Real People Investment Holdings Limited Preliminary Financial Update: Fourth quarter impairment charges

Real People Investment Holdings Limited (RPIH) anticipates to release its fourth quarter 2019 results by no later than 29 April 2020.RPIH and its subsidiary companies (the Group) has revised and improved the valuation methodology employed in respect of acquired debt assets. As a result of this change in methodology, it has reduced the carrying value of its acquired debt assets by ZAR 51 million. This will have a materially negative impact on the Group’s earnings for the financial year ending 31 March 2020.The impact on the Financial Covenants contained in the Terms and Conditions, as well as the Senior Facilities Agreement, is expected to be negative, with a breach of the Cost to Income Ratio Covenant being probable. The material Senior Lenders are being engaged with a view to obtaining a temporary waiver in respect of this covenant.As communicated previously, the potential impact on the Group of COVID-19 has not yet been quantified, due to insufficient data being available, and further communication will follow in due course in this regard. The impact is however expected to be negative.* * * * * * *For further information, please contact:Neil Grobbelaar, Group Chief Executive OfficerEmail: ctaylor@realpeople.co.zaPhone number: +27 82 772 5481This information is information that RPIH is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on April 28th, 2020 at 10:30 CETImportant notice about forward-looking informationThis press release includes forward-looking information and statements concerning the outlook of the company. These statements are based on current expectations, estimates and projections about the factors that may affect the company’s future performance, including the future impact of COVID-19, global economic conditions, macro-economic conditions and the economic conditions of the regions and industries that are major markets for RPIH. These expectations, estimates and projections are generally identifiable by statements containing words such as “anticipates”, “expects”, “believes”, “estimates”, “plans”, “targets” or similar expressions. However, there are numerous risks and uncertainties, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking information and statements made in this press release and which could affect our ability to achieve any or all of our stated targets. Many of the factors that could cause such differences are identified and discussed from time to time in the company’s quarterly reports. Even though RPIH believes that its expectations reflected in any such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved.AttachmentRPIH Press Release – Preliminary financial update – Fourth Quarter 2019 Impairment 20200428