Our opinion on the current state of CND

Conduit Capital (CND) is a small financial services company, mainly in the insurance industry. It has two operating divisions - Investments and Insurance & risk. Through its subsidiary, Conduit Risk & Insurance Holdings, the company does underwriting, investments and earns commissions. It does both short- and long-term insurance. It offers a range of niche insurance products covering medical malpractice, primary health, funeral, and life insurance, guarantee and indemnity solutions, medical evacuation and motor and property. The company operates through brokers/agents. The company is in the middle of a "turnaround" initiated by new management, but its listed investments remain under pressure. In its results for the six months to 31st December 2021 the company reported gross written premium income up 7,3% and a headline loss per share of 8,4c compared with a loss of 11,1c in the previous period. The company said, "The turnaround saw underwriting profit improve 10.7% over the corresponding prior year period. The business generated strong positive cashflows with R34.3 million in operating cash being generated in the six-month period. Float increased to R618.2 million". On 23rd May 2022 the company announced, "Constantia’s gross exposure to claims resulting from the KZN floods is not expected to exceed R25 million". In an update on 1st August 2022 the company announced that the Prudential Authority of the Reserve Bank had placed its subsidiary, Constantia Insurance, under prudential curatorship. This caused the Conduit share price to drop sharply from 35c to 18c. On 21st September 2022 the company announced that trading of its shares on the JSE had been suspended following the liquidation of its largest subsidiary, Constantia Insurance Company. On 14th December 2023 the company said, "Given the imminent holiday period, it is anticipated that the audited results for the 2022 year-end, together with the Group's Integrated Annual Report, will now only be published in January 2024". A provisional liquidation order for Conduit's main subsidiary, Constantia Insurance Company, was confirmed in the high court on 14th September 2022.