THE MANAGING
DIRECTOR’S REPORT
T
he year under review proved once again that Senwes’
strategies are well-placed to handle the unpredictable
nature of agri-business. Good results from operations and
strategy implementations saw us performing to expectation,
despite starting the year on the back of a severe drought and
low carry-over volumes. However, good rains towards the end of
the previous financial year came just in time and this resulted in
the second biggest harvest in the history of South Africa.
The sustainability of the Senwes group is underpinned by a strategy
which is geared to create value for clients and shareholders through
integrated sustainable business solutions.
In 2010 we embarked on our strategy for 2020. However, it
is a rolling ten-year strategy and we are already looking ahead
and talking about our 2025
strategy. It is executed through
passionate and committed staff
who operate and manage state
of the art systems and technology
to maintain focus and discipline
in delivering our solutions to
stakeholders.
Against this background I am
pleased to share our financial
performance, which reflects the
focus and dedication mentioned
above. Our performance for the
financial year ended 30 April 2015
can be described as positive in
overall terms.
Our experience of more than a
century has guided us through
various scenarios in the agri-
landscape. This puts us in the
driving seat to sustain good
returns for our stakeholders in
any scenario. Our strategies are
built around the producer and
stakeholder and are geared to
continually seek sustainable and
profitable solutions to new and
existing challenges in the agri-
industry.
20
Senwes INTEGRATED REPORT 2015
THE 2020 STRATEGY
With the agricultural company as the starting point, Senwes will
develop profitable business and create added value throughout
the value chain. Senwes’ 2020 strategy includes additional
investments, innovation and product development, collaboration
and partnerships and further development of the Senwes brand.
Strategic actions implemented in line with the 2020 strategy can
be listed as follow:
• The establishment of a specialist and focused logistics
partnership in order to empower imports and exports as
well as local transport needs – Grainovation with Imperial
Logistics as partner.
• Consolidation of the financial services group in order to
create a more sustainable platform for consolidation and
expansion to other markets – Certisure with NWK as partner.
• Expansion of the John Deere mechanisation agency to the
Western Cape – JDI with the Tomlinson family as partner.
• Establishment of a retail champion - Hinterland with Afgri as
partner.
• Entering the wholesale market (distribution centre) – Prodist
with Afgri and LRB (Mica, DIY and House of Paints) as partners.
• The repositioning of grain trading in Tradevantage in order
to develop into a national grain trading agent (with sufficient
BEE-credentials).
• The expansion of capacity in the lime industry and the
acquiring of a bigger share in the business - Grasland with
NWK as partner.
• The alignment of staff with shareholders over the long term
by establishing a real share scheme.
• The alignment of and integration into the logistics value
chain – the 20% shareholding by Grindrod/Remgro in
Senwes Limited.
• The rolling out of a new BEE-strategy after the exit of Royal
Bafokeng Holdings.
• The establishment of increased funding lines for the strategic
deployment and growth of the operating balance sheets.
Additional funding of R1,6 billion was established over the
past two years, while R979 million was unutilised as at 30
April 2015.