REG - Investec PLC - Investec Limited Annual Financial Statements

InvestecAnnouncement

17/07/2025 16:30

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RNS Number : 5504R  Investec PLC  17 July 2025

 Investec Limited                               Investec plc

Incorporated in the Republic of South Africa

Registration number 1925/002833/06            Incorporated in England and Wales

JSE share code: INL

                                              Registration number 3633621
 JSE hybrid code: INPR

                                              LSE share code: INVP
 JSE debt code: INLV

                                              JSE share code: INP
 NSX share code: IVD

                                              ISIN: GB00B17BBQ50
 BSE share code: INVESTEC

                                              LEI: 2138007Z3U5GWDN3MY22
 ISIN: ZAE000081949

 LEI: 213800CU7SM6O4UWOZ70

Section A of the announcement is intended for the holders of debt instruments
in Investec Limited only

Section A

Following the financial information released on SENS on 22 May 2025 and 30
June 2025, holders of debt instruments are hereby advised as follows:

The Annual Financial Statements of Investec Limited for the year ended 31
March 2025 are available for inspection at the registered office of the
Issuer, as well as on Investec's website at www.investec.com.

 

The Issuer wishes to advise that the audit report relating to these Annual
Financial Statements is unqualified.

Under the 2002 contractual arrangements implementing the dual listed companies
(DLC) structure, Investec Limited and Investec plc, effectively form a single
economic enterprise in which the economic and voting rights of shareholders
are equalised.

In accordance with this DLC structure the appropriate presentation under
IFRS® Accounting Standards is achieved by combining the results and the
financial position of both companies using merger accounting principles. The
Companies Act of South Africa does not envisage a reporting structure such as
the DLC structure. The combined consolidated financial statements of Investec
Limited and Investec plc are considered the statutory financial statements of
Investec Limited and Investec plc. Therefore, the annual financial statements
of Investec Limited are prepared to present the financial position, results
and cash flows of Investec Limited and its directly owned subsidiaries in the
absence of a DLC structure and are prepared in terms of IFRS® Accounting
Standards as if Investec Limited were a standalone component of the DLC
structure. Accordingly, from 2002 to date, the audit report in relation to
Investec Limited contains an Emphasis of Matter dealing specifically with the
basis of presentation of these annual financial statements. While both the
combined consolidated financial statements and the Annual Financial Statements
of Investec Limited are available for viewing on the Investec Group's website
www.investec.com, holders of debt instruments should note that only the annual
financial statements of Issuer apply in respect of Investec Limited's debt
instruments.

Investec advises of the following restatements:

 

1.   Restatement of treasury shares

Historically, treasury shares held in respect of staff share schemes have been
inconsistently presented between group entities. In addition, not all vestings
were removed from the 'treasury shares' line item. In the current year we have
restated comparatives to correct the treasury share balance and retained
income. The comparative balance sheets have been restated. This change has no
impact on the income statement. In addition, at 31 March 2024, Investec
Limited shares backing related liabilities to customers were previously
reflected as 'securities arising from trading activities'. As these meet the
definition of treasury shares, they have been offset within equity as
'treasury shares' and realised losses have been reflected in retained income.

 

2.     Re-allocation of capital reserve account

While implementing the above change, we elected to transfer the capital
reserve account, which housed various historic equity adjustments including
those from past restructures to retained income as it does not provide useful
information to users. The comparative balance sheets have been restated.

 

3.     Variation margin balances

Historically, certain variation margin balances were offset against related
derivative trades. In the current year, the legal contracts and settlement
mechanisms were reconsidered. Because of the gross settlement mechanism, it
was concluded that these balances did not qualify for offset. Subsequently,
the derivative and margin balances have been grossed up, reflecting margin
accounts on the appropriate line items determined based on whether they are
to, or from, banking or non-banking counterparties.

 

4.     Repurchase agreements

Certain equity stock trades entered into at the same time as related forward
purchase agreements, in respect of the same assets, were booked as separate
trades rather than in line with the true substance of the transaction, as a
single repurchase agreement. As a result, trading assets were derecognised or
short positions in respect of the same stock were incorrectly recognised
within 'other trading liabilities'. To appropriately reflect these
transactions, comparatives have been corrected to recognise the repurchase
agreements and stock positions, including reducing the short trading
securities positions, included in 'other trading liabilities', and the
financial instruments, previously recognised as reverse repurchase assets and
repurchase liabilities. These changes had no impact on the income statement.

 

5.     Investec's Rewards programme revenue recognition

Investec's Rewards programme awards cardholders points in proportion to
eligible transactions. These points are, in substance, a reduction in fees.
Historically, these have been incorrectly reflected as 'fee and commission
expense', therefore a restatement has been performed to reduce 'fee and
commission income' for the points allocated within the prior period. This
change had no impact on the cash flow statement.

 

6.     Re-allocation of capital reserve account

As noted in the Investec Group annual financial statements, we elected to
transfer the capital reserve account of R62 million, which housed various
historic equity adjustments including those from past restructures, to
retained income as it does not provide useful information to users. The
comparative balance sheets have been restated. The impact of these changes are
on the 31 March 2023 Company balance sheet.

 

The impact of the above restatements are disclosed in the Annual Financial
Statements on Investec's website at www.investec.com.
(http://www.investec.com/)

 

Section B

 

DIRECTOR'S ATTENDANCE AT MEETINGS

 

We also wish to draw your attention to page 149 of the Investec Group
Integrated and Strategic Annual Report 2025 regarding meeting attendance
records. The report incorrectly indicates that Diane Radley attended four out
of six meetings; however, she was present at all six meetings of the DLC
Board.

 

By order of the board

N van Wyk

Company Secretary 17 July 2025

 

 

For further information

Registered office 100 Grayston Drive

Sandown, Sandton, 2196

 

Transfer secretaries

Computershare Investor Services (Pty) Ltd

Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196

 

Company Secretary

N van Wyk

 

JSE Debt Sponsor

Investec Bank Limited

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