Wrap Text
Abridged Annual Financial Statements for the year ended 31 March 2018
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 2018
SHAREHOLDERS’ LETTER
To our fellow shareholders
RECM and Calibre (“RAC”) is a long-term investment vehicle that was set up in a specific way in order to achieve a high rate
of growth in per share net asset value (“NAV”) over time. As such, our long-term goal is to build an exceptional investment
company. To our mind, an exceptional investment company implies a company that generates returns better than most
investment alternatives, be they companies, funds or an index replicating a stock market.
Our strategy to achieve our goal is to partner with companies – predominantly privately held – and provide them with capital
and advice (in the required proportion) to fulfil their potential.
The past financial year has been one of investing for the future of our company, so our NAV per share growth was muted. As
the management of the investee companies successfully implement their plans, we know that, as a group, the potential for
further growth in their underlying intrinsic value increased. We expect to see this year’s positive developments in our portfolio
companies reflected in further future growth in profits.
Growth in per share NAV (our preferred method of measuring value creation) was 1,6% for the past 12 months. This compares
to the All Share Index total return for the year of 9,6%.
To become recognized as an exceptional investment vehicle takes time, but we believe we are firmly on track. RAC has grown
its NAV per share by 16,3% annually since inception, compared to the All Share Index (Total Return) growth rate of 15,1%.
Over the same period, the Rand has depreciated by 5,8% annually. RAC has thus compounded its NAV by over 10% p.a. in
US$ terms.
The following chart shows our progression against the JSE All Share Index, including dividends. R10 invested in RAC
participating preference shares in June 2010 has grown to R27,77 in Net Asset Value after all fees and taxes. The same
amount invested in the JSE All Share Index would have grown to R25,79, before taking any fees or possible taxes into account.
ALSI total return (based to R10) RAC NAV/share
Jun-10 10.00 10.00
Sep-10 10.97 10.09
Mar-11 12.15 10.26
Sep-11 11.37 10.45
Mar-12 13.06 11.12
Sep-12 14.15 11.26
Mar-13 16.00 11.83
Sep-13 17.96 11.85
Mar-14 19.77 12.32
Sep-14 20.73 12.59
Mar-15 22.24 18.64
Sep-15 21.73 19.86
Mar-16 22.95 19.66
Sep-16 23.16 22.42
Mar-17 23.53 27.35
Sep-17 25.52 27.86
Mar-18 25.79 27.77
The NAV per share growth of 1,6% over the last year implies an increase of R21,9m. The composition of this increase on a
look-through basis is as follows:
2018 2017
R R
Interest and dividends 32 422 299 339 583 909
Realised profits on sale of assets 4 940 113 30 027 593
Adjustments to fair value of assets 66 718 843 114 212 226
Share issue and buy back – 24 502 250
Operating expenses (25 832 074) (20 752 921)
Financing expenses (34 262 759) (17 123 473)
Tax paid (9 146 238) (11 021 088)
Tax (provided for)/reversed (12 949 549) (43 740 480)
Net increase in NAV 21 890 635 415 688 016
This year, the largest component of return was in the form of revaluations. We did not exit very many investments, and our
investment income is still low. As Goldrush, our largest investment, matures we anticipate a much stronger flow of dividends
– which we expect to happen in the next few years.
Our main operating expense is the management fee we pay. This fee amounts to 1% (excluding VAT) of the portfolio. There
are other small additional costs, such as external director’s fees – but we work hard to keep the costs of managing the business
as low as possible. Most listed businesses with a similar market value, have central costs well in excess of RAC’s.
We explicitly provide for deferred capital gains tax (CGT), where applicable on our unrealised gains at the statutory rate.
OUR INVESTMENTS
Please refer to the table below for our portfolio of investments.
Our core investments, where we have a significant stake in the business, and associated influence, are grouped together. We
expect to be long-term capital partners of these businesses and their management teams. At year-end, this made up 83% of
our asset base. Our minority stakes are now grouped separately under the heading of Portfolio Investments and make up
10% of our asset base. There is a third group called Other Investments. This consists of interests in investments we are either
in the process of exiting or acquiring. Either way, we do not think it is in our shareholders’ best interest that we disclose any
specifics of this group, as this could have the effect of jeopardising any transactions.
Here are the companies and management teams in which we have placed our confidence
% % Directors Fair Value at 31 March (R’m)
Owner- of total
ship assets 2018 2017 2016
Core investments 83 1 682,0 1 290,6 793,9
Goldrush 51 46 941,1 816,4 446,8
Astoria 28 19 386,4 95,0 –
JB Private Equity (UCP) 90 5 106,1 100,9 60,9
Transhex 32 6 114,4 110,0 94,6
West Coast Resources – – – 53,3 112,4
Outdoor Investment holdings 29 4 82,5 59,9 56,9
College SA 88 3 51,5 55,1 22,3
Portfolio investments 10 203,7 175,4 337,9
DAWN 17 4 78,5 – –
LA Concorde 5 2 43,9 42,3 19,3
RECM Hedge Fund – 2 42,4 – –
Conduit Capital 2 2 38,9 46,2 44,6
Excellerate – – – 34,0 26,3
ELB Group – – – 21,2 13,2
Sovereign Food – – – 18,4 57,5
KLK Landbou – – – 13,3 9,4
Fledge Holdings 50 – – – 167,6
Other investments 1 22,2 50,3 22,3
Cash and receivables 6 123,1 178,9 3,3
Total Assets 2 031,0 1 695,2 1 157,4
CGT and other liabilities (7) (132,4) (146,3) (124,3)
Bank funding (24) (477,9) (150,1) (50,0)
Net Assets 1 420,7 1 398,8 983,1
Net Asset Value per Share (“R”) 27,77 27,35 19,66
Some notes on our valuation methodology
IFRS requires RAC, as an investment entity, to place a fair value on all its assets. We have not changed our valuation
methodology. Where possible, we use market prices, either listed or over the counter. 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. In select circumstances, we have provided debt to some of
our investee companies. In these rare instances, our valuations above include both equity and debt.
