FUTURE PROSPECTS AND
CHALLENGES
The effects of the severe drought conditions in 2015 will most
probably reflect in the Group’s performance of the new financial
year. Downward pressure is likely to be experienced on grain
handling and storage income due to decreased volumes, which are
expected to be lower than the previous year. However, the higher
carry-over stock levels should help to mitigate some of that risk.
ACKNOWLEDGEMENTS
I would like to convey my sincere thanks and appreciation for
the continued support of all our stakeholders, our business
partners, joint venture partners and our staff complement who
have again excelled in their commitment and ownership. Special
thanks also to the Exco who never shirk from their responsibilities
and accountability. The board structures as represented by the
committees have done their work exceptionally well and play a vital
role in the success of the Company.
The average producer will probably not be as profitable from a net
farming income base and this will have an impact on the spending
capacity on capital goods. This could lead to negative pressure
being brought to bear on our mechanisation business unit. The
overall conditions will also influence the collections of the debtor
book towards the end of August 2015. The different board committee chairmen have developed and
performed their responsibilities with extreme care and insight. The
chairman and vice-chairman of the Board are totally committed
to the Company and have performed their responsibilities with
excellence.
The Group expects that a combination of the above conditions
will have a negative influence on results towards the end of the
next financial year and this will result in the balance sheet having
a slower turnover. Each of Senwes’ clients, big or small, is the sole reason for the
Company’s existence. Senwes does not exist because of any other
internal or external factors. Providing innovative and sustained
solutions for our customers is the primary reason for our existence
and will continue to remain our focus.
As a Group our top priority going forward is to ensure that we
meet the challenges that lie ahead with innovative and sustained
solutions, aligned with our strategic objectives. The guidance of our almighty God is evident in the way the
Company and its employees perform their daily tasks.
External elements which could affect the business are industry-
related macro-economic global variances; while locally, the general
decline in socio-economic conditions is an area of concern.
Our efforts will be geared towards strengthening operational
controls and efficient execution of strategy as well as accelerated
innovation to enhance our clients’ profitability.
From a strategic point of view it is still our expectation that greater
integration and collaboration are the best ways of reducing
ever-increasing operational costs. There is also a chance that an
international player will take up a stronger and more extensive role
in the market, which will bring about particular alliances.
The over-supply of food producers, coupled with high commodity
prices, could create unusual pressure on the industry and a
restructuring or “right sizing” of the industry is not impossible.
However, all necessary efforts will be made to mitigate the potential
negative impact of these factors on the performance of the
Group, whilst at the same time seeking new avenues to improve
profitability and create sustainable value for our stakeholders.
Listen to Francois Strydom (Managing Director, Senwes)
commenting on the Senwes’ 2014/2015 financial year.
www.senwes.co/Francois2015
30
Senwes INTEGRATED REPORT 2015
Francois Strydom
Managing Director
30 June 2015
Klerksdorp