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SAPO GROUP. Financial Overview 2003-2004. Financial overview 2003/2004. Key achievements – Improved Financial Performance. 31 March 2003. Operating loss R170 million. 31 March 2004. Operating profit of R35.5 million . Target was R1.8 million. Improvement in operating profit.
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Key achievements – Improved Financial Performance • 31 March 2003. • Operating loss R170 million. • 31 March 2004. • Operating profit of R35.5 million. • Target was R1.8 million. • Improvement in operating profit. • R205 million.
Key achievements – improved financial performance • Revenue growth of R261 million – 6.3 %. • Increase in costs of only 1 %. • Aggressively managing costs and curtailing non value adding expenditure. • Creative management of capital expenditure through Partnerships • Outright Purchase - Lease - Pay for use • Decrease in staff numbers of 1 042 due to voluntary packages. • Reduction of fleet – 350 vehicles.
Key achievements – improved financial performance • Improvement in working capital. • Reduction of Post Office debtors days from 30 to 20 days. • Generation of approx R270m cash from operations.
Key achievements - Postbank • YTD MAR 2004 growth of R560 million in Postbank’s depositors book compared to 31 March 2003, 46 % growth. • Introduction of Thuso insurance product. • Miracle 2000 – R38.6 million deposit. • Introduction of new savings products ( term save, bonus save and group save). • Growth of accounts 528 000 new accounts, 28 % growth.
Balance Sheet Improvements • Negative retained earnings R1.4b at March 2004. • To be resolved through • Reduction in post retirement medical aid liability R2.3b (provided R1.1b) • Postbank recapitalisation R750m • Review of property values • Sustainable profitable performance
Key projects for 2003/2004. • 51 Post Offices have been installed with “New image”. / upgraded. • SAP upgrade. • E-BDN. • Fixed assets project. • Server consolidation. • Upgrade of Network. • Biometrics • Online private box renewals. • Financial switch.