Over the last two years, through Integrated Thinking, we have successfully transformed our company from a traditional IT company to a diversified technology investment firm focused on long-term value creation. For the first time in our 10+ years of operations, our PAT as a % of Revenue increased from 5% in previous years to 7% in FY2018, despite higher expenditure relating to Fintech and Smart City platforms as well as international business development.
This has been possible through the conception and operation of a resilient business model that aims to create value for all stakeholders in the short- and long-term, considering the interconnectivity of our five capitals, alignment with UN SDGs, our purpose, vision, values, strategy, risk, governance and external environment in our subsidiaries, as follows:
Anglo African continues to run strong profitability, in addition to having one of the strongest balance sheets in the industry. Thus, Net Profit increased from MUR 18.4Mn in FY2017 to MUR 22.6Mn in FY2018, an overall increase of 23%. Group revenue increased from MUR 272.6Mn to MUR 324Mn, an increase of 19% during this period. This was mainly driven by a robust performance in InfoSytems as well as our new line of business generating a Profit after tax in their first full year of operations.
Profitability was impacted by the following:
We discussed Our Capitals on pages 41-45 and the importance of each Capital in our subsidiary through Capitals Mix on pages 34- 37. The Capitals Mix is based on ‘Ranking’, which is forward looking and defined by the Management Team, and also on ‘Weight’ which is defined by specific KPIs during the year under review. Since last year, we have decided not to report on Natural and Manufactured Capitals as our operations do not have a material impact on them and vice versa, but have introduced ‘Technological Capital’ which is more relevant to us.
We continue to assist nongovernmental organisations working with orphans or disadvantaged children around the country. We have thus given our support to (i) Etoile du Berger which runs a shelter for children in difficulty; (ii) Child Evangelism Fellowship which provides academic and character building classes as well as organises music and sports activities for children at Karo Kaliptis and Cité Hibiscus; and (iii) ANFEN which promotes nonformal education for out-of-school adolescents.
I am honoured to take the leadership, as CEO, of this amazing company since April 2018. I recall that when I joined as the first employee of Anglo African a decade ago, I was told that we did not know the destination, but were embarking on a journey that would be exceptional. While it is true that the achievements of this company are amazing, I believe the future is even more exciting… being a small company in a small country, we have the willingness and capability to create global positive impacts!
We remain very confident about the future:
At the same time, we continue to remain vigilant and monitor the KPIs very closely during our “Transition period” ending June 2019.
I would like to acknowledge the continued dedication and hard work of all our people. I also thank our customers for their support, including in our new businesses. Finally, I thank the Chairman for his wisdom and unfailing foresight, and members of the Board of Directors for their continued support, guidance and advice.
“…For the first time in our 10+ years of operations, our PAT as a % of Revenue increased from 5% in previous years to 7% in FY2018, despite higher expenditure relating to Fintech and Smart City platforms as well as international business development.… ”