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RECM AND CALIBRE LIMITED - Abridged annual financial statements for the year ended 31 March 2016

Release Date: 13/06/2016 11:10
Code(s): RACP     PDF:  
Wrap Text
Abridged annual financial statements for the year ended 31 March 2016

RECM AND CALIBRE LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2009/012403/06)
Preference share code: RACP
ISIN: ZAE000145041
(“RAC” or “the Company”)
ABRIDGED ANNUAL FINANCIAL STATEMENTS 
FOR THE YEAR ENDED 31 MARCH 2016
SHAREHOLDERS’ LETTER
To our fellow shareholders
RECM and Calibre (“RAC”) is a long-term investment vehicle that 
was set up in a specific way, to achieve the best possible 
outcome for its shareholders – both ordinary and preferred – over 
time.
Control of the Company vests with the three of us, Piet Viljoen, 
Theunis de Bruyn and Jan van Niekerk, as we own all the ordinary 
shares in the company. Our investment landscape is broad, our 
capital is patient and we do not plan to pay dividends any time 
soon. This will remain true for as long as we can find 
investments that satisfy our criteria (more of which follows 
later). Our main objective is to grow the Net Asset Value (“NAV”) 
per share of RAC at a high rate over a long period of time.
We understand that some of our fellow shareholders might have 
time horizons or liquidity preferences that differ from ours. We 
have therefore listed the Participating Preference shares of RAC 
on the JSE to facilitate the opportunity for shareholders to make 
their own investment decisions. These shares have exactly the 
same economics as the ordinary shares. We undertake to provide 
you with appropriate information so that you can make informed 
decisions around the value of your shares. The price at which you 
transact is up to you.
During the past financial year, our NAV, for both the Ordinary 
and the Participating Preference shares, grew by 6,1% on a per 
share basis. By comparison, the total return generated by the JSE 
All Share Index, with dividends included, was 3,2%. Since listing 
in June 2010, our NAV per share has grown by 96,6%, while the 
ALSI total return index has grown by 129% over that same period. 
As such, we continue to find ourselves a bit behind our primary 
goal of outperforming the average listed company since inception. 
Importantly, over the past two years – ever since RAC became 
fully invested – we have outperformed the index substantially. 
Going forward we think we have the building blocks in place to 
continue doing so.
The following table shows our progression against our benchmark 
(the JSE All Share Index, including dividends):
                                           RAC         JSE All 
                                         Index     Share Index
10 June 2010                            100,00          100,00 
30 September 2010                       100,88          109,73 
31 March 2011                           102,63          121,46 
30 September 2011                       104,46          113,68 
30 March 2012                           111,20          130,60 
28 September 2012                       112,60          141,45 
28 March 2013                           118,30          159,95 
30 September 2013                       118,50          179,60 
31 March 2014                           123,20          197,65 
30 September 2014                       125,90          207,33 
31 March 2015                           186,40          222,43 
30 September 2015                       198,60          217,26 
31 March 2016                           196,60          229,47
The NAV per share growth of 6,1% over the last year implies an 
increase of R56,1mn. The composition of this increase looking 
through to our underlying investments in RIH is as follows:
                                           2016           2015
                                              R              R
Interest and dividends               17 522 958     30 720 051
Realised profits on sale 
  of assets                           2 149 792     17 149 208
Adjustments to fair value 
  of assets                          58 973 515    296 264 098
Less: Operating expenses             15 907 690     10 140 930
Less: Financing expenses              3 185 319              –
Less: Tax paid and provided for       3 425 385     22 967 057
Net increase in NAV                  56 127 871    311 025 370
Our shareholders letter has been prepared on a look through basis 
to the underlying investments, and therefore ignores the internal 
holding structure in RIH.
When evaluating our NAV per share growth, and comparing it with 
the broad market for listed stocks, we think it might be useful 
for investors to keep the following points in mind: 
We have not changed our valuation method. All listed assets are 
held at market prices, while unlisted assets are either held at 
their OTC price – where one exists – or at our calculated fair 
value. For assets where there is no visible market price, we 
perform a valuation exercise, which culminates in a range of fair 
values, as required by IFRS. Due to the inherent uncertainty of 
valuing large stakes in unlisted, untraded assets, this range is 
necessarily quite wide. For some of our unlisted investments, 
this range includes the original cost price. Where we have 
purchased the investment in the last 12 months and believe the 
cost price still to approximate fair value, we continue to carry 
the investment at cost. 
Where we have held the investment for longer than 12 months, we 
tend to value the investment towards the lower end of fair value 
range. As such, we aim to be consistently conservative in our 
valuations. 
Valuations in the stock market today are arguably less 
conservative, and have continued to remain at elevated levels 
over the past year. This is despite huge political and regulatory 
uncertainty, the burden of compliance with increasing bureaucracy 
and rising interest rates. We continue to believe that valuations 
in public markets remain well above levels that can be considered 
conservative, leaving investors in public markets with a 
significantly reduced margin of safety. This is one of the key 
reasons why we prefer investing in privately-held businesses with 
no or limited trading of their shares. 
We deduct Capital Gains Tax in calculating the NAV of RAC. When 
an investment is successful that means it is worth – hopefully a 
lot – more than we paid for it. But it also means that, when we 
dispose of the investment, we owe capital gains tax to the 
government. Any valuation exercise worth more than the paper it 
is written on should include this real liability. Our deferred 
tax liabilities increased during the last year by a 
disproportionate amount as the inclusion rate on capital gains 
tax was increased by the Minister of Finance from 66,7% to 80%. 
While we have provided for the CGT payable if we were to sell our 
investments, while we still hold on to them, we have full use of 
the funds. This is an important – and growing – advantage for 
long term investors such as RAC. 
RAC pays 1,14% (including VAT) of the gross portfolio value for 
investment management services. This fee is included under 
Operating expenses in the table above. There are many views in 
the market place as to the exact value of this contractual 
payment, but we suggest you include your own calculation when 
assessing our intrinsic NAV. Other costs grew significantly last 
year, mainly due to one-off fees linked to obtaining debt 
financing. 
In the past, we have explained why we like private (i.e. unlisted 
and untraded) businesses more than listed ones. Today, over 75% 
of our balance sheet is invested in such businesses, up from 59% 
last year. Our investments have also become more concentrated, as 
evidenced by the fact that three of our investments make up 72% 
of our gross portfolio – Goldrush, Transhex/West Coast Resources 
and Fledge. John Maynard Keynes expressed it well:
“As time goes on, I get more and more convinced that the right 
method in investment is to put fairly large sums into enterprises 
which one thinks one knows something about and in the management 
in which one thoroughly believes. It is a mistake to think that 
one limits one's risk by spreading too much between enterprises 
about which one knows little and has no reason for special 
confidence. One's knowledge and experience are definitely 
limited, and there are seldom more than two or three enterprises 
at any given time in which I personally feel myself entitled to 
put full confidence.” 
