RMB Holdings Reports FY2023 Results, Warns Shareholders Amid Disputes and Adjusts Financial Year-End

RMB Holdings Limited (RMH) released its provisional results for the fiscal year ending March 31, 2023. Alongside the financial update, the company has issued a cautionary announcement regarding its ongoing operations.

RMH’s strategy of monetization, following the unbundling of its financial services investment in FirstRand Limited, has been progressing as planned. The company has disposed of its equity interest in Atterbury Europe, resulting in a profit based on cost price of R1,076 million. However, the disposal led to an IFRS accounting loss of R589 million. Furthermore, RMH has paid special dividends to shareholders, totaling R3.1 billion, in May 2021 and October 2022.

Despite external challenges, including the global economic impact of Russia’s invasion of Ukraine and electricity supply shortages in South Africa, RMH management remains committed to delivering maximum value to stakeholders within the constraints of the macroeconomic conditions.

Financially, RMH’s net asset value decreased to R1,416 million from R3,910 million in the previous year. The decline primarily stems from the disposal of Atterbury Europe and the increased special dividend payment. RMH’s revenue for the year amounted to R159.6 million, while the loss attributable to equity holders was R440 million.

Considering the ongoing dispute with Atterbury and the pending repayment of the RMB facility, shareholders are advised to exercise caution when trading in RMH shares until further announcements are made. RMH and its subsidiary, RMH Asset Holding Company, have provided guarantees to Rand Merchant Bank (RMB), and arbitration proceedings are expected to resolve the disagreement over the interpretation of the loan facility agreement.

In light of the changes in its portfolio, RMH has decided to align its financial year-end with that of Atterbury, changing it to September. This adjustment will enable RMH to incorporate Atterbury’s audited results, adjusted for subsequent events, in its financial reports.

Moreover, the company announced board changes, with Sonja De Bruyn stepping down as chairman but remaining on the board as an independent non-executive director. Herman Bosman will assume the role of acting chairman until his confirmation as the chairman of RMH. Murphy Morobe retains his position as lead independent non-executive director.