BEE News.co.za

B-BBEE imperatives at Switch

The Switch Group, a multi-disciplinary brand consultancy, has been awarded a Level Two Broad-Based Black Economic Empowerment (B-BBEE) rating for the second consecutive year.

]]> Amongst its empowerment strategies, it has an intake of three to four interns each year, usually resulting in the employment of at least two of them.

Khula drums up support for SME development drive

In a "well-represented" stakeholder meeting with business organisations on Wednesday, development finance institution (DFI) Khula Enterprise Finance managed to drum up further support for its plans to better serve small and microenterprises (SMEs) in South Africa.

]]> Last week, Khula announced plans to refocus its assets and relationships with other organisations to better serve SMEs.

BBBEE needs revision: Manuel

PARLIAMENT - National Planning Commission Minister in the Presidency Trevor Manuel conceded on Tuesday that the broad-based black economic empowerment (BBBEE) policy needed to be revised.

]]> Manuel was responding in the National Assembly to a statement by Congress of the People MP Willie Madisha, who said BBBEE was a misnomer.

Professor Wiseman Nkuhlu, co-founder and chairman of investment company Pan-African Capital Holdings, became the first black South African to qualify as a chartered accountant (CA) in 1976.

]]> Thirty-four years later the industry is still struggling to agree on how best to transform the profession. Small black accounting firms are still at loggerheads with their white counterparts over ownership equity targets, more than six years since discussions on empowerment in the industry began. The adoption of the profession's broad-based black economic empowerment (BBBEE) charter was put on hold last year.

Imperial's Outstanding Results And Strongest Balance Sheet In Recent Years Position The Group For Growth

-          HEPS from continuing operations up 40% to 976 cps
-          Operating profit up 34% to R 3 288 million
-          Revenue 2% up to R 53 438 million
-          Cash Conversion Ratio 119%
-          Debt down from R10,2 bn to R8,3 bn; net debt:equity (excl. prefs) 39%
-          Final dividend 200 cents

]]> CEO Hubert Brody said: "Imperial has delivered outstanding results notwithstanding the tough economic conditions which still prevail in many of our markets. We have focused on operational efficiencies, increasing our margins, managing costs tightly, lowering our debt and on sound marketing. We've ensured that our acquisitions have been earnings enhancing and we continue to concentrate on capital management."

Operating profit was 34% higher, a substantial increase in a market which has not yet recovered from the recession, and headline earnings per share (HEPS) from continuing operations was 40% higher at 976 cents, compared to a 17% increase at the interim stage. HEPS last year included a foreign exchange gain of R394 million (212 cents per share) which was earned on the repatriation of capital from European operations.

All the divisions increased their operating profit, with the main contributors being Distributorships (+126%) and Insurance (+57%) divisions. Automotive Retail and Distributorships represent 44% of operating profit while the Logistics and the Car Rental and Tourism divisions, which have less volatile profit streams, represent a similar proportion. Notwithstanding a very turbulent global industrial and trading environment over the past two years, the Logistics divisions' profits were robust.

Group revenue from continuing operations was 2% higher at R53,4 billion, of which 59% was generated by the Automotive Retail and Distributorships divisions which derive the bulk of their revenue from the retailing of passenger and commercial vehicles, and 31% was generated by the Southern African and European logistics operations. Car Rental & Tourism and Insurance generated 10% of revenue.

The group's operating margin of 6,2% improved substantially from 4,7% in 2009 due to a revival in certain of the group's markets and good cost management across the group.

Net finance cost reduced by 35% to R597 million. Gross interest bearing debt is down by almost R2 billion due to good working capital management, cash receipts from the sale of Imperial Bank and the effect of the stronger Rand on foreign debt balances. Long term debt of R697 million was repaid. Net debt (excluding preference shares) to equity is at 39% compared to 50% a year ago and 50% at December 2009. Approximately R750 million has been spent on acquisitions, and net debt was reduced by approximately R500 million.

Income from associates was 63% higher at R174 million and capex was R1,9 billion. The tax rate was higher at 31% due to the CGT payable on the sale of Imperial Bank, STC on dividends and share buybacks of R200 million to hedge share appreciation rights obligations. Cash generation reduced by 27% mainly as a result of the delayed car rental de-fleeting because of the World Cup.

A final ordinary dividend of 200 cents per share has been declared, which brings the total ordinary dividend for the year to 350 cents per share (2009: 200 cents per share), an increase of 75% on the prior year.

