The journey continues.
The five-year growth strategy is well on its way and the future is looking bright, despite some disappointments during the year, including losing the National Lottery Operator Bid and the Competition Commission’s rejection of the proposed Tsogo Sun transaction, all against a recessionary backdrop of subdued consumer spending, regular power outages and labour instability. It has been invigorating and affirming to lead an organisation that, when confronted by setbacks, disappointments and new challenges, is still capable of pursuing and achieving audacious dreams. Thus, the journey continues.
We have had to venture outside of our comfort zone and have implemented certain austerity measures to optimise the business without inhibiting the growth trajectory. We are focused on building a responsible business culture and applying the insights from recent years, thereby ensuring sustainable growth in revenue and profit from the existing businesses according to the five-year plan. Our employees, led by management, have embraced the challenges and are committed to realising this objective. “Coming together is a beginning, keeping together is progress, working together is success” – Henry Ford.
The milestones achieved in 2015 and up to the date of this report, include –
- Roll-out of 50 BURGER KING® outlets with 20 drive-through format stores in record time
- The acquisition of 100% of Mac Brothers Catering Equipment
- Substantial growth of the Slots business with profits exceeding projections
- Growth of the property portfolio with exciting new concepts in development
- The conclusion of an agreement to acquire a stake in Atlas Gaming Holdings, an Australian-based gaming machine manufacturer, in partnership with established European gaming company Synot International. This exposes GPI to an array of manufacturing opportunities in new markets
While we are driven to grow and sustain a profitable business, we also recognise and embrace the importance of investing in the youth and contributing to South Africa’s positive future. To this end, GPI will be launching an Incubator programme, to be known as GPI², at our head office. The Incubator will have access to our existing manufacturing facilities providing participants with the know-how to develop and implement their ideas with the ultimate aim of creating solid and sustainable entrepreneurs.
The Board is cognisant of its role as the ultimate custodian of governance and believes that sound corporate governance is paramount to ensuring long-term success and sustainability. To this end, we have implemented practices aimed at ensuring that business is conducted with integrity and transparency so as to create sustainable returns and value for all our stakeholders.
Our governance framework complies with the King III principles, with certain exceptions as discussed in the corporate governance section of this report, as well with applicable legislation and the JSE Listings Requirements.
The prospects for the future of GPI are positive, as we continue to seek new opportunities and challenge new frontiers. We will continue to explore opportunities to extend our footprint in the gaming sector on the one hand and, on the other, to position the food business portfolio for a substantial growth journey.
A great deal of progress has already been made in the food portfolio, with other global brands being considered for addition to the already substantial line-up of the BURGER KING® and Spur brands, and the conclusion of agreements for the remaining 65% of the Excellent Meat Burger Plant before the end of 2015, with plans to export patties and equipment to international markets during 2016. In addition, mutually value-adding joint venture arrangements with Spur Corporation Ltd are being explored to expand on and leverage supply chain synergies.
In the case of our manufacturing portfolio of businesses, strong growth prospects exist with scope for further vertical integration among our other businesses and a potential pipeline of orders for set-top boxes in South Africa, and for catering equipment locally and internationally.
Vote of thanks
In conclusion, I would like to express my sincere thanks to the Board of Directors, management, staff and consultants for their continued support throughout the year. This journey is only possible and made easier because of it being a team effort.
– Henry Ford