Conduit Capital’s Loss Per Share Doubles, HLPS Up 63.88%

  • Conduit Capital reported a loss per share between 44.19 and 48.41 cents.
  • Headline loss per share is between 29.64 and 33.76 cents.
  • Significant impairments and write-downs were recorded due to CICL's liquidation.

Conduit Capital Limited has released its trading statement for the year ended June 30, 2022. The report shows significant losses compared to the previous year.

Financial Performance

Conduit Capital’s losses have more than doubled. The company reported a loss per share (LPS) between 44.19 cents and 48.41 cents. This is a steep decline from the 21.1 cents loss per share in the previous year. The percentage decline ranges between 109.43% and 129.43%.

The headline loss per share (HLPS) is also notably higher. It is expected to be between 29.64 cents and 33.76 cents. This represents a decline of 43.88% to 63.88% from the 20.6 cents HLPS for the previous year.

Financial Metric2022 Estimate2021 ActualChange
Loss Per Share44.19 – 48.41 cents21.1 cents109.43% – 129.43%
Headline Loss Per Share29.64 – 33.76 cents20.6 cents43.88% – 63.88%

Operational Highlights

Despite the financial losses, Conduit Capital achieved several operational improvements. The Constantia Insurance Group, a subsidiary, showed a significant turnaround. Premiums increased by 8.3%, and the combined ratio dropped below 100%.

This improvement resulted in the first net underwriting profit since 2016. However, positive operational performance was overshadowed by investment portfolio losses. These mark-to-market losses negatively impacted the Group’s overall financial results.

Impairments and Write-Downs

The liquidation of Constantia Insurance Company Limited (CICL) was a major blow. In July 2022, the Prudential Authority applied for CICL’s liquidation. This led to significant impairments and write-downs. The total impairments amounted to R225.0 million, or 32.7 cents per share.

Impairment DetailsAmount (R million)Amount (cents per share)
Total Impairments225.032.7

Impact on Shareholders

The financial information provided has not been audited. However, it indicates challenging times ahead for shareholders. The expected release date for the final financial results is on or before June 30, 2024.

Outlook

The company’s future remains uncertain due to these financial challenges. Shareholders and investors will be keenly watching the detailed financial results. Operational improvements provide a glimmer of hope amidst the financial turbulence.

Conclusion

Conduit Capital’s latest trading statement highlights a challenging year. Significant losses, impairments, and write-downs have affected the company. However, operational gains in the insurance sector provide some optimism. The financial community awaits the detailed results with anticipation.