business review
credit extension to certain clients had to be withdrawn and certain
accounts are being called up and excussions are taking place. How
ever, the credit book is supported by good security, strong balance
sheets and problem cases are well-secured.
The insurance business, Certisure, managed to maintain premium
levels despite challenging conditions. This segment reflects a profit
before tax of R69 million, which is 40,8% higher than the compa
rative period.
Prospects
A good to normal rainfall season is still being predicted for the next
six months and should this materialise, good to above normal plan
tings are foreseen. However, it will only have a positive impact on
the 2018 financial year and the group will still have to live through
the next six months with low activities and a high risk environment.
Expected increases in fuel prices, the effect of the USA election on
the exchange rate, our own unstable political arena and increased
interest rates before the new planting season could place producers
under further pressure, particularly if commodity prices continue its
declining trend into the new season.
Senwes will be prudent in respect of the rolling out of its strategy
and, as soon as a good season is confirmed, it will again embark on
its strategic deployment process.
Dividend declaration
The board of directors has decided to postpone the consideration
of an interim dividend to March 2017, when there will be more
certainty regarding the potential of the current season.
By order of the board of directors.
JDM Minnaar F Strydom
CF Kruger
Chairman
Group Chief
Group Chief
Executive Officer Financial Officer
Klerksdorp
6 December 2016
senwes interim results 31 october 2016
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