| Fri 22 Mar 2002, 0:00 | | Rentsure - Interim Results For The Six Months Ende |
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Rentsure Holdings Limited
(Registration number 1946/023539/06)
Share code: RNT
ISIN code: ZAE000012811
("Rentsure" or "the Company")
Interim results for the six months ended 31 December 2001
Consolidated income statement
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Dec 31 Dec 30 Jun
2001 2000 2001
R'000 R'000 R'000
Net premium income 125 061 120 433 249 238
Recurring premiums 124 245 119 121 243 628
Single premiums 816 1 312 5 610
Investment income 17 058 20 358 30 231
Income 142 119 140 791 279 469
Commission 21 593 20 907 49 535
Marketing, sales and
administration expenses 48 503 49 124 94 805
Taxation 2 000 2 050 1 946
Outgo 72 096 72 081 146 286
Excess of income
over outgo 70 023 68 710 133 183
Claims and policyholder
benefits (66 631) (64 421) (131 068)
Transfer (to)/from life
assurance fund (16 110) 4 000 6 119
(Loss)/Profit on ordinary
activities after
taxation (12 718) 8 289 8 234
Outside shareholders'
interest 3 022 (2 795) (3 276)
(Loss)/Profit for the
period (9 696) 5 494 4 958
(Loss)/Profit (9 696) 5 494 4 958
(Loss)/Profit per
share (cents) (24,0) 13,6 12,3
Dividends per
share (cents) - 2,25 2,25
Calculated on a weighted
average number of shares in
issue ('000) 40 438 40 438 40 438
Consolidated balance sheet
Unaudited Unaudited Audited
31 Dec 31 Dec 30 Jun
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets 277 646 275 616 276 498
Investments 109 407 102 169 105 980
Fixed property 132 672 127 028 132 805
Plant, machinery and
motor vehicles 25 050 35 049 26 911
Cost of control arising
on consolidation 10 517 11 370 10 802
Current assets 130 197 138 387 130 609
Inventories 26 314 21 630 24 974
Debtors and deposits 73 951 93 584 73 821
Cash 29 932 23 173 31 814
Total assets 407 843 414 003 407 107
EQUITY AND LIABILITIES
Capital and reserves 82 211 95 498 94 930
Share capital 8 394 8 394 8 394
Non-distributable
reserves 19 272 19 272 19 272
Distributable reserves 359 359 359
Retained income 28 185 38 416 37 881
Shareholders' funds 56 210 66 441 65 906
Minority shareholders'
interest 26 001 29 057 29 024
Non-current liabilities 257 435 243 003 241 153
Life assurance fund 254 444 240 453 238 334
Long-term liabilities 2 991 2 550 2 819
Current liabilities 68 197 75 502 71 024
Short-term loans 952 1 985 834
Amounts due to bankers 5 530 8 065 3 695
Creditors and provisions 61 305 60 889 63 310
Taxation 410 3 653 3 185
Shareholders for dividend - 910 -
Total equity and
liabilities 407 843 414 003 407 107
Consolidated cash flow statement
Unaudited Unaudited Audited
six months six months year
ended ended ended
31 Dec 31 Dec 30 Jun
2001 2000 2001
R'000 R'000 R'000
Net cash flow from
operating activities (2 176) (1 504) 14 119
Cash from clients 125 060 120 433 249 238
Cash paid to suppliers and
employees (136 727) (134 452) (262 072)
Cash from operations (11 667) (14 019) (12 834)
Investment income 9 491 12 515 26 953
Net cash flow from
investment activities (4 509) (22 494) (23 164)
Acquisition of
fixed assets (1 469) (14 486) (14 164)
Increase in investments (3 427) (8 161) (11 972)
Proceeds on disposal of
fixed assets 387 153 2 972
Net cash flow from
financing activities 4 803 11 173 4 861
Decrease in loans 2 126 (2 974) (2 111)
Other 2 677 14 147 6 972
Decrease in cash and cash
equivalents (1 882) (12 825) (4 184)
Cash and cash equivalents at
beginning
of the period 31 814 35 998 35 998
Cash and cash
equivalents at
end of the period 29 932 23 173 31 814
Statement of changes in equity
Non-
distri- Distri-
Share butable butable Retained
(Unaudited) capital reserves reserves income Total
Balance on
30 June 2000 8 394 19 272 359 33 833 61 858
Net profit for
the year - - - 4 958 4 958
Dividends - - - (910) (910)
Balance on
30 June 2001 8 394 19 272 359 37 881 65 906
Net loss for
the period - - - (9 696) (9 696)
Balance on 31
December 2001 8 394 19 272 359 28 185 56 210
Accounting policies
Given that Assupol does not prepare interim financial statements at this
stage, no pro forma financial information is provided.
The interim financial results have been prepared in accordance with the
statements of Generally Accepted Accounting Practice of South Africa.
The accounting policies adopted remain consistent with those applied in the
comparative period and the financial statements for the year ended 30 June
2001.
Comments
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 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
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 has posted a loss of R9,696 million for the
six months ended 31 December 2001.
Prospects
Management has already implemented certain initiatives to address the future
impact of the aforesaid factors and these should restore RAL to
profitability.
It is anticipated that these initiatives, coupled with future
rationalisation benefits and with improved sales volumes due to the
introduction of new products, will have a major positive effect on RAL,
which should be visible in the results for the year ending 30 June 2003.
Shareholders are advised that Rentsure and Assupol are continuing to pursue
the implementation of the Assupol merger and that significant progress has
been made in this regard, including unconditional approval having been
received from the Competition Commission.
By order of the Board
J Vermooten
(Chairman)
20 March 2002
Registered office
106W Rentmeester Park, 74 Watermeyer Street, Val de Grace
Pretoria 0184
Transfer registrars
Mercantile Registrars Limited, 11 Diagonal Street
Johannesburg 2001
Directors
Joachim Vermooten (Chairman)
Johannes Vermooten
Dr MI Vermooten
Prof Q Vorster
W Stals
