12
THE BUSINESS
CHAIRMAN’S REPORT | continued
more attention to under-performing investments, increased
capital programmes which are more focused on upgraded
efficiencies, as well as new capabilities. The board is particu-
larly excited about capital programmes which will bring about
a quantum leap in respect of service delivery and the addi-
tion of value for the customer. The board is also attempting to
align the increased focus on integration with the customer and
cross-marketing throughout the Senwes group.
SENWES RENEWS ITS STRATEGY
We are thoroughly aware of the fact that a strategy is not
a one-year plan which changes on a regular basis. The
core of the 2020 strategy, which was approved in 2011,
is still relevant and has been adjusted and refined in the
required areas. It is also a development plan which does
not only bring about good growth, but it also creates
adequate value and brings about critical mass in order
to remain sustainable over the long term. Proven dupli-
cation and inefficiency are still evident in broader agricul-
ture and, in my opinion, the market will not absorb much
more of this before demanding adjustments.
UNLOCKING OF VALUE FOR THE SHAREHOLDER
Senwes’ normalised headline earnings per share increased
significantly by 80,4% when compared to the previous year,
from 108,4 c/share to 195,5 c/share. The dividend cycle was
restored and we even caught up with the backlog due to the
drought of the previous two years. Dividend cover was nor-
malised to 3,1 and, together with a well-structured share repur-
chase programme, it resulted in the share price reacting pos-
itively on this signal. A 5,8% growth on opening market price
was delivered. Together with the dividends, a total shareholders'
return on opening market price of 11% was delivered. Francois Strydom, and his executive team, my co-board mem-
bers and the 3 252 staff members for their commitment to the
group.
PROSPECTS A special word of thanks to all our shareholders for their sup-
port, particularly the two anchor shareholders, Senwesbel and
Grindrod.
A normal to good crop is expected which, in addition to good
carry-over stock levels, could still result in a good cycle. The
credit business will probably have to overcome the challenges
of a low crop turnover and spending in respect of capital goods
will probably remain low.
Our deepest acknowledgement of and gratitude to our Creator.
CORPORATE GOVERNANCE
The board and its committees reported comprehensively on
the finalisation of their annual work plans. The total combined
level of experience on the board amounts to 99 years and inde-
pendent directors serve on committees where independence ...........................................................
Danie Minnaar
CHAIRMAN
is required. Transparent documentation, which is properly con-
sidered and challenged, forms part of our culture and the board
is proud to confirm the effective functioning of its governance
structures. Klerksdorp
26 June 2018
In his speech about land reform, Mr Cyril Ramaphosa made
reference to the fact that the process had to effect growth, it
should not damage the economy and it should not be a threat
to food security. As a board we have work to do in order to
position the company for the challenges relating to the transfor-
mation of agricultural land which lie ahead and our participation
in this process will have to be increased significantly.
ACKNOWLEDGEMENT
I would like to acknowledge the Group Chief Executive Officer,
OVERVIEW | THE BUSINESS | STRATEGIC AND OPERATING CONTEXT | THE PERFORMANCE | CORPORATE GOVERNANCE