Here are the companies and management in which we have placed our 
confidence:
                                              Direc–   
                                               tors’     % of
                                %              fair       net
                            Owner-    Cost    value(1)   asset 
Investment           Notes   ship      Rm       Rm      value
Gaming                               210,5    446,8       45,5
Goldrush                 2    34,5   210,5    446,8       45,5
Mining and Engineering               229,5    281,1       28,5
West Coast Resources 
  and Dinoka             3    27,2    38,9    112,4       11,4
Transhex                 3    25,0    94,2     94,6        9,6
JB Private Equity 
  Investors Partnership  3    90,0    69,6     60,9        6,2
ELB Group                3     2,2    26,8     13,2        1,3
Retail                               102,0    224,6       22,8
Fledge Holdings          3
Outdoor Investment
  Holdings               3    28,3 
Food and Beverage                     85,1     86,2        8,8
Sovereign Food           4    11,3    48,0     57,5        5,8
KWV                      4     5,1    32,3     19,3        2,0
KLK Landbou              4     5,6     4,8      9,4        1,0
Other investments                     57,9     93,2        9,5
Conduit Capital          5     7,0    20,9     44,6        4,5
Excellerate Holdings     5     5,5    14,7     26,3        2,7
College SA               5    79,3    22,3     22,3        2,3
Non-core investments     6            30,1     22,3        2,3
Cash                                            3,3
Liabilities (mainly CGT)                     (124,3)
Preference shares issued 
  to ABSA                                     (50,0)
Net asset value                               983,1
NAV per share (“R”)          19,66
NOTES:
1.  IFRS requires RAC, as an investment entity, to place a fair
    value on all its assets. Where possible, we used market 
    prices, either listed or over the counter. Where these were 
    not available, we used our own estimate of fair value. In 
    select circumstances, we have provided debt to some of our 
    investee companies. In these rare instances, our valuations 
    include both equity and debt. 
2.  Goldrush continues to grow strongly. Over the past year,
    revenue grew by over 20% and net profits more than doubled. 
    On top of a continued roll out of its LPM and Bingo 
    operations, the sports betting business is gaining rather 
    good traction – both land-based and online.
    During the year, the Company’s balance sheet was boosted by a 
    once-off settlement amount received from Sun International 
    arising from the move of their casino license from Morula to 
    Menlyn Main, Pretoria.
    Mergan Naidoo, the CEO of Goldrush, does an amazing job of 
    inspiring growth while keeping a tight rein over costs. We 
    regard this to be as important as new business gains.
    Our valuation of Goldrush is based on an earnings multiple 
    for the existing operating business, plus the market value of 
    the non-operational licenses and an adjustment for the 
    balance sheet structure. It also includes a value for a call 
    option on further shares in the business. This call option 
    gives us the right to increase our shareholding to around 50% 
    over time. Our cost base has increased over the past year due 
    to some success-based contingent payments of which there are 
    a small amount outstanding.
    After their year-end, Goldrush entered into agreements to 
    acquire two businesses. The first of these, The Boss Gaming 
    Group, is the market leader in the Eastern Cape in Bingo and
    LPM operations. The second, Crazy Slots, owns a 1 000 machine 
    route operator’s license in Gauteng and has managed to attain 
    one of the highest average gross gaming revenues per LPM in 
    the province. Both acquisitions are still subject to 
    regulatory approval, but once finalised, Goldrush will be the 
    largest alternative gaming group in the country.
    After our financial year-end, we entered into an agreement 
    with the founding family of Goldrush through which we will 
    exercise our call option on the entire outstanding 
    shareholding available to us. This means that RAC, through 
    our subsidiary RAC Investment Holdings, will now own just 
    over 52% of Goldrush. The R221mn payment to the sellers will 
    be settled by R100mn from available cash resources, as well 
    as 2 200 000 RAC preference shares at a price of R23,18 each. 
    A R71mn portion of the cash payment is deferred until no 
    later than September 2017.      
    We welcome the Hipkin family as a fellow shareholder in RAC. 
    We have done business together for almost three years now and 
    know firsthand that they possess the attributes that great
    businesses need in their owners – commercial understanding, a 
    work ethic and patience.
3.  Transhex has suffered from lower diamond prices over the past 
    12 months, somewhat mitigated by a weaker Rand. Despite the
    poor environment, cash flows have been satisfactory. The 
    Angolan business has good prospects. The South African 
    business is nearing the end of its life, and recoveries are 
    lumpy. The management team continues to have a strong cost 
    focus, something which should always be the cornerstone of 
    any business in the extractive industry. Over the past few 
    years, Transhex has built its cash reserves – from a net debt  
    situation of R200mn in 2009 to net cash of R350mn by 
    March 2016. At the same time, it has expanded its operations, 
    paid dividends of more than R50mn and acquired an investment 
    in West Coast Resources. The following table shows Transhex’s 
    progress over the past 6 years:
    R mn                              2009    2010   2011   2012
    Current assets                   415,2   466,6  420,2  466,5
    Current liabilities              382,8   401,7  396,5  290,3
    Long-term liabilities            415,6   279,7  216,7  191,1
    Net-net current asset value     (383,2) (214,8)  (193) (14,9)
    Net asset value per share 
     (‘cents’)                         176     308    292    442
    R mn                               2013   2014   2015   2016
    Current assets                    540,6  560,4    553    502
    Current liabilities               302,7  253,1  236,7  243,3
    Long-term liabilities             153,7  148,5  117,1  112,5
    Net-net current asset value        84,2  158,8  199,2  146,2
    Net asset value per share 
     (‘cents’)                          505    521    630    506
    NAV per share has compounded at an impressive 16% p.a. This 
    has happened during a period where most mining companies have 
    run into financial trouble. It is a tribute to management 
    under the leadership of Llewellyn Delport. Llewellyn has 
    added (and continues to add) tremendous value to the 
    shareholders of Transhex. Over time, we have no doubt the 
    share price will reflect this effort in spades. 
