Wrap Text
Interim results for the six months ended 31 December 2022
Clientèle Limited
(Registration number 2007/023806/06)
Share code: CLI
ISIN: ZAE000117438
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
Headline earnings per share increased by 14% to 77.18
Annualised Return on Average shareholders interest of 42%
Recurring Embedded Value Earnings of R366.1 million
Annualised Recurring Return on Embedded Value 13.5%
Value of New Business of R195.1 million
INTRODUCTION
The Clientèle Group ("the Group"), operating in a tough trading environment, particularly given the context of the difficult economic and
operating environment characterised by a low economic growth rate, load-shedding and challenges in the collections environment, is pleased
to report further growth in the business.
Higher than expected policyholder withdrawals were again experienced. These are a result of many factors, including: the depressed economy
and the consequent affordability effects, coupled with ongoing challenges in the collections environment. Withdrawals showed an
improvement towards the end of the period, however, should these withdrawal losses continue to year end, a change in the withdrawal
assumptions can be expected.
The Group remains in a sound solvency and liquidity position and continues to generate strong positive cashflows.
Despite the volatile investment markets, the Group achieved an annualised investment return for the period of 12% (2021: 20%) from its
investment portfolios.
Use of the Clientèle Application ("the Clientèle App") continues to expand following its adoption by clients and agents alike. The Clientèle
App serves as a platform for sales capture and basic policy administration as well as an access point for Clientèle Rewards and Clientèle Mobile.
OUTLOOK
With an ongoing focus on Treating its Clients Well ("TCW"), the Group continues to seek ways of enhancing its products, services and the
delivery thereof in order to meet clients' needs. In our continuing efforts to treat clients well, we have launched the "December is on us"
campaign where most clients have the opportunity to have their December 2023 premiums paid for them by Clientèle.
Management continues to successfully navigate the business through the prevailing challenges and take advantage of the opportunities which
present themselves in this environment.
Clientèle Rewards, the Clientèle App, and Clientèle Mobile continue to add value to our clients. The Group exercised an option to secure a
strategic controlling stake in Direct Rewards (Pty) Ltd during the period, and believes that this will contribute positively to the loyalty
offerings provided by Clientèle Rewards.
The challenges within the collections environment together with pressure on disposable income for our customers continues to negatively
impact withdrawals and remains one of managements key focus areas, together with increasing production of quality business across all of its
distribution channels, including funeral parlours.
Despite the depressed economic environment and challenges within the operating environment, the Board remains encouraged by the
prospects for growth and value creation over time.
By order of the Board
GQ Routledge BW Reekie
Chairman Managing Director
Six months ended Year ended
31 December % 30 June
2022 2021 change 2022
Risk Discount Rate (%) 13.7 12.4 13.8
Net profit for the period (R'000) 254,694 221,015 15 435,469
Headline earnings per share for the period (cents) 77.18 67.64 14 131.45
Earnings per share for the period (cents) 75.55 65.91 15 129.87
Embedded Value at the end of the period (R'000) 5,837,646 5,799,555 5,807,067
Embedded Value per share (cents) 1,740.91 1,729.55 1,731.79
Annualised Recurring return on Embedded Value (%) 13.5 16.1 13.3
Value of New Business for the period (R'000) 195,107 152,302 290,575
Recurring Embedded Value Earnings for the period (R'000) 366,131 437,311 724,913
SHORT-FORM ANNOUNCEMENT DATED 27 FEBRAURY 2023
This short-form announcement is the responsibility of the Directors and is only a summary of the information in the full announcement and does
not contain the full or complete details. The full announcement can be found through this link:
(https://senspdf.jse.co.za/documents/2023/jse/isse/CLI/CLI2022.pdf). Copies of the full announcement are available for inspection at the
Company's registered office, at no charge, during office hours and may also be requested from Eben Smit on 011 320 3015 or esmit@clientele.co.za.
Any investment decisions should be based on consideration of the full announcement accessible via the JSE link above and published on
the Company's website. Comprehensive commentary including regulatory requirements is contained in the full announcement.
Sponsor: PricewaterhouseCoopers Corporate Finance Proprietary Limited
Registered office: Clientèle Office Park, Cnr Rivonia and Alon Roads, Morningside, Johannesburg 2196, South Africa PO Box 1316, Rivonia
2128, South Africa Transfer secretaries: Computershare Investor Services Proprietary Limited, First floor, Rosebank Towers, 15 Biermann
Avenue, Rosebank, 2106, South Africa PO Box 61051, Marshalltown 2107, South Africa
Directors: GQ Routledge BA LLB (Chairman); BW Reekie BSc(Hons), FASSA* (Managing Director); ADT Enthoven BA, PhD (Political Science);
GK Chadwick MAgric, MBA (Alternate); PR Gwangwa BProc LLB, LLM; MG Cownie CA(SA)*; H Louw BCom(Hons), FASSA*; PG Nkadimeng
BSc Statistics and Economics; BA Stott CA(SA); RDT Tabane BA, M.Phil, MBA*; RD Williams BBusSci(Hons), FASSA (*Executive Director)
Company secretary: EJ Smit LLB
Clientèle Limited is a licensed controlling company.
Johannesburg
27 February 2023
Sponsor:
PricewaterhouseCoopers Corporate Finance Proprietary Limited
Date: 27-02-2023 05:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