Our Investments
1. Goldrush
Goldrush is entrenching its position as the largest alternative gaming group in the country. At year end, Goldrush operated
24 Bingo sites, up from 14 last year. The group operated 1 671 Limited Payout Machines (1 537 last year) out of a total
licensed opportunity of 4 200 (4 200 last year). The group operated 28 sports betting shops (23 last year), out of a potential
opportunity of 36 licenses (36 last year).
Goldrush operates in all 9 provinces of the country, as well as in Lesotho and Tanzania. The group employs more than
2 500 staff throughout its operations. Its customers are served under the Goldrush (Bingo, LPM), Bingo Royale (Bingo),
Crazy Slots (LPM), G-bets (Sports betting and Online betting) brands.
During the last year, the transaction to acquire the Boss Gaming Group, an operator of Bingo and LPMs in the Eastern
Cape and KZN regions became unconditional. This has so far turned out to be a very good transaction for Goldrush as
Boss contributed significantly to this year’s earnings, especially when compared to the price we paid.
With the exception of two of our Pretoria Bingo properties and one Johannesburg Bingo property, our existing operations
experienced strong organic growth in all areas – Bingo, LPM’s and Sports Betting. The relocation of the Sun International
Casino license from the Morula complex to Times Square, Menlyn Maine, impacted the Atterbury and Kolonnade Bingo
properties severely. We have not seen any recovery from this impact as yet. We mitigated some of the impact on a third
Pretoria property, by relocating the license from Centurion to the vacated Morula complex. This relocation however meant
that this license was not trading optimally for some time during the year.
During September 2017, the KZN legislature formally approved the legalisation of Electronic Bingo as a form of Bingo that
is allowed in the province. We can now roll out our Bingo properties in the province.
As an operator in a highly regulated industry, the primary value of our business derives from the exclusive ownership of its
licenses. Without the entrenched rights to operate these licenses, our business would be much less valuable. As Goldrush
matures and improves the scale of its operations, the group has become more successful at:
• acquiring licenses, both through a very competitive bidding process for new licenses and through acquisition of existing
licenses from other operators; and
• rolling out existing licenses.
The table below shows our progress in terms of the number of licenses across all segments over time.
Summary of gaming licenses in the group
Mar 2015 Mar 2016 Mar 2017 Mar 2018
Bingo Licenses Owned 11 14 18 32
Licenses Rolled out 11 14 14 24
LPM* Route/ISO Licenses Owned 4 6 9 9
Machines Approved 1 900 2 520 4 200 4 200
Machines Rolled out 1 042 1 360 1 537 1 671
Sports Betting Licenses Owned 19 30 36 36
Licenses Rolled out 15 18 23 28
* A 1 000 machine Route license is the subject of a review process, and is therefore excluded from these numbers
In the past financial year, group revenue exceeded R1bn for the first time, after an increase of 42,7% from the prior year.
This includes the contribution from acquired businesses. Sustainable EBITDAR (the measure we use to evaluate the
progress of the business) increased by 30,8%. Net financial indebtedness increased this year to fund acquisitions and
developments.
Selected financial information for the Goldrush Group
Mar 2015 Mar 2016 Mar 2017 Mar 2018
(R’m) (R’m) (R’m) (R’m)
Total Revenue 517,4 627,1 747,2 1 038,1
Sustainable EBITDAR 151,2 181,3 229,5 300,0
Net Financial Indebtedness 101,0 96,1 112,8 436,5
Our valuation for Goldrush is based on an earnings multiple for the existing operations (as reflected in sustainable EBITDAR)
and an adjustment for the balance sheet structure. This includes financial indebtedness as reflected above, plus market-
related valuations for non-operational licenses.
The multiple used for our valuation increased slightly over the last year from 6,5 to 7 to reflect the increased quality of the
business due to scale and to acknowledge positive developments in the regulatory environment, especially in KZN.
We remain cautious in our valuations, as a number of regulatory hurdles remain. As an example, the South African
Government recently published for comment the Control Of Tobacco Products And Electronic Delivery Systems Bill, which
seems to include potentially severe restrictions on the use of tobacco products in all public areas. This could have a
detrimental impact on Goldrush operations.
Goldrush is an example of the potential outcome of a good management team in charge of a good business. Due to its
nature, and despite significant recent growth, Goldrush still has a long growth path ahead of it as existing operations
mature and new operations are initiated. The entire KZN opportunity has only just opened up. As the business grew and
the team expanded our reach during the year, Goldrush spent in excess of R75m in development costs, compared to
R34m last year. We expect 2018 to have been the heaviest year of development spend and anticipate strong but measured
roll-outs going forward.
2. Astoria Investments
Astoria is a Mauritian domiciled investment company which has its shares listed in South Africa (JSE), Mauritius (SEM)
and Namibia (NSX). It holds a portfolio consisting mainly of small minority stakes in global blue-chip companies. Despite
also holding a smattering of private equity and other investments, Astoria’s portfolio has tracked the MSCI World Index
with uncanny accuracy since its listing in November 2015.
We think there is a better way of investing the capital of the business. It seems as if many Astoria shareholders (definitely
many ex-shareholders) agree with us, as we have been able to build an ownership stake of almost 30% in the business
at a significant discount to NAV over the last 18 months.
Investing in an offshore index will not help us generate the sort of returns we aim for, so for the time being we have hedged
out a substantial portion of this exposure. RAC is effectively long of the (wide) discount to NAV.