    West Coast Resources (WCR) re-started mining operations 
    during 2015, after having been acquired by Transhex. Results 
    from the tailings dumps were disappointing. Mining operations 
    started in earnest towards the end of last year, and are 
    looking much more promising. Initial results look like 
    Transhex has acquired an asset that will generate significant 
    cash over time.  Last year we said “We believe the mine has 
    strong prospects”. Results from preliminary mine activities 
    have confirmed this view. RAC owns 27,2% of WCR and Transhex 
    owns 40%, while the latter has a management contract to 
    manage the mine. Due to poor results from the tailings 
    operation as well as startup costs, we have reduced the 
    valuation of WCR.
    RAC owns 2,2% in ELB Group, a well-managed engineering 
    business. Business conditions have been very tough over the 
    past year, resulting in a sharp decline in its share price. 
    We believe the ELB Group is well financed and not only able 
    to survive the current turmoil, but to take advantage of it. 
    We have increased our holding during the course of the year.
    RAC has made an investment in JB Private Equity Investors 
    Partnership, which has as its only asset a 36,5% stake in 
    Sentula Mining, a mining company listed on the JSE. Sentula, 
    like many other mining companies, is suffering a hangover 
    from the “Commodity Supercycle”. To alleviate matters, the 
    partnership underwrote a rights offer during the course of 
    the year. We use the market price of Sentula to value our 
    investment in the partnership.
    RAC owns 28,3% of Outdoor Investment Holdings (“Safari and 
    Outdoor”). This business consists of Safari and Outdoor, the 
    premier retailer of hunting and outdoor equipment in South 
    Africa, Inyathi Sporting Supplies, as well as Formalito, a 
    significant wholesaler of hunting equipment, which was 
    acquired during the course of the year. Revenues were up by 
    more than 10% for the year, and operating profits by a 
    similar amount.
    Marco van Niekerk, who joined the business as CEO during the 
    year, has plans to grow the business both organically as well 
    as through acquisition. We look forward to seeing the fruits 
    of his efforts.  
    RAC increased its shareholding marginally during the year, 
    through a combination of share buybacks and an acquisition 
    from existing shareholders. 
    Outdoor Investment Holdings has been valued at the same 
    earnings multiple at which the business was purchased. The 
    increase in value indicates the growth in underlying 
    profitability.
    RAC owns an effective indirect 2,5% shareholding in Dischem. 
    This is held through a leveraged structure, Fledge Holdings. 
    Dischem is privately owned and is a leading South African 
    pharmaceutical retailer. The business continues to experience 
    solid growth, through an expanding footprint and market share 
    gains. The change in value for the year reflects the increase 
    in the underlying profitability of Dischem, plus the benefit 
    of judicial leverage in the structure. During the past year, 
    Fledge also received dividends from Dischem. No change was 
    applied to the valuation multiples. Recently, the majority 
    owner of Dischem announced their possible intention to list 
    the shares of the company on the JSE in due course. We regard 
    this development in a positive light, as a move from a 
    private to public company will create an uplift in its 
    valuation. 
4.  RAC owns 11,3% of Sovereign Foods, a listed poultry producer 
    in the Eastern Cape area. Sovereign has been in the news 
    lately, as a competitor has actively tried to negatively 
    influence the markets perception of Sovereign, with the aim 
    of either buying it out, or at least hindering its 
    operations. Our estimate of the business’ value has been 
    supported by their superior earnings performance over the 
    past 5 years. Their recent acquisition of additional capacity 
    from Quantum Foods will enable them to increase production at 
    low cost. Current market conditions are quite tough, but we 
    believe Sovereign is well positioned to weather the storm. We 
    value Sovereign at its market price.
    RAC owns 5,1% of KWV, an unlisted wine and spirits producer. 
    Over the past year, we have added to our holding. Our all-in-
    cost is just over R9 per share. After year-end, Niveus (the 
    controlling shareholder of KWV) sold the operating assets of 
    KWV for R16,91 per share. In addition, KWV shareholders 
    (including RAC) still retain certain assets, which could be 
    worth an additional R3 to R4 per KWV share. As this 
    transaction occurred after year end, the revaluation has not 
    been taken into account in calculating our NAV. At year end, 
    we were carrying our investment in KWV at R5,50 per share, 
    the last traded price.
    We have a 5,6% investment in KLK Landbou, an unlisted farming 
    co-op headquartered in Upington. Their main lines of business 
    include meat processing, fuel sales and motor dealerships. 
    They also recently acquired a raisin processing operation. It 
    is a well-run business, and profits have grown by over 20%
    per annum over the past 4 years. We have valued this 
    investment at its over-the-counter trading price which 
    translates to a PE ratio of 3.
5.  Our other long-term investments are a diverse group.
    RAC owns 7% of Conduit Capital, a listed specialist insurance 
    business. During the year Conduit concluded a rights issue to 
    raise capital with the aim of growing its insurance business. 
    This was in line with the vision, which was announced along 
    with the management changes in the previous year. Our 
    shareholding has remained unchanged, and we value Conduit at 
    its listed price. 
    We own 5,5% of Excellerate Holdings, an unlisted industrial 
    services company. Profits from continuing operations grew by 
    21% for the 6 months to December, as the business continues 
    to focus on property services, while shedding non-core 
    assets. We have not changed our valuation metrics for the 
    company. 
    During the year, we took control of College SA, a new 
    investment for us. College SA is a distance learning 
    business, which had carved out an interesting niche in the 
    market for education. Subsequent to the purchase, we 
    installed new management (who have co-invested with us) with 
    a brief to up the quality of the offering and expand the 
    reach of the business. We look forward to their results in 
    the years to come. We have valued this investment at cost, as 
    it is a recent purchase. 
6.  Our non-core investments have increased over the year, mainly 
    through adding the residual investment in The American Homes 
    to this list. We should have exited this investment 
    completely by the fourth quarter of this year. In this 
    category we also own 262 000 Putprop shares. The company 
    wanted to buy out minorities and delist over the past year. 
    We (and other shareholders) felt the price they were offering 
    was too low, and the attempt failed. At a discount to NAV of 
    over 50%, we think we are getting paid to wait for a better 
    exit price. We have had limited success in reducing the other 
    holdings.
7.  During the year, RAC invested a net amount of R132mn. A 
    portion of this was funded through our debt facility with 
    ABSA bank.
