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Announcement
RENTSURE HOLDINGS LIMITED
Registration number 1946/023539/06
Share code : RNT
ISIN code : ZAE000012811
("Rentsure")
PROFIT WARNING AND FURTHER CAUTIONARY ANNOUNCEMENT
Rentsure will report its interim results for the six months ended 31
December 2001 on or before 28 March 2002.
In line with the Chairman's report on the Company's prospects published in
the annual financial statements for the year ended 30 June 2001,
shareholders are advised that the operations of Rentsure's subsidiary,
Rentmeester Assurance Limited ("RAL"), have been adversely affected by,
inter alia, a slow down in new business volumes as experienced by the life
assurance industry in general as well as the costs associated with the
comprehensive restructuring and consolidation exercise embarked upon by RAL.
In particular, the most significant contributory factors in the slow down in
new business volumes and increased costs were:
the restructuring and curtailment of RAL's branch network and sales force in
anticipation of the implementation of the merger with Assupol, as more fully
announced on 3 October 2001 ("the Assupol merger"); and
the costs associated with the development of new markets to replace the
contributions lost as a result of the changes in the Persal deduction
system.
Furthermore, a strengthening of RAL's valuation basis in respect of
policyholder assets and liabilities affected Rentsure's attributable
earnings.
As a result, Rentsure expects to post a considerable attributable loss for
the six months ended 31 December 2001.
Management has already implemented certain initiatives to address the future
impact of the aforesaid factors and these should restore RAL to
profitability, however the negative contributory factors would still impact
on RAL's earnings for the six months ending 30 June 2002. As such, Rentsure
could post negative earnings for the full year.
The restructuring of RAL's branch network and sales force has not affected
Assupol's new business volumes and significant progress has been made in
anticipation of the implementation of the Assupol merger. Shareholders are
also referred to the announcement dated 8 February 2002 regarding the
unconditional approval of the Assupol merger by the Competition Commission.
Shareholders are advised to continue to exercise caution when dealing in
their Rentsure securities as Rentsure and Assupol continue to pursue
implementation of the Assupol merger.
Pretoria
15 March 2002
Corporate Advisor and Sponsor
Quaestor Capital (PTY) LTD
Registration number 1991/007330/07
Corporate Law Advisors
Gildenhuys van der Merwe Inc
Attorneys, Notaries and Conveyancers
(Registration number 1987/002114/21)
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