off R86 million at thє rєporting datє.
Transport
Total transport revenue decreased by 7%. Passenger transport revenue decreased by 1% as a result off the re-commissioning off Metrorail lines in Cape Town, as well as roadworks and associated congestion on important routes. Vєhiclє and sparєs salєs dєcrєasєd by 35% to R335 million ffollowing thє dєlay off cєrtain kєy Ğєєt contracts in thє Alpine Truck division. EBITDA increased by 3% ffollowing savings on ffuel and spares and consumables costs and the containmєnt off staffff costs. 6dditional financє costs wєrє incurrєd upon thє acquisition off 100 nєw єlєctric busєs during thє yєar, rєsulting in a modєratє dєcrєasє off 3% in profit bєfforє tax and 1% incrєasє in hєadlinє єarnings.
Properties
Thє incrєasє in rєvєnuє off 35% includєd R64 million in dєvєlopmєnt rєvєnuє rєcognisєd in thє currєnt yєar on thє salє off rєsidєntial propєrty in Stєєnbєrg (2025: R20 million). Convєntion and єxhibition rєvєnuє incrєasєd by R30 million.
Rєmaining rєvєnuє consistєd significantly off tєnant rєcovєriєs. Rєntal incomє incrєasєd by 5%, dєspitє rєntal income lost due to the sale off the Monte Precinct properties in the prior year and the reffurbishment off Lynnridge shopping centre during the current year. EBITDA increased by 11% ffollowing the increases in revenue and rental income. Profit bєfforє tax in thє currєnt yєar includєs R343 million in positivє ffair valuє adjustmєnts on invєstmєnt propєrtiєs (2025: R264 million). Financє costs savings off R23 million ffurthєr lєd to a 44% incrєasє in hєadlinє єarnings.
Coal mining
Rєvєnuє incrєasєd by 15% at thє Palєsa Colliєry. Following thє finalisation off a nєw єight-yєar offff-takє agrєєmєnt with Eskom in April, sales volumes increased steadily, with satisffactory results during the second and third quarters. This progrєss was haltєd in thє last quartєr duє to a transportєr-rєlatєd ffatality at thє Kusilє powєr plant and rєducєd offff-take requirements ffrom Eskom as a result off electricity oversupply. Sales volumes increased by 11% to 2 401 000 tons. Assisted by improved processing yield, EBITDA increased by 128% and EBITDA margins (excluding transport revenue) increased ffrom 8% to 19% in the current year. Reduced depreciation off the Rooipoort box cut and proportionately lower royalty tax rєsultєd in ffurthєr incrєasєs in profit bєfforє tax and hєadlinє єarnings.
Branded products and manufacturing
Revenue in respect off branded products and manuffacturing increased by 16% with property rental income similar to the prior year ffollowing the ongoing sale off investment properties in the current and prior year. 27% off the portffolio GLA was sold during thє lattєr part off thє currєnt yєar. 6utomotivє parts manuffacturing rєvєnuє dєclinєd by 8% duє significantly to a vehicle model switch-over by a client. Following a period off negligible load shedding and ffavourable exchange rate movements, industrial products perfformed well with a 5% increase in revenue and the branded products division had an exceptional year with a 43% increase in toys and electronics sales ffollowing the launch off new digital code products. EBITD6 incrєasєd by 24% to R451 million as a rєsult. Thє additional EBITD6 was єnhancєd by savings to financє costs off R20 million and thє rєcognition off R33 million in upward ffair valuє adjustmєnts on invєstmєnt propєrtiєs, rєsulting in profit bєfforє tax growth off 75%. Hєadlinє єarnings growth off 55% єxcludєs thє ffair valuє adjustmєnt on invєstmєnt propєrtiєs.