RAC and RIH adjusted Statement of Cash Flows
                                           2016           2015
                                              R              R
Aggregate cash and cash 
equivalents at beginning 
of the year                          71 320 959     98 733 652
Plus interest and dividends 
  received                           17 522 958     34 149 015
Less: Cash operating expenses       (19 093 009)    (9 637 731)
Less: Cash tax paid                  (9 681 439)    (7 650 927)
Less: Cash applied to 
  investments                      (132 037 593)   (44 273 050)
Plus: Financing cash flows           75 211 617              –
Aggregate cash and cash 
  equivalents at end 
  of the year                     3 243 493     71 320 959
Our biggest investment during the year was into the JB 
Investment Partnership, whose only asset is a listed company, 
Sentula mining. With respect to industries that are out of 
favour with the market, like mining, we think the following 
quote from one of our favourite investors, is appropriate:
    “The most common cause of low prices is pessimism – sometimes 
    pervasive, sometimes specific to a company or industry. We 
    want to do business in such an environment, not because we 
    like pessimism, but because we like the prices it produces. 
    It’s optimism that is the enemy of the rational buyer.”
    – Warren Buffett, 1990 Chairman’s letter to shareholders of 
      Berkshire Hathaway
The current pessimistic environment for mining shares results in 
investors pricing in the worst of all outcomes, and ignoring any 
possible good ones. For instance, Sentula Mining is currently 
trading 95% below its peak valuation in 2008. To put that into 
numbers – in 2008 the market valued Sentula at R6.2bn. Today the 
market thinks the same company is worth just R186mn, after having 
raised fresh capital of R105mn recently. As is often the case, we 
think the truth is somewhere in the middle. It is only because of 
the current environment that we were able to acquire an 
influential stake in this business, at a price which gives us a 
good chance of substantial investment returns going forward.  
Our investment in KWV further illustrates this line of thinking. 
When we invested, the market was very negative around the 
prospects for the business. Certain “Lead Steer” investors had 
just exited, proclaiming that the business was a value trap. 
After that, while the new owners were restructuring, earnings 
were poor. Fundamentally, the business was sound: a fortress 
balance sheet with no debt, strong well known brands which were 
winning local and international prizes for quality and a 
management team with skin in the game. However, market prices are 
often driven by emotions, not fundamentals. When faced with a 
declining share price, many investors conclude that this 
declining price accurately reflects the fundamentals and jump on 
the bandwagon. In so doing, a self-reinforcing vicious circle is 
formed, with a lower share price cementing the negative 
sentiment, leading to more selling, which serves to drive the 
share price even lower, leading to more selling. 
In these situations, investors such as RAC can provide liquidity 
to the sellers, taking advantage of their emotions. We, like the 
controlling shareholder of KWV, Niveus, can only do so because we 
have permanent capital at our disposal. While we are buying these 
bargains, public sentiment tends to regard us, at best, as 
misguided. In the short-term, the declining share price is 
“evidence” that the public – and their consultants – are right. 
If our source of funds were open ended, we would not have been 
able to hold on to the position, as withdrawals would have forced 
us to join the selling crowd. And, even if we were not forced to 
sell, the unrelenting pressure of negative public commentary can 
itself induce irrational behaviour.
Accurate valuations generally only emerge when large transactions 
take place at arm’s length between properly incentivized parties. 
In the absence of such confirming transactions, valuation is more 
art than science, and care should be taken not to get caught up 
in the chatter of markets. 
Simply put, our view is that we will be proven right, not because 
the short-term direction of the share price movement confirms our 
view or that market commentators and investment consultants agree 
with us, but because we have evaluated the fundamentals 
correctly. And, if we are right the share price will eventually 
reflect our thinking. We just need the ability to exercise 
patience. And the permanent capital nature of RAC puts us in a 
position where we can indeed be as patient as we need to.
The ability to buy KWV at depressed prices and hold on to it, 
despite widespread criticism, will provide our NAV with a nice 
up-lift, as the investment has compounded at over 25% p.a. We 
hold the view that there are more of these unpolished gems in our 
portfolio of businesses. 
As previously stated, our aim is to invest the capital of RAC in 
order to grow our NAV per share at as high a rate as possible. We 
try to be very calculated and unemotional when it comes to this. 
But providing businesses with capital, and trusting their 
management to grow the value of the business has important 
consequences. One of the hallmarks of a successful business is 
that it employs more people at ever higher productivity over 
time. And in a country where unemployment has reached record 
levels – despite massive political intervention with huge 
negative unintended consequences – job creation is important. In 
this regard, West Coast Resources has created 207 new jobs since 
we provided them with capital to start mining. Bear in mind that 
WCR operates in an area of the country where unemployment is 
rife. Goldrush has created 778 new jobs since we provided them 
with growth capital two years ago. These jobs have been created 
in almost all areas of the country. Outdoor Investment Holdings 
has created 56 jobs over the past two years, after receiving an 
injection of growth capital from us. We have no doubt that 
College SA will create many new jobs in the future as well, and 
that when the cycle turns, Sentula will also turn into a job-
creating machine. Without our capital, it would most likely not 
have survived, and many jobs would have been lost. This is the 
friendly face of capitalism, which many so often choose to 
ignore.
We believe our intrinsic fair value is growing at a rate well in 
excess of our accounting NAV. We are loath to mark our assets up 
to our opinion of full value, as the proof of value only comes 
out in transactions.
Today, despite all the negative sentiment around South Africa, we 
are optimistic about the future. We are fully invested, with a 
portfolio of good businesses run by good people, acquired at good 
prices. We spend almost no time thinking about the economy, as 
our managers are more than smart and tenacious enough to deal 
with the economic challenges and opportunities they face. All we 
know is that as with all cycles, this negative one will also come 
to an end.
In the meantime, we have secured debt funding to grow our asset 
base, when we come across more good opportunities – which such an 
environment is bound to provide. In this regard, if you are 
involved in any business that meets our investment criteria and 
that needs capital or a responsible owner with a long-term 
orientation, please give one of us a call. We can’t promise you a 
deal, but we can promise you a quick answer.
Our non-executive directors do a sterling job of providing 
sounding boards and guidance when called upon. We would like to 
thank them for this. And last, but definitely not least, we would 
like to thank the managers of our investee companies – they do 
all the heavy lifting, allowing us to get on with the fun job of 
exploring investment opportunities.
SHAREHOLDERS’ MEETING WITH EXECUTIVE DIRECTORS
We will hold our annual meeting for all shareholders, immediately 
after the conclusion of the Annual General Meeting of RAC 
Shareholders. This Annual General Meeting is scheduled to take 
place on 27 July 2016 at the Southern Sun Hotel in Newlands, Cape 
Town, at 11:00. At our meeting, all three of us look forward to 
discussing our investment operations, and answering as many 
questions as you have. Some of our CEO’s will also be present, if 
you wish to speak to them about their businesses. There is an 
invitation enclosed with this annual report, and we would 
appreciate it if you would let us know whether you will be 
attending.
