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CONDUIT CAPITAL LIMITED - Reviewed Condensed Consolidated Provisional Results for the year ended 30 June 2021 and Results Call

Release Date: 30/09/2021 17:50
Code(s): CND     PDF:  
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Reviewed Condensed Consolidated Provisional Results for the year ended 30 June 2021 and Results Call

Incorporated in the Republic of South Africa
(Registration number: 1998/017351/06)
Share code: CND      ISIN: ZAE000073128
(“Conduit Capital” or “the Company” or “the Group”)


This short-form announcement is the responsibility of the directors, is only a summary of the information in the
full announcement, and does not contain full or complete details. The full announcement has been released on
SENS and is available at and also published on
the Group’s website at

The full announcement can be inspected at the registered offices of Conduit Capital and the Sponsor during
office hours. Copies thereof may be requested at no charge by emailing René Kok at Any investment decisions should be based on consideration of the full

The information in this short-form announcement has been extracted from the Reviewed Condensed
Consolidated Provisional Results, however, has not itself been reviewed or audited by the Company's auditors.
The Reviewed Condensed Consolidated Provisional Results for the year ended 30 June 2021 have been reviewed
by the Group’s auditors, Nexia SAB&T, who expressed an unmodified audit opinion thereon (“the Review
Report”) with an Emphasis of Matter paragraph contained therein. The Review Report includes the
communication of key audit matters which are disclosed on pages 8 to 18 of the Reviewed Condensed
Consolidated    Provisional    Results    and    is     available   on    the    Company’s    website     at:

                                                              Year ended Jun ’21 vs year ended Jun ‘20
-    Gross written premium                                    - 7.6% to R1.949 billion
-    Net premium income including solvency reinsurance        - 15.0% to R263.8 million
-    Net premium income excluding solvency reinsurance        - 14.6% to R1.702 billion
-    Underwriting result before direct operating expenses     - 93.2% to R215.7 million
-    Loss per share                                           - from 80.7 cents to 21.1 cents
-    Headline loss per share                                  - from 77.6 cents to 20.6 cents
-    Weighted average number of shares in issue (’000)        - 2.1% to 690 021

The financial results for the fiscal year ended 30 June 2021 reflect the continued turnaround of the Constantia
Insurance Group (“Constantia”), a wholly-owned insurance business of the Company. Over the past fifteen
months, the focus at Constantia has been on the remediation of poor performing business, reorganisation and
implementation of improved processes and systems. These deliberate actions have resulted in the substantial
and sustained improvement in and restoration of the underwriting profit and a permanent reduction in
operating expenses. Due to Covid-19, political and social unrest, and a general apathy in the market, the value
of the listed equity portfolio declined during the year.

Loss per share and headline loss per share include:

a.   a lower claims environment due to the COVID-19 induced lockdowns, offset by premium relief to qualifying
b.   negative underwriting results from books that have been corrected and/or terminated during the prior and
     current fiscal years, with the turnaround resulting in improvements in both the underwriting result and
     operating cash inflows;
c.   the cost of solvency reinsurance; and
d.   the impact of the overall reduction in the value of Conduit Capital’s equity portfolio on a mark-to-market

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.


Shareholders are advised that management will be hosting a results webinar at 17:00 CAT on
1 October 2021 to provide commentary in terms of the results for the year ended 30 June 2021.

The webinar will focus on the Year-end Results Announcement, Group Performance and Prospects. A
presentation     relating      to      the       results announcement    is    available     at:

Please send an email, before 12:00 Friday, 1 October 2021, to to receive the
webinar pre-register information.

Executive directors:             Sean Riskowitz (Chief Executive Officer), Bianca Yan (Financial Director)
Non-executive directors:         Ronald Napier (Chairman)*, Leo Chou, Adrian Maizey, Melvyn Lubega*,
                                 Nonzukiso Siyotula*,
* Independent

Merchantec Capital
13th Floor, Illovo Point, 68 Melville Road, Illovo, 2196

Company secretary:
CIS Company Secretaries Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196

Registered address:
Building B, Nicol Main Office Park, 2 Bruton Road, Bryanston, 2191
PO Box 97, Melrose Arch, 2076
Telephone: +27 (0)11 686 4200
Facsimile: +27 (0)86 522 8742

Transfer secretaries:
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196

30 September 2021

Date: 30-09-2021 05:50:00
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