To all our shareholders and friends
At the end of September 2025, the NAV per share of Beagle was R6 669 – an increase of 5.5% from the end of March, and up 5.0% from a year ago. Please see the attached spreadsheet for a breakdown of the NAV. On top of that, Beagle also paid a dividend of R125 per share during the period, 25% higher than the previous year’s R100 per share dividend. Adding back the dividend means that Beagle returned 7.5% for the 6 months, underperforming the JSE All Share Total Return Index, which returned 24.4%.
To calculate the interim net asset value, we mark Beagle’s listed assets to market at prevailing market prices as of 30 September. The unlisted assets are valued internally on a consistently conservative basis – some of which we only revalue once a year in March. Specifically, in these results, our biggest asset, Reef, which represents over 50% of our NAV, has not been revalued. We will do so at year-end.
This is how our NAV per share has progressed over time:
Long term performance
Over the past ten years, Beagle has compounded its NAV per share at 18.2% p.a. compared to the 11.6% p.a. delivered by the JSE All Share Total Return Index. Beagle has certain advantages which have allowed it to do well:
- It is a privately owned business, not subject to the ebbs and flows of public opinion and sentiment.
- It has permanent capital, allowing it to invest in illiquid situations when they are favourably priced. Unlike open-ended investment vehicles such as unit trusts, Beagle cannot be forced to sell assets.
- Its BEE status often gives it access to cheap, non-recourse leverage.
In managing Beagle, our most important activity is to sit still and watch its investments compound in value, driven by a combination of underlying business growth and leverage. Inactivity is well rewarded, and we are good at that.
Portfolio Commentary
So far this year, Reef Holdings’ subsidiaries, Reef Switchboards and Victoria Engineering, are trading slightly better than last year. We received an R4.0mn repayment of a shareholder loan from The Reef Group during the period.
Over the past six months, Goldrush, a significant player in the alternative gaming (Bingo, LPM’s, Sports Betting, and Online Gaming) industry in South Africa, managed to grow total income by 5% to R1 002 mil, when compared to the same time last year – reflecting a combination of lethargic trading in the land-based gaming division (Bingo halls and Limited Pay-out machines) and rapid growth in online gaming. Due to cost pressures, operating income was flat, so our valuation for Goldrush Group at the end of September remains unchanged. During the period, Sizakhaya Holdings, in which Goldrush is a 50% shareholder, was awarded the license to manage the South African lottery, commencing in June 2026. Please note that, due to the uncertainty around the lead time and required investment, we have not recognised any value for this investment in our overall Goldrush valuation yet.
YeboYethu (YY), Vodacom’s BEE shareholder, saw its market price increase by 91% to R38 per share. Beagle also received a final dividend of 101 cps. We bought some more shares during the period under review.
The market price of Phutuma Nathi (PN) – the BEE shareholder of MultiChoice South Africa – increased by 40% to R56 per share. A dividend of R6.11 was paid, well below last year’s payout. We continued to add to our holding of Phutuma Nathi during the period.
The value of Beaprop (Beagle’s subsidiary that owns shares in Spear REIT) increased by 27% during this period. Spear REIT owns and manages property mainly in Cape Town. We think Cape Town – and the Western Cape – will continue to increase its advantage for tenants over the rest of the country, thereby providing a tailwind for the business. Declining interest rates will magnify this, as Beaprop’s ownership in the properties underlying Spear REIT is leveraged.
The price of SOLBE1, the Sasol BEE shares, increased by 29% to R65 per share. During the period, we added to our SOLBE1 holdings.
MTN Zakhele (MTNZ) commenced with an unwinding process during the period. So far, Beagle has received a dividend of R20.00 per share, with another R4.20 due after the end of September. There might be another small payment in due course. Overall, I did not cover myself in glory with this investment for Beagle, as the IRR was below the inflation rate over the period. And far below the interest rate that could have been earned on a risk-free deposit. The only positive aspect – and I’m scratching around, here – was that the investment was always relatively small.
Ritchey Crane Hire (held via UCP holdings) is tracking slightly worse than last year’s performance, due to unseasonal rains, which hampered performance. We have not revalued it for these results, as our practice is to do so annually, at year-end. It did repay R1.2 mn of its shareholder loan to Beagle.
Beagle’s interest in the Goede Hoop consortium increased in value by 10.5% during the 6 months. The Goede Hoop Consortium is an investor in high-quality South African small- and mid-caps, a unique investment opportunity.
In the six months to September, Beagle received ongoing dividends of R864mn, down sharply from the R3.8mn we received during the same period last year. The main reasons were the lack of a dividend from UCP (R1.4mn a year ago) and the dividend cut at Phutuma Nathi. Operating expenses were R965k, essentially flat compared to last year. Beagle ended the period with cash resources of R6.1mn.
BEE Status
As you know, Beagle is a private investment holding company set up to act as an empowerment investor. Its primary shareholder is the RECM Foundation, which provides funding for educational activities to its beneficiaries, mainly black children. The foundation’s trustees are all black and independent of RECM. Black shareholding of Beagle currently stands at just over 51%.
As a spin-off, Beagle also provides RECM’s staff, the staff of its extended “business family,” and other friends with an additional investment opportunity that is differentiated from our local and global unit trusts managed by our associate Merchant West Investments, our hedge fund managed by RECM, or our listed investment companies Goldrush Holdings and Astoria.
You can read more about Beagle at https://recm.co.za/beagle/ and the RECM Foundation at https://recm.co.za/recm-foundation/.
Some administration
Releasing these results also provides us with our regular semi-annual liquidity window. Please let me know if anyone wants to sell any of their shares. And if there are any buyers, you know where to find me. Unfortunately, we cannot guarantee that you will be able to buy or sell any shares; that depends on other shareholders’ willingness to transact. Transactions have traditionally happened at the NAV per share, but this cannot always be guaranteed.
There is a possibility of entering into a significant transaction. To do so will require more capital than Beagle currently has. One option would be to raise capital through a rights issue. This would be done at NAV per share as at the end of November, which will not be significantly higher than the current NAV per share. If you are interested in supporting the rights issue, please let me know. The issue will depend on the level of interest, especially from our black shareholders, as we always need to have more than 50% black shareholding.
Beagle has enjoyed excellent returns over the years, and the directors of Beagle are comfortable with the current investment portfolio. However, do not extrapolate this history into the future when planning your financial affairs. Beagle is an investment company with a highly concentrated, leveraged, illiquid portfolio. The directors of Beagle will continue to do their best to ensure a positive outcome, but this cannot be guaranteed. Also, an investment in Beagle cannot be easily realised, so you should never invest with money you might need urgently.
Thank you for joining us on the voyage of the Beagle.
Piet Viljoen
19 November 2025