Piet Viljoen          Theunis de Bruyn           Jan van Niekerk
Chairman
Cape Town
10 June 2016
STATEMENT OF FINANCIAL POSITION 
AT 31 MARCH 2016
                                           2016           2015
                            Notes             R              R
ASSETS
Non-current assets                  983 290 784    883 595 786
Investments                     5   983 290 784    714 253 898
Loans and other receivables                   –    169 341 888
Current assets                        1 381 153     74 418 456
Investments                     5             –     67 971 006 
Loans and other receivables                   –      3 097 497
Cash and cash equivalents             1 381 153      3 349 953
Total assets                        984 671 937    958 014 242
EQUITY AND LIABILITIES
Equity                              983 101 316    926 973 445
Share capital – 
  ordinary shareholders              50 000 000     50 000 000
Share capital – 
  preference shareholders           450 000 000    450 000 000
Reserves                                      –     79 950 251
Retained income                     483 101 316    347 023 194
LIABILITIES
Non-current liabilities                       –     29 196 620
Deferred taxation                             –     29 196 620 
Current liabilities                   1 570 621      1 844 177
Trade and other payables              1 504 352      1 704 985
Current tax payable                      66 269        139 192
Total equity and liabilities        984 671 937    958 014 242
Net asset value 
Net asset value attributable 
  to ordinary shareholders           98 310 132     92 697 345
Net asset value attributable 
  to preference shareholders        884 791 184    834 276 101
Net asset value per 
  ordinary share (cents)                  1 966          1 854
Net asset value per preference 
  share (cents)                           1 966          1 854
STATEMENT OF COMPREHENSIVE INCOME 
FOR THE YEAR ENDED 31 MARCH 2016
                                           2016           2015
                            Notes             R              R
Revenue                               6 601 449     30 720 051
Operating expenses                   (1 401 609)   (10 140 930)
Operating profit                      5 199 840     20 579 121
Other income                         93 094 588     17 149 208 
Fair value gains on 
  subsidiaries and 
  associates                         29 505 129    287 223 959 
Impairments recycled through 
  profit and loss                             –    (21 225 692) 
Profit before taxation              127 799 557    303 726 596 
Taxation                              8 278 565    (17 317 153) 
Profit for the year                 136 078 122    286 409 443 
Other comprehensive income:
Items that may be 
  reclassified subsequently 
  to profit or loss: 
Net gain on 
  available-for-sale 
  financial instruments                       –     26 189 347
Realised gain on sale of 
  available-for-sale 
  investments recycled 
  to profit or loss                 (93 094 588)   (17 149 208)
Impairment loss reclassified                  –     21 225 692
Taxation related to components 
  of other comprehensive income      13 144 337     (5 649 904)
Other comprehensive income for 
  the year net of taxation          (79 950 251)    24 615 927
Total comprehensive income           56 127 871    311 025 370
Earnings and headline 
  earnings per share
Per share information 
 (ordinary and preference)
Basic and diluted earnings 
  per share (cents)             6           272            573
Basic and diluted headline 
  earnings per share (cents)    6            86            579
STATEMENT OF CHANGES IN EQUITY 
FOR THE YEAR ENDED 31 MARCH 2016
                                     Preference       Ordinary
                                          share          share
                                        capital        capital
                                              R              R
Balance at 31 March 2014            450 000 000     50 000 000
Profit for the year                           –              –
Other comprehensive income                    –              –
Balance at 31 March 2015            450 000 000     50 000 000
Profit for the year                           –              –
Other comprehensive income                    –              –
Balance at 31 March 2016            450 000 000     50 000 000
                      Fair value       
                      adjustment          
                          assets                         Total
                       available-                        share-
                        for-sale       Retained        holders'
                         reserve         income         equity
                               R              R              R
Balance at 
  31 March 2014       55 334 324     60 613 751    615 948 075
Profit for the year            –    286 409 443    286 409 443
Other comprehensive 
  income              24 615 927              –     24 615 927
Balance at 
  31 March 2015       79 950 251    347 023 194    926 973 445
Profit for the year            –    136 078 122    136 078 122
Other comprehensive 
  income             (79 950 251)             –    (79 950 251) 
Balance at 
  31 March 2016                –    483 101 316    983 101 316
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2016
                                           2016           2015
                                              R              R
Cash flows from operating 
  activities
Cash utilised in operations            (728 983)    (9 637 731)
Interest income                         106 824     13 125 860
Dividends received                    6 500 000     21 023 155
Tax paid                             (7 846 641)    (7 650 927) 
Net cash (outflow)/inflow from 
  operating activities               (1 968 800)    16 860 357
Cash flows from investing 
  activities
Loans  to investees                           –   (149 419 476)
Purchase of other financial 
  investments                                 –    (81 758 828)
Proceeds on disposal of 
  financial investments                       –    217 566 023
Net cash outflow from 
  investing activities                        –    (13 612 281)
Net movement in cash and 
  cash equivalents                   (1 968 800)     3 248 076
Cash and cash equivalents 
  at the beginning of the year        3 349 953        101 877
Cash and cash equivalents at 
  the end of year                     1 381 153      3 349 953
SELECTED NOTES TO THE ABRIDGED ANNUAL FINANCIAL STATEMENTS
1.  BASIS OF PREPARATION
    The summary financial statements are prepared in accordance 
    with the requirements of the JSE Limited Listings 
    Requirements for abridged reports, and the requirements of 
    the Companies Act applicable to summary financial statements. 
    The Listings Requirements require abridged reports to be 
    prepared in accordance with the framework concepts and the 
    measurement and recognition requirements of International 
    Financial Reporting Standards (IFRS), the SAICA Financial 
    Reporting Guides as issued by the Accounting Practices 
    Committee and Financial Pronouncements as issued by the 
    Financial Reporting Standards Council, and to also, as a 
    minimum, contain the information required by IAS 34 Interim 
    Financial Reporting. The accounting policies applied in the 
    preparation of the financial statements, from which the 
    summary financial statements were derived, are in terms of 
    International Financial Reporting Standards and are 
    consistent with the accounting policies applied in the 
    preparation of the previous annual financial statements, 
    other than as more fully set out below. 
    These abridged annual financial statements do not contain as 
    much detailed information and disclosures as the audited 
    annual financial statements and should therefore not be 
    considered as a substitute for reading the audited financial 
    statements
2.  GROUP STRUCTURE 
    RECM and Calibre Limited (“RAC”) was established in 2009 as a 
    closed-end investment entity that makes long-term 
    investments, with the objective of generating high real 
    returns. Investments can be listed or unlisted, public or 
    private, and there are no limits as to the geographic 
    location.
