“The board of R&E is pleased to announce the interim results for the six months ending 30 June 2014. The period saw the conclusion of a further successful claim against third parties, resulting in settlement income of 150 million rand,” the company said.
“[DATA RNG:R&E] concluded a settlement agreement with PriceWaterHouseCoopers (PwC) on 16 April 2014. The settlement relates to the group’s claims against PwC for damages arising from PwC’s audit of the group during the period 1999 to 2003.”
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The group, which operates in a single operating segment as an investment holding company with assets in the mining industry, saw recoveries increase from 22 million rand for the six months ended 30 June 2013 to 158 million rand for the same period in 2014.
Results from operating activities rose to 144 million rand in the 2014 interim period from 11 million rand in 2013 and finance income increased to seven million rand from five million rand.
“R&E is liquid with no interest-bearing debt. R&E’s total assets consist primarily of cash and cash equivalents,” it said.
“R&E had a net asset value of 179 million rand or 2.50 rand per share as at 30 June 2014, net of the dividend declared, which amounted to 161 million rand or 2.25 rand per share.”
Profit before taxation increased from 16 million rand in 2013 to 152 million rand in 2014 and basic and diluted earnings per share grew to 213 cents from 23 cents.
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“The company will continue to take a commercial and pragmatic approach towards legal claims against third parties and their relative legal costs, focus on containing the operational costs where possible and to maintain liquidity,” said R&E.