Subsequent to year end, we have announced our intention to make an offer designed to acquire control of Astoria. If
enough of the remaining Astoria shareholders accept our offer, they will receive R13,50 of value per Astoria share, of which
all or a substantial portion could be in cash, depending on the take-up. There is however a chance that more shareholders
accept our offer than what we are willing to pay for with cash. RAC will then issue RAC participating preference shares in
addition to the cash component, with each Astoria share being sold to us for a value of R13,50, with payment made up
partly of cash and partly in participating preference shares.
The best outcome for us is if we can pay all (in the case of a 30% take-up from remaining shareholders) or the majority
with cash as issuing RAC participating preference shares at current NAV per share is in our opinion a very expensive form
of finance.
Be that as it may, in the event that we manage to gain control of Astoria, both Astoria and RAC shareholders stand to
benefit from the transaction. Beyond the commercial benefits, a reconstituted Astoria board can then pursue investments
in good businesses, with good management, purchased at good prices. We suspect that these investments could generate
returns as good as RAC’s existing group, mainly because they are found in places where we have competence, i.e. places
where many investors are loath to look.
In addition, the transaction will improve our shareholder spread and have some liquidity benefits for RAC shareholders.
Astoria shareholders who accept the offer, will receive a payment which is substantially higher than any price at which
they would have been able to sell their shares in the recent past, that allows them to invest their cash proceeds in a low-
cost tracker, or their favourite investment manager’s fund, neither of which would trade at a discount and both of which
would have much better liquidity than is currently the case in Astoria.
3. JB Private Equity Partnership
RAC owns 90% of JB Private Equity (“JB”) an entity that has as its only investment a 37% stake in Unicorn Capital
Partners (“UCP”), a company listed on the JSE. RAC initially invested in UCP in April 2015. In October of that year we
appointed Jacques Badenhorst as CEO. It has taken him almost three years to get the business where there seems to
be light at the end of the tunnel. We have learned some valuable lessons in this process. For more on this, see our
discussion of DAWN, below.
During the 2018 financial year Unicorn was able to start reaping the benefits of the investments made in Ritchie Crane
Hire and Jef Drill and Blast. Both companies delivered attractive growth in earnings. Geosearch’s performance continued
to improve while we were also able to exit our remaining contract mining activities. The re-opening of our Nkomati
Anthracite underground mine, the expansion of our open pit mine as well as the commissioning of our new wash plant
are on track. Group overhead expenses continue to decline while the ring-fencing of operating entities has been
completed.
Going forward, Unicorns’ strategy is to invest in businesses that have good investment characteristics and yield attractive
returns on capital. Investments are managed on a standalone, ring-fenced, basis with Unicorn providing support to these
investments through capital allocation, investment decisions and strategy.
We value the partnership based on its holding of UCP, which in turn, is valued at its listed price.
More information on UCP can be found at www.unicorncapital.co.za.
4. Transhex
Transhex has had a torrid year. Its operations in the Lower Orange River (“LOR”) reached the end of their life and were
mothballed. Unfortunately, this had the consequence of large scale retrenchments, at great cost to the company. West
Coast Resources started to overcome its teething problems but was still loss making for the year. The Angolan business
performed in line with expectations, but it remains difficult to repatriate cash profits to South Africa out of Angola.
All of the above meant that Transhex produced a significant loss for the year. Their full set of results can be accessed at
www.transhex.co.za.
We are very disappointed by this outcome. As these circumstances currently dictate, we have stepped in as a member
of the controlling shareholder grouping of Transhex. Together with our partners and management, we are proactively
acting to recover value. Head office costs have been cut significantly, disposals are being sought, and additional resources
are being evaluated. Subsequent to year end, the mothballed LOR operations have been sold for an effective R70m in
cash. The buyer has also taken over the full environmental rehabilitation liability.
Our investment in TSX is carried at the market price, which has declined by 58% over the past year.
During the course of the year, RAC exchanged its direct holding of West Coast Resources (“WCR”) (a subsidiary of
Transhex) for additional shares in Transhex. As such, our shareholding increased to 31,2%. Transhex now owns 67,2%
of WCR.
5. Outdoor Investment Holdings
Outdoor Investment Holdings is primarily focused on the outdoor and sport shooting industry. It serves the market through
the national retailer Safari & Outdoor as well as wholesalers Inyathi Sporting Supplies and Formalito. As a retailer which
is effectively exposed to discretionary spending in the local economy, OIH performed well for the year ended 28 February
2018. Turnover grew 13% to R674m and operating margin remained constant around 9% and NAV increased to R170m.
2018 will see the retail arm, Safari & Outdoor, open a 5th store towards the third quarter. The industry remains under
pressure due to currency fluctuations and excessive industry stock levels as international brands all compete for larger
stakes in the South African market.
6. College SA
College SA houses our education-focused assets. This tertiary education group serves students under three brands,
namely “College SA”, “Tabaldi Online Accounting Classroom” and “IASeminars”. Through these three brands, the business
served almost 5 400 active students last year, compared to 5 000 the year before.
At College SA, the Technical and Vocational Education and Training college, sales fell by 29.6% during the year, which is
contrary to what one would have expected given the fantastic opportunity created by a combination of government’s
continuous under-spending on all areas related to education, and the growing demand for education. The narrative around
“Free Tertiary Education” and #Feesmustfall has certainly also played its part in encouraging students to delay enrolments,
cancel existing courses or simply just stop paying. Ironically, the increased tax burden on consumers to pay for so-called
free education has contributed to creating such tough economic circumstances for the average South African, that their
ability to pay for many necessities, including education, has been impacted.
IASeminars experienced decent sales growth, topping the previous year by 33,5%. This was driven by a combination of
repeat-customers, together with a pick-up in the roll-out of IPSAS, the accounting standard for non-public institutions.