    Given that the investment infrastructure of RAC has been set 
    up to facilitate investments and funding in the most 
    efficient manner, investments are made either through a fully 
    owned subsidiary incorporated in South Africa, RAC Investment 
    Holdings (Pty) Ltd, (“RIH”) or directly. 
    During the period all the investments (including the related 
    loans and receivables) to the value of R723 549 474 held by 
    RAC were transferred to the wholly-owned subsidiary RIH for 
    an additional 190 shares in RIH. The loan to RIH in the prior 
    year of R114 059 440 was converted to share capital by RIH 
    issuing an additional 10 shares to RAC. This transfer was 
    primarily to facilitate future funding. This transfer had no 
    impact on the NAV of RAC. Given this structure, RAC has 
    provided the fair value disclosure in two parts in note 5. 
    Page 14 discloses the investment in RIH as required by IFRS 
    and page 15 provides additional disclosures that the 
    directors deem useful by looking through RIH to the 
    underlying investments at the directors fair values. The 
    transfer of the investments, (previously held as available-
    for-sale), to RIH has resulted in the unrealised gains of 
    R93 094 558, previously recognised in other comprehensive 
    income, being reclassified to profit or loss. All fair value 
    movements on the investment in RIH will be recognised in 
    profit or loss going forward.
3.  SIGNIFICANT ACCOUNTING POLICIES
    Assessment as investment entity
    Entities that meet the definition of an investment entity 
    within IFRS 10 are required to measure their subsidiaries at 
    fair value rather than consolidate them. The criteria which 
    define an investment entity are, as follows:
    –  An entity that obtains funds from one or more investors 
       for the purpose of providing those investors with 
       investment services;
    –  An entity that commits to its investors that its business 
       purpose is to invest funds solely for returns from capital 
       appreciation, investment income or both;
    –  An entity that measures and evaluates the performance of 
       substantially all of its investments on a fair value basis 
       (refer to note 3 for additional disclosures relating to 
       fair value)
       Based on the above, the Company is considered to meet all 
       three conditions of the definition and, hence, qualifies 
       as an investment entity. Consolidated Financial Statements 
       are therefore not prepared.
    In line with RAC carrying its investment in RIH at fair 
    value, RAC has also elected the exemption in IAS 28 to carry 
    any interests in associates and joint ventures at fair value 
    through profit or loss. Such election is applied consistently 
    due to the fact that the Company is an investment entity and 
    evaluates its investments on a fair value basis. The Company 
    reports to its investors via annual and semi-annual results 
    and to its management, via internal management reports, on a 
    fair value basis. All investments are reported at fair value 
    to the extent allowed by IFRS in the Company’s annual 
    reports.
    The Board has also concluded that the Company meets the 
    additional characteristics of an investment entity, in that 
    it has exposure, directly or indirectly, to more than one 
    investment; the investments are predominantly in the form of 
    equities and similar securities; and its investors are not 
    related parties. The Board has concluded that the Company 
    meets the definition of an investment entity. These 
    conclusions will be reassessed on an annual basis, if any of 
    these criteria or characteristics change.
4.  AUDIT OPINION
    This abridged report is extracted from audited information,
    but is not itself audited. The annual financial statements 
    were audited by Ernst & Young Inc., who expressed an 
    unmodified opinion thereon. The audited annual financial 
    statements and the auditor’s report thereon are available for 
    inspection at the company’s registered office. The directors 
    take full responsibility for the preparation of the abridged 
    report and that the financial information has been correctly 
    extracted from the underlying annual financial statements.
    The audited financial statements, which were prepared under 
    the supervision of the FD, Jan van Niekerk, are available for 
    inspection at the Company’s registered office and will be 
    included in the Integrated Annual Report 2016 to be posted to 
    stakeholders.
                                           2016           2015
                                              R              R
5.  INVESTMENTS
    Fair value hierarchy of 
     financial assets
    Level 1 
    Class 1 – Listed shares – Quoted 
     – available-for-sale                     –    241 132 347
    Class 2 – Unlisted shares – Quoted
     – available-for-sale                     –     31 390 404
                                              –    272 522 751
    Level 2 
    Class 3 – Unit trust – cash held by 
     unit trust–available-for-sale            –     34 956 206
    Class 4 – Call accounts – 
     available-for-sale                       –     33 014 800
                                              –     67 971 006
    Level 3 
    Class 5 – Unlisted shares 
     – Unquoted – available for sale          –     70 999 261
    Class 5 – Unlisted shares 
     – Unquoted – fair value through 
     profit or loss – other                   –    253 681 269
    Class 5 – Unlisted shares 
     – Unquoted – fair value 
      through profit or loss 
      – RIH                         983 290 784    117 050 617
                                    983 290 784    441 731 147
    Total financial assets at 
     fair value                     983 290 784    782 224 904
    Non-current assets              983 290 784    714 253 898
    Financial assets – 
     available-for-sale                       –    343 522 012
    Financial assets – fair value 
     through profit or loss         983 290 784    370 731 886
    Current assets
    Financial assets 
     – available-for-sale                     –     67 971 006
    Total investments               983 290 784    782 224 904
    Management classifies cash 
     as current and other 
     investments as non-current.
    Level 3 reconciliation
    Opening balance                 441 731 147    130 694 101
    Purchases                       836 735 038      6 632 549
    Sales                          (324 680 530)             –
    Gains on investments 
     recognised in other 
     comprehensive income                     –     17 180 537
    Gains on investments recognised 
     in profit or loss               29 505 129    287 223 960
    Closing balance                 983 290 784    441 731 147
    Please refer to the group structure note on page 12 
    which explains the transfer of investments to RIH. 
    Level 1
    Class 1 available-for-sale financial assets are valued 
    at the listed price per the exchange on which they trade.
    Class 2 available-for-sale financial assets are valued 
    at the quoted price based on the latest over the counter 
    trades.
    Level 2 
    Class 3 available-for-sale financial assets are valued 
    at the net asset value of the unit trust.
    Class 4 available-for-sale financial assets are valued by 
     taking the following market observable data into account 
     and applying them to the holdings:
     credit spread of the institution at which the funds are held
    –  any difference in the interest rate earned and what is 
       available in the market 
    Level 3 
    Class 5 unlisted unquoted shares are valued using a number of 
    valuation techniques based on the following unobservable 
    market data for each investment:
    –  Net profit of investee
    –  Equity and net debt of investee 
    –  Return on capital
    –  Price/Earnings ratio 
    –  Expected cash flows
    –  NAV of the investee if it recognises its assets and 
       liabilities at fair value
    Management uses the above information in multiple valuation 
    techniques by comparing the investee information to similar 
    type entities in the listed market. The nature of the fair 
    value calculations means that fair values range greatly and 
    are sensitive to indirect and direct quantifiable and 
    unquantifiable inputs.
