| Wed 16 Mar 2011, 17:15 | | REM - Remgro Limited - Change in financial year-end |
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REM
REM
REM - Remgro Limited - Change in financial year-end
Remgro Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/006415/06)
ISIN: ZAE000026480
Share code: REM
("Remgro" or "the Company")
CHANGE IN FINANCIAL YEAR-END
Shareholders are herewith advised that the Board of Remgro has approved the
change in financial year-end of the Company from 31 March to 30 June, with
effect from the current financial year. The rationale for the change in
year-end is to comply with the revised International Auditing Standard 600 ("ISA
600"), as more fully set out below. It should be noted that the JSE Limited has
approved the change in year-end, but approval from the Companies
and Intellectual Property Registration Office ("CIPRO") is still pending.
The revised ISA 600 requires Remgro to have audited the results of every
associate classified as a significant component before it can be equity
accounted in its annual financial statements ("AFS"). Remgro`s two largest
associates, i.e. FirstRand Limited ("FirstRand") and RMB Holdings Limited
("RMBH"), are classified as significant components. Both of these companies
have June year-ends and at 31 March of every year the results of FirstRand
and RMBH for the twelve months ending 31 December used to be equity
accounted.Remgro has been advised by its auditors that, in terms of the revised
ISA 600, the results of FirstRand and RMBH for the six months to 31 December
have to be audited before inclusion in Remgro`s AFS. Furthermore, non-
compliance with ISA 600 will result in Remgro`s AFS being qualified.
From both a cost and operational perspective it is not practical to have the
interim results of FirstRand and RMBH audited. As a qualified audit opinion
will have negative consequences for Remgro`s listing on the JSE, it was decided
to change Remgro`s year-end from 31 March to 30 June in order to coincide with
that of both FirstRand and RMBH.
Remgro will therefore publish and distribute a second set of interim results to
shareholders for the twelve month period ending 31 March 2011, with comparative
figures to the previous year, by no later than 30 June 2011. Remgro will then
also publish and distribute financial results for the fifteen months ending 30
June 2011, by no later than 30 September 2011, as well as publishing annual
financial statements for the extended financial period to 30 June 2011. As a
result of the change in year-end, Remgro`s final and interim dividends will now
be paid during November and April of each year respectively, compared to August
and January previously. In respect of the fifteen month-period ending 30 June
2011, the final dividend will be based on earnings for the fifteen months and
will be paid in November 2011. For subsequent financial years, the final
dividend will again be based on earnings for the twelve months under review.
Stellenbosch
16 March 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 16/03/2011 17:15:00 Produced by the JSE SENS Department.
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