| Mon 30 Sep 2019, 17:06 | | CONDUIT CAPITAL LIMITED - CND : Condensed Consolidated Reviewed Results for the Year Ended 30 June 2019 |
|
CND : Condensed Consolidated Reviewed Results for the Year Ended 30 June 2019: https://senspdf.jse.co.za/documents/2019/jse/isse/cnd/ye19.pdf
Condensed Consolidated Reviewed Results for the Year Ended 30 June 2019
Conduit Capital Limited
Incorporated in the Republic of South Africa
(Registration number: 1998/017351/06)
Share code: CND
ISIN: ZAE000073128
("Conduit" or "Conduit Capital"or "the Group")
Condensed consolidated reviewed results for the year ended 30 June 2019
This short-form announcement is the responsibility of the directors and is
only a summary of the information in the full announcement, which is
available at https://senspdf.jse.co.za/documents/2019/jse/isse/cnd/ye19.pdf
and also published on the Group's website at https://www.conduitcapital.co.za. The full
announcement can be inspected at Conduit Capital's registered office and the
offices of the Sponsor during office hours. Copies thereof may be requested at
no charge. Any investment decisions should be based on consideration of the
full announcement.
Financial highlights
Reviewed
Year ended June 2019 vs
year ended June 2018
Gross written premium 33.4% to R2.051 billion
Net premium income before solvency reinsurance 6.5% to R366.3 million
Net premium income after solvency reinsurance 50.7% to R1.888 billion
Earnings per share from 20.0 cents profit to
92.8 cents loss
Headline earnings per share from 21.0 cents profit to
88.7 cents loss
Net asset value per share from 198.0 cents to
105.1 cents
Weighted average number of shares in issue ('000) 10.4% to 702 100
Conduit shareholders are referred to the 2018 Integrated Annual Report wherein
shareholders were advised to expect volatility in the Company's earnings due to
the nature of its business, that being insurance underwriting and mark-to-market
movements in its listed investment portfolio. Conduit is committed to its goals
of investing in its business and supporting its investments for the long-term.
The value of the Conduit equity portfolio decreased on a temporary mark- to-market
basis during the year, as the South African equities market and business confidence
in general came under intense strain. These temporary losses are required to be
expensed in the Company's income statement in terms of IFRS. Conduit's wholly
owned insurance companies delivered pleasing growth in premium and underlying
capacity, but the underwriting result in some motor books in the broader Property
b. accounting losses generated by certain start-up insurance operations;
c. the cost of solvency reinsurance; and
d. the impact of the reduction in the value of Conduit's equity portfolio
on a mark-to-market basis.
The Group is confident in its stated strategy of building a diversified
insurance business of scale in South Africa, and believes that its listed
investment portfolio remains significantly undervalued in the context of an
extremely challenging and low confidence South African economy. Furthermore,
the insurance business is now well-equipped to deliver underwriting results
closer to the stated target of a 95% combined ratio.
Directors:
Executive directors:
Sean Riskowitz (Chief Executive Officer),
Lourens Louw (Chief Financial Director)
Non-executive directors
Ronald Napier (Chairman)*, Leo Chou, Adrian Maizey, Jabulani Mahlangu*,
William Thorndike*, Rosetta Xaba*
*Independent
Company secretary:
CIS Company Secretaries Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, Johannesburg, 2196
Registered address:
Unit 9, 4 Homestead Avenue, Bryanston, Sandton, 2191
Postal address:
PO Box 97, Melrose Arch, 2076
Transfer secretaries:
Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, Johannesburg, 2196
Sponsor:
Merchantec Capital, 13th Floor, Illovo Point, 68 Melville Road,
Illovo, 2196
Date: 30/09/2019 05:07:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
