Remgro warns of profit fall as Covid-19 hits investees
Headline earnings per share from continuing operations is expected to fall as much as 75% in the group’s year to end-June
Remgro, the listed investment holding company chaired by Johann Rupert, has warned that profits could fall three quarters in its year to end-June, with Covid-19 hitting its underlying investees.
Headline earnings per share from continuing operations is expected to fall by between 65% and 75% in the year to end-June, from 981.4c previously. This has been adjusted for Remgro’s unbundling of its 28.2% interest in RMB Holdings in June.
“The decrease in headline earnings from continuing operations is mainly due to the negative impact the Covid-19 pandemic and the resultant lockdown measures had on the earnings of most of Remgro’s underlying investee companies,” the statement said.
Remgro had an intrinsic net asset value (NAV) after tax of R136bn at the end of December, with its stake in RMB Holdings accounting for about R32bn of this.
At the time, Remgro had an intrinsic NAV per share of R240.93, a 19% discount to its share price.
In morning trade on Tuesday, Remgro’s share was 0.19% lower at R88.50, having more than halved so far in 2020.
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