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Condensed Consolidated Unaudited Results for the Six Months Ended 31 December 2020
CONDUIT CAPITAL LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1998/017351/06)
Share code: CND ISIN: ZAE000073128
(“Conduit” or “Conduit Capital” or “the Group”)
CONDENSED CONSOLIDATED UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the full announcement and does not contain full or complete details. The full
announcement is available at: https://senspdf.jse.co.za/documents/2021/jse/isse/cnd/interim21.pdf
and also published on the Group’s website at www.conduitcapital.co.za. Any investment decisions
should be based on consideration of the full announcement. A presentation relating to the results
announcement is available at: https://www.conduitcapital.co.za/presentations.php
The full announcement is also available on request by emailing results@conduitcapital.co.za.
FINANCIAL HIGHLIGHTS
Unaudited
six months ended Dec ‘20 vs
six months ended Dec ‘19
- Gross written premium 14.4% to R954.8 million
- Net premium income as reported 20.1% to R134.8 million
- Net premium income excluding solvency reinsurance 18.1% to R855.9 million
- Operating result from insurance operations from R126.3 million loss to R1.8m profit
- Loss per share from 43.8 cents to 7.5 cents
- Headline loss per share from 42.4 cents to 8.4 cents
- Net asset value per share from 61.7 cents to 16.3 cents
- Weighted average number of
shares in issue (’000) 1.5% to 691,738
The turnaround in the performance of Conduit is pleasing and has continued into the new financial
year.
Conduit’s insurance business, the Constantia Insurance Group (“CIG”), achieved a combined ratio of
99.8% for the six months to 31 December 2020 (“current period”) compared to 111.3% in the prior
comparable period.
In February 2020, a new leadership team was introduced to CIG. Since then, CIG has produced ten
consecutive months of underwriting profits 1 and a combined ratio below 100%. For the current period,
CIG delivered an insurance operating profit of R1.8 million compared to a R126.3 million operating loss
in the comparative period. This is a remarkable and sustainable turnaround of the business of which
we are very proud.
Underwriting profitability increased by an estimated R91.5 million for the current period compared to
the prior period. Net cash generated from group operations during the 11 months since the leadership
change at CIG and excluding once-off costs and losses from discontinued business lines, was R47.7
1 Underwriting profits is calculated before operating expenses.
million. Since the leadership change in February 2020, cumulative underwriting profits have amounted
to R186.7 million.
The insurance operating result for the period under review includes R25.7 million in non-repeating
losses from discontinued businesses, R8.8 million in once-off transaction costs, as well as various
Covid-19 related provisions. Without these costs the insurance operating result would be substantially
positive, and the combined ratio would be closer to our long-term target of 95%. The momentum in
the business has continued through January 2021.
The Group’s listed investments remain under price pressure, however business intrinsic value has held
firm or improved, and the gap between reasonable fair value and market price is extremely wide.
Century 21 increased sales by 45% off a relatively fixed cost base, as low interest rates increased home
sales. ASOC Fund 1 is expected to realise some of their investments at a profit during the course of the
calendar year.
Johannesburg
22 February 2021
Directors:
Executive directors: Sean Riskowitz (Chief Executive Officer), Bianca Yan (Financial Director)
Non-executive directors: Ronald Napier (Chairman)*, Leo Chou, Adrian J Maizey, Nonzukiso
Siyotula*, William N Thorndike Jr.*
* Independent
Company secretary: CIS Company Secretaries Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, Johannesburg, 2196
Registered address: Nicol Main Office Park, Building B, 2 Bruton Road, Bryanston, Sandton,
2191
Postal address: PO Box 97, Melrose Arch, 2076
Transfer secretaries: Computershare Investor Services Proprietary Limited, Rosebank Towers,
15 Biermann Avenue, Rosebank, Johannesburg, 2196
Sponsor: Merchantec Capital
Date: 22-02-2021 05:16:00
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