Management is also focusing on renewed growth in selected areas of the existing businesses where there is proven expertise. The recently announced acquisition of CIC Holdings Limited will accelerate the group's growth into the African continent. The transaction is still subject to regulatory approvals.

The group spent approximately R750 million on acquisitions during the year, including:

- 75% of Midas which markets and distributes quality automotive, D.I.Y and leisure products.

- 25% in MiX Telematics which is focused on vehicle tracking through the Matrix brand, commercial vehicle performance, driver monitoring and fleet management products and services.

- 65% of the Goscor group, the sole distributor of well known branded industrial equipment in the country.

- 55% in Provaart, a chartering business in Rotterdam operating on the Rhine River.

The Distributorships division's new vehicle registrations, as reported to NAAMSA, are 54% up compared to a market growth of 2%. In its Auto Parts division the Midas acquisition became effective from 1 December 2009 and has made a meaningful contribution to divisional profits for seven months. Imperial is now the leader in the very substantial vehicle replacement parts market segment. Imperial retailed 73,326 new and 52,576 used vehicles. The exceptional exposure of Hyundai and Kia through their sponsorship of the World Cup made a substantial contribution.

While the global recession impacted negatively on all touring and transport businesses and normal trading business remains under pressure, the Car Rental and Tourism division achieved excellent year-on-year growth in revenue (12.3%) and operating profit (17.6%), with revenue days increasing by 9%, impacted positively by the World Cup. Springbok Atlas was the sole transporter of the 32 participating teams for the duration of the tournament. Having been responsible for the movement of sports teams during all key recent sports events in the country the company has established itself as the premier sports transport logistics provider in South Africa.

Due to its exposure to diverse industries, the Southern African Logistics Division succeeded in limiting the negative impact of the economic recession by growing revenue by 4,9% and operating profit by 3,4%. In spite of traditional seasonality which favours the first half, the division posted 7,9% higher operating profit in the second half. Imperial Logistics International achieved an outstanding result in its 2010 financial year, especially in the second half, which is evidence of the strength of the recovery in industrial activity in Europe. The 2010 results in Euro terms are better than reflected in ZAR terms due to the stronger Rand, with revenue in Euro down only 7.2% and operating profit up 20% for the period.

Commenting on Imperial's prospects, Brody says, "The building blocks of our business are soundly positioned for further growth, but the economic recovery is still tentative. Uncertain economic trends prevail, especially increased workplace instability, high levels of unemployment in southern Africa, the impact of the strong currency on exports and high personal debt levels. "

"The 2010 financial year has delivered outstanding organic growth. With low financial leverage, and substantial undrawn facilities, our balance sheet is currently stronger than at any time in the recent past. This presents opportunities for acquisitive growth, which would be sought in areas where our existing skills and infrastructure would give us an advantage."

ENDS

For further information:

Brunswick +27 11 502 7300

Anne Dunn +27 82 448 2684

Tshepo Mophiring +27 82 887 4124

ADSL prices in South Africa: Why so high?

South Africa's ADSL prices remain very high compared to global trends. What sits behind these high prices?

]]> South Africa's high ADSL prices continue to frustrate local broadband users, and despite calls from consumers and even Government for lower broadband tariffs not much has changed over the last few years.

LaserCom boosts BBBEE scores

Direct marketing, variable print and mail processing specialist LaserCom, a division of Bytes Technology Group, has been rated as a Level 2 (AAA) Contributor and Value-Adding Supplier according to the BB-BEE Codes of Good Practice by accredited verification agency Empowerdex. This is the second year running that the company has achieved the rating. ]]> In 2009, the rating was awarded to LaserCom after a surge in compliance with the DTI's Codes of Good Practice, and the company moved from an overall score of 68,6% to 91,02%. The latest rating gives LaserCom an overall score of 96,86%, an increase of 5,8%.

"BEE is not about just about compliance," says Gene Pillay, the manager tasked with coordinating LaserCom's BBBEE efforts. "It's about enlightened business practices and a commitment to making a difference in the broader community in which we operate."

Pillay highlights the importance of the input received from people across the company, right up to board level. "We approached each of the codes as a project, the overall objective being to change the dimension in which we operate."

