ECONOMIC PERFORMANCE

Our approach is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.

We are operating in an economic environment heavily constrained by domestic and global challenges which impact on our business performance. The global economic slowdown in major economies including the Southern African region requires that the Group continues to take appropriate measures as well as explores alternative opportunities for improvement.

OUR STRATEGY

We are committed to building a resilient Group of businesses that will continue to create and deliver sustainable value for our shareholders and stakeholders. Our approach is to ensure that our experienced teams with industry expertise, deep market knowledge and entrepreneurial creativity continue to manage all capitals deployed for value creation and sustaining in the short and long term.

DEFINED CONTRIBUTION PENSION PLAN

Our pension schemes are managed through self-administered defined contribution pensions for qualifying employees. We manage the Innscor Africa Limited Pension Fund, National Foods Pension Fund and Colcom Pension Fund under the Group. Compulsory external schemes comprised of the National Social Security Authority Scheme, Workers Compensation Insurance Fund and the Catering Industry Pension Fund. The total contributions to the schemes for the year is presented below:

 Unit20172016
Pension ContributionUS$4,446,4083,230,270

Valued Added Statement 2017

Economic Value GenerationUnit20172016
Value Generated*US$210,019,919207,930,097
Other Income and InterestUS$4,527,4645,905,253
Equity Accounted EarningsUS$6,223,5514,760,760
US$33,688,61230,477,416
Economic Value DistributionUnit20172016
Other Operating CostsUS$(81,622,545)(83,600,705)
Staff Costs and benefitsUS$(66,088,198)(72,183,166)
Impairment and related chargesUS$(9,908,385)(1,708,921)
Depreciation and AmortisationUS$(15,289,432)(15,974,415)
Providers of CapitalUS$(6,233,574)(6,127,835)
Provisions for TaxesUS$(7,940,188)(8,523,652)
Value AddedUS$33,688,61230,477,416

*Value Generated is derived from Revenue less Costs of generating the revenue

PAYMENTS TO GOVERNMENT

Our payments to Government are through taxes, licences and fees paid by our operations. Below is a summary of taxes paid by continuing operations:

 Unit20172016
Corporate Tax – AssociatesUS$1,084,3571,148,496
Corporate Tax – SubsidiariesUS$6,562,72011,548,556
Value Added Tax (VAT)US$6,624,3495,855,393
Import DutyUS$4,359,3895,124,560
Other TaxesUS$5,259,7755,718,613
Grand TotalUS$23,890,95029,395,618