At Tabaldi the team delivered its first product to the market in time for enrolment season 2018. The program supports
CTA students through UNISA and students from other universities requiring higher levels of support. In the meantime, the
team is developing further products as we increase the range of qualifications we support, facilitate and eventually will
offer.
Our valuation for the College SA group reflects the reduced profitability of College SA and our conservative approach in
valuing the qualifications we are busy developing, but from which we are yet to receive any revenue. The valuation for
IASeminars was impacted by a strengthening of the Rand over the last year.
7. DAWN
RAC owns 16,8% of DAWN, a building supplies business. We first invested into DAWN just over a year ago, when we
supported an emergency rights issue at (what we thought was) a deeply discounted price. We were of the opinion that
our patient and supportive shareholding would help the business buy time to execute a turnaround strategy, as our
experience with turnarounds has been that it typically takes longer than expected. Unfortunately, DAWN appears to be no
exception. We are putting a lot of time and energy into assisting management with the turnaround. We trust that our
combined effort will bear fruit in time to come.
With UCP (previously Sentula) we learnt some lessons about turnarounds:
• The price you pay for most investments is key to the investment outcome. For turnarounds, price is even more
important. Unfortunately, we got this horribly wrong with DAWN.
• It is key to have a strong hand on the tiller, who is working for shareholders. Acting in the best interests of shareholders
means that hard decisions get taken. We have seen too many struggling businesses being run mainly for the benefit
of management, leading to short-term “easy” decisions being made. Ultimately these decisions lead to the complete
downfall of the business.
• Before the business finally turns around there are many times that it looks more likely to fall over. You need to have
management and shareholders fully aligned and working together to prevent this from happening. And even this is no
guarantee of success.
• Even if you can get alignment between the different stakeholders, you still need the cycle to turn positive (or at least
not decline further).
• And finally, you need that important ingredient in most business success stories, good luck.
8. La Concorde
RAC owns 5,1% of La Concorde, an unlisted company. HCI, the ultimate controlling shareholder, has been actively
unlocking value over the past few years. Initially, they sold the operational assets for a cash amount more than double
the value implied by the market price of La Concorde at the time. Two special dividends totaling R4,62 per share were
then paid. A new business was injected into the shell, and unbundled to LC shareholders. Additionally, we are still left
with the stub of remaining assets (mainly property and art) which is worth at least R2,50 per share. We have had an offer
at this level, which we declined.
9. RECM Flexible Value Hedge Fund
We are firm believers in learning from one’s experiences. As discussed in some of our previous letters to you, our
experience in RAC has pointed us in the direction of having larger investments in private companies that we understand
and where we have significant influence. Not because we have any superior skills at ‘controlling’ companies, but mostly
because this kind of set-up changes the dynamics between us, our fellow investors and the management teams of the
businesses. A working relationship like we have at Goldrush, Outdoor Investment Holdings, College SA or UCP is just
not attainable with small holdings in public listed securities, despite our best efforts.
However, by the time we had come to this decision, we still had investments in a number of such positions which we
acquired during the earlier part of our journey. These investments still offered significant return potential and we did not
want to dispose of them straight away. So, when our sister company, RECM, launched their deep value hedge fund, we
were day-1 investors through the contribution of our holdings in ELB, KLK, Putprop and York in exchange for units in the
fund. The fund utilises a Collective investment Scheme structure that has many benefits to investors such as RAC –
long-term orientated, tax sensitive, patient and the pursuit of exceptional – albeit volatile – returns. RECM has since raised
further capital for the fund. And we have to complement them on the caliber of investors they have managed to attract
as our co-investors in the fund. The share register of any fund, but even more so for this fund, is as important as the
asset register.
This fund recently celebrated its one-year anniversary. In the context of the it’s objective, this is a very short time period.
However, we are pleased that the fund has outperformed the JSE All Share Index during that period. Even better than
this was the way in which these returns have been achieved. The investments in the fund could be classified under the
labels of “Investor Disgust”, “Neglect”, “Illiquid”, “Complicated”, “Net Asset Plays”, “Opportunistic”, “Unlisted” and even
in a few cases as “Overvalued” or “Over Levered”, but for the most – completely outside the ambit of any Exchange
Traded Fund or index tracker. For the proverbial enterprising investor from Ben Graham’s book The Intelligent Investor,
the South African markets have dished up a wonderful investment landscape for this particular mandate.
10. Conduit Capital
RAC owns 2,3% of Conduit Capital, a listed specialist insurance and investment business. We have a high regard for
management and their business and investment strategy. Our shareholding has remained unchanged, and we value
Conduit at its listed price. More information can be found at www.conduit.co.za.
11. Exits
During the course of the year we sold out of Sovereign Holdings, a listed producer of poultry products. Our gain was in
excess of 70% over the holding period.
We also sold our entire holding in Excellerate as an opportunity presented itself in the form of a private buyer. We originally
paid R1,23 per share for our stake in 2012. When the company delisted from the JSE our structure allowed us to stay
invested while many other investors were prohibited from following the investment private in their mandates and funds.
Our latest carrying value of Excellerate was R2,80 per share, the price of the last trade we could identify. The stake was
sold for R5,40 per share in March of this year. This represents growth of 24% p.a. for the duration of the investment.
Excellerate represents yet another investment that was held at the lower end of the fair value range, and that we were
able to exit at a price well above our carrying value because we could act at the right time.
Events subsequent to year-end
• RAC made an offer to acquire up to 100% of Astoria. As described above, a successful conclusion of this transaction
could unlock significant value in RAC.
• RAC concluded agreements to become a 49% shareholder of ISA Carstens Holdings, a private tertiary education institution
which provides tuition in the health and wellness industry. ISA Carstens has campuses, including boarding facilities for
students, in Stellenbosch and Pretoria. Through the transaction, we become partners with the founding family that built
the business over the last 40 years.
