| Thu 23 Feb 2012, 10:36 | | RMH - RMBH - Trading Statement: Six Months ended 31 December 2011 |
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RMH
RMH
RMH - RMBH - Trading Statement: Six Months ended 31 December 2011
RMB HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1987/005115/06
ISIN: ZAE000024591
Share Code: RMH
("RMBH" or "the Group")
TRADING STATEMENT: SIX MONTHS ENDED 31 DECEMBER 2011
INTRODUCTION
In terms paragraph 3.4(b) of the Listings Requirements of the JSE Limited, an
issuer is required to publish a trading statement as soon as it becomes apparent
that earnings per share ("EPS") and/or headline earnings per share ("HEPS") for
the next period to be reported on are expected, with a reasonable degree of
certainty, to differ by at least 20% from those of the previous corresponding
reporting period.
NORMALISED EARNINGS
RMBH considers Normalised EPS from continuing operations to most accurately
represent operational performance.
On this basis, Normalised EPS for the six months to December 2011 are expected
to increase by between 20% and 24% from 110.1 cents for the six months ended 31
December 2010.
NON-RECURING PRIOR PERIOD EVENTS
Shareholders are reminded that in the interim reporting period ended 31 December
2010("prior period"):
- RMBH`s associate, FirstRand Limited ("FirstRand") distributed its interest
in MMI Holdings Limited ("MMI") to shareholders as a dividend in specie.
This resulted in MMI becoming a directly held associate of RMBH.
- In addition, RMBH`s then associate, Discovery Holdings Limited
("Discovery") concluded a business combination whereby it acquired the
Standard Life Healthcare Group and merged that with the Pruhealth Group
(Discovery`s UK based joint venture).
In terms of the accounting conventions applicable, these events gave rise to
significant non-recurring increases in both HEPS and EPS for the six months
ended 31 December 2010.
During the six months ended 30 June 2011:
- RMBH increased its shareholding in FirstRand to 33.9%;
- RMBH acquired FirstRand`s 45% interest in OUTsurance Holdings Limited
("OUTsurance"); and
- RMBH unbundled its shareholding in RMI Holdings Limited ("RMI") to
shareholders. RMI holds the insurance operations previously held by RMBH.
These include OUTsurance, RMB Structured Insurance, MMI and Discovery.
Consequently:
- For the six months ended 31 December 2010, both RMBH`s HEPS and EPS
comprise the earnings of both its interest in FirstRand and it`s then
wholly-owned subsidiary RMI; while
- For the current six month period ended 31 December 2011, RMBH`s HEPS and
EPS only reflect the outcome of its 33,9% interest in FirstRand.
EARNINGS GUIDANCE FOR SIX MONTHS ENDED 31 DECEMBER 2011
Given the impact of the non-recurring prior period items and the changes in the
interim to the Group structure, shareholders are advised that the expected
outcome for the six months ended 31 December 2011 is as follows:
Per Share (cents) December Guidance for
2010 six months to
December 2011
Normalised earnings- 110.1 c 20% to 24%
From continuing operations increase
Headline earnings - 161.0 c 12% to 20%
Includes both continuing and decrease
unbundled operations
in prior period
Earnings - 295.5 c 45% to 55%
Includes both continuing and decrease
unbundled operations
in prior period
The financial information on which this trading statement is based has not been
reviewed and reported on by the Group`s external auditors.
RMBH`s interim results for the six months ended 31 December 2011 is expected to
be released on SENS on or about Wednesday 29 February 2012.
Sandton
23 February 2012
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 23/02/2012 10:36:01 Produced by the JSE SENS Department.
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