He also notes that LaserCom's compliance drive is driven by Transformation Vision 2012, parent company Altron Group's strategy for black economic transformation. "The group recognises that transformation is not only a moral imperative but that it is also critical to the stability and future prosperity of the South African economy."

The score entitles LaserCom clients to claim 156,25% of the value spent with the company as BEE procurement due to the value-add component. "This is an excellent incentive for our customers as none of our competitors has a comparable BBBEE rating, so this gives us a significant competitive advantage over them."

In the last 12 months, LaserCom achieved the following:

· It scored 22,83 points out of a possible 20 for ownership. This is because Bytes Technology Group, which is 27% owned by broad-based empowerment group Kagiso, received the additional points above 20 as a result of various bonus points awarded to Kagiso.

· It maintained its training and skills development, scoring the maximum 15 points.

· It enhanced employment equity to 13,35 out of a potential 15 points. Of its 354 employees, 85% are previously disadvantaged individuals.

· It scored 19,45 out of a possible 20 points for preferential procurement. The company even assists its own suppliers to improve their ratings. It scored a maximum 15 points for enterprise development, and a maximum five for socio-economic development.

Among the small businesses which benefited from LaserCom's enterprise development drive are LaserCom's catering company which is owned and operated by a black woman, and its mail returns tracking system, which is owned and operated by a coloured woman.

Socio-economic development initiatives include a R1 million grant over three years to Nelson Mandela Metropolitan University, as well as grants to the Starfish Foundation (Mr Price Youth Foundation), Project O (Mr Price Youth Foundation), and Scatterlings, an early childhood education organisation.

"The endorsement from Empowerdex affirms LaserCom's holistic approach to transformation as indicated by each of the individual scores we achieved," says Pillay.

LaserCom for the second year in a row received the award for "Most Empowered Company in the Altron Group" at the Altron Group awards held on 30 July at the Vodadome.

LaserCom is the national leader in its space, with operations in Johannesburg, Durban and Cape Town, it fulfils the postal requirements of most banks, telcos, and many other blue-chip organisations. It produces more than 30 million pages a month, and recently launched South Africa's first transpromo (transactional/promotional) service.

Contact

Roshana Jansen, Lasercom, (011) 699 8300, rjansen@lasercom.co.za

Lisa Cooper, Predictive Communications, (011) 452 2923, lisa@predictive.co.za

Meet BBBEE targets or else: MEC

Businesses that do not comply with Broad-Based Black Economic Empowerment (BBBEE) targets could soon find themselves falling foul of the law.

]]> And those companies that use a BBBEE image as a "front" are being caught out. KZN Premier, Zweli Mkhize, and Economic Development and Tourism MEC, Mike Mabuyakhulu, did not mince their words when they said BBBEE targets would have to be met, or businesses could face legal action for non-compliance.

AAD certified as BBBEE Level 5 contributor

Arrow Altech Distribution (AAD), a member of the JSE listed Altech group of companies and NYSE listed electronics distribution giant, Arrow Electronics, was recently rated as a Broad-based Black Economic Empowerment (BBBEE) Level 5 contributor by the National Empowerment Rating Agency (NERA) under the Department of Trade and Industry's (DTI) BBBEE Code of Good Practice generic scorecard.

]]> Altech's philosophy on BBBEE includes a charter for transformation that commits all its group companies to empowerment according to the seven pillars of the DTI's Codes of Good Practice. These seven pillars are equity ownership, management and control, employment equity, skills development, preferential procurement, enterprise development and socio economic development. In addition to striving to comply with the DTI codes, Altech says it embraces the role it can play in helping to redress historical racial imbalances in the economy of South Africa.

ABVA ELECTS NEW BOARD

ABVA (the Association of BEE Verification Agencies) is pleased to announce the election of the new Board of Directors for the 2010-2011 period. At the latest Annual General Meeting attended by the ABVA membership, three new members were elected and four members were re-elected to posts on the Board. The new ABVA board reflects the diversity of the organisation as well as the immense expertise in BEE and BEE verification found amongst the membership.

]]>

The three new board members elected are Kate Moloto, Dumisani Mphafa and Loyiso Majija. Kate Moloto is the Deputy Chairperson and will also head up the Public Relations Portfolio of ABVA. Kate is the founder/director of Moloto BEE, a BBBEE verification agency, and Moloto Solutions (a financial management and BBBEE consultancy).She has led a number of large scale BBBEE projects, the most recent being the review of compliance by the Mining sector with the Mining Charter, leading towards the impending review, on behalf of the Department of Mineral Resources.

