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AfroCentric INTEGRATED ANNUAL REPORT 2016
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Performance overview
CHIEF FINANCIAL OFFICER’S REPORT
Hannes Boonzaaier
The financial year ended 30 June 2016 marks the start of a new growth period in AfroCentric.
This is due to new clients, shareholders and partners that have been added into the portfolio of
service and product offerings. The acquisition of the Healthcare Retail businesses (Pharmacy
Direct and Curasana) have contributed significantly to the growth in operating profit. Both
the WAD acquisition and Sanlam did have, as expected, a dilutionary effect on earnings
per share (“EPS”), but we believe the base is now set for these partnerships to grow the
Group even further. The impact of these transactions and new clients on Group results
are further explained in the analysis below.
REVENUE GROWTH
Medscheme was successful in winning the Polmed Medical Scheme contract
effective 1 January 2016. The Group, therefore enjoyed six months of
revenue growth from the 500 000 lives being administered for the South
African Police. Another sizeable contract was concluded in August 2015
– the management of Hospital benefits and Chronic Medication for
Samwumed has also contributed to the revenue growth.
The acquisition of the Pharmacy Direct and Curasana Wholesaler
business effective 1 August 2015 has increased the Group’s
revenue growth significantly (25% of total) based on their
medication delivery and supply to the private sector
and Department of Health Clinics in five provinces in
South Africa.
The Group is continuously diversifying itself with
other healthcare or IT related contracts, which is
evident in the growth in revenue of IFM, our
fraud management system, as well as Klinnika
contracts.
Without
continual
growth
and progress,
such words as
improvement,
achievement, and success
have no meaning
–
Franklin Roosevelt