    There have been no significant changes to the inputs to the 
    fair valuation calculations of the investments to which RAC 
    is exposed. RIH has continued to be valued based on its NAV 
    which is driven by the valuation of the underlying 
    investments.
    In terms of IFRS, RAC is an Investment Entity, and therefore 
    no consolidated results are required to be prepared. IFRS 
    requires the fair value disclosure to be prepared at the Unit 
    of Account Level (i.e.: at the level of shares that RAC owns 
    and those are shown above). The Board of Directors has 
    decided to provide the following voluntary disclosures 
    looking through the 100% held subsidiary, RIH, to its 
    underlying investments. In addition, a summary of the NAV of 
    RIH as well as the underlying valuation techniques and 
    sensitivities have been provided. 
                                           2016           2015
                                              R              R
    Fair value hierarchy of financial 
     assets held by RAC Investment 
     Holdings (Pty) Ltd
    Level 1 
    Class 1 – Listed shares 
     – Quoted                       218 701 832              –
    Class 2 – Unlisted shares 
     – Quoted                        28 723 525              –
                                    247 425 357              –
    Level 2 
    Class 3 – Unit trust – money 
     market unit trust                   63 715              –
                                         63 715              – 
    Level 3 
    Class 5 – Unlisted shares 
     – Unquoted – available-
     for-sale                        71 393 813     31 788 371
    Class 5 – Unlisted shares 
     – Unquoted – fair value 
     through profit or loss         753 455 736    281 523 665 
                                    824 849 549    313 312 036
    Total financial assets 
     at fair value                1 072 338 621    313 312 036 
    Non-current assets            1 042 743 917    313 312 036 
    Current assets                   29 594 704              – 
    Total investments             1 072 338 621    313 312 036 
    Summary of Net Asset Value 
     of RIH
    Total investments 
     from above                   1 072 338 621    313 312 036 
    Loans and receivables            82 037 280              –
    Cash and cash equivalents         1 798 625            809 
    Deferred tax                    (76 469 122)   (24 134 156)
    Contingent consideration        (19 129 854)   (58 030 305) 
    Loans and payables              (77 284 766)  (114 097 767) 
    Net Asset Value of RIH          983 290 784    117 050 617
5.1 Description of significant unobservable inputs and 
    sensitivities of RAC (level 3 investment).
                             Signifi-
              Valua-         cant
               tion    Fair  unobser-
               tech-  value  vable
              nique     R’m  inputs    Range     Sensitivity
RAC           NAV     983,3  Fair      N/A       A 10% increase/
Investment                   values              decrease in the
Holdings                     of the              fair value of  
(“RIH”)                      underlying          the underlying
                             investments         investments 
                                                 would result 
                                                 in an increase/ 
                                                 decrease in 
                                                 value of R98m.
5.2 The below table shows the sensitivities per underlying 
    investment as if these were held directly by RAC 
    (level 3 investment).
                             Signifi-
              Valua-         cant
               tion    Fair  unobser-
               tech-  value  vable
              nique     R’m  inputs    Range     Sensitivity
Retail:       Multi–  192,1  EBITDA    4 – 8     A change in
Safari        ples                               multiple up by
and                                              1 would result
Outdoor;                                         in an increase
                                                 in fair value of
                                                 approximately 
                                                 R35m.
Fledge                       Discount  35% –     A change in
(excluding                   for lack  45%       discount rate of
non–equity                   of                  10% would result
investments)                 marketabi–          in a change in
                             lity and            fair value of
                             liquidity           approximately 
                             to listed           R66m.
                             entity
Goldrush     Multi–   446,8  EBITDAR    5 – 7    A decrease in
Group        ples                                the EBITDAR
                                                 multiple by 1
                                                 would result in 
                                                 a decrease in 
                                                 fair value of 
                                                 approximately 
                                                 R56m and an 
                                                 increase in the 
                                                 EBITDAR multiple 
                                                 by 1 would 
                                                 result in an 
                                                 increase fair 
                                                 value of 
                                                 approximately 
                                                 R94m.
Excellerate   Last     26,3  N/A       220 cents
              trade
              price
                             Discount  1,50%     A change in
                             for lack            discount rate
                             of market–          to 10%
                             ability and         would result in 
                             liquidity           a change in 
                             on latest           fair value of
                             available           approximately
                             NAV as a            R2,3m.
                             check on 
                             last traded 
                             price 
JB Private     NAV     61    N/A        N/A      The NAV of the 
Equity                                           JB Private 
Investors                                        Equity Investors
Partnership                                      Partnership is 
                                                 directly linked 
                                                 to the 
                                                 underlying 
                                                 investment in 
                                                 Sentula Mining 
                                                 Limited which is 
                                                 listed on the 
                                                 JSE and is not 
                                                 currently 
                                                 significantly
                                                 impacted by any 
                                                 fair value 
                                                 adjustment to 
                                                 trade and other 
                                                 payables and 
                                                 therefore NAV of 
                                                 the JB Private 
                                                 Equity Investors 
                                                 Partnership is 
                                                 considered to be 
                                                 fair value. A 
                                                 10% movement in 
                                                 the Sentula 
                                                 share price 
                                                 would have a 
                                                 R6,7m impact on 
                                                 the Partnership 
                                                 NAV.
Mining        NAV      73,5  Valua–    10%       A multi-period
West                         tion of             excess earnings
Coast                        mining              method was used
resources                    rights              to calculate the
(excluding                                       mining rights in 
non–equity                                       WCR. There are 
investments)                                     unseen inputs 
                                                 into this 
                                                 calculation. A 
                                                 change in the 
                                                 value of the 
                                                 mining rights by 
                                                 10% would result 
                                                 in a R14 million 
                                                 change in the 
                                                 NAV of WCR.
Education     Multi–   21,2  EBITDA    4 – 6     A change in 
SA College    ples                               multiple up by
                                                 1 would result 
                                                 in an increase 
                                                 in fair value of 
                                                 approximately
                                                 R4 million.
Other level 3           3,9
investments
Total                 824,8
2015 
5.3 Description of significant unobservable inputs and 
    sensitivities of RAC
                             Signifi-
              Valua-         cant
               tion    Fair  unobser-
               tech-  value  vable
              nique     R’m  inputs    Range     Sensitivity
Retail:       Multi–    170  EBITDA    4 – 8     A change in
Safari        ples                               multiple up by 1
and                                              would result
Outdoor;                                         in an increase
                                                 in fair value of
                                                 approximately
                                                 R24 million.
