Summarised group unaudited interim financial highlights for the six months ended 30 June 2016

Commentary to Summarised Group Interim Financial Statements

Loss for the period

The majority of income recognised in the period under review was derived from dividends and interest received on investments. The company recorded a net loss of R6.2m for the period compared to a profit of R0.3m for the corresponding period last year. This was as a result of minimal recoveries during the current reporting period and an increase in expenditure,
partly offset by increased interest received.

Financial position

R&E is liquid with no interest-bearing debt. R&E’s total assets consist primarily of cash and cash equivalents. R&E had a net asset value of R2.27 per share at 30 June 2016 (R2.34 per share at 31 December 2015). The decrease in net asset value is due to the loss incurred for the period.

Cash flow

R&E started the year under review with a cash and cash equivalent balance of R175.9 million. Operating activities utilised net cash of R11.9 million, primarily as a result of interest received of R7.4 million and recoveries of R750 000 offsetting net cash utilised in operations of R20.05 million.

Investment activities utilised cash of R70 000, primarily from the net acquisition of investments in listed equity securities of R207 000 and dividends received of R137 000. R&E remains in a healthy cash position with R170.5 million in cash and cash equivalents at 30 June 2016.


The outlook for the balance of the year is largely dependent on the progress and outcome of legal proceedings in which the company is engaged. Legal expenses for the balance of the year are expected to be at a similar level. Management will continue to approach all legal matters and related expenses in a commercially pragmatic manner.

David Kovarsky 
Chairman Chief

Marais Steyn
Executive Officer

20 September 2016


For the six months ended
30 June 2016
30 June 2015
% Change
Basic and diluted (loss)/earnings per ordinary share
Basic and diluted (loss)/earnings for the period (R’000) (6 206) 336 (1 951.65%)
Weighted average number of ordinary shares in issue (’000) 71 585 71 585
(Loss)/earnings per share (cents) (8.67) 0.47 (1 951.65%)
Headline and diluted headline (loss)/earnings per ordinary share
Headline and diluted headline (loss)/earnings for the period (R’000) (6 206) 336 (1 951.65%)
Weighted average number of ordinary shares in issue (’000) 71 585 71 585
Headline (loss)/earnings per share (cents) (8.67) 0.47 (1 951.65%)
Net asset and tangible net asset value per share
The net asset value per share is calculated using the following variables:
Net asset value (R’000) 162 343 162 575 (0.14%)
Ordinary shares outstanding (’000) 71 585 71 585
Net asset value per share (cents) 226.8 227.1 (0.14%)
Net tangible asset value per share (cents) 226.8 227.1 (0.14%)
Net asset value per share (cents) 226.8 227.1 (0.14%)
Net tangible asset value per share (cents) 226.8 227.1 (0.14%)
Loss from operating activities (13 615) (5 475) (148.64%)

Notice to shareholders

This announcement contains only a summary of the information contained in the full announcement made on SENS on Tuesday, 20 September 2016 (Full Announcement). Please refer to the Full Announcement for additional information. The Full Announcement is available for viewing on R&E’s website at or may be requested and obtained in person, at no charge, at the registered office of the company or the company’s sponsor during office hours. Any investment decisions by investors and/or shareholders should be based on consideration of the Full Announcement made on SENS. This short-form announcement is the responsibility of the R&E board of directors.

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