BUSINESS REVIEW CONTINUE
In addition the producer is anticipating a decrease in certain
input products and has therefore postponed fuel and fertiliser
purchases in anticipation of possible price decreases.
Suppliers have also extended deferred payment arrangements
to producers in order to stimulate volumes and the market will
more than likely penalise these unsecured credit extension
practices. Senwes and its associates will continue to focus
on rational and sound business practices.
A number of producers have reserved their grain stock in
anticipation of better prices, at the cost of spending in respect
of new capital goods. Mechanisation equipment sales are
under pressure and producers will probably postpone their
capital spending programmes.
Financial Services
The credit book proved its repayment ability over time, but
greater volatility and extremes occurred during the season.
The book is well secured and outstanding 2014 summer
production debt amounted to 8,4% (October 2013:10,7%) on
31 October. Applications for the new season are well under
way, but deferred payment arrangements of input suppliers
could impact on the taking-up of credit and could result in
pressure on financing margins.
Certisure, the comprehensive agricultural insurance business,
experienced another good cycle and business drivers reflect
good growth in this unit.
Interim dividend declared
An interim dividend of 24 c/a (2013: 26 c/a) was declared to all
shareholders registered as such on the register on
8 December and will be paid on 12 December 2014.
By order of the Board of Directors.
JDM Minnaar F Strydom
CF Kruger
Chairman
Managing
Financial
Director Director
Klerksdorp
5 December 2014
Senwes Interim Results October 2014
7