Oil and gas prospecting
EBITD6 lossєs off R116 million consist off gєnєral and administrativє costs off IOG and 6EC (acquirєd 31 March 2025), whєrєas thє prior-yєar lossєs off R92 million consistєd off thosє off IOG only. Profit bєfforє tax off R4 968 million in thє prior yєar includєd R5 389 million in non-rєcurring itєms rєcognisєd on thє acquisitions off IOG and 6EC. Currєnt-yєar hєadlinє lossєs off R66 million includє thє Group's sharє off a R16 million downward adjustmєnt on 6EC's invєstmєnt in Main Street 1549.
Palladium prospecting
Equity lossєs off R25 million wєrє rєcognisєd in rєspєct off Platinum Group Mєtals ("PGM") in thє currєnt yєar, wєrє in linє with prior-yєar lossєs and containєd no significant hєadlinє єarnings adjusting itєms. Lossєs consistєd significantly off general and administrative costs and share-based payment expenses, with only interest-related income recognised.
Other
Rєvєnuє and EBITD6 lossєs includє rєvєnuє off R187 million and EBITD6 off R16 million off PBM ffrom July 2025. Donation rєvєnuє off R38 million off thє HCI Foundation rєcognisєd in thє prior yєar did not rєcur in thє currєnt yєar. Furthєr lossєs incrєasєd mainly as a rєsult off inĞationary cost prєssurєs. Includєd in lossєs bєfforє tax is a downward R33 million ffair valuє adjustmєnt on thє Group's intєrєst in MKR, loss on disposal off Gripp 6dvisory off R59 million, lossєs on changєs in holdings off єquity-accountєd invєstmєnts off R9 million and hєad offficє financє costs off R203 million. Includєd in thє currєnt yєar's hєadlinє loss is R203 million hєad offficє financє costs, thє єffffєctivє downward R16 million ffair valuє adjustmєnt on thє MKR intєrєst and thє rєmaindєr bєing hєad offficє and othєr ovєrhєads off thє Company, thє Group's internal audit ffunction and La Concorde Holdings, including the result off PBM.
Notable items on the consolidated statement of profit or loss include:
Reffer to the segmental analysis ffor commentary on variances in income.
R47 million in dividєnds was rєcєivєd ffrom thє Group's intєrєst in Sunwєst and Worcєstєr in thє currєnt yєar (2025: R65 million) and R18 million lєss intєrєst by Tsogo Sun than in thє prior yєar.
Finance costs reduced by 15% ffollowing lower borrowings levels at Tsogo Sun, Deneb Investments ("Deneb") and the propєrtiєs division and lowєr intєrєst ratєs. Frontiєr Transport Holdings ("Frontiєr") incurrєd incrєasєd financє costs ffollowing thє purchasє off its єlєctric bus Ğєєt.
Earnings ffrom associatєs and joint vєnturєs includє profits off R556 million in rєspєct off SSU. Equity lossєs includє R26 million rєcognisєd in rєspєct off 6EC's єquity-accountєd intєrєst in Main Strєєt 1549 and R25 million in rєspєct off PGM.
Invєstmєnt dєficits off R61 million includє nєt lossєs on changєs in holdings off єquity-accountєd invєstmєnts off R9 million and thє abovєmєntionєd loss on disposal off Gripp 6dvisory off R59 million.
Thє ffair valuє adjustmєnt on associatє on thє gaining off control off R23 million rєlatєs to thє acquisition off PBM.
R5 million in ffair valuє gains on invєstmєnt propєrtiєs wєrє rєcognisєd by thє Group's gaming opєrations, R33 million by brandєd products and manuffacturing and R343 million by thє Group's propєrtiєs division.
Impairmєnt rєvєrsals off R794 million rєlatє significantly to thє Group's invєstmєnt in associatє in SSU.
Impairmєnts totalling R138 million wєrє rєcognisєd in rєspєct off gaming opєrations' casino licєncєs and R258 million in respect off related property, plant and equipment ffollowing the impairment assessment detailed above. A ffurther R55 million in propєrty, plant and єquipmєnt and minor intangiblє assєts wєrє impairєd in rєspєct off various gaming sitєs.
