NVFH 2020 Integrated Annual Report

NVest Financial Holdings Limited and its subsidiaries | (Registration number 2008/015990/06)
Annual Financial Statements for the year ended 29 February 2020
8. Interests in subsidiaries and associates
Details of material interests in subsidiary companies and
associates are presented in the consolidated annual
financial statements in notes 8 and 9.
There were no significant acquisitions or divestitures during
the year ended 29 February 2020.
9. Events after the reporting period
Since 31 December 2019, the spread of COVID-19 has
severely impacted many local economies around the
globe. In many countries, businesses are being forced to
cease or limit operations for long or indefinite periods of
time. Measures taken to contain the spread of the virus,
including travel bans, quarantines, social distancing, and
closures of non-essential services have triggered significant
disruptions to businesses worldwide, resulting in an economic
slowdown. Global stock markets have also experienced
great volatility and a significant weakening. Governments
and central banks have responded with monetary and fiscal
interventions to stabilise economic conditions.
Since the implementation of the National Lockdown in
South Africa on 27 March 2020, the Company has operated
remotely with staff having been set up to work from their
homes. The Company has managed to continue operating
during this period and Management are confident that it
will be able to continue to do so until such time as this is no
longer required.
The Company’s financial position has, to date, not been
adversely affected and Management are of the opinion
that it is unlikely to be significantly affected in coming
months, due to the fact that the Groups primary income
is from the Private Wealth Management companies. The
Property holding company in the Group contributed 5%
of the Groups Net Profit After Tax and it appears to be
the only company to date that may be affected by the
impact of the pandemic, with a temporary decrease in
revenue, due to tenants requesting payment holidays on
their rental payments. Private Wealth Management clients
have continued to contribute to their policies, savings and
investments and consequently, it is highly unlikely that the
pandemic will have a material impact on Group earnings.
The Company has determined that this is a non-adjusting
subsequent event. Accordingly, the financial position
and results of operations as of and for the year ended 29
February 2020 have not been adjusted to reflect its impact.
The duration and impact of the COVID-19 pandemic, as
well as the effectiveness of government and central bank
responses, remains unclear at this time. It is not possible
to reliably estimate the duration and severity of these
consequences, as well as their impact on the financial
position and results of the Company for future periods.
and NFB Finance Brokers Port Elizabeth Proprietary Limited.
It is envisaged that NFB Finance Brokers Eastern Cape
Proprietary Limited will be the resultant company, renamed
“NFB Private Wealth Management Proprietary Limited, with
the other two entities being the amalgamating entities, which
collapse into the resultant company. The Amalgamation will
be done pursuant to Section 44 of the Income Tax Act No.
58 of 1962. The date set for the legal amalgamation to take
place is 1 June 2020.
The Group has determined that this is a non-adjusting
subsequent event. Accordingly, the financial position and
results of the operations as of and for the year ended 29
February 2020 have not been adjusted to reflect this impact.
10. Going concern
The directors believe that the group has adequate financial
resources to continue in operation for the foreseeable
future and accordingly the consolidated annual financial
statements have been prepared on a going concern basis.
The directors have satisfied themselves that the group is in a
sound financial position and that it has access to sufficient
borrowing facilities to meet its foreseeable cash requirements.
The directors are not aware of any new material changes
that may adversely impact the group. The directors are also
not aware of any material non-compliance with statutory
or regulatory requirements or of any pending changes to
legislation which may affect the group.
11. Auditors
BDO Cape Incorporated continued in office as auditors for
the company for 2020.
BDO Cape Incorporated amalgamated into BDO South
Africa Incorporated on 01 August 2019.
At the AGM, the shareholders will be requested to reappoint
BDO South Africa Incorporated as the independent external
auditors of the company and to confirm Mr H.C. Kilian as the
designated lead audit partner for the 2021 financial year.
12. Secretary
The company secretary is Mr B.J. Connellan.
Business address:
42 Beach Road
Nahoon
East London
5241
Furthermore, in addition to the above, subsequent to 29
February 2020, there will be an internal restructuring of
the Group’s existing Private Wealth Management entities,
namely NFB Finance Brokers Eastern Cape Proprietary
Limited, NFB Finance Brokers Gauteng Proprietary Limited
NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 77