Anglo African Investments Ltd and its subsidiaries achieved an excellent performance for FY2018. Group profit after tax from continuing operations (PAT) reached MUR 22.6Mn in FY2018, a growth of 64% compared to FY2017. The contribution by each line of business to Group PAT is shown in Table 1.
The Information Technology operations, including software development and datacom business, has achieved a 27% growth in revenue compared to last year to reach MUR 272.8Mn in FY2018. Revenue from outside Mauritius thus represented 48% of the total revenue of Infosystems group. Gross profit increased from MUR 44.0Mn in FY2017 to MUR 55.6Mn for the current year.
Administrative expenses decreased by MUR 3.0Mn, despite an 11% increase in staff costs, mainly because of a drop in fees paid for shared services after the group re-organisation. Profit after tax of Infosystems group doubled from MUR 7.7Mn last year to MUR 15.2Mn in FY2018, thus contributing to 67% of the Group’s net profit. Net profit margin achieved for FY2018 was 6% compared to its target of 5%.
Revenue of DigiConsult, excluding datacom business which has been transferred to Infosystems in FY2018, fell from MUR 54.1Mn last year to MUR 29.3Mn in FY2018 as a major 2-year telecom consultancy contract ended in the first half of this year. Since the Group’s strategy was to embrace digital transformation, and considering the impact that digital technologies can have on the real estate sector/asset owners, DigiConsult was transformed into a Mechanical, Electrical and Technology consulting firm in the current year. Although just starting in this field, the company has been able to make some headway into new accounts.
Administrative expenses increased from MUR 10.3Mn in FY2017 to MUR 11.6Mn in FY2018 mainly due to higher staff costs arising mainly from the recruitment of M&E professionals and higher training expenditures. DigiConsult achieved a profit of MUR 4.3Mn for the year (2017: MUR 13Mn) which was in line with its target for the year and satisfactory considering its startup status in the new activities. Net profit margin achieved was 15% compared to its target of 12%.
“Anglo African Investments Ltd and its subsidiaries achieved an excellent performance for FY2018.”
NanoBNK group operates in the Fintech sector providing digital banking as a service to financial institutions as well as fintech applications and fintech consulting services. For its first full year of operations, NanoBNK faced multiple challenges, the most important ones being that the market demanded reference sites where its platforms were successfully deployed, and delayed contract signature with its first clients. Nevertheless, NanoBNK generated revenue of MUR 14Mn for FY2018, which was satisfactory, albeit less than its target for the year.
Administrative expenses incurred totaled MUR 9.1Mn for FY2018, almost half of it relating to staff costs. Hence NanoBNK group achieved a profit after tax of MUR 5.1Mn for FY2018. Net profit margin recorded for FY2018 was 27%, better than its target of 24%. Software development costs of MUR 9.7 Mn were capitalised in FY2018, of which MUR 1.8Mn were amortised to income statement. Shareholder’s fund for NanoBNK group was MUR 11.1Mn as at 30 June 2018.
Ventures recorded revenue of MUR 7.8Mn in FY2018, which is its first full year of operations, up from MUR 2.6Mn last year. Its source of revenue in the current financial year was mainly from public conferences and private workshops and it is satisfied in having created awareness in the fields of Blockchain, Integrated Reporting and Digital Transformation. Gross margin decreased from 90% in FY2017 to 60% this year on account of costs incurred towards partnering with international experts to deliver the high value learning as well as costs in organizing the events, while last year, less costs were involved in managing the incubator for a bank. Administrative expenses rose to MUR 4.1Mn due to an increase in the number of full-time employees and costs incurred for one full year in FY2018. Hence, profit after tax was lower at MUR 0.5Mn in the current year compared to MUR 1.4Mn in FY2017.
The Company declared a dividend of MUR 4.5Mn in FY2018, which represented MUR 4,500 per share.
In line with our strategic plan, we took major steps in transforming the Group’s focus on short-term profitability to a long-term value creation one. We remain confident that the Group’s current financial health and position will support us to achieve this objective. Hence, we will continue to monitor our key financial indicators as well as our value creation across all our Capitals.