BUSINESS REVIEW
R100,7 million
Financial Services
21,3% from R83,0 million
120
100
80
60
30
20
0
23
5
101
83
RESULTS
OCTOBER 2018
HIGER INTEREST
MARGINS
OTHER
RESULTS
OCTOBER 2019
The late harvest delayed the repayment of seasonal accounts by approxi
mately six weeks and consequently more interest was earned on the
increased book. Despite the late repayments, no additional impairment
was necessary on 31 October 2019.
FUTURE PROSPECTS
Indications are that the second six months will be more difficult for the
group, despite the fact that the market is holding out for increased plan
ted hectares. The market access division is expecting lower stock levels,
while retail will probably not be able to fully make up for what it lost during
the first six months. The mechanisation division will likely remain under
pressure until the producers are able to normalise their profitabality and
reduce their debt levels.
OTHER ASPECTS
The Senwes group increased its equity interest in the logistics company,
Grainovation, from 50% to 100% as from 1 November 2019. It also
acquired a 100% interest in the Falcon group on the same date.
Participation in the capitalisation of the loyalty scheme went well and at
the closing date of the offer on 31 October 2019, 72% of the scheme
participants converted their loans to equity.
The board of directors approved a dividend of 30c per share on 5 De-
cember 2019. The record date will be 11 December 2019 and the ex-
pected payment date, 12 December 2019.
This report must be read together with the condensed financial state-
ments set out on pages 8 to 15.
By order of the board of directors:
JDM Minnaar
Chairman
F Strydom
Chief Executive
Officer
CF Kruger
Chief Financial
Officer
Klerksdorp
5 December 2019
senwes interim results 31 october 2019
7