6 ffair valuє loss off R33 million was rєcognisєd on thє Group's intєrєst in MKR, off which R17 million rєlatєs to thє HCI Foundation and which is not includєd in hєadlinє єarnings. 6 ffurthєr loss off R16 million was rєcognisєd in rєspєct off thє intєrєst in Main Strєєt 1549. Gains off R34 million wєrє rєcognisєd in rєspєct off incomє yiєld unit trust ffunds.
Headline earnings as reported increased by 47% compared to the prior year and by 22% excluding the impact off ffair
valuє adjustmєnts on financial instrumєnts rєcognisєd by 6EC in thє currєnt and prior yєars.
GROUP STATEMENT OF FINANCIAL POSITION AND CASH FLOW
Invєstmєnt propєrtiєs off R3 159 million wєrє rєclassifiєd as hєld ffor salє at thє rєporting datє ffollowing thє agrєєmєnts
concluded by the properties division, as detailed above.
Goodwill and mineral intangible assets decreased in the current year predominantly due to fforeign exchange
Ğuctuations affffєcting balancєs rєlating to IOG and 6EC.
Invєstmєnts in associatєs and joint vєnturєs incrєasєd by R783 million as a rєsult off thє rєvєrsal off impairmєnt off
investment in SSU with the remainder off the increase a result off equity-accounted earnings off SSU.
Minєral intangiblє assєts consist significantly off oil and gas єxploration and єvaluation assєts, off which R11 410 million relates to Blocks 2912 and 2913B offffshore Namibia. The development off the Venus discovery in Block 2913B remains subjєct to thє opєrator's final invєstmєnt dєcision, which had not yєt bєєn announcєd as at thє rєporting datє. Basєd on availablє infformation, thє final invєstmєnt dєcision is єxpєctєd in thє sєcond halff off 2026.
Group non-currєnt borrowings at thє rєporting datє comprisє significantly cєntral hєad offficє borrowings off R2 606 million (March 2025: R2 606 million), cєntral invєstmєnt propєrty-rєlatєd borrowings off R1 114 million (March 2025: R1 326 million), borrowings in TSG off R4 716 million (March 2025: R6 363 million), R350 million (March 2025: R71 million) in Dєnєb, R581 million (2025: R328 million) in Frontiєr and R512 million in єMєdia Holdings ("єMєdia") (March 2025: R485 million). Rnil (March 2025: R55 million) in currєnt borrowings rєlatєs to cєntral hєad offficє borrowings, R2 019 million (March 2025: R1 066 million) to TSG, R513 million (March 2025: R481 million) to cєntral invєstmєnt propєrtiєs, R46 million (2025: R630 million) to Dєnєb and R183 million (March 2025: R96 million) to Frontiєr. R129 million off ovєrdrafft ffacilitiєs wєrє drawn at hєad offficє at thє rєporting datє.
Cash Ğows ffrom invєsting activitiєs includє R215 million rєalisєd by TSG upon thє salє off CLH sharєs and a ffurthєr R88 million withdrawn ffrom unit trust ffunds by subsidiariєs. This was partially offff-sєt by єMєdia's invєstmєnt off R119 million ffor a 30% intєrєst in a VFX tєchnology sєrvicє providєr. R207 million in dividєnds wєrє rєcєivєd ffrom SSU, Sunwєst and Worcєstєr. R1 190 million was invєstєd in propєrty, plant and єquipmєnt, off which R689 million by TSG, R76 million by HCI Rєsourcєs, R77 million by Frontiєr, R226 million by єMєdia and R81 million by Dєnєb. Nєt ffunding off R662 million was rєpaid by TSG, R134 million by Frontiєr and R310 million by Dєnєb.
TSG rєpurchasєd 62 million sharєs to thє valuє R438 million during thє currєnt yєar.
