Visual is a company that focus and specialises in property development and has its head office in the northern suburbs of Cape Town, South Africa. Visual International Holdings Limited focuses on all aspects pertaining of property development and is very proud to have been involved with numerous successful residential, commercial and retail projects. The Visual International Holdings team is comprised of a wide and interesting base of individuals with a lot of history and experience in the property development game. These exceptionally skilled and experienced professionals have more than 70 years of combined experience in all aspects of the property development sector. Visual boasts the operational, leadership and resource capacity that allows it to operate all over South Africa and is constantly on the lookout for land with the development potential that will allow its expansion into new development projects and for any worthwhile joint venture opportunities.

Visual listed on the Alternative Exchange (AltX) of the Johannesburg Stock Exchange (JSE) in May 2014. It provides an opportunity for Visual International Holdings investors as well as the chance and platform to share in the benefits of investing in some developing, complete, mixed-use residential suburbs for the middle-income market – the fastest growing residential property market segment in South Africa, according to official data and reputable statistics.

With Visual’s history and undoubted track record, Visual International Holdings currently possesses a net asset value of around R60 million which spans more than 70,000sqm of developable bulk at its flagship Stellendale Village development in Kuils River, Cape Town – a development that is ultimately expected to produce a real estate investment of around R2 billion. Visual International Holding’s potential for growth lies in unlocking the middle market residential opportunities, which really has the chance to drive the company through extraordinary growth levels, pleasing Visual International Holding’s shareholders and strongly driving Visual International’s share price.

According to managing director, Charles Robertson: “Demand for quality housing from the growing middle-income market in South Africa is very strong. Our model of developing mixed-use suburbs on suitable land near jobs and infrastructure meets this demand. Right now, we are selling units at Stellendale Village faster than we are able to develop them. Listing will provide the capital needed to pick up the pace of development, as well as reproduce our successful model in other high-growth nodes around South Africa.”

A review of the company’s management accounts and consideration of forecasted results for the year ending 28 February 2015 has indicated that the company reported a loss and headline loss in excess of 6.5 cents per share. This is compared to Visual International Holding’s previous year’s forecast earnings and headline earnings per share of 13.09 cents per share as detailed in the Company’s prospectus for the year ending 28 February 2015. This represents a decline of more than 150% compared to the profit forecast, this is not too good news for the Visual International Holdings share price and the company’s shareholders. The main reasons for Visual International Holdings’recorded loss is as follows: Firstly, there were substantial delays in the transfer of the company’s properties, which in turn had a negative effect on the company’s attempts to put up their stock for sale. Lastly the length of time for approval of the development plans for the Stellendale 2 Lifestyle Estate also affected the company. Approval is said to have only came through after 9 months in late January 2015, an exceptionally long amount of time in the property market, which threw the company off its initial momentum and negatively affected morale and stake holder interest. Construction on the Lifestyle Estate, is now expected to commence shortly.

In comparison to the prior year headline loss of 10.95 cents per share, Visual is expecting a performance improvement of at least 30% to a loss of 6.5 cents per Visual International Holding share. While the company is also in expectation of decline. This decline is expected to be at least 160% from the company’s positive earnings per share of 10.90 cents to a loss 6.5 cents per Visual International Holdings share. Visual International Holdings shareholders and other potential and “observing”purchasers are explicitly reminded that the nature of property development results in lumpy revenue recognition, as revenue is only recognised on the transfer of the property through the deeds office. This of course also means that the commencement of construction activities can only commence once all town council approvals are in place.

As indicated in the company’s prospectus, Visual International Holdings Limited projects are not lost but the indication, today is that revenue recognition and associated costs will move into the following reporting period. A review of the company’s financial results for the six months, ended as of 31 August 2014 has indicated that the company will report a 50.9% performance improvement in the loss per share. This is an exceptional and encouraging improvement from 6.48 cents in the prior six-month period, which ended on the 31st of August 2013 to 3.3 cents per Visual International Holdings share.

The headline loss per share the company has noted, has seen a significant decrease by 109% from 1.58 cents per company share in the prior comparative period to of 3.3 cents per share today. Which could affect dividends. Share traders are, again reminded that the nature of property development results in lumpy revenue recognition, as revenue is only recognised on the transfer of the property through the deeds office and typically the company expects poor results in the middle of the financial year. Visuals shareholders are also reminded of the delay in transfer of one of the properties ahead of its listing, which delayed both the commencement of the property development known as Stellendale 2 as well as the live listing and online capital raising. The board of directors are assessing the impact of these delays as well as other potential property opportunities in the pipeline to establish, with certainty, whether a trading statement will be required against the profit forecast as contained in the Company’s prospectus for the year ending 28 February 2015.

Real Estate

Real Estate

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