• La Concorde unbundled its shareholding of HPLR (Hosken Passenger and Rail, the owners of, amongst others, Golden
Arrow Bus Services), in the ratio of 2 HPLR shares for every LC share.
Our Strategy
To become an exceptional investment business is simple but not easy. To do so requires consistent execution on a sensible
strategy. We are proud to have grown our NAV per share at above market rates, even including our missteps in execution. We
can’t blame the weather, politicians or the economy – our mistakes are our own, to live with forever. But by applying our
strategy ruthlessly, we can minimize the effect of these (inevitable) errors of judgement.
Our strategy consists of controlling:
a. What we buy and what price we pay
We prefer capital-light businesses that are scalable. We also prefer honest politicians. Unfortunately, both are scarce. So
far, we have invested over 80% of our capital in our preferred type of businesses. But, having a “grand strategy” generally
does not sit well with us. We prefer to be flexible in our thinking, and opportunistic in execution.
Given the current condition of the economy (poor), we are finding opportunities in capital-intensive businesses and
turnarounds, due to the prices at which these type of businesses are becoming available (low).
Regardless of the type of business we invest in, we think the price we pay will be an important determinant of whether the
investment turns out successfully. We cannot avoid risk, we can only manage it, and the best risk management tool is still
the price one pays for an asset.
Many transactions are consummated in a competitive auction-based environment. The winner ends up paying the highest
price, often a price that destroys value for the buyer. A good way of thinking about the winner in a competitive process is
as the bidder who is happy to receive the least for every single unit of their money. We try hard not to be that person.
b. Who we choose to partner with
We think the people we choose to partner with in our companies, are as important as the price we pay. Sometimes it
turns out to be even more important. Over the long-term, a person’s character has a strong positive correlation with
success. Character also informs how people choose to deal with adversity, of which any business will face its fair share
over time.
The deal is simple: we leave our managers alone to manage their businesses as best they see fit. In return, our structure
provides a long-term home for them, safe from the vagaries and short-term demands of the stock market. To execute on
this simple strategy successfully requires a high level of mutual trust. In building trust, character is key.
c. The leakages in the system – fees, costs, taxes
When we examine why investment companies tend to trade at discount to NAV it ultimately boils down to leakages from
the system. As such we work hard to minimize leakages.
RAC’s main cost is its contractual management fee.
It is also useful to look at many other listed businesses through our lens – that of an investment holding company. Many
listed so-called operational businesses are actually more akin to investment companies such as RAC. They own a fairly
diverse set of businesses with no apparent synergies. They would generally be better off doing away with their head office
(staff and building!), devolving control down to the operating entities and instituting a monitoring fee to pay the costs of a
small team of capital allocators at the top. Of course, given the incentives at play, that is an unlikely outcome. At RAC, we
recognise that our different investee companies are unashamedly unrelated, and there would be no synergies if we were
to merge them. As such, it would be ridiculous to create a “head office” to manage them. Our “head office” is represented
by our 1% management fee. We think this fee actually represents a good deal for our shareholders. If RAC were to do
away with the contractual fee, and institute variable costs in line with the costs at similarly sized “operational” companies,
shareholders would be worse off. Of course, at a certain size this argument will not hold. At that time, we will review our
position.
The second leakage – tax – is unavoidable. But it is possible to delay the actual payment thereof. Deferred taxes allow
us to retain capital temporarily, and in so doing, compound more capital at our (hopefully) high internal rate. So, although
we deduct full CGT in calculating our NAV – which is a more conservative practice than at many other investment
companies – we get to use the capital until we actually have to pay the tax, generally when we exit the investment. So
far, most of our exits have been executed in ways that ultimately led to less tax being paid than we had provided for. This
represents another layer of conservatism in our stated NAV.
We have a good track record in controlling these leakages, and will continue to focus on these “controllables” relentlessly.
Our Structure
Our investment strategy has played, and will continue to play an important role in our success. But our structure also has an
important role to play. At year-end, control of the Company vests with the two of us, through our holding in the ordinary
shares of the company. Theunis remains our partner in a non-executive capacity. He also remains a significant shareholder
in the business.
As a group, we continued to increase our shareholding in the business. When we interrogate our shareholders register, it
appears that there is only one other investor (an institution on behalf of its clients) which holds a bigger economic interest in
RAC than the three of us. We have skin in this game. If you ever wonder about which way potential conflicts between the
management fee and the NAV per share in this business get resolved, we would refer you back to this section of our letter.
The three of us all have a very long investment horizon. We plan to remain invested in, and managing the affairs of RAC for
a very, very long time. Most investment partnerships do not last a long time, as the partners have different views on important
issues. Our partnership disagrees on many things, but not the important ones mentioned above in the strategy section.
We do not intend to pay dividends, given that the tax on dividends is roughly the same as CGT for most investors. If you
need income, you can sell some of your shares when it suits you. This way you have much more flexibility and control over
how and when you want to create a tax liability.
The Future
We believe our intrinsic value is growing at a rate well in excess of our accounting NAV. We are loath to mark our assets up
too far, as the proof of value only really comes out in transactions. Accounting “fair value” is based on observed market
prices, which in turn are driven by the exchange of small amounts of shares between minority shareholders. It is only when
an informed buyer buys a significant stake in a business from an informed seller that true “fair value” can be established.
Last year, we had a perfect example of such a situation. Our investment in Dischem was realized at an amount of R187m in
excess of our prior carrying value, or a good R3,61 per RAC share. This year, we had a similar, albeit smaller, realisation. We
sold our stake in Excellerate for R64,5m, or R5,40 per share. Prior to the transaction we were carrying it at an accounting fair
value of R34,6m, or R2,80 per share, which was the last observed traded price. The transaction added around 60 cps to our
NAV.