Kate has held a number of senior strategic positions in the empowerment arena, including as CEO of Ntsika Enterprise Development Agency (now SEDA), Project Manager for Mafisa Agricultural Microfinance scheme and Transformation Task Force leader at the DBSA. She started her career in Finance, and completed her articles with Pim Goldby (now Deloitte). Thereafter she held various financial management positions with Smith Kline and French, BMW SA, and the Development Bank of Southern Africa (DBSA).

She holds a B Com, a CTA (and articles), a Certificate in Investment Analysis & Portfolio Management and is a CIA (Certified Internal Auditor).

Kate is currently a director in the following companies: Agrivie / AVIA (a private equity fund manager), Makotulo Agricultural company (Pty) Ltd (agricultural investment company);, Independent Audit Committee Member of the ARC (Agricultural Research Company) and Member of the BEE Advisory Committee of the Mpumalanga Province, set up to advise the MEC of Economic Development and Planning.

Dumisani Mphafa is the managing member of SMME Business Solutions, and is an MBA graduate from the Nelson Mandela Metropolitan University (Formerly UPE and PE Technikon). A specialist in business start-ups, he is an ex- shareholder and director/trustee of the following businesses; Power Funeral Plan, Buhle Clothing, Coega Security Consortium and Bakula Trust. He completed a postgraduate Diploma in Company Direction in 2003. He is also a member of Institute of Business Advisors (IBA M6163) and Institute of Directors SA. Dumisani will head the Discipline & Professionalization Portfolio.

Loyiso Majija is a highly qualified and competent individual with a BA, B Comm and MBA ( USA ) qualifications. She has acquired a vast experience in the oil industry, and has worked as an accountant and analyst for Engen and Shell. She is a Verification Director at EmpowerLogic. Loyiso will head the Membership and Database Portfolio.

Chris van Wyk is now the ABVA Chairperson while also continuing in his very effective role as head of the Technical Portfolio. Brigitte Brun will also continue her role on the Board as head of the Training Portfolio, Tony Balshaw also continues as the head of the Finance Portfolio and Wade van Rooyen will stay on as head of the Accreditation Portfolio.

The new ABVA board will be able to confidently and competently carry on with the valuable groundwork laid by the previous board. Major milestones in the accreditation industry have taken place over the past few years and the new ABVA board is excited and ready to continue the vital work of the organisation.

	Board Member	Portfolios
1	Chris van Wyk	Chairperson and heads the Technical Portfolio
2	Kate Moloto	Deputy Chairperson and heads the Public Relations Portfolio
3	Brigitte Brun	Heads the Training Portfolio and a Committee Member in the Discipline & Professionalization Portfolio
4	Dumisani Mphafa	Heads the Discipline & Professionalization Portfolio and a Committee Member in the Training Portfolio
5	Loyiso Majija	Heads the Membership and Database Portfolio
6	Tony Balshaw	Heads the Finance Portfolio
7	Wade van Rooyen	Heads the Accreditation Portfolio

............................................................................................................................/ENDS

For more information or to interview an ABVA board member, please contact Grace Kadzere at Red Flag Marketing & Design, (011) 447 8283, grace@redflag.co.za

Groundbreaking BBBEE agreement puts ad agency behind township entrepreneurs

Brand design agency The Red Quarter (TRQ) has entered into a pioneering shareholding agreement that sees a Section 21 company, The Mkhwanazi Academy for Christian Entrepreneurship (MACE), taking up a 20% stake in the agency.

]]> Based in Vosloorus, the MACE campus runs programmes to identify, develop and support young township entrepreneurs. This initiative seeks to make a meaningful change in South Africa's disadvantaged communities by helping to create a new generation of job creating businessmen.

Santosh Kumar & Ishaan Saxena: Key take-aways from Fifa World Cup 2010

Although South Africa lost early in the World Cup it ultimately emerged a winner. Successfully hosting the event has boosted its international image and its credibility in bidding for the 2020 Olympics. The country that was once infamous for its racist regime and brutality, stands out today as a model for policies in the pursuit of social harmony, inclusive economic growth and efficient democratic governance.

