FINANCIAL CAPITAL OUTCOMES
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THE ROLE FINANCIAL CAPITAL PLAYS IN VALUE CREATION. Our financial capital inputs consist of cash generated by our operations, as well as debt and equity financing. We use our financial capital to create value through investing in new product innovations, investing in our manufacturing process and investing in our people |
FOCUS AREAS FOR 2018
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Restore profitability to June 2016 levels |
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Optimised cashflow |
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Manage gearing levels |
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Manage capex spend |
INPUTS
| Inputs | Change | 2018 | 2017 |
| Revenue (sale of product) | 10.0% | R6 435m | *R5 852m |
|---|---|---|---|
| Total equity | -1.9% | R2 825m | R2 880m |
| Working capital | -33.9% | R678m | R1 026m |
| Net interest-bearing debt | -8,9% | R1 350m | R1 482m |
OUTCOMES
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Despite a headline earnings loss of R44.2m after the impairment of the DFSA revolving credit facility, normalised headline earnings increased 224,7% to R394,9 million. |
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An increase in normalised operating profit of 94.3% |
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Normalised earnings per share increased to 210.1c |
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Interest paid decreased to R141.9m |
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Cash generated from operations increased to R1 118m |
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Net gearing level reduced to 47.8% |
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R214,7m capital expenditure on expansion or replacement of assets |
| * | Normalised referring to the comparative numbers adjusted for the unbundling of DFSA in the current year |
MATERIAL TRADE-OFFS
We create value for all stakeholders through the use of our financial capital, which has a positive impact on all the other capitals. By using financial capital to improve production processes or invest in product innovation, we will increase our manufacturing capital and intellectual capital.
An unbalanced allocation of capital will inhibit profitable growth.
ACTIONS TO ENHANCE OUTCOMES
Finance strives to bring insight to the business, educate on the financial consequences of decisions, warn of threats and alert the business to scope for opportunities and efficiencies.
Social and relationship capital
