RECM and Calibre Limited (RAC) has released its audited financial results for the fiscal year ended 31 March 2024. The report was published on 25 June 2024, detailing a challenging year for the company with notable declines in key financial metrics.
Financial Highlights
Net Asset Value Per Share
The net asset value per share (ordinary and preference shares) fell to R14.15 from R14.66 in the previous period. This decrease reflects a challenging market environment and operational hurdles faced during the year.
Earnings Per Share
Headline earnings and basic earnings per share (ordinary and preference shares) saw a significant drop. The company reported a loss of 51 cents per share, compared to earnings of 62 cents per share in the previous period. This shift underscores the financial difficulties RAC encountered over the past year.
Income and Profit
Income decreased dramatically to R1,548,259 from R22,203,298 in the comparative period. Similarly, net profit before tax plummeted to a loss of R25,546,495 from a profit of R31,179,323 in the prior year. These figures highlight the stark contrast in financial performance year-over-year.
| Financial Metric | Year Ended 31 March 2024 | Year Ended 31 March 2023 |
|---|---|---|
| Net Asset Value Per Share | R14.15 | R14.66 |
| Headline Earnings Per Share | -51 cents | 62 cents |
| Basic Earnings Per Share | -51 cents | 62 cents |
| Income | R1,548,259 | R22,203,298 |
| Net Profit Before Tax | -R25,546,495 | R31,179,323 |
Dividend Declaration
No cash dividend was declared for the current or comparative period. This decision reflects the company’s cautious approach in managing its financial resources amid ongoing challenges.
Audit Report
The audit for the financial year ended 31 March 2024 was conducted by Forvis Mazars. The firm issued an unmodified audit opinion on the audited financial statements. Shareholders are encouraged to review the full audit report for comprehensive insights.
Detailed Financial Review
Income Analysis
The drastic decrease in income from R22,203,298 to R1,548,259 indicates significant operational and market challenges. The company will need to address these issues to stabilize and improve its income streams moving forward.
Earnings Analysis
The shift from positive earnings to a loss per share is concerning. This change necessitates strategic adjustments to return to profitability.
Profit Before Tax
The drop from a profit of R31,179,323 to a loss of R25,546,495 is substantial. This decline underscores the need for RAC to reassess its business strategy and operational efficiency.
Strategic Outlook
Market Conditions
RAC’s financial results reflect broader market conditions and specific operational challenges. The company must navigate these conditions effectively to improve its financial performance.
Conclusion
RECM and Calibre Limited faced a tough financial year ending 31 March 2024. With significant declines in key financial metrics, the company must implement strategic changes. Shareholders are encouraged to review the detailed financial report and stay informed on future developments. RAC’s commitment to transparency and compliance remains steadfast as it navigates these challenges.