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Rentsure - Profit Warning And Further Cautionary Announcement
Rentsure Holdings Limited
Registration number 1946/023539/06
Share code: RNT
ISIN code: ZAE000012811
("Rentsure" or "the Company")
PROFIT WARNING AND FURTHER CAUTIONARY ANNOUNCEMENT
Rentsure will report its results for the year ended 30 June 2002 on or
before 30 September 2002.
In line with the profit warning published on 15 March 2002, the statements
contained in the interim results published on 20 March 2002 and 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 reduction in new business volumes as experienced by the life assurance
industry in general, in addition to a reduction of sales activity due to the
restructuring of RAL`s branch and distribution network in anticipation of
the proposed merger with Assupol ("the proposed merger") and the associated
delays in the roll out of new products;
- the costs associated with the comprehensive restructuring and re-sizing of
RAL, including the restructuring of support services to improve RAL`s
efficiency and productivity, resulting in substantial once-off costs ("the
restructuring"); and
- the delays and ultimate termination of the proposed merger (shareholders
are also referred to the announcement dated 21 May 2002) and the costs and
management time associated with same, which has delayed certain benefits
that are expected to be achieved from the restructuring.
As a result of the above, Rentsure expects to post a considerable
attributable loss for the financial year ended 30 June 2002.
Steps have been taken to re-focus RAL`s activities on increasing new
business volumes with the recent launch of a new all-in-one policy and the
development of a number of other new products that will be launched during
the next financial year. Rentsure and RAL`s management are positive about
the initiatives that are being implemented in order to address the future
impact of the aforesaid factors and to refocus RAL to achieve profitability
in the medium term.
FURTHER CAUTIONARY ANNOUNCEMENT
Rentsure is involved in negotiations with a view to restructure RAL`s
property portfolio and thereby improve RAL`s asset distribution. These
negotiations, if concluded successfully, may impact on the price at which
Rentsure securities trade on the JSE Securities Exchange South Africa.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in their Rentsure securities until a further announcement is
published.
Pretoria
25 June 2002
Corporate Advisor and Sponsor
Quaestor Capital (Pty) Ltd
Registration number 1991/007330/07
Date: 25/06/2002 05:05:00 PM Produced by the SENS Department
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