CHIEF FINANCIAL OFFICER’S REPORT
Growth is never by mere chance; it is the result of various forces working together
ENHANCING SHAREHOLDER RETURNS DESPITE A CHALLENGING OPERATING ENVIRONMENT
The financial capital we source from our equity and debt investors and our retained earnings enables our business continuity and growth, including making strategic investments. Our value is created and preserved through:
- increasing NAV, returns on investments, dividends and share price;
- maintaining a robust balance sheet to protect against downside risk (as was evident during the COVID-19 pandemic);
- investing in and growing our client franchises and our employees sustainably; and
- following good ESG practices that ensure a sustainable business for the long-term.
OPERATING IN AN UNPRECEDENTED MACROECONOMIC ENVIRONMENT
During the 2021 financial year, we went through the most radical transformation the world has ever seen. The outbreak of the COVID-19 pandemic led to a change in workforce behaviour and continues to impact businesses due to the various lockdowns.
The lockdowns led to a slowdown in global growth, which severely impacted economic activity, with businesses and individuals coming under severe pressure with some recovery starting to occur. Nevertheless, we navigated the COVID-19 pandemic and remained resilient with a robust balance sheet. Although our profitability was impacted with lower than expected revenues and increased impairments, we managed our cash flow and expenses to remain resilient.
As we continue to navigate this “new normal”, we lock arms (virtually) to find new ways of working and surviving.
AEEI’s sustainability and business model will continue to be resilient, flexible and adaptable to the “new normal.” AEEI, as a diversified investment holding company, has delivered and reinvented itself as a Group for the financial year ending 31 August 2021.
“You can’t control what happens, but you can learn resilience in the face of change.” Robyn Conley Downs
The South African economy recorded its fourth consecutive quarter of Gross Domestic Product (GDP) growth, expanding by 1.2% for the 2021 financial year. However, despite the gains made during the year, the economy is 1.4% smaller than before the COVID-19 pandemic.