We expect similar realisations to occur in future – we just don’t know the timing or magnitude thereof. In fact, subsequent to
year end, La Concorde’s controlling shareholder, HCI, has set about crystallising the intrinsic value of that business. RAC had
been carrying La Concorde at a fair value of R12,50 per share, and had accrued around R1 per La Concorde share of capital
gains tax (“CGT”) liabilities. Through HCI’s efforts, we have so far received around R19,00 per La Concorde share in value,
and we think there might be more to come. On top of that, HCI has executed the transaction in a tax efficient manner, relieving
us of any CGT liability. In total, the realisation of La Concorde adds around 50cps to our stated year end NAV already.
As we said last year, negative economic environments increase the odds of RAC being able to buy good companies run by
good people at a good price. This is exactly what has happened – we are now (more than) fully invested. The Astoria
transaction – if successful – will provide us with more firepower to add to our portfolio of businesses, without diluting our
existing shareholders.
Despite all the negative sentiment around South Africa, we are optimistic about the future. 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.
Please bear in mind – 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.
We are intensely aware of the lopsided relationship between the responsibility our non-executive directors assume these days
and the reward they receive for this. You can never pay Gerhard, Zanele and Trent enough for the sterling job they do of
providing sounding boards and guidance. We would like to thank them for this and so should you.
We appreciate the people in charge of our investee companies. Not only do we enjoy working with them, but with their various
teams, they do all the heavy lifting, allowing us to get on with the fun job of exploring investment opportunities.
Finally, to all our shareholders – thank you for entrusting your capital to us. The lack of liquidity in our shares shows that you
have turned out to be a loyal bunch. In every allegation about illiquidity in our shares, we read a complement to you. As we
see it, liquidity is a prerequisite only for someone that wants to move pieces of paper around. The lack of liquidity in our shares
is a testament to the quality of the investors on our shareholders register.
However, we do understand that there are some valid reasons why an investor would need to sell shares, and low liquidity
might prevent them from getting a fair price. Our endeavors to provide an environment in which RAC shares trade around fair
value include consistent communication, fair dealing with all shareholders and generating a good track record. Despite success
on all three fronts, the current share price suggests that we have failed in this specific endeavor. We have no doubt that liquidity
will improve in future.
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 Wednesday, 25 July 2018 at the Southern Sun
Hotel in Newlands, Cape Town, at 11:00. At the meeting, we look forward to discussing our investment operations, and
answering as many questions as you have. Some of our CEOs 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 Jan van Niekerk
Executive Chairman Executive Financial Director
Cape Town
18 June 2018
Statement of financial position at 31 March 2018
2018 2017
Notes R R
ASSETS
Non-current assets 1 420 152 165 1 396 876 924
Investments 5 1 420 152 165 1 396 876 924
Current assets 1 350 670 2 681 458
Investments 5 1 094 061 2 409 514
Current tax receivable 221 365 223 307
Cash and cash equivalents 35 244 48 637
Total assets 1 421 502 835 1 399 558 382
EQUITY AND LIABILITIES
Equity 1 420 679 967 1 398 789 332
Share capital – ordinary shareholders 18 206 250 18 206 250
Share capital – preference shareholders 506 296 000 506 296 000
Retained income 896 177 717 874 287 082
Liabilities
Current liabilities 822 868 769 050
Trade and other payables 822 868 769 050
Total equity and liabilities 1 421 502 835 1 399 558 382
Net asset value
Net asset value attributable to ordinary shareholders 104 155 423 102 550 538
Net asset value attributable to preference shareholders 1 316 524 544 1 296 238 794
Net asset value per ordinary share (cents) 2 777 2 735
Net asset value per preference share (cents) 2 777 2 735
Statement of comprehensive income for the year ended 31 March 2018
2018 2017
Notes R R
Revenue 110 219 30 163 291
Operating expenses (1 463 996) (1 517 457)
Operating profit (1 353 777) 28 645 834
Fair value gains on subsidiary 23 275 241 362 590 140
Profit before taxation 21 921 464 391 235 974
Taxation (30 829) (50 208)
Profit for the year 21 890 635 391 185 766
Other comprehensive income for the year net of taxation – –
Total comprehensive income 21 890 635 391 185 766
Earnings and headline earnings per share
Per share information (ordinary and preference)
Basic and diluted earnings per share (cents) 6 43 765
Basic and diluted headline earnings per share (cents) 6 43 765
Statement of changes in equity for the year ended 31 March 2018
Total
Preference Ordinary share-
share share Retained holders’
capital capital income equity
R R R R
Balance at 31 March 2016 450 000 000 50 000 000 483 101 316 983 101 316
Profit for the year – – 391 185 766 391 185 766
Share issues 56 296 000 – – 56 296 000
Share buy back – (31 793 750) – (31 793 750)
Balance at 31 March 2017 506 296 000 18 206 250 874 287 082 1 398 789 332
Profit for the year – – 21 890 635 21 890 635
Balance at 31 March 2018 506 296 000 18 206 250 896 177 717 1 420 679 967
Statement of cash flows for the year ended 31 March 2018
2018 2017
R R
Cash flows from operating activities
Cash utilised in operations (1 410 178) (2 252 759)
Interest income 672 169 541
Dividends received – 3 500 000
Tax paid (28 887) (339 784)
Net cash (outflow)/inflow from operating activities (1 438 393) 1 076 998
Cash flows from investing activities
Sale/(purchase) of investments 1 425 000 (2 409 514)
Net cash outflow from investing activities 1 425 000 (2 409 514)
Net movement in cash and cash equivalents (13 393) (1 332 516)
Cash and cash equivalents at the beginning of the year 48 637 1 381 153
Cash and cash equivalents at the end of year 35 244 48 637
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.
