ANNUAL REPORT
ALPHA TRANSPORT
SOAR WITH US
ANNUAL REPORT
YEAR 2020
CONTENTS
1.0
INTRODUCTION………………………………………………………………………………………….
2.0
VISION, MISSION AND CORE VALUES……………………………………………………………….
3.0
MAIN OBJECTIVES……………………………………………………………………………………….
4.0
OUR FIVE-YEAR PLAN……………………………………………………………………………………
5.0
PERFORMANCE…………………………………………………………………………………………..
5.1
FINANCIAL PERFORMANCE…………………………………………………………………………….
5.2
NON – FINANCIAL PERFORMANCE……………………………………………………………………
6.0
TO OUR SHAREHOLDERS……………………………………………………………………………….
1.0 INTRODUCTION
Alpha is a small business providing transport services mainly public transport. Alpha was founded in 2018 as a
subsidiary of YAPA Enterprises founded in 1989.
The Annual Report provides a performance overview and operations for the year ended 2020. The fundamental
purpose of this report is to communicate non-financial and financial performance of our business to our
shareholders and other stakeholders affected by our business. The report also discusses the main objectives
focused during the year ended 2020, our five-year plan, mission and vision as well as core values of our
business.
Through reporting we believe we share information with our shareholders and other stakeholders as a way of
increasing transparency and accountability. Therefore, reporting on the business performance allows us to get
feedback which helps us to improve and achieve business objectives. You are welcome to comment and give us
feedback on this report.
2.0 VISION, MISSION AND CORE VALUES
2.1 VISION:
To be the best transport service provider in Malawi with a visible presence in other African countries.
2.2 MISSION:
To provide the best and reliable transport services in Malawi as well as other African countries and create value
to our customers in the transport industry.
2.3 CORE VALUES
- Team work: We believe that team work make the vision work as such we are united together as a team to fulfil
our vision and mission.
- Integrity: We strive to conduct our business with honest, fairness and do what is right in our actions to develop
trust.
- Customer commitment: We are committed to serve our customers wholeheartedly, putting our customer’s
needs first, and develop relationships that make a positive difference in our customer’s lives.
- Respect for People: We value our people, encourage their development and ensure a safe and healthy work
environment for our people.
- Quality: We value our customers and provide them with good condition motor vehicles.
- Humility: We believe in the strength of humility. We set aside egos, and focus on our customers’ challenges
and goals. We stay grounded and focused on serving our customers.
3.0 MAIN OBJECTIVES
During the year, we focused much on two objectives as part of achieving our five-year plan. The two main
objectives are outlined below
MAIN OBJECTIVE 1 : To acquire at least one vehicle(3 seater Bajaj).
One of the main objectives was to acquire at least one vehicle (3 seater Bajaj) by raising capital from the
founder and investors. This is part of our five- year plan discussed in the next chapter of this report. I’m pleased
to report that this was achieved at the beginning of January 2020 and we were able to operate business
throughout the year amidst the challenges we faced.
A total amount of MWK3,350,000 was raised to purchase and register the brand new 3 seater vehicle (Bajaj).The
founder raised MWK2,350,000 representing 70% of the total cost and our investors invested MWK1,000,000
representing 30% of the total cost.
MAIN OBJECTIVE 2 : To Acquire at least an 8 seater vehicle by mid of 2021.
The second main objective was to acquire an 8 seater vehicle as part of our growth strategy. Significant efforts
focused on increasing revenue, minimizing costs and re-investing earnings to raise the money for the purchase
of an 8 seater. The total cost projected purchase price is MWK4,000,000 and I’m pleased to report that 53% of
the total cost was raised during the end year 2020.
3.0 OUR FIVE-YEAR PLAN
To achieve our vision and mission in the long run we have put together midterm goals and a five-year plan as
part of growth strategy for our business. The five-year plan is a major strategy to achieve our mid-term goal.
Mid term goal: To start a proper transportation business with at least five motor vehicles and annual revenue of
at least MWK150,000,000.
Year 1 goal: To acquire a 3 seater vehicle(Bajaj)
Projected capital: MWK3,350,000
Projected annual revenue : MWK3,600,000
Year 2 - goal : To acquire at least an 8 seater vehicle
Projected capital: MWK4,000,000
Projected annual revenue (2 vehicles) : MWK8,640,000
Year 3 goal : To acquire at least a 15 seater vehicle
Projected capital : MWK10,000,000
Projected annual revenue(3 vehicles) : MWK33,840,000
Year 4 goal : To acquire at least a 29 seater vehicle
Projected capital : MWK30,000,000
Projected annual revenue(4 vehicles) : MWK90,360,000
Year 5 goal : To acquire at least an 32 seater vehicle
Projected capital : MWK40,000,000
Projected annual revenue(5vehicles) : MWK170,820,000
The plan includes certain ’forward-looking statements’. These forward-looking statements are necessarily about
the future and therefore incorporate degrees of uncertainty. Consequently, future actual results and performance
may differ from the information provided.
