Remgro flags profit decline

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Remgro flags profit decline

Published Date: 2020-09-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Remgro flags profit decline

The investment company says most of its underlying investments have been affected by the Covid-19 pandemic.

Remgro has warned shareholders to expect a sharp slide in full-year earnings after Covid-19 and the resultant lockdown affected most of the companies it's invested in.

In a trading statement, the investment company said headline earnings per share (HEPS) for the year to end-June would be 55% to 65% lower than the R14.49 reported last year, while HEPS from continuing operations would be as much as 75% below the 981c it earned last year.

Remgro said its 28.2% investment in RMB Holdings (RMH), which was distributed to shareholders in June, would be treated as a discontinued operation for the period. It bundled the stake in June in a coordinated move with RMH, which distributed its holding in FirstRand to its investors as a dividend in specie. The FirstRand unbundling was partly aimed at reducing the discount the investment companies traded at relative to their underlying assets by reducing the three listed entry points into FirstRand.

Remgro still holds a direct investment of 3.9% in the banking group in its portfolio of more than 30 investee companies, which also includes food groups RCL and Siqalo Foods, private hospital operator Mediclinic, freight and logistics group Grindrod, energy company Total SA and Community Investment Ventures Holdings, amongst others.

Remgro's shares rose 1.3% to R89.78 yesterday.





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