RH Bophelo Surges: Record Profits, Dividend Delight, and a CFO Shake-Up – A Financial Triumph Unveiled

  • Financial Success: RH Bophelo's interim results show a 248% increase in total income, reaching R18.4 million, and a 229% surge in investment income, now at R56 million.
  • Dividend Declaration: The Board declared a gross dividend of ZAR 31 cents per "A" share, totaling R20 million, reflecting robust performance.
  • Leadership Transition: The company bids farewell to CFO Mr. Mhlaba, welcoming Ms. Metu, a seasoned Chartered Accountant, as the new CFO.
By Lethabo Ntsoane

RH Bophelo Limited has unveiled robust unaudited interim financial results for the six months ending August 31, 2023. The company’s Board of Directors expressed satisfaction with the performance, highlighting significant increases in investment income and total income after tax.

Financial Highlights

Investment Income Surges

The company reported a remarkable 229% increase in investment income compared to the prior period, soaring from R17 million to an impressive R56 million. This surge reflects the effectiveness of RH Bophelo’s investment strategies in a dynamic economic environment.

Strong Growth in Total Income After Tax

Total income after tax witnessed a substantial 248% growth, escalating from R5.3 million to R18.4 million. This surge underscores the company’s ability to navigate challenges and capitalize on opportunities in the market.

Net Asset Value Holds Steady

While the net asset value and tangible net asset value per share decreased marginally by 2% from R14.06 to R13.76, the absolute net asset value decreased slightly from R909 million to R890 million. This decrease is a minor adjustment and doesn’t overshadow the overall positive financial trajectory.

Earnings and Dividends Soar

Both basic and diluted earnings per share experienced a significant uptick, jumping from 8.19 cents to 28.52 cents. In line with this performance, the Board approved and declared a gross dividend on “A” ordinary shares of ZAR 31 cents per “A” share, amounting to a total dividend of R20 million.

Liquidity and Solvency Maintained

RH Bophelo reassured shareholders that the company and its investments remain liquid and solvent. The company has ample resources to sustain operations into the foreseeable future, indicative of a well-managed financial position.

Dividend Declaration

RH Bophelo’s Board of Directors announced a gross cash dividend of 31 cents per “A” ordinary share for the six months ended August 31, 2023. Shareholders should note that this dividend is subject to a South African dividend withholding tax rate of 20%, resulting in a net dividend of 24.8 cents per “A” ordinary share unless exempt from paying dividend tax.

Salient Dates for Dividend Payment

Declaration DateTuesday, 28 November 2023
Last Day to Trade Cum DividendMonday, 11 December 2023
Securities Commence Trading Ex-DividendTuesday, 12 December 2023
Record Date for DividendThursday, 14 December 2023
Payment DateMonday, 18 December 2023

Share certificates may not be dematerialized or rematerialized between Tuesday, 12 December 2023, and Thursday, 14 December 2023, both dates inclusive.

Changes in Leadership

Resignation of Chief Financial Officer

Mr. Katekani Dion Mhlaba, the Executive Director and Chief Financial Officer, has tendered his resignation, effective 1 December 2023. The Board acknowledged and appreciated his commitment and service to the company.

Appointment of New Chief Financial Officer

Ms. Aviwe Yondie Metu has been appointed as the new Executive Director and Chief Financial Officer, effective 1 December 2023. Ms. Metu, a qualified Chartered Accountant with 17 years of experience, brings a wealth of financial leadership expertise to the role. Her extensive experience includes executive-level positions and senior board memberships, emphasizing her capability in managing financial operations.

Looking Ahead

RH Bophelo’s financial results indicate a company on a trajectory of growth and resilience. The Board’s decision to declare a substantial dividend reflects confidence in the company’s financial standing and its commitment to delivering value to shareholders.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo