OPERATIONAL OVERVIEW:
FINANCIAL SERVICES
25%
SHARE OF TOTAL
PROFIT FROM
OPERATING
ACTIVITIES
SENWES CREDIT
(A DIVISION OF SENWES)
Senwes Credit provides credit to its clients through production
loans, monthly accounts, credit arrangements of a long-term
nature and hire-purchases. Financial arrangements also occur
with the off-takers of grain so as to create bridging finance for the
operational costs of their businesses. Senwes Credit, through its
Agricultural Services division, also renders services to producers
in the field of agronomy, soil technology and animal science to
optimise their operations.
Our product offering is competitive in terms of its features and
pricing, but we distinguish ourselves from other financial service
providers through our agility, sustainable solutions, close
relationships and fast turn-round times.
28
Senwes INTEGRATED
INTERGRATED REPORT
REPORT 2015
2015
OPERATIONAL PERFORMANCE
The substantial drop in commodity prices due to the record
harvest resulted in a decline of approximately 40-50% in farming
income when compared to a normal season. In effect it had a
similar impact as experienced due to the previous season drought.
This again resulted in slow repayment of the credit book but also
higher credit margins. The debt is supported by strong balance
sheets and the arrears were normalised to 4,0% (2014: 3,5%) of
the total book by the end of April 2015.
The credit book grew by 10,9% on average year-on-year and this
contributed to a 27% increase in net profit. The profit share of
Senwes Assets Finance represents a 21% increase compared to
the 2014 financial year.