African and Overseas Enterprises Limited. JSE: AOO

African and Overseas shares

Background of African and Overseas

  • African & Overseas Enterprises is a holding company which owns 72.62% of the ordinary shares of clothing supplier Rex Trueform Clothing Company Limited. Apart
    from retail trade, Rex Trueform also has an extensive property portfolio, with a direct
    capital investment in properties in and around Cape Town, used either for operational or investment purposes. The company has a long history, with African & Overseas shares first listed for sale on the Johannesburg Stock Exchange (JSE) in 1948.
  • Rex Trueform owns the popular retail clothing chain Queenspark, which stocks men’s and women’s clothing and accessories in stores across South Africa and in Botswana, Namibia and Kenya. Other stores owned by the company include J-Crew and AURA.
  • African & Overseas has a mission of maintaining a prominent position as a highly
    successful clothing retailer, providing a quality product portfolio supported by excellent customer service, while providing a real return in African & Overseas share price. The company followed an upward trajectory in 2015, with revenue, operating profits and African & Overseas share price all recording good performance.

African and Overseas Shares Growth Driver

  • In 2015, African & Overseas revenue increased by 7.1% to R296.2 million, with operating profits increasing by 3.4% to R16.4 million. Trading expenses have been a particular area of containment in recent years, which has driven profit growth. The
    group also increased basic earnings by 8.9% per share. The group is continuing to
    introduce new initiatives, including the rollout of a new enterprise resource planning
    system and an updated point-of-sale system at retail stores. These initiatives are
    expected to reach their full potential by 2017, contributing to a rise in profits and
    African & Overseas share price. Rex Trueform is also extending its reach online, by
    selling its products live through the Zando website.
  • Largely due to the sluggish economy today, the forecast is that the clothing retail market will remain under pressure until the Rand starts strengthening. A variety of initiatives have been identified and introduced, mainly to increase turnover growth and drive the group’s growth over the medium to long term.
  • The group also made a solid profit of R4 million from the sale of a property. Most of the properties in the Salt River area of Cape Town are undeveloped,and African & Overseas is aiming to buy into feasibility studies to develop and invest in these properties.

African and Overseas Investor Tip

  • Despite recording good financial data, African & Overseas share price took a major
    dip at the end of 2015, but the shares have become a more popular buy recently.
    Management has admitted that the clothing retail sector will remain sluggish in
    future, which will depend on the strength of the Rand. If the investment properties in
    Cape Town are developed, then shareholders could begin to reap rewards from the
    property division. Current shareholders should therefore hold onto their stocks for
    now, but other investors may be reluctant to buy into the group at present.

African and Overseas Major Shareholders

Stewart, Pat Shub Family Trust, Brimst one Investment Corporation, Ceejay Trust.
  • Sector

    Consumer Discretionary

  • Industry

    Discretionary

  • Sub industry

    Specialty Apparel Stores

How to buy African and Overseas Shares

  • African and Overseas : How to buy African and Overseas Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy African and Overseas shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in African and Overseas and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase African and Overseas shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in African and Overseas.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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