Our opinion on the current state of GPL

Grand Parade Investments (GPL) is an investment holding company primarily focused on the gaming industry, operating as a Black Economic Empowerment (BEE) entity. Listed on the JSE in 2008, the company has undergone significant changes in its portfolio over the years. Notably, it terminated its franchises with Dunkin' Doughnuts, Baskin Robbins, and Burger King in February 2019 and February 2020, respectively. Furthermore, GPL sold its remaining 10% stake in the Spur Corporation back to Spur in June 2019.

On June 15, 2022, GPL announced the unbundling of its 9.28% shareholding in Spur, with shareholders receiving 1 Spur share for every 56 GPL shares held on the unbundling record date of June 10, 2022. In its financial results for the six months ending December 31, 2023, GPL reported revenue of R12.7 million, with headline earnings per share (HEPS) increasing to 11.9c from 9.8c in the previous period. The company attributed the decrease in central costs to operational restructuring and cost-saving initiatives implemented during the review period.

Significant changes occurred in GPL's ownership structure, with GBM Liquidity, a private company, acquiring a 27.88% stake in the company on October 25, 2022, later increased to 35.14%. Additionally, Sun International increased its holding to 10.56% on November 11, 2022. On April 11, 2023, GBM Liquidity Corporation, a family trust of Greg Bortz, obtained control with 53.65% of the company's issued capital.

Despite these ownership changes and potential takeover rumors, GPL's share performance has been relatively stagnant since 2017, moving sideways and not presenting an attractive investment opportunity from a technical perspective.