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Audited summary final financial results announcement and cash dividend declaration for the year ended 30 June 2019
RMB HOLDINGS LIMITED (RMH)
(Incorporated in the Republic of South Africa)
Registration number: 1987/005115/06
JSE ordinary share code: RMH
ISIN code: ZAE000024501
AUDITED SUMMARY FINAL FINANCIAL RESULTS ANNOUNCEMENT AND CASH DIVIDEND DECLARATION
for the year ended 30 June 2019
Intrinsic value of portfolio (R billion) +7% 130.8 2018: 121.9
Normalised earnings (R billion) +7% 9.4 2018: 8.8
Dividend per share (cents) +7% 376 2018: 351
About RMH
RMH was listed on the JSE in 1992 as a vehicle for shareholders to co-invest with the founders of Rand Merchant Bank (RMB). The group has established
numerous successful businesses, including FirstRand, Discovery and OUTsurance. RMH is proud of its role in growing these businesses. It also provided
independence to these businesses, whilst retaining significant shareholdings as the group's continued strategic input is valued by the underlying businesses
and their management teams.
In 2011, RMH's insurance interests (Discovery, Momentum Metropolitan and OUTsurance) were separately listed as Rand Merchant Investment Holdings
Limited (RMI). In 2016, RMH expanded its investment strategy to include a property investment business, comprising scalable entrepreneur-led businesses
with proven track records in managing and building out property partnerships.
Investment portfolio
FIRSTRAND
RMH is the founding and biggest shareholder in FirstRand, one of Southern Africa's leading financial services groups, with a 34% stake.
FirstRand is listed separately and has a market capitalisation of R384.5 billion as at 30 June 2019 (2018: R358.4 billion).
FirstRand consists of the following franchises:
First National Bank (FNB), the retail and commercial bank
WesBank, the instalment finance business
Ashburton Investments, the group's investment management business
Rand Merchant Bank (RMB), the corporate and investment bank
Aldermore, the UK-based bank
RMH PROPERTY
RMH's property investments are housed in a majority owned subsidiary, RMH Property Holdings Proprietary Limited (RMH Property), managed by a
dedicated investment team. During the financial year, the intrinsic value of RMH Property increased from R722 million to R748 million (up 4%).
The portfolio consists of:
Atterbury, a leading South African property group
Integer, a mezzanine debt and equity funding business
Atterbury Europe, a European property group
Divercity, an urban renewal fund
Enduring value created
- Despite the lack of growth and strained environment outlined above, it was particularly pleasing that RMH managed to produce strong results, in
keeping with its commitment to create enduring value:
- Normalised earnings increased 7% to R9.4 billion (2018: R8.8 billion). Normalised earnings per share amounted to 665.4 cents per share (2018: 624.4 cents
per share);
- RMH's core investment, FirstRand, produced a good performance despite the challenging economic climate, increasing normalised earnings by 6%
(2018: 8%) and delivering a return on equity (ROE) of 22.8% (2018: 23.0%). FirstRand franchises, FNB, RMB and Aldermore produced resilient operating
results, with WesBank impacted by the macroeconomic environment;
- RMH Property increased its intrinsic value by 4% to R748 million and delivered a normalised profit of R140 million;
- RMH's market capitalisation increased by 11% to R119.1 billion; and
- Dividends for the year distributed to shareholders increased by 7% to 376 cents (2018: 351 cents).
Outlook and future value creation
Management will focus on the following in the year ahead:
Diversify the income stream and distribution of assets:
On a selective basis, RMH may consider investments in businesses where partnerships with entrepreneurial and industry-disruptive management teams
can add value to RMH and its shareholders.
Investments with the following attributes will be of particular interest:
- Banking and related industries;
- The ability to form a partnership between the investment, RMH and FirstRand;
- Unlisted;
- Digitally-oriented;
- The ability and possibility of RMH to add value; and
- Relevance in terms of the size of the enterprise and its shareholding.
Optimise our established investments:
We continuously focus on the strategic value we add to our investee companies in order to optimise the enduring value we aim to create for our
shareholders.
RMH Property will focus on the implementation of Atterbury Bucharest and the maximisation of the existing partnerships.
RMH will dynamically assess whether investments, other than FirstRand, are optimally housed in RMH.