]]> Barely two decades ago, few would have imagined that the ruptured social fabric of South Africa could be knit together after the violent struggle against apartheid. The Truth and Reconciliation Commission (TRC) made this possible. By systematically investigating atrocities committed by all sides during the apartheid era (1960-1994) under the Promotion of National Unity and Reconciliation Act (1995), it cleared the air and hastened inter-racial reconciliation. The three committees under the TRC dealt with human rights violations, rehabilitation of victims, and the issue of granting amnesty.

More women in business makes good sense

Women are still lagging behind their male counterparts in black economic empowerment (BEE) benefits, despite the advantages companies gain by having a woman in top management or as a shareholder.

]]> BEE was meant, among other things, to encourage women's active participation in the economy, says Kim Marr, the director of Social Advantage. Her organisation helps businesses to maximise
the benefits and opportunities of effectively implementing broad-based BEE (BBBEE). BBBEE points are awarded to companies where at least 10% of the voting rights and economic interests lie in the hands of black women and at least 6% of procurement is aimed at black woman-owned businesses.

Empowerment Wins Business: Aligning B-BBEE and Bid Best Practice

"Understanding B-BBEE regulations helps companies to win both government and corporate tenders," says Sandy Pullinger, chairperson of the Association of Proposal Management Professionals (APMP) South Africa. ]]> This is why the APMP has invited Andrew Bizzell, CEO of BEESA/BoxSmart to speak on this topic on Wednesday 25 August from 17h30 at M-IT's offices in Bedfordview.

Aimed at sales, new business development, procurement and proposal managers, this event will help attendees in understanding B-BBEE and how to align this with Bid Best Practice. The presentation will cover:

· The South African Economy

· How BEE is designed to accelerate economic growth

· The B-BBEE scorecard explained

· BEE options

Andrew Bizzell has a BSc in Business Studies from Oxford Brookes University and is one of the founders of BEESA. He is responsible for the marketing of BEESA and heads up the Johannesburg branch of the company. He has 13 years experience working in South Africa, the United Kingdom, France and Switzerland. Prior to joining BEESA he was Resources Manager for Standard Bank, KZN. He has also held senior posts with Esander Building Society, Sweden, Oxygen Finance, UK, MIC Group, UK and Directory4, UK.

"B-BBEE will continue to be a key factor in the future success of any business," says Bizell. "To this end, I have worked closely with the Department of Trade and Industry (DTI) to identify the best ways to communicate the effect of implementation of BEE in South Africa, and hope to share these learnings with delegates."

"Networking and knowledge sharing are equally important to the members of APMP, which was founded more than 21 years ago and has thousands of members worldwide," says Pullinger.

"As part of a global community we're excited to announce that international guest speakers from the US and the UK have accepted our invitation to speak at our first local conference on 20 October. The theme of the conference will be 'Making a Splash' and it will focus on fresh ideas to inspire better proposals. Confirmed speakers include, Jon Williams from Strategic Proposals UK and Colleen Jolly from 24 Hour Company in the US.

"Chris Rademeyer from Deloitte, our very own home-grown, accredited, black-belt bid manager will also share secrets on how to avoid bid burnout," says Pullinger.

Anyone interested in attending the 25 August event or 20 October conference should contact events@apmp.org.za.

About the APMP

The international Association of Proposal Management Professionals was founded more than 21 years ago and has thousands of members world-wide. Our mission is to advance the arts, sciences, and technology of new business acquisition and promoting the professionalism of people engaged in those pursuits.

APMP South Africa is a non-profit organisation registered under section 21. We look forward to growing our local chapter with members from not only the Proposal and Bid Management profession, but also welcome specialists in sales, new business development, procurement, training, industry and others interested in promoting the proposal profession.

Issued by:	C-Cubed Communications
Contact:	Cathy van Zyl (021) 852-7198 Petra Peacock (011) 794-4665
On behalf of:	nFold (Pty) Ltd
Contact:	Sandy Pullinger sandy@nfold.com / (011) 486-2418
Date:	29 July 2010

Petra Peacock

+27 11 7944665; +27 83 3031778

petrap@iafrica.com

White males still dominate - Mpho Nkeli

CEE acting chairperson calls for clampdown on minority overrepresentation in workplace

]]> Forward by Mpho Nkeli, Acting Chairperson, Commission for Employment Equity, Tenth Commission for Employment Equity Annual report, July 29 2010

This is the tenth Commission for Employment Equity Annual Report, making it imperative to pause and reflect on the progress made a decade later and to evaluate the effectiveness of the Employment Equity Act.