Overview

Given the positive nature and extent of the corporate actions and activities during the year, management in each business unit were continually under pressure, to ensure the seamless integration of the new and/or expanded operations without compromising service levels. In the event, management were able to rise to the challenge and their efforts are revealed in certain key financial statistics disclosed herein. It is common cause that AfroCentric and most other companies in South Africa, have unfortunately had to endure a consistently difficult and unstable economy, often punctuated by discordant politics and further affected by volatile currency conversion rates. In such prevailing circumstances, the results for the 2016 year, are regarded by the Board as highly satisfactory.

Comprehensive Net Income for the year increased by 24.55%, notwithstanding that early costs incurred in preparation for the Polmed contract have been absorbed. Income arising through Polmed, is only reflected for the latter six months of the year. The dilution through the issue of 86.5 million AfroCentric ordinary shares to the vendors of the WAD assets, including the dilution arising from the sale to SANLAM of 28.7% of the shares in AHA, all occurring during the year, earnings per share and headline earnings per share only reduced by 6.92% and 14.27% respectively. The WAD asset acquisitions performed as expected and the future WAD earnings, including the contributions expected through the SANLAM relationship, suggest that both business relationships will be earnings enhancing.