Thє Group rєpurchasєd 6 008 871 ordinary sharєs during thє yєar at a total cost off R802 million.
Shareholders are refferred to the individually published results off eMedia Holdings Limited, Tsogo Sun Limited, Southєrn Sun Limitєd, Dєnєb Invєstmєnts Limitєd, Frontiєr Transport Holdings Limitєd, Platinum Group Mєtals Limitєd and Affrica Energy Corp. ffor ffurther commentary on the media and broadcasting, gaming, hotels, branded products
and manuffacturing, transport, palladium prospєcting, and oil and gas prospєcting opєrations.
EVENTS SUBSEQUENT TO REPORTING DATE
Subsєquєnt to thє rєporting datє, IOG announcєd that it has agrєєd to transffєr its єntirє sharєholding in Impact 6ffrica Limited, a wholly-owned subsidiary that holds its South Affrican licences, and certain related assets, to a newly incorporated wholly-owned subsidiary off the Group, IOG Energies Limited. IOG's Namibian exploration and development business will thereffore be separated ffrom the South Affrican exploration portffolio, creating two distinct entities with a clєar gєographic ffocus. Sharєholdєrs arє rєffєrrєd to thє Company's announcєmєnt on SENS on 26 May 2026 ffor ffurther infformation.
The directors are not aware off any matter or circumstance arising between the reporting date and the date off this rєport that may affffєct thє financial position as at thє rєporting datє or thє rєsults ffor thє yєar thєn єndєd, as containєd in thєsє condєnsєd financial statєmєnts.
CHANGES IN DIRECTORATE
Ms SNN Mkhwanazi resigned as independent non-executive director effffective 14 April 2025. Mr AF Pereira was appointєd as financial dirєctor on 29 May 2025, rєplacing Mr JR Nicolєlla, who rєsignєd as financial and єxєcutivє dirєctor on thє samє datє. Hє rєmains within thє Group's єmploy as chiєff єxєcutivє offficєr off 6ffrica Enєrgy Corp. Ms 6 Singh was appointєd as a non-єxєcutivє dirєctor єffffєctivє 29 May 2025.
DIVIDEND TO SHAREHOLDERS
Thє dirєctors off HCI havє rєsolvєd to dєclarє a final ordinary dividєnd numbєr 66 off 140 cєnts (gross) pєr HCI sharє ffor
the year ended 31 March 2026 ffrom income reserves. The salient dates ffor the payment off the dividend are as ffollows:
Last day to trade cum dividend Monday, 15 June 2026
Commence trading ex dividend Wednesday, 17 June 2026
Record date Friday, 19 June 2026
Payment date Monday, 22 June 2026
No sharє cєrtificatєs may bє dєmatєrialisєd or rєmatєrialisєd bєtwєєn Wєdnєsday, 17 Junє 2026 and Friday, 19 Junє 2026, both datєs inclusivє.
In terms off legislation applicable to Dividends Tax ("DT") the ffollowing additional infformation is disclosed:
The local DT rate is 20%.
The number off ordinary shares in issue at the date off this declaration is 84 248 701.
The DT amounts to 28 cents per share.
The net local dividend amount is 112 cents per share ffor all shareholders who are not exempt ffrom the DT.
Hosken Consolidated Investments Limited's income tax refference number is 9050/177/71/7.
In terms off the DT legislation, any DT amount due will be withheld and paid over to the South Affrican Revenue Service by a nominee company, stockbroker or Central Securities Depository Participant (collectively "regulated intermediary") on behalff off shareholders. All shareholders should declare their status to their regulated intermediary as they may qualiffy ffor a reduced DT rate or exemption.
For and on behalff off the board off directors
JA Copelyn AF Pereira
Chiєff Exєcutivє Offficєr Financial Dirєctor
Cape Town 26 May 2026
REVIEWED CONDENSED ANNUAL FINANCIAL STATEMENTS
2026