The forming of partnerships is paying off excellently and the
insurance business, Certisure (a partnership with NWK) and
the John Deere mechanisation partnership in the Eastern Cape
(JDI) deserve special mention following the achievement of new
record results during the past year. The Managing Director’s
report will deal with the strategic deployment of the Group in
more detail.
The ability to import and export soft commodities is becoming
increasingly important and it is essential for the sustainability of
the SA producer. Better alignment with a partner with this ability
formed part of the planning of Senwes and a co-operation
agreement with Bunge, an international soft commodity trader,
established the necessary capacity to obtain a larger market
share in the wheat and yellow maize market over the past two
seasons.
Grindrod Trading obtained a 20% interest in Senwes during the
year and close co-operation is being envisaged. Grindrod has
the necessary infrastructure and asset base which make it a
proven role player in the soft commodity value chain.
After year-end Senwes was advised of a transaction between
the holding company of Senwes, Senwesbel, and NWK
Holdings. This will establish a broader investment and control
platform, as well as the ability to jointly pursue new growth
opportunities. The focus will now be on obtaining approval for
the transaction from the shareholders of both Groups, as well
as the regulatory bodies concerned.
Results
Due to the drought the normalised headline earnings of
the Group decreased by 35.1% to 99 cents per share.
The earnings per share is 14.8% lower at 143,9 cents
per share. During the financial year Senwes decided to
restructure its African operations. The profit after tax of
R129 million from combining the businesses of Senwes and
AFGRI made up for a difficult operational year and provides the
necessary momentum for a year with better prospects.
low stock levels. A good volume year also predicts a good
input year and increased business confidence is expected to
encourage spending in respect of production input products
and capital goods.
Social responsibility and
sustainable development
It requires special skills from both producer and business in
agriculture to counter drought cycles and to continue building
on previous levels after such incidents. Senwes attempts to
maintain its involvement in the community, irrespective of
weaker cycles, and believes in long-term and sustainable social
development projects. The personnel training budget is also
maintained to a large extent in order to ensure the necessary
depth and development of the skills of the talent and leaders of
the future.
Management team and the
Senwes value system
The value system of the organisation is more visible during
difficult times and Francois Strydom and his team demonstrated
leadership in a year during which this was required more often
than not. The 2014 financial year was indeed a year during
which character was built!
Acknowledgement
The Board would like to thank every stakeholder who helped
to ensure the continued success of the Senwes Group. We
acknowledge the role of personnel, suppliers, clients, business
partners and the government in building a sustainable
agricultural services Group.
I am particularly grateful for the input and wisdom of my co-
board members and Vice-Chairman. The Company is blessed
indeed – all honour to my Heavenly Father.
Future prospects
A return to sustainable growth is expected. After two drought
years we are looking forward to a more normalised cycle and
good prospects for the 2014/15 financial year. The national crop
estimates indicate an increase in the expected yield per hectare
for most commodities and Senwes will attempt to rebuild its low
grain stock levels in order to mitigate the impact of the current
....................................
Danie Minnaar
CHAIRMAN: SENWES LIMITED
Klerksdorp 27 June 2014
17