Our opinion on the current state of CROOKES(CKS)Crookes Brothers (CKS) is an agricultural and property company formed in 1913 and listed on the JSE in 1948. The company produces sugar cane, bananas, macadamia nuts, and deciduous fruit, and has a property division. It owns Renshaw Farm, which consists of 1800 hectares between Scottburgh and Umkomaas. Of this, 266 hectares have been re-zoned for development, with 52 hectares subject to a contested land claim. The company has decided to sell the 28 hectares being developed as Renshaw Hills, a 500-unit residential development.
The deciduous fruit operation consists of five farms in the Western Cape with 43 hectares of deciduous orchards. The macadamias are grown on a farm in Mozambique on a 99-year lease. The sugarcane operation is on four leased farms in Mpumalanga, plus other farms in KwaZulu-Natal, Swaziland, and Zambia.
In its results for the year ended 31st March 2024, the company reported revenue up 18% and headline earnings per share (HEPS) of 334.5c compared with a loss of 708.8c in the previous period. The company's net asset value (NAV) increased by 8% to 7124c per share. The company said, "The 2024 reporting period saw a marked improvement in prices in the group's sugar cane and banana operations and a reduction in fertilizer and other agricultural input costs. Additionally, the group sold its deciduous fruit business and used the proceeds to settle debt, reducing interest costs going forward."
A problem with this share is that it is relatively tightly held. The average value of shares changing hands each day is about R121,000, but on many days it does not trade at all. This generally makes it riskier even for private investors.