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 from capital appreciation, investment income or both.
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.
Given that the majority of investments are held through RIH, RAC has provided the fair value disclosure in two parts in
note 5. Notes 5.1 and 5.3 disclose the investment in RIH as required by IFRS and notes 5.2 and 5.4 provide additional
disclosures that the directors deem useful by looking through RIH and RIH’s wholly owned subsidiary Livingstone
Investments (Pty) Ltd (“Livingstone”) to the underlying investments. All fair value movements on the investment in RIH are
recognised in profit or loss.
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 5 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 applied the exemption in IAS 28 to carry
any interests in associates and joint ventures at fair value through profit or loss. Such application 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 report.
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. 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, which
exclude the shareholders’ letter, 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 2018 available for
download from www.racltd.co.za.
2018 2017
R R
5. INVESTMENTS
Fair value hierarchy of financial assets
Level 2
Class 4 – Money market fund 1 094 061 2 409 514
1 094 061 2 409 514
Level 3
Class 5 – Unlisted shares – Unquoted – fair value through profit or loss 1 420 152 165 1 396 876 924
1 420 152 165 1 396 876 924
Total financial assets at fair value 1 421 246 226 1 399 286 438
Total assets at fair value through profit or loss 1 421 246 226 1 399 286 438
Non-current assets - fair value through profit or loss 1 420 152 165 1 396 876 924
Current assets - fair value through profit or loss 1 094 061 2 409 514
Total investments 1 421 246 226 1 399 286 438
Management classifies money market fund as current and
other investments as non-current.
Level 3 reconciliation
Opening balance 1 396 876 924 983 290 784
Purchases – 50 996 000
Gains on investments recognised in profit or loss 23 275 241 362 590 140
Closing balance 1 420 152 165 1 396 876 924
Level 1
Class 1 financial assets are valued at the listed price per the exchange on which they trade.
Class 2 financial assets are valued at the quoted price based on the latest over the counter trades.
Level 2
Class 3 financial assets are valued based on the price of the underlying assets.
Class 4 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
Class 6 financial assets are unlisted shares valued at the last traded price between third parties if the transaction occurred
within the last 6 months.
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 as applicable:
• 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 as applicable 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. Management are responsible for preparing the valuations which are reviewed by the Audit and Risk
Committee and approved by the Board.
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 investment entity subsidiaries, RIH and Livingstone, 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.
2018 2017
R R
Fair value hierarchy of financial assets held by RAC Investment
Holdings (Pty) Ltd and Livingstone Investments (Pty) Ltd
Level 1
Class 1 – Listed shares – Quoted 565 781 986 205 119 811
Class 2 – Unlisted shares – Quoted 43 874 788 55 550 183
609 656 774 260 669 994
Level 2
Class 3 – Derivative instruments – 130 879 183
Class 3 – Hedge fund 42 401 775 –
Class 4 – Money market fund 72 433 269 158 886 872
Class 6 – Unlisted shares – Last traded price – available for sale – 34 031 981
Class 6 – Unlisted shares – Last traded price – fair value through
profit or loss – 49 736 932
114 835 044 373 534 968
Level 3
Class 5 – Unlisted shares – Unquoted – available-for-sale 4 597 611 4 038 769
Class 5 – Unlisted shares – Unquoted – fair value through profit or loss 1 165 762 769 993 249 079
1 170 360 380 997 287 848
Total financial assets at fair value 1 894 852 198 1 631 492 810
Non-current assets 1 822 418 929 1 472 605 938
Current assets 72 433 269 158 886 872
Total investments 1 894 852 198 1 631 492 810
Summary of Net Asset Value of RIH and Livingstone
Total investments from above 1 894 852 198 1 631 492 810
Loans and receivables 68 016 765 56 749 640
Cash and cash equivalents 49 047 493 4 665 742
Deferred tax (126 589 276) (117 389 895)
Contingent consideration and options 16 209 881 (22 123 176)
Loans and payables (131 044 118) (6 518 197)
Preference shares (350 340 778) (150 000 000)
Net Asset Value of RIH and Livingstone 1 420 152 165 1 396 876 924
31 March 2018
5.1 Description of significant unobservable inputs and their sensitivities of RAC (level 3 investments).
Fair Significant
Valuation value unobservable Input
technique Rm inputs value Sensitivity
RAC NAV 1 420 Earnings and multiple N/A A change in the valuation techniques as
Investment of the underlying documented below would result in an increase in
Holdings investments (refer to fair value of R177,8m or decrease in fair value of
(“RIH”) breakdown below) 184,9m.
5.2 The below table shows the sensitivities per underlying investment held by RIH as if these were held directly by
RAC (level 3 investments).
Retail: Multiple 82,5 PBIT 6 A change in multiple by 1 would result in a change
Safari and in fair value of approximately R17,8m.
Outdoor;
(excluding
non-equity
invest-
ments)
Goldrush Multiple 941,1 EBITDAR 7 An increase or decrease in the EBITDAR multiple
Group by 1 would result in a change in fair value of
approximately R152,6m.
JB Private NAV 94,3 N/A N/A The NAV of the JB Private Equity Investors
Equity Partnership is directly linked to the underlying
Investors investment in Unicorn Capital Partners Limited
Partnership (which is listed on the JSE) and it 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% upward movement in the
Unicorn Capital Partners share price would have a
R2,3m impact on the
Partnership NAV, whereas as a 10% downward
movement in the share price would have a R9,4m
impact on NAV.
