Unaudited business segment results

Twelve months ended 30 June 2009 versus twelve

months ended 30 June 2008

 

 

  AFGRI FINANCIAL SERVICES  
  Capital     Broking  
  12 months  
ended  
30 June  
2009  
R’000  		 12 months  
ended  
30 June  
2008  
R’000  		   12 months  
ended  
30 June  
2009  
R’000  		 12 months  
ended  
30 June  
2008  
R’000  
Revenue   877 775   927 848     9 066   41 937  
– sale of goods and services   270 933   332 724     9 066   41 937  
– interest   606 842   595 124     –   –  
Operating profit/(loss) (before corporate costs)  486 442   415 907     6 041   15 480  
Other amounts included in operating profit/(loss)  38 571   58 690     (4 717)  –  
– other operating income   83 805   74 247     (1)  –  
– pension fund surplus   –   –     –   –  
– depreciation and amortisation   (12 221)  (4 024)    –   –  
– allocation of Corporate costs   (33 013)  (11 533)    (4 716)  –  
Operating profit/(loss)  525 013   474 597     1 324   15 480  
Other items of profit or loss   –   2 809     –   –  
– fair value adjustment to disposal group assets   –   –     –   –  
– share of profit/(loss) of associates   –   2 809     –   –  
Profit/(loss) before finance costs   525 013   477 406     1 324   15 480  
Finance costs   (534 464)  (434 964)    372   (1) 
Profit/(loss) before income tax   (9 451)  42 442     1 696   15 479  
Income tax            
Profit/(loss) after income tax            
Assets   5 333 830   4 915 033     1 449   1 445  
Non-current assets   328 445   198 755     174   261  
Other current assets   91 145   333 927     172   –  
Trade and other receivables   4 337 900   3 430 470     388   484  
Cash and cash equivalents   576 340   951 881     715   700  
Liabilities   4 627 367   4 365 122     1 036   (16 862) 
Non-current liabilities   113 815   115 689     –   –  
Other current liabilities   399 670   581 122     1 036   (16 862) 
Borrowings to finance trade receivables   4 113 882   3 662 960     –   –  
Call loans and overdrafts   –   5 351     –   –  
Capital expenditure (including other intangible assets)   168 163   10 373     –   –  
Contribution to Group continuing operations (%)           
Revenue   10   12     –   1  
Profit before tax   (2)  10     –   4  
Number of employees (total)  330   307     27   34  
Full-time   291   261     27   34  
Part-time   39   46     –   –  
Highlights  
AFGRI Capital
The Rabobank securitisation concluded in February this year and other new facilities have provided the division with additional debtors’ funding facilities of some R2,25 billion.

AFGRI Credit’s debtors book remains of a high quality, reflected in the bad debt write-offs of 0,3% of the book. The division’s provision for bad debts has been increased by R25 million to R124 million (2008: R99 million).

The segment’s insurance broking business turned in a very satisfying year after the inclusion of last year’s acquisitions. Despite cancellations of short-term personal lines, the strong agricultural year saw significant increases in crop and hail insurance.		  
 
AFGRI Broking
AFGRI Broking, now reported on separately from AFGRI Trading, saw a significant decline in volumes in line with lower volumes traded on the SAFEX exchange. The division remains the largest trader in SAFEX contracts. Cost cutting measures limited the impact of these declining volumes.		  
Challenges  
Funding margins
Funding capacity
Non-interest income
Costs to revenue ratio  		 
  		 
Cost control    
       
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