CHAIRPERSON’S STATEMENT

Financial highlights

Unaudited 31 Aug 2019
RevenueZW$ 946 million
EBITDAZW$ 28 million
Mobile Money Subscribers10.6 million
EcoSure Insured Lives2.8 million
Moovah Active Policies (Short Term Insurance Business)47 922
Steward Bank Customers1.9 million

Introduction

Cassava Smartech Zimbabwe Limited (“The Group”) continues to proliferate its development of innovative digital solutions which improve the lives of all Zimbabweans. Our model is built on solving the day-to-day challenges faced by the population, particularly those previously excluded from accessing financial services. Our understanding of the local market, the dedication and skill of our staff and the pervasive ecosystem that we have built afford us the advantage to continue creating value for our shareholders.

Financial Performance Review

Comparative information
Comparative financial results have not been presented as the Group came into existence on 1 November 2018.

Key Accounting Policy Developments
The Public Accountants and Auditors Board (PAAB) in their circular 01/19 communicated that the factors and characteristics to apply the International Accounting Standard 29 on Financial Reporting in Hyperinflationary Economies had been met. The Group has begun to apply the requirements of IAS 29 (“Financial Reporting in Hyperinflationary Economies”) with effect from 1 March 2019, which are reflected in the interim unaudited results for the six months ended 31 August 2019.

Performance

The Group recognised a profit of $3.2 million in the financial statements for the six months ended 31 August 2019 on a hyperinflation adjusted basis.

Outlook

We are operating in a volatile, uncertain and complex environment which calls for new ways of managing risk whilst preserving shareholder value. We have witnessed sustained extreme upheavals in our operations and in the general economy and have taken a cautious and prudent approach.

We will continue seeking opportunities that grow shareholder value and allow us to build a sustainable, competitive advantage in the market based on the key strategic pillars which are staff engagement and development, customer experience, innovation, transparent and fair corporate governance practices, world class financial performance, sustained corporate social investment and enhanced risk management.

Appreciation

The Board would like to extend its appreciation to our customers who, through their continued support, remain our biggest motivation for continued innovation and excellence. I also recognise the significant role played by our partners and suppliers throughout the period. The commitment of the management and staff of Cassava Smartech Zimbabwe Limited, despite the difficult operating environment, remain our biggest pillar of strength and is greatly appreciated.

The Board is confident that the team will be able to deliver another strong performance in the remaining half of the current financial year.

Dividend declaration

The Board resolved not to declare a dividend for the six months ended 31 August 2019.

On behalf of the Board

Sherree Shereni
Board Chairperson


Related download
Cassava Smartech HY2020 Interim financial results