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Audited summary final financial results announcement for the year ended 30 June 2020
RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1987/005115/06
JSE ordinary share code: RMH
ISIN code: ZAE000024501
(RMH or the company)
Audited summary final financial results announcement for the year ended 30 June 2020
Start of a new chapter
RMH was first listed on the JSE in 1992, as a vehicle to allow investors to co-invest with the original founders of RMB (the Founders). Since then, it has played
a significant role in the establishment and growth of some of South Africa's most iconic financial services businesses, including FirstRand, Discovery and
OUTsurance RMH had previously communicated to shareholders that the RMH Board would continue to dynamically assess the structural design of RMH.
Taking into account the important long-term benefits of the investment holding structure vis-à-vis FirstRand and having considered all relevant factors and
alternate corporate structures, the RMH Board concluded in November 2019 that the RMH unbundling was an appropriate next step regarding its
association with FirstRand.
The RMH unbundling unlocked R5.4 billion in value for RMH shareholders and marked the end of an era concluding the partnership with FirstRand and
Remgro Limited (Remgro).
RMH 2.0
Post implementation of the RMH unbundling, which became effective on 24 June 2020, Laurie Dippenaar and Paul Harris resigned as directors of RMH
after serving on the board for 38 years. They were the last of the Founders to leave the RMH Board. Our annual integrated report (to be published in
October 2020) will feature exclusive interviews with them and include their parting messages. RMH pays tribute to the Founders and the immeasurable
contribution they have made not just to RMH but the financial services landscape in South Africa generally.
The next chapter of the RMH story starts with RMH as the holding company for RMH Property. RMH Property partners with entrepreneurial management
teams in the unlisted property space and seeks to instil the values and ethos that have defined the successes of RMH and RMI to date. RMH Property has
to date made the following investments
Atterbury (27.5%)
Atterbury Europe (37.5%)
Integer Properties (Various)
Divercity (20.3%)
Financial information
For the year ended
30 June
R million 2020 2019 % change
Revenue (111) 117 >(100)
Continuing and discontinued operations
Earnings attributable to equity holders 32 596 9 978 >100
Headline earnings attributable to equity holders 5 377 9 390 (43)
Continuing operations
Loss attributable to equity holders (365) (322) (13)
Headline loss attributable to equity holders (262) (108) >(100)
Discontinued operation
Earnings attributable to equity holders 32 961 10 300 >100
Headline earnings attributable to equity holders 5 639 9 498 (41)
Net asset value 4 960 49 303 >(90)
Continuing and discontinued operations
Earnings per share (cents) 2 309.0 706.9 >100
Diluted earnings per share (cents) 2 309.0 706.9 >100
Headline earnings per share (cents) 380.9 665.2 (43)
Diluted headline earnings per share (cents) 380.9 665.2 (43)
Continuing operations
Loss per share (cents) (25.9) (22.8) (14)
Diluted loss per share (cents) (25.9) (22.8) (14)
Headline loss per share (cents) (18.6) (7.7) >(100)
Diluted headline loss per share (cents) (18.6) (7.7) >(100)
Discontinued operation
Earnings per share (cents) 2 334.9 729.7 >100
Diluted earnings per share (cents) 2 334.9 729.7 >100
Headline earnings per share (cents) 399.4 672.9 (41)
Diluted headline earnings per share (cents) 399.4 672.9 (41)
Net asset value per share (cents) 351.4 3 492.4 >(90)
RMH Property's strategy is to:
Partner
- Partner with Atterbury to identify and develop growth segments in the South African property sector
- Partner and grow emerging development partners, Divercity and Integer
- Utilise the development expertise of Atterbury and Atterbury Europe in conjunction with existing in-country partnerships to capitalise on opportunities in
the growing economies of Eastern Europe
Enhance
- Enhance our established investments in order to create better enduring value for our shareholders
- Diversify the income stream and distribution of property assets:
- Identify growth segments in the South African property sector
- Capitalise on opportunities in the growing economies in Eastern Europe
Monetise
- Manage the delivery of the existing development pipeline in RMH Property's portfolio companies in order to drive capital appreciation
for RMH shareholders
- RMH continues to assess options to monetise the RMH Property business, in an orderly manner over time, and to return maximum value to RMH
shareholders. These options include, inter alia, monetisation through separate listings and/or disposals of the individual RMH Property portfolio companies
Outlook
Given the uncertainty around the duration of the COVID-19 pandemic and its second-order effects, the exact impact on the RMH Property portfolio in
the near-term cannot be accurately forecast at this stage.
RMH Property's investment strategy is to generate attractive equity returns over the long term by investing in select property and property-related
businesses.
The RMH Board will also continue to assess options to monetise the RMH Property business, over time, in an orderly manner and to return maximum value
to shareholders.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement and does not
contain full or complete details. The full announcement was released on the JSE's Stock Exchange News Service (SENS) on 18 September 2020
and can be found on the company's website at https://www.rmh-online.co.za/stakeholder-relations/financial-results/ or at
https://senspdf.jse.co.za/documents/2020/jse/isse/RMH/RMH20final.pdf The full announcement is available for inspection at the company's registered
office and copies may also be requested from company.secretary@rmbh.co.za and at the offices of the sponsor, at no charge, during office hours. Any
investment decision should be based on the full announcement published on SENS and on the company's website. The auditor expressed an unmodified
audit opinion on the annual financial statements which includes the key audit matters, a copy of the annual financial statements including the audit
opinion can be found on https://www.rmh-online.co.za/stakeholder-relations/financial-results/
18 September 2020
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 18-09-2020 09:00:00
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