Remgro recently released its financial results for the year ended 30 June 2020. Revenue from continuing operations decreased by 3.9% to R54.7 billion (FY2019: R59.97 billion), and cash from operating activities of R1.9 billion was reported (FY2019: R2.5 billion, down by 27%).
During the year, Remgro unbundled its holdings in RMH, and on 31 March 2020 Remgro’s investment in RMH was classified as a discontinued operation. The company further advanced a R100 million loan to CIVH, and earned R58 million underwriting fees on a CIVH rights issue. On 31 March 2020, Remgro invested a further R167 million in CIVH.
Remgro’s intrinsic net asset value (NAV) per share decreased by 33.7% from R233.03 at 30 June 2019 to R154.47 at 30 June 2020. The decrease reflects the impact of the RMH Unbundling, the negative impact of the Covid-19 pandemic on market values (listed investments) and fair values (unlisted investment).
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