Fledge                       Discount  35% –     A change in
(excluding                   for lack  45%       discount rate of
loans)                       of market–          10% would result
                             ability             in a change in
                             and                 value of 
                             liquidity           approximately
                             to listed           R27 million.
                             entity
Excellerate   Last     26,5  Delisted  115 cents
                                       –
                                       220 cents
                             P/E       6 –       Using a multiple
                             Multiple, 8,5       of 6 to 8,5
                             as check            would result in
                             on last             a price of 222
                             observable          to 314 cents per
                             price               share, before 
                                                 applying a 
                                                 discount for 
                                                 liquidity.
RAC           NAV      117   EBITDAR   5 –       A change in the
Investment                   of        7         EBITDAR multiple
Holdings                     substan–            of the 
(“RIH”)                      tial                underlying
                             underlying          investment by
                             investments         1 would result
                             in RIH              in an increase 
                                                 or decrease in 
                                                 fair value of 
                                                 approximately 
                                                 R38 million.
Mining:
West          NAV      122   Valuation  10%      A multi-period
Coast                        of                  excess earnings
resources                    mining              method was
                             rights              used to 
                                                 calculate the 
                                                 mining rights
                                                 in WCR. There 
                                                 are numerous
                                                 unseen inputs 
                                                 into this 
                                                 calculation. A 
                                                 change in the 
                                                 value of the 
                                                 mining rights by 
                                                 10% would result 
                                                 in a R14 million 
                                                 change in the 
                                                 NAV of RAC. 
The         Credit     41    Discount   20% –    A change in
American    and              due to     30%      discount rate of
Home        time value       the time            10% would result
            of money         value of            in a change in 
            discount         money (5%)          fair value of
                             and the             approximately
                             increased           R1,5 million.
                             credit              A 30% discount 
                             risk of             is currently 
                             a future            being applied.
                             dated 
                             receipt
                             of redemp–
                             tion
                             proceeds
    Factors that were taken into account by management in all 
    valuations include the current market conditions, the 
    invested market segment and interest rate certainty. The 
    market for these instruments often has significant barriers 
    to entry, making the comparison pool of similar entities very 
    shallow. Specifically, the retail pharmaceutical industry and 
    hunting equipment industry have few market entrants with 
    little reliable comparative data. The nature of the fair 
    value calculations means that the calculated fair values 
    could range greatly and are sensitive to indirect and direct 
    quantifiable and unquantifiable inputs. Where we have 
    influence over our investee companies we plan to play an 
    active role in the long term strategy of the company, 
    ensuring that our interests are aligned.
                                           2016           2015
                                              R              R
6.  EARNINGS AND HEADLINE EARNINGS 
     per share 
    Earnings and headline earnings per 
     shares are based on the profit 
     attributable to ordinary and 
     preference shareholders in issue 
     during the year.  
    Number of shares in issue
    Ordinary shares                   5 000 000      5 000 000
    Preference shares                45 000 000     45 000 000
    Earnings
    Net profit after tax            136 078 122    286 409 443 
    Adjusted to headline earnings 
    as follows:
    Reclassification of fair value 
     gains through profit or loss on 
     disposal of available-for-sale 
     financial instruments          (93 094 588)   (17 149 208) 
    Impairment                                –     21 225 692
    Tax adjustment                            –       (760 944)
    Headline earnings                42 983 534    289 724 983 
    Basic and diluted earnings per 
     ordinary and preference 
     shares (cents)                         272            573
    Headline earnings per ordinary and 
     preference shares (cents)               86            579
7.  SUBSEQUENT EVENTS
    Subsequent to year-end the following significant transactions 
    have occurred in RIH:
    –  RIH issued another 50 preference shares for R1 million 
       each to ABSA Bank Limited on 6 April 2016 in order to 
       raise additional capital for future investments.
       Subsequent to year-end, RIH has entered into an agreement 
       through which it will exercise a call option to acquire 
       20,81% of the issued share capital of Goldrush for an 
       aggregate consideration of R221 176 302 which will be 
       settled via the following means:
    –  R100 000 000 in cash from existing resources;
    –  R50 996 000 through the issue of 2 200 000 fully paid-up 
       non-cumulative redeemable participating preference shares 
       in RAC at a price of 2 318 cents per share. Application 
       will be made for the listing of such preference shares on 
       the JSE once issued; and
    –  a deferred cash payment of R70 180 302 by no later than 
       30 September 2017. The amount of the deferred payment will 
       increase at a rate equivalent to South African headline 
       consumer price inflation from 31 March 2016 up to date of 
       final settlement.
    The transaction will increase RIH’s shareholding and voting 
    rights in Goldrush to 52,21%.
    The transaction is subject to a number of conditions and 
    approvals, which will be obtained in the course of business.
RECM AND CALIBRE LIMITED 
(“RAC” or “the Company”)
COUNTRY OF INCORPORATION AND DOMICILE: South Africa
NATURE OF BUSINESS AND PRINCIPAL ACTIVITIES: Investments as 
principal activities
COMPANY REGISTRATION NUMBER: 2009/012403/06
PREFERENCE SHARE CODE: RACP
ISIN: ZAE000145041
DIRECTORS:
T de Bruyn (Executive Director)
Z Matlala (Independent Non-Executive Director)
T Rossini (Independent Non-Executive Director)
JG Swiegers (Independent Non-Executive Director)
JC van Niekerk (Executive Financial Director)
PG Viljoen (Executive Chairman)
COMPANY SECRETARY:
G Simpson
FINANCIAL STATEMENTS INTERNALLY COMPILED BY:
D Schweizer – Chartered Accountant (S.A.)
REGISTERED OFFICE AND BUSINESS ADDRESS:
8th Floor, Claremont Central
8 Vineyard Road
Claremont
Cape Town, 7700
POSTAL ADDRESS:
PO Box 45040
Claremont
7735
TELEPHONE NUMBER: (021) 657 3440
EMAIL ADDRESS: info@recm.co.za
WEBSITE: www.racltd.co.za
SPONSOR:
Questco (Pty) Ltd 
1st Floor, Yellowwood House
Ballywoods Office Park
33 Ballyclare Drive
Bryanston 2021
(PO Box 98956, Sloane Park, 2152)
TRANSFER SECRETARIES:
Link Market Services South Africa (Pty) Ltd
13th floor, Rennie House
19 Ameshoff Street
Braamfontein, 2004
(PO Box 4844, Johannesburg, 2001)



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