CONDUIT CAPITAL LIMITED - Business Update and Initial Trading Statement

Business Update and Initial Trading Statement

CONDUIT CAPITAL LIMITED
Incorporated in the Republic of South Africa
(Registration number 1998/017351/06)
Share code: CND    ISIN: ZAE000073128
(“Conduit Capital” or “the Company”)


BUSINESS UPDATE AND INITIAL TRADING STATEMENT


Business Update

Shareholders of Conduit Capital are advised that the turnaround of Constantia Insurance Group (“Constantia”),
a wholly-owned insurance business of Conduit Capital, has continued during the 2021 financial year. A
substantial and sustained improvement in the underwriting profit and a permanent reduction in operating
expenses of 25% resulted in Constantia delivering a close to break-even operating result for the year ended
30 June 2021, compared to a R173 million operating loss in the prior period.

Excluding non-recurring legacy losses, Constantia’s operating profit would have been materially profitable
compared to the prior year. On that same basis, the combined ratio for the second half of the year was under
100%. We expect this trend to continue.

Constantia’s cash generation and cash position have improved, and the business has generated underwriting
profits for fifteen consecutive months.

In line with the cautionary announcement initially released on SENS on 15 April 2021, Constantia is in
discussions with third party investors to capitalise the business for growth.

Century 21, our real estate business, had its best year ever, growing revenue and operating profits by more
than 50%. The investment in ASOC Fund I is expected to be realised in the 2022 financial year, generating
material cash inflows for Conduit Capital.

Initial Trading Statement

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as
soon as they become reasonably certain that the financial results for the period to be reported on will differ by
more than 20% from that of the previous corresponding period.

Accordingly, a review by management of the financial results for the year ended 30 June 2021 has indicated
that:
-   the loss per share (“LPS”) is expected to decrease by at least 20%, reflecting an improvement compared to
    the LPS of 80.7 cents for the year ended 30 June 2020; and
-   the headline loss per share (“HLPS”) is expected to decrease by at least 20%, reflecting an improvement
    compared to the HLPS of 77.6 cents for the year ended 30 June 2020.

The financial information on which this trading statement is based has not been reviewed or reported on by the
Company’s auditors. A further trading statement will be released once the Company has a greater degree of
certainty with regards to its financial results for the year ended 30 June 2021.

Conduit Capital's financial results are expected to be released on SENS on or about 30 September 2021.


Johannesburg
27 July 2021

Sponsor
Merchantec Capital

Date: 27-07-2021 04:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.