Dear Shareholders, Clients and Colleagues
2006 marked another remarkable year in our organization’s transformation into an integrated energy Group. At the start of the year, we set out with three key areas of focus i.e. strategic, operational and manpower.
Strategically, we set out to derive optimal value from our expanded platform in 2006 by focusing on the tripod objectives of “improving Liquidity, enhancing Profitability and maintaining sustainable Growth”. In line with this, detailed five year rolling plans were developed by each business and the Group as a whole. These plans formed the basis of capital allocation in 2006 and will continue to do so going forward.
We also set out to streamline operations and internal processes across the Group, with the aim of driving greater efficiency within each business entity and the Group as a whole. Specific achievements made in this regard during the period include: |
In addition, we commenced the implementation of our Enterprise Resource Planning (ERP) project, branded ‘Project Synergy’, in July 2006. The project will leverage Oracle technology to integrate business processes in key functional areas across the Group, namely Finance, Human Resource, Sales/Marketing, Manufacturing (Production) and Supply Chain Management. With the implementation process scheduled for completion in 2007, the ERP system will enhance efficiency by ensuring business transactions are processed uniformly within the Group and will provide managers access to more timely and accurate information to make better business decisions.
Human Capital Development was also a key focus in 2006. As a precursor to this, an evaluation of the overall organization Job structure was carried out early in the year, with the results supporting ongoing efforts to streamline structures and create more efficient business operating models. The resulting structure, which is presently being implemented, will force Managers to identify and manage careers of high performance/high potential staff, whilst equally forcing them to take remedial action against non-performers/mediocre staff.
We went further in 2006 to articulate the Group’s key human resource (HR) objectives, which are:
1. To be an employer of choice;
2. To be a developer of people;
3. To improve the delivery and effectiveness of our HR services.
To achieve these objectives, we have set out to revamp our HR systems and framework through a series of carefully planned projects and initiatives which are presently being implemented and will be concluded in 2007. In the interim, we have continued to intensify key staff training across all cadres within the Group.
Following from the various initiatives above, your company was able to better optimize use of shareholders capital to generate higher profitability from operations during the period under review as well as position for further future growth. With Return on Equity of 12%, Return on Total Assets (ROTA) of 3%, expense-to-income ratio of 76%, earnings attributable shareholders growth of 44% and an earnings per share of $0.349, Year 2006 performance is clearly an improvement over previous years.
Further details of this sterling performance and our plans for the new year are provided within the subsequent business unit reviews.
|