Education:
SA College Multiples 47,9 Sales 0,8 – 1 A change in multiple by 10% would result in a
(excluding change in fair value of approximately R4,4m.
non-equity
invest-
ments) NAV N/A N/A A change in 10% of the underlying bussinesses
would have a fair value impact of R0,7m
Other level 3 investments 4,6
Total 1 170,40
31 March 2017
5.3 Description of significant unobservable inputs and their sensitivities of RAC (level 3 investments).
Fair Significant
Valuation value unobservable Input
technique Rm inputs value Sensitivity
RAC NAV 1 397 Earnings and multiple N/A A change in the multiple of the underlying
Investment of the underlying investments by 1 would result in a change
Holdings investments (refer to in value of R106m.
(“RIH”) breakdown below)
5.4 The below table shows the sensitivities per underlying investment held by RIH as if these were held directly by
RAC (level 3 investments).
Retail: Multiples 49,9 EBITDA, Sales, PE 4–8 A change in multiple by 1 would result in an
Safari and increase in fair value of approximately R14m.
Outdoor;
(excluding
non-equity
invest-
ments)
Goldrush Multiples 816,4 EBITDAR 5–7 An increase or decrease in the EBITDAR multiple
Group by 1 would result in a change in fair value of our
investment of approximately R122m.
JB Private NAV 100,9 N/A N/A The NAV of the JB Private Equity Investors
Equity Partnership is directly linked to the underlying
Investors investment in Sentula Mining Limited which is listed
Partnership 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 R8,7m impact on the Partnership
NAV.
Mining:
West NAV 26,1 Valuation of mining 19% A multi-period excess earnings method was
Coast rights discount used to calculate the mining rights in WCR.
Resources rate A change in the value of the mining rights by
(excluding 10% would result in a R24,7m change in the NAV
non-equity of WCR.
invest-
ments)
Other level 3 investments 4,0
Total 997,3
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 hunting equipment industry has 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.
2018 2017
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 at year-end
Ordinary shares 3 750 000 3 750 000
Preference shares 47 400 000 47 400 000
Reconciliation of issued shares to weighted average number
of shares
Ordinary shares
Opening balance 3 750 000 5 000 000
Share buy back – (393 836)
Weighted average number of ordinary shares 3 750 000 4 606 164
Preference shares
Opening balance 47 400 000 45 000 000
Share issues – 1 534 795
Weighted average number of preference shares 47 400 000 46 534 795
Total weighted average number of shares 51 150 000 51 140 959
Earnings
Net profit after tax 21 890 635 391 185 766
Headline earnings 21 890 635 391 185 766
Basic and diluted earnings per ordinary and preference shares (cents) 43 765
Basic and diluted headline earnings per ordinary and
preference shares (cents) 43 765
7. SUBSEQUENT EVENTS
Subsequent to year-end the following significant transactions have occurred:
• RAC through its 100% held subsidiary, Livingstone Investments (Pty) Ltd, announced its intention to make an offer
to acquire up to 87 643 353 shares in Astoria Investments Limited in terms of a voluntary offer. As at the time of
signing the annual financial statements, the offer is subject to regulatory approval.
• Agreements were concluded for RIH fo become a 49% shareholder of ISA Carstens Holdings (Pty) Ltd for a
consideration of R35m.
• La Concorde unbundled its shareholding of HPLR (Hosken Passenger and Rail, the owners of, amongst others,
Golden Arrow Bus Services), in the ratio of 2 HPLR shares for every La Concorde share held resulting in RIH receiving
5,5m shares in HPLR.
Corporate information
RECM AND CALIBRE LIMITED AUDITORS
(“RAC” or “the Company”) Ernst & Young Inc.
Waterway House
COUNTRY OF INCORPORATION AND DOMICILE 3 Dock Road
South Africa V&A Waterfront
Cape Town 8001
NATURE OF BUSINESS AND PRINCIPAL ACTIVITIES (PO Box 656, Cape Town, 8000)
Investments as principal activities
SPONSOR
COMPANY REGISTRATION NUMBER Questco Corporate Advisory (Pty) Ltd
2009/012403/06 1st Floor, Yellowwood House
PREFERENCE SHARE CODE Ballywoods Office Park
RACP 33 Ballyclare Drive
Bryanston 2021
ISIN (PO Box 98956, Sloane Park, 2152)
ZAE000145041
TRANSFER SECRETARIES
DIRECTORS Link Market Services South Africa (Pty) Ltd
T de Bruyn (Non-Executive Director) 13th floor, Rennie House
Z Matlala (Independent Non-Executive Director) 19 Ameshoff Street
T Rossini (Independent Non-Executive Director) Braamfontein, 2004
JG Swiegers (Independent Non-Executive Director) (PO Box 4844, Johannesburg, 2001)
JC van Niekerk (Executive Financial Director)
PG Viljoen (Executive Chairman) BANKERS
The Standard Bank of South Africa Ltd
COMPANY SECRETARY Park Vista Building
G Simpson Cnr Hendrik Verwoerd & Embankment Street
Centurion
FINANCIAL STATEMENTS INTERNALLY COMPILED BY (PO Box 9633, Centurion, 0046)
D Schweizer – Chartered Accountant (S.A.)
ATTORNEYS
REGISTERED OFFICE AND BUSINESS ADDRESS Cliffe Dekker Hofmeyr
6th Floor, Claremont Central 11 Buitengracht Street
8 Vineyard Road Cape Town, 8001, South Africa
Claremont (PO Box 695, Cape Town, 8000)
Cape Town, 7700
FINANCIAL SERVICES PROVIDERS
POSTAL ADDRESS Regarding Capital Management (Pty) Ltd
PO Box 45040 RAC Advisory (Pty Ltd
Claremont 6th Floor, Claremont Central
7735 8 Vineyard Road
Claremont
TELEPHONE NUMBER Cape Town, 7700
(021) 657 3440 (PO Box 45040, Claremont, 7735)
EMAIL ADDRESS
info@recm.co.za
WEBSITE
www.racltd.co.za
Date: 20/06/2018 08:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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