Mariette Warner, head of Fund Management for the Standard Bank's Property Portfolio, said that since listing in 1999, Spearhead had "proved themselves to be one of the most astute of South African property management teams with a sustained income growth that places them in the top three companies in this sector on the JSE Securities Exchange".

"Spearhead has consistently performed well above the average for their sector. In the next two to three years it seems probable that they will achieve a real growth of 6 to 7% per annum as against a projected 3 to 5% growth for this sector." In the second half of 2003 Spearhead made a profit of R20.4 million on a turnover of R43m. The basic earnings per unit were 52% up on the corresponding period of the previous year.

Distributions were therefore upped by 21% to 80c per linked unit. Flax has commented that the good results were caused by a combination of increased trading and lower interest rates. These factors had been capitalised on by the Spearhead management which he described as "totally focused and goal-congruent with the company's interests and not influenced by outside agendas".

Call Flax on 021 425 1000.