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INTEGRATED REPORT 2017
ENHANCE SHAREHOLDER VALUE
AfroCentric aims to create sustainable value for shareholders. By having significant medical schemes under our administration, we
have benefited from scheme amalgamations and won major new clients. Our administration, with all its service offerings, will make
these clients more competitive. Therefore, we have strategically positioned ourselves to expand our client base through acquisitions
and business development within the healthcare value chain. We aim to enhance value by actively improving efficiency across all
our operating companies and maximising our capacity – we have revised our fixed cost components such as the Group’s health
risk management specialists and IT systems. We are also confident that growth through acquisitions and partnerships will ensure
enhanced shareholder value over the long term.
Key performance indicators
2017
2016
Headline earnings per share (cents)
22.34
26.33
Dividend yield (%)
4.5
4.6
Share price (cents)
620
525
Normalised headline earnings per share (cents)
44.03
30.84
IMPROVE EFFICIENCIES THROUGH COST CONSCIOUSNESS
As a group, we recognise the need to deploy our resources effectively and efficiently in order to extract optimal value. Our main
focus is to reduce unnecessary spend by eliminating non-value adding activities.
Key performance indicators
2017
2016
Percentage of operating profit (%)
49.89
1.15
MAXIMISE GROWTH OPPORTUNITIES
AfroCentric’s focus for the foreseeable future is on inorganic growth and public sector involvement. The Group plans to extract
value from revenue-source diversification, acquisitions, strategic transactions, and client base growth. We are actively seeking
to support the government in the development of the National Health Insurance (“NHI”), and we are negotiating a number of
acquisitions. We have also cited our technological capabilities as an enabler for growth.
Healthcare inflation has made it difficult for smaller schemes to be independently viable due to limited membership numbers.
The consolidation of schemes has become a growing reality in South Africa, and we are well positioned to capitalise on these
opportunities and increase the number of lives under our care.
Sanlam’s presence in the rest of Africa and other emerging markets has presented the Group with an opportunity to gain a deeper
understanding of these markets, and enter them alongside a partner with a well-established brand equity and distribution network.
The prospects for complementary insurance products and the Sanlam Reality loyalty programme have boosted the attractiveness
of medical schemes, member retention and membership growth.
Key performance indicators
2017
2016
Revenue growth (%)
20.22
50
Business acquisitions (number)
1
2