The Covid-19 pandemic and the resulting lockdown measures have brought desperation and devastation upon millions. In South Africa, lives and livelihoods have been lost, with household finances decimated and many going hungry in large parts of our country. The pandemic has evolved into the worst unemployment crisis in modern time and consequently, as lives are inevitably linked to livelihoods, a humanitarian disaster. Multidisciplinary research group Pandemic Data and Analytics (PANDA) predict that the years of life lost due to the dire effect of the extended lockdown on our economy will far exceed the loss of lives from the virus, dispelling the false dichotomy of “lives versus livelihood”.

These are calamitous consequences for a country that was already facing many challenges with weak economic fundamentals before the onslaught of this crisis. The very fabric of South African society has been attacked with the continual dislodgement of risk perceptions of the virus from actual risks.

The imposition of the extended strict lockdown measures has threatened the survivability of many businesses, forcing them to restructure or close down. In response to the majority of South African Small and Medium Enterprises (SMEs) experiencing financial and operational stress due to the Covid-19 pandemic, Remgro donated R500 million to The South African SME Relief Trust (The SA SME Relief Trust). The SA SME Relief Trust established The Sukuma Fund within days of lockdown to provide emergency relief to small businesses and is administered by Business Partners Limited. By the middle of August 2020, financial assistance of more than R750 million had been committed to more than 3 400 small businesses, positively affecting more than 31 000 employees.

The Remgro Management Board also voluntarily decided to forego 30% of their salaries for the months of April, May and June 2020. The savings to the Company generated from this reduction in salaries was also paid to The Sukuma Fund.

This crisis is one of unknown unknowns and managing the crisis is the number one priority for us and all of our investee companies. Our focus is on the factors within our control, the health and well-being of our people, ensuring that our investments have the most robust financial positions to support business continuity and making sure that underlying investee companies that are in a position to offer help to the country are enabled to do so. Remgro would like to thank its underlying investees for the support and assistance offered to the country during this crisis in the spirit of being a force for good.

The pandemic and lockdown measures have had a widespread direct and indirect impact on most of Remgro’s underlying investee companies. The economy has and will certainly continue to suffer severe short to medium term hardship, with the long-term impact difficult to predict, but we have faith in our Group’s ability, largely due to our prudent investment strategy and low gearing ratios, to weather this storm and overcome the unique challenges that this crisis presents.

RMH Unbundling

During June 2020, Remgro completed the unbundling of its 28.2% interest in RMB Holdings Limited (RMH) (RMH Unbundling) to its shareholders. Remgro has a history of efficiently unbundling investments that have reached a matured profile and a certain level of independency – the metaphorical child leaving home – and although the RMH Unbundling marked the end of an era, it is also considered as an inflection point for Remgro.

Mediclinic International plc has replaced the banking investment (being the interests in FirstRand Limited and RMH) as our largest investment and our portfolio has been rebalanced with an increase in the unlisted investments’ weighting, which remains in line with our investment philosophy.

Remgro’s investment thesis remains intact and we believe we have an attractive portfolio of assets, the ability to adapt to a changing environment and meaningful capacity for further growth and shareholder value creation.


As a result of the RMH Unbundling, earnings and headline earnings measures are presented for continuing operations and discontinued operations. The investment in RMH is treated as a discontinued operation.

For the year to 30 June 2020, total headline earnings decreased by 61.4% from R8 195 million to R3 167 million, while total headline earnings per share (HEPS) decreased by 61.3% from 1 448.9 cents to 560.6 cents. Headline earnings and HEPS from continuing operations decreased by 68.7% from R5 551 million to R1 737 million and from 981.4 cents to 307.5 cents, respectively.

Remgro’s intrinsic net asset value per share decreased by 33.7% from R233.03 at 30 June 2019 to R154.47 at 30 June 2020. The closing share price at 30 June 2020 was R99.90 (30 June 2019: R187.90), representing a discount of 35.3% (30 June 2019: 19.4%) to the intrinsic net asset value. As at 30 June 2020, 38% of Remgro’s underlying investee companies was represented by unlisted investments (2019: 23%).


The Board has approved a final dividend of 50 cents (2019: 349 cents) per share. The final dividend was adjusted downwards to take into account the RMH Unbundling and the impact of the Covid-19 pandemic. The total ordinary dividends per share in respect of the year to 30 June 2020 thus amounted to 265 cents (2019: 564 cents).


Remgro is fully committed to managing its business in a sustainable way and upholding the highest standards of ethics and corporate governance practices. The Board of Directors is ultimately accountable for the performance of the Company, appreciating that strategy, risk, performance and sustainability are inseparable.

Our governance framework is based on the principles contained in the King IV Report on Corporate Governance for South Africa (2016) and we are satisfied that the Company has applied those principles during the year under review. We further believe that the Board’s current members possess the required collective skills, experience and diversity to carry out its responsibilities to achieve the Group’s objectives and create shareholder value over the long term.


On 28 November 2019, various changes were made to the Board.

Two long-serving non-executive directors retired, namely Dr E de la H Hertzog as co-deputy Chairman and Mr G T Ferreira as the lead independent non-executive director. The Board will miss their knowledgeable contributions and would like to thank them for their wise counsel and valuable support during their tenure.

Mr F Robertson was appointed as co-deputy Chairman alongside Mr J Malherbe and Ms S E N De Bruyn was appointed as the lead independent non-executive director of the Board. Mr P J Moleketi was appointed as a member of the Remuneration and Nomination Committee.

Mr P J Neethling was appointed as non-executive director and Mr G G Nieuwoudt as an independent non-executive director and member of the Investment Committee. Mr K M S Rantloane was appointed as an alternate independent non-executive director to Mr P K Harris. The Board wishes to welcome Messrs P J Neethling, G G Nieuwoudt and K M S Rantloane as directors to the Company, whose biographical details can be found here.

On 28 November 2019 Mr Raymond Ndlovu accepted the position of CEO at Community Investment Ventures Holdings Proprietary Limited and therefore resigned as a member of the Remgro Management Board. We wish to extend our appreciation to Mr Ndlovu for his contribution to the Management Board and wish him success in his new role.


Our thoughts and deepest sympathies are with those families who have lost loved ones to this pandemic. We wish you strength, support and comfort during this most difficult time.

We thank the shareholders for their continued confidence amidst uncertainty; the managing directors and all our colleagues in the various investee companies for their role in safeguarding their people and businesses and their wider contribution to the communities they operate in; all other directors, officials and employees for their dedication and perseverance; and all parties that have rendered services during this period.

Johann Rupert 

28 September 2020