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11
Chief Executive Officer’s Report
During the period under review JDH began the roll out of
the core strategy which was disclosed to shareholders in
the previous annual report. This included right sizing the
company and subsidiaries whilst actively seeking acquisi-
tion opportunities which will enhance wealth creation for
the group. The company will ultimately operate in three
distinct silos;
•
JDHVenture Capital
- Key wealth creation
- Technology driven
- Low levels of competition
- High barriers to entry
- High gross margins
•
JDH Financial Services
- Niche market applications
- Ability to leverage products and services across
the group
- High margin, low risk
- Financial inclusion
•
JDH Property Investments
- Balance sheet booster
- Non speculative
- Minimum of 80% secured cover
JGHwill continuously look for new companies/
opportunities to bring into the group that sub-
scribe to our values and principles. These new
subsidiaries will grow the operating base and
allow cross selling and subsidisation. JDH is
also actively looking for businesses in Africa
that can be brought into the group – where
these businesses can be grown or expanded
into other African countries.
All subsidiaries are expected to deploy highly skilled man-
agement who have an established track record in the spe-
cific industry. JDH in return provides a centralised shared
services division ensuring a high level of governance
which is JSE compliant. This permits entrepreneurs to
focus on their core business without the complexities of
managing the back office. In addition, JDH provides access
to fund raising associated with a listed business.
Management efforts during the period under review fo-
cused primarily on right sizing the various business en-
tities, implementing the corporate actions required to
correctly position the group as well as raising working
capital for the subsidiaries. Notwithstanding this the board
are pleased with the turnaround of the business which oc-
curred in a very short period of time resulting in a small
profit of R 279 386.This is the first profit shown by the group
in a number of years and gives investors confidence in the
ability of the company to generate wealth in the future.
During the previous 2009/2010 financial period the board
felt it prudent to impair all assets where insufficient evi-
dence of future profitability existed.The uncertainty was a
combination of both the poor performance of the group
in the past and insufficient evidence by the outgoing
directors of the true operational capabilities of the sub-
sidiaries. The executive directors have managed the busi-
ness for almost one year of the period under review and
are now reasonably convinced of both the profitability
as well as the sustainability thereof. As a result the board
has chosen to reverse the impairment of certain assets in
the financial period under review, an action which has en-
hanced the financials.
Recognising the extended period caused as a result of the
change in the year end comparative results are;
•
Turnover up from R 5,7 million to R 6,5 million
•
Earnings per share (8,13) to 0,47 cents per share
•
HEPS up from (6,7) to 0,14 cents per share
•
Net tangible asset value per share up from 0,16 to
0,75 cents per share.