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JOHN DANIEL HOLDINGS LIMITED AND ITS SUBSIDIARIES
INTEGRATED ANNUAL REPORT 2011
Chairman’s Report
This is my first report since my appointment to the board
of directors of John Daniel Holdings Limited (“JDH”), dur-
ing February 2011. Mine was the last appointment of a
completely reconstituted board of directors. Bearing in
mind the history of the company, accepting the appoint-
ment was not an easy decision for me to make, however
the enthusiasm of the other new directors, particularly
the executive directors, convinced me that the fortunes
of JDH could be turned around.This enthusiasm and hard
work by my colleagues is now beginning to bear fruit.
The period under review evidenced exciting changes both
for the country as well as for the John Daniel Holdings
group. The board as it is currently constituted effectively
took office in March 2011 and as a result have primarily
influenced the second half of the reporting period.
Recovery both locally and abroad strengthened margin-
ally during the first half of 2011 and provided some con-
fidence for investors in small business, but this proved
to be false start as a result of Europe being in financial
turmoil. At the same time the Rand weakened somewhat
making export product pricing more attractive.
May 2011 evidenced the introduction in South Africa of
the new Companies Act, an event which has changed
the corporate landscape significantly. JDH subscribes to
the spirit and intent of the new Act, in particular those
aspects which improve governance and accountability.
The board of directors have committed to harmonising
the group companies with both the new Act as well as
the JSE listings requirements within the prescribed pe-
riod. The introduction of the new Act has however im-
pacted on the group’s ability to implement the strategic
corporate actions required to effect the group’s restruc-
turing. As a result the year end for the group has been
changed to 30 September.
The acquisition during the period of an additional two
strategic subsidiaries has evidenced the boards desire
to establish a profitable and robust subsidiary base for
the holding company. Viscacom, a niche market credit
provider, has created an opportunity to provide financial
services to employees of selected companies whilst at
the same time growing the debtors book.
The Cryo-Save venture has coupled JDH local expertise
with an internationally renowned leader in the field of
stem cell technology, as a local partner. The new venture
has provided cutting edge protocols and equipment in
addition to ensuring that the business remains in the
forefront of international developments in the field.
The new venture has also realised substantial foreign
investment in the laboratory in Cape Town.
The directors have established a social and ethics com-
mittee in addition to the standing committees as con-
templated by the act. Improved profitability of the group
will provide funding for greater evidence of the groups
social conscience. The group has also focussed on at-
tracting key skills during the period and will continue
to retain competent business management driving the
various business units.
The rights offer which was completed after the close of
this financial period has restored the company to solvency.
In the short term trading growth of the subsidiaries is
likely to be constrained only by the availability of work-
ing capital, however medium term prospects are even
more bullish.The Rand is expected to weaken further im-
proving the competitiveness of export products improv-
ing the revenues of Vinguard whilst making expansion
into Africa more attractive.The likelihood that capital will
continue to be in under supply to the lower end of the