About This Report

In 2017 Alexander Forbes publishes its seventh integrated report and the third since our 2014 listing on the JSE Limited (JSE). This report outlines the group’s model for creating and distributing value and conveys the most material financial and non-financial aspects of performance for the group and its businesses.

The focus of the report is on presenting a holistic view of the group’s strategy, performance and priorities through the lens of our four material themes, which are structured around our most important stakeholder groups: clients, employees, investors and society.

Scope

This report covers the performance of Alexander Forbes Group Holdings (AFGH) for the year ended 31 March 2017. This financial year (1 April 2016 – 31 March 2017) is referred to as ‘2017’ throughout the report. The report also includes events and leadership changes that occurred after year-end but before publication date.

The scope of the report includes the businesses over which AFGH exercises control. During the year under review no businesses were acquired and three businesses were disposed. In terms of International Financial Reporting Standards (IFRS) businesses disposed are classified as discontinued operations and reflected as such in the financial statements. These were:

Lane Clark & Peacock (LCP): the UK-based consulting business in which AFGH held a 60% partnership stake. The sale of this business was concluded on 19 December 2016.
The insurance consulting division of Alexander Forbes Financial Services: the SA-based business which AFGH sold on 31 March 2017.
Alexander Forbes Compensation Technologies, the sale of which was finalised in June 2016.

In addition, the board of directors has decided to dispose of the group’s minority stake in the Kenyan financial services business. This business has therefore also been classified as a discontinued operation.

The integrated report contains forward-looking statements and targets, which involve risk and uncertainly as they relate to future events and may be influenced by factors outside of Alexander Forbes’s control. Readers of the report should use all caution regarding the interpretation and use of any forward-looking statements in the report.

Reporting principles

Alexander Forbes takes direction on its operations and reporting from the King Report on Governance for South Africa 2009 (King III) and aligns its reporting with the Integrated Reporting Council’s Integrated Reporting (<IR>) Framework.

Our financial statements are produced in accordance with International Financial Reporting Standards (IFRS) and comply with the JSE Listings Requirements as well as the Companies Act of South Africa 2008.

Assurance

While the financial figures in this report are taken from audited information, the report itself has not been audited. Our annual financial statements are audited by PricewaterhouseCoopers who expressed an unmodified opinion thereon. Shareholders are advised that, in order to obtain a full understanding of the nature of the information that has been audited, they should obtain a copy of the auditor’s report together with the audited consolidated annual financial statements, both of which are available online.

Our B-BBEE rating has been independently verified by Empowerdex Proprietary Limited.

Feedback

Feedback helps us to stay abreast of the interests of our stakeholders and this in turn helps us to improve the way we communicate through this report and other platforms. We welcome all feedback – on this report and otherwise – via e-mail at InvestorRelations@aforbes.co.za.

Alexander Forbes Integrated Annual Report 2017