OTHER STRATEGIES PUT IN PLACE TO ACHIEVE OUR FIVE YEAR PLAN
-
Compound interest : To re-invest our earnings/profits into the business
Good Management ; Manage our resources and finances while small to grow big
Loans with low interest : We are flexible to loans with small from financial institutions and others
Raising capital investors
Maintenance Maintain the cars by doing service on time to ensure they’re in good condition
Acquisition of other transport businesses
Below is a planned organization structure of our business
MANAGER
MANAGER
E
BOOKEEPER
Operations(Technician)
Driver 1
Driver 2
Driver 3
Driver 4
Driver 5
Manager Roles
The manager will be responsible for leading the development and execution of the long term strategy of the
business in order to achieve the vision and mission of the business with a view to creating shareholder value.
The manager’s role will also be to implement the Company’s long, mid and short term plans.
More specifically, the duties and roles of the manager include the following:
-
Articulate the vison of the business through strategies put in place
to lead and implement long, mid and short term plans in accordance with its strategies to achieve the
vision and mission of the business
On behalf of shareholders to ensure the business is appropriately organized and staffed and to have the
authority to hire and terminate staff as necessary to enable it to achieve its goals
Annual budget: to ensure that expenditures of the business are within the annual budget of the business
to communicate effectively with shareholders, employees, Government authorities, and other
stakeholders
Bookkeeper roles
-
Recording expenses, revenues and profit/loss
Valuing assets
Taxes and MRA
Liaising with MRA, BANKS and other stakeholders
Stuff payments
Operations Manager roles
-
Record of staff/drives
Record of vehicles
Responsible for maintenance of all vehicles
COF, INSURANCE and Vehicle permit of all Vehicles
Giving recommendations to the manager on hiring drivers
5.0 PERFORMANCE
This chapter consists of the non-financial and financial performance of our business during the year ended 2020.
The year ended 2020 was full of challenges as well as excitement. At the beginning of the year there was
political instability which negatively affected the operating environment of our business. The year ended 2020
also experienced the outbreak of the COVID-19 global pandemic and the pandemic had a devastating impact on
several businesses in the country. These two major challenges negatively affected general business
environment.
5.1 FINANCIAL PERFORMANCE
The year ended 2020 experienced two major challenges, the covid-19 global pandemic and political instability.
These two major challenges affected the revenues of the business. Government put in places measures to
combat the covid-19 pandemic in March. Schools were closed, and also super league football was suspended
due to covid 19 pandemic. Despite the challenges we were able to operate business throughout the year and I’m
pleased to report a total revenue of MWK2,955,000 for the year ended 2020. The total expenses for the year
ended 2020 amounted to MWK904,000.
REVENUES
The total revenue for the year ended 2020 amounted to MWK2,955,000. Below is a table summarizing the
revenues for the year ended 2020.
MONTH
REVENUE
JANUARY 2020
MWK280,000
Percentage of Total
Revenues
10%
FEBRUARY 2020
MWK279,00
9%
MARCH 2020
MWK245,000
8%
APRIL 2020
MWK225,000
8%
MAY 2020
MWK215,000
7%
JUNE 2020
MWK218,000
7%
JULY 2020
MWK229,000
8%
AUGUST 2020
MWK245,000
8%
SEPTEMBER 2020
MWK250,000
8%
OCTOBER 2020
MWK255,000
9%
NOVEMBER 2020
MWK256,000
9%
DECEMBER 2020
MWK258,000
9%
TOTAL
MWK2,955,000
100%
EXPENSES
The total expenses for the year ended 2020 amounted to MWK904,000.. Below is a summary of expenses for
the year ended 2020.
EXPENSE
AMOUNT
Percentage of Total Expenses
CASTRO OIL (SAE 40)
MWK120,000
13%
SALARIES
MWK480,000
53%
INSURANCE
MWK120,000
13%
VEHICLE PERMIT
K36,000
4%
COF
K50,000
6%
BRAKE FLUID
K2,000
0%
SPARK PLUGS
MWK60,000
CLUTCH CABLES
MWK36,000
4%
TOTAL
MWK904,000
100%
7%
Major expenses were salaries, Castro oil and insurance. Salaries represented 53% of the total expenses while
Castro oil and insurance each represented 13% of the total cost. Other expenses were COF representing 6%,
vehicle permit and clutch cables each represented 4% and brake fluid represented almost 0%.
5.2 NON - FINANCIAL PERFORMANCE
During the year, we operated with one driver. Major customers were students, foot-ball fans and also employees
working in city center and other parts of Lilongwe. Our driver is well committed and has gained trust from loyal
customers who call him on a regular basis to hire our vehicle.
The condition of our motor vehicle is very good as it has operated for only one year. We were committed to do
service every month.
Major components/parts used during the year were Oil, spark plugs, brake fluid and clutch cables. The vehicle
went for COF and vehicle permit twice during the year in January and in June. Insurance used during the year
was third party insurance. Below is a summary of the components/parts used during the year
-
OIL: 24-Litres of oil was used for service during the year
Spark Plugs;
Clutch cables; 4 clutch cables were used for service during the year
0.5litres of brake fluid was used to top one during service
6.0 TO OUR SHAREHOLDERS
I would like to thank you for the effort you took and the interest you showed to invest in our business. We do not
take it for granted and we sincerely appreciate for trusting us to operate the business you have a stake in. It is
one of our top priorities to make sure that the investment you made grow over the projected years.
We surely are a small business but we look forward to the journey of growing together. We once again take the
opportunity to sincerely thank you for the patience and perseverance shown during the difficult ended year 2020.