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| GROUP CHIEF EXECUTIVE'S REPORT (continued) |
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| Sustainability |
The sale of 26% of Brait South Africa Limited ("Brait") to Sitogo
Holdings (Pty) Ltd ("Sitogo"), a broad-based black empowerment
grouping led by a number of entrepreneurial black business people, was
concluded in the prior financial year.The partnership between the Sitogo
and Brait executives is working well as evidenced by increased
interaction and joint exploration of business opportunities between the partners. The partnership has already created value for all stakeholders.
For example, the benefit of the partnership to the business was clearly
felt in the gathering of assets under management this year. Secondly,
the original intention in the Sitogo transaction was that forecast
earnings and cash generation would be sufficient to repay the
underpinning financing within six years. Earnings and cash generation
over the two years of the partnership is 15% ahead of forecast with the
expected commensurate benefit to Sitogo.
In terms of broader BEE impact, Brait benchmarks itself against the
applicable sections of the Financial Services Charter Scorecard, namely
employment equity, procurement, ownership and control and
corporate social investment. When measured against these criteria
Brait scored an "A" rating for the year.
Brait is a strong supporter of the JSE Limited's Socially Responsible
Investment (JSE SRI) Index. The JSE SRI Index evaluates companies on
their sustainability in terms of governance, economic, environmental
and social factors and Brait is pleased to be one of 58 companies
included in the2005/2006 annual review of the JSE SRI Index. |
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| Staff and stakeholders |
| The strong relationship we have with all our stakeholders is critical to
the performance and sustainability of our business. On behalf of the
executive and my partners at Brait, I would like to formally thank my
colleagues at Brait for their hard work and dedication, our
shareowners and BEE partners for their commitment and partnership,
and our clients and private equity and specialised fund investors for
their loyalty and support. Your partnership is much appreciated and
important to the current and future success of Brait. |
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| John Coulter |
| Group Chief Executive |
| 19 June 2006 |
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