CAPE TOWN – Rand Merchant Investment Holdings (RMI)’s share price fell up 3.1 percent yesterday after reporting lower earnings in line with that of its investments in the financial services sector. Normalised earnings a share fell 8 percent to R2.1 billion in the six months to December 31 2019, much in line with the decline in earnings of most of its investments.
The share price traded at R31.91 just after 1pm yesterday. The price has fallen by about 10% since the beginning of January.
The group holds 25 percent of Discovery, 29.9 percent of Hastings in the UK, 27.3 percent of MMI Holdings, 89.1 percent of OUTsurance, 100 percent of RMI Investment Managers and 100 percent of AlphaCode - the portfolio hasn’t changed since last year.
The cash dividend was however raised 15% to 45c per share.
The compound shareholders’ return since listing in 2011 was 20.3 percent per year, the company said in its published results yesterday.
BUSINESS REPORT ONLINE