The Directors have pleasure in presenting the Group annual financial statements of Blue Label Telecoms Limited (Blue Label Telecoms or the Company) and its subsidiary, associate and joint venture companies (the Group) for the year ended 31 May 2024.
Blue Label Telecoms’ core business is the virtual distribution of secure electronic tokens of value and transactional services across its global footprint of touch points. The Group’s stated strategy is to extend its global footprint of touch points, both organically and acquisitively, to meet the significant demand for the delivery of multiple prepaid products and services through a single distributor, across various delivery mechanisms and via numerous merchants or vendors.
The Group recorded a net profit after tax attributable to equity holders for the year ended 31 May 2024 of R647 million (2023: R269 million). Full details of the financial position and results of the Group and its segments are set out in the Group annual financial statements. The Group annual financial statements for the year ended 31 May 2024 were approved by the Board and signed on its behalf on 28 August 2024.
Full details of the authorised, issued and unissued capital of the Company at 31 May 2024 are contained in note 6.1 of the Group annual financial statements.
The Board of Directors have elected not to declare a dividend.
The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within its current funding levels into the foreseeable future.
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources and facilities to continue in operational existence for the foreseeable future and is not at risk of breaching its covenants. The Group therefore continues to adopt the going concern basis in preparing the financial statements.
The following are the details of the Company’s Directors:
Name | Office | Appointment date | Date and nature of change |
Larry M Nestadt (Chairman) | Independent Non-Executive Director | 5 October 2007 | |
Brett M Levy | Joint Chief Executive Director | 1 February 2007 | |
Mark S Levy | Joint Chief Executive Director | 1 February 2007 | |
Kevin M Ellerine | Non-Executive Director | 8 December 2009 | Resigned 5 June 2023 |
Nomavuso P Mnxasana | Independent Non-Executive Director | 18 September 2020 | |
Joe S Mthimunye | Independent Non-Executive Director | 5 October 2007 | |
Dean A Suntup | Financial Director | 14 November 2013 | |
Jeremiah S Vilakazi | Independent Non-Executive Director | 19 October 2011 | |
Lindiwe E Mthimunye | Independent Non-Executive Director | 1 November 2022 | |
Happy Masondo | Independent Non-Executive Director | 1 August 2023 |
The individual interests declared by Directors in the Company’s share capital as at 31 May 2024, held directly or indirectly, were as follows:
Nature of interest | ||||||||
Direct beneficial | Indirect beneficial | |||||||
Director/officer | 2024 | 2023 | 2024 | 2023 | ||||
---|---|---|---|---|---|---|---|---|
LM Nestadt (Chairman) | — | — | 10 000 000 | 10 000 000 | ||||
BM Levy | 71 251 324 | 69 591 549 | 17 772 777 | 17 772 777 | ||||
MS Levy | 63 843 916 | 62 184 141 | 19 120 980 | 17 772 777 | ||||
KM Ellerine* | — | — | — | 120 000 000 | ||||
JS Mthimunye | 130 000 | 130 000 | 242 573 | 242 573 | ||||
DA Suntup | 5 985 092 | 5 106 011 | 177 778 | 177 778 | ||||
SJ Vilakazi | — | — | 8 200 | 8 200 |
* | KM Ellerine is a beneficiary of these shares together with multiple other beneficiaries. KM Ellerine resigned subsequent to the prior financial year-end, effective 5 June 2023. |
There was no change in the interests held by Directors between 31 May 2024 and the date of approval of these annual financial statements.
The aggregate interest of the current Directors in the capital of the Company was as follows:
Number of shares | ||||
Director/officer | 2024 | 2023 | ||
---|---|---|---|---|
Beneficial | 188 532 640 | 302 985 806 |
The beneficial interest held by Directors and officers of the Company constitutes 20.63% (2023: 33.16%) of the issued share
capital of the Company.
Details of Directors’ emoluments and equity compensation benefits are set out in note 5.3 of the Group annual financial statements and details of the conditional share plan are set out in note 5.1.
On 23 November 2023, the Company passed and filed with the Companies and Intellectual Property Commission the following special resolutions:
Except for the aforementioned, no other special resolutions, the nature of which might be significant to shareholders in their appreciation of the state of affairs of the Group, were passed by the Company or its subsidiaries during the period covered at the date of signing these Group annual financial statements.
The Board is satisfied that Ms J van Eden has the requisite knowledge and experience to carry out the duties of a Company Secretary of a public company in accordance with section 88 of the Companies Act and is not disqualified to act as such. She is not a Director of the Board and maintains an arm’s-length relationship with the Board.
The business and postal address of the Company Secretary appear on the Company’s website.
SizweNtsalubaGobodo Grant Thornton Inc. (SNGGT) will continue in office in accordance with section 90(6) of the Companies Act.
Larry Nestadt
Chairman