RMB Holdings: Tough Year, Strong Comeback Ahead?

  • RMB Holdings Limited reports substantial losses and revenue decline in 2023 financial results.
  • Earnings per share suffer over 100% decline, while headline earnings per share show a significant increase.
  • The company announces an entirely electronic annual general meeting and provides B-BBEE compliance report.

RMB Holdings Limited recently released its audited results for the year ended 31 March 2023. The financial report reveals a tumultuous year for the company, marked by substantial losses and declining key financial metrics.

Key Financial Data2023 (R’million)2022 (R’million)Change (%)
Revenue159629(74)
(Loss)/profit for the year(440)611>(100)
(Loss)/earnings per share(31.9)43.9>(100)
Diluted (loss)/earnings per share(31.9)43.9>(100)
Headline earnings per share11.64.0>100
Diluted headline earnings per share11.64.0>100
Dividend per share77141.7(46)
Net asset value per share100.3277.0(64)

The audited results demonstrate a staggering 74% decrease in revenue, amounting to R159 million compared to R629 million in the previous year. Even more concerning is the substantial loss of R440 million incurred during the year, representing a significant decline from the R611 million profit reported in the previous fiscal year.

The decline in earnings per share (EPS) and diluted EPS is particularly alarming, with both metrics experiencing a loss of more than 100%, plunging to (31.9) cents from 43.9 cents in the prior year. These figures indicate a challenging financial performance for RMB Holdings Limited during the period under review.

However, amidst the difficult financial results, there is a silver lining in the form of headline earnings per share, which increased significantly by over 100%, reaching 11.6 cents compared to 4.0 cents in the previous year. The diluted headline earnings per share also showed a similar increase, reaching 11.6 cents.

On the dividend front, RMB Holdings Limited reduced its payout to shareholders to 77 cents per share from 141.7 cents in the previous year. The net asset value per share also experienced a substantial decrease of 64%, dropping to 100.3 cents from 277.0 cents in the previous year.

Despite the challenging financial performance, the company maintains its commitment to transparency and adherence to corporate governance standards. RMH’s 2023 integrated report and audited consolidated annual financial statements for the year ended 31 March 2023, which received an unmodified audit opinion from Deloitte & Touche, the Company’s auditor, are available on the Company’s website.

The financial information provided in the announcement is an abridged summary and does not contain the full details of the financial results. Investors and shareholders are encouraged to refer to the full announcement, available on the JSE website or the company’s website, before making any investment decisions.

Additionally, RMB Holdings Limited has issued a notice of its thirty-sixth annual general meeting to be held entirely through electronic communication on Tuesday, 5 December 2023, at 11 am. Shareholders are invited to consider and approve the resolutions set out in the notice of the annual general meeting.

Furthermore, in compliance with the Broad-Based Black Economic Empowerment Amendment Act, the company has published its annual compliance report on its website.

Despite the challenging financial results, RMB Holdings Limited remains confident about its future and is committed to taking necessary measures to enhance shareholder value and compliance with all regulations.

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