Modernise all operations:
RMH will continue to support its investee companies in being or becoming future-ready.
RMH remains confident that it will continue to create enduring value for its shareholders over the medium to long term, given the strength of its underlying
investments.
For and on behalf of the board
Jannie Durand
Chairman
Herman Bosman
Chief executive officer
Sandton
6 September 2019
Final dividend declaration
Notice is hereby given that a gross final dividend of 198 cents per share, payable out of income reserves, was declared on 6 September 2019 in respect
of the year ended 30 June 2019.
The dividend will be subject to Dividend Withholding Tax at a rate of 20%, which will result in a net dividend of 158.4 cents per share for those shareholders
who are not exempt. The company's tax reference number is 9950/098/71/6. Its issued share capital at the declaration date comprises 1 411 703 218
ordinary shares and 11 800 redeemable preference shares.
Shareholders' attention is drawn to the following important dates:
- Last day to trade in order to participate in this dividend Monday, 23 September 2019
- Shares commence trading ex-dividend on Wednesday, 25 September 2019
- Record date Friday, 27 September 2019
- Dividend payment date Monday, 30 September 2019
No dematerialisation or rematerialisation of share certificates may be done between Wednesday, 25 September 2019 and Friday, 27 September 2019
(both days inclusive).
By order of the board
(Ms) EJ Marais
Company secretary
6 September 2019
Audited computation of per share information
For the year ended 30 June
R million 2019 2018 % change
Revenue 10 417 9 085 15
Earnings attributable to equity holders 9 978 8 560 17
Headline earnings attributable to equity holders 9 390 8 851 6
Net asset value 49 303 46 323 6
Number of shares in issue (millions) 1 412 1 412 -
Weighted average number of shares in issue (millions) 1 412 1 411 -
Diluted weighted average number of shares in issue (millions) 1 412 1 411 -
Earnings per share (cents) 706.9 606.5 17
Diluted earnings per share (cents) 706.9 606.5 17
Headline earnings per share (cents) 665.2 627.1 6
Diluted headline earnings per share (cents) 665.2 627.1 6
Net asset value per share (cents) 3 492.4 3 281.4 6
Audited dividend per share
For the year ended 30 June
Cents 2019 2018 % change
Dividend per share
Interim 178.0 168.0 6
Final 198.0 183.0 8
TOTAL DIVIDEND PER SHARE 376.0 351.0 7
Dividend cover (relative to headline earnings) 1.8 1.8
Dividend cover (relative to normalised earnings) 1.8 1.8
Short-form announcement
This short-form announcement is the responsibility of the directors and is only a summary of the information in the full announcement and does not
contain full or complete details. The full announcement was released on the JSE's Stock Exchange News Service (SENS) on 6 September 2019 and can be
found on the company's website at www.rmh.co.za or at https://senspdf.jse.co.za/documents/2019/jse/isse/RMH/final2019.pdf. The full announcement is
available for inspection at the company's registered office and copies may also be requested at the company's registered office and at the offices of the
sponsor, at no charge, during office hours. Any investment decision should be based on the full announcement published on SENS and on the company's
website.
Directors
JJ Durand (chairman), HL Bosman (chief executive officer and financial director), JP Burger, P Cooper, (Ms) SEN De Bruyn, LL Dippenaar, PK Harris,
(Ms) A Kekana, P Lagerstrom, (Ms) MM Mahlare, MM Morobe, RT Mupita, O Phetwe and JA Teeger
Alternate directors: DA Frankel, F Knoetze and UH Lucht
Secretary and registered office
(Ms) EJ Marais
Physical address: 3rd Floor, 2 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Postal address: PO Box 786273, Sandton, 2146
Telephone: +27 11 282 8000
Telefax: +27 11 282 4210
Web address: www.rmh.co.za
Sponsor
(in terms of JSE Limited Listings Requirements)
RAND MERCHANT BANK (a division of FirstRand Bank Limited)
Physical address: 1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton, 2196
Transfer secretaries
Computershare Investor Services Proprietary Limited
Physical address: Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Postal address: PO Box 61051, Marshalltown, 2107
Telephone: +27 11 370 5000
6 September 2019
Date: 06/09/2019 09:00:00
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