State Owned Enterprises
Business Case Analysis
Compiled by: Merafe Moloto & Yousuf Sujee
March 2012
Engagement & Scope
•
The terms of reference of the Presidential Review Committee are intended to assist
Government in its evaluation of the effectiveness of State Owned Enterprises (SOEs) in
facilitating the achievement of South Africa’s developmental objectives. The seminal problem
statement is: how can SOEs optimally contribute to the development and transformation of
South Africa while remaining viable and effective? To this end, the Business Case and
Viability work stream (BC) is charged with evaluating the financial robustness and viability of
all SOEs.
•
The BC work stream commissioned the consulting services of KPMG to compile an exhaustive
database on the state of SOEs, (As-Is Analysis), with a particular focus on the BC work
stream’s mandate, which primarily hinges on an in-depth financial analysis.
•
This report purports to synthesize the findings of KPMG’s As-Is Analysis in a succinct and
more easily digestible format by way of extracting key historical, sectoral and demographic
data with a particular emphasis on Major Public Entities, Sectoral Education and Training
Authorities (SETAs) and Water Boards. This report is substantially informed by the KPMG
database and is buttressed by the literature in KPMG’s assessment reports.
•
The scope of this consulting project does not contemplate further data collection nor data
verification of KPMG’s data.
2
Definitions of Key Financial Terms

Net Profit Margin (%): Profitability ratio calculated as net profit / revenues.

Return on Assets (%): An indicator of a company’s profitability relative to its assets, calculated as
net income / book value of assets.

Current Ratio (x): Current assets / current liabilities. A proxy for a company’s ability to pay back its
short term liabilities with its short term assets. This is a liquidity ratio.
The benchmark for most companies is a current ratio of 2:1.

Solvency Ratio (x): Total assets / total liabilities. A proxy for a company’s ability to meet its long-term
debt obligations. Solvency ratio of 1 is satisfactory.

Interest Coverage Ratio (x): Earnings before interest and taxes / interest expense. A ratio used to
determine how easily a company can pay interest on outstanding debt.

Debt Service Coverage Ratio (DSCR) (x): Operating cash flow / (principal due + interest expense).

Gearing Ratio (x): Book value of debt / total equity.

CAGR (%): Compound Annual Growth Rate. Year-over-year growth over a specified period of time.
3
Major Public Entities
Major Public Entities
5 Year Global Analysis
GLOBAL
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
2007
2008
2009
2010
Average
163,575,065,941 180,384,498,550 199,090,086,279 208,709,472,583 213,906,339,887 193,133,092,648
13.8%
18.2%
10.3%
4.3%
22.6%
13.8%
437,100,492,226 483,767,899,460 593,795,062,144 660,788,925,816 723,065,582,214 579,703,592,372
249,718,758,766 255,667,224,148 312,783,132,529 380,110,778,057 415,521,150,982 322,760,208,896
43,436,443,057 45,129,191,802 54,350,715,843 62,781,455,027 61,763,172,745 53,492,195,695
Revenue as % of GDP
CAGR
6.9%
13.4%
13.6%
9.2%
9.3%
8.9%
8.8%
8.7%
8.0%
8.7%
0.4%
1.9
5.7
(764.0)
(57.7)
1.4
1.4%
1.7
4.0
(37.5)
(225.9)
2.9
0.9%
2.3
3.4
11.3
(4.7)
9.7
0.1%
2.6
3.1
(1.6)
(1.6)
1.6
0.8%
3.0
3.9
(153.5)
(18.9)
1.1
0.7%
2.3
4.0
(189.1)
(61.7)
3.3
9,605,871,191
5,240,482,000
8,582,543,996
4,989,890,000
6,796,045,251
5,944,000,000
1,177,763,828
3,795,000,000
8,423,664,705
11,733,000,000
6,917,177,794
6,340,474,400
-3.2%
22.3%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
38,971,245,212
24,261,424,854
38,173,678,388
39,589,898,226
38,846,296,603
53,461,892,362
37,866,550,992
81,107,662,224
22,674,928,469
73,951,249,070
35,306,539,933
54,474,425,347
-12.7%
32.1%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
615,400,000
0.4%
16,576,233,000
699,039,000
0.4%
18,285,959,000
779,400,000
999,600,000
911,993,000
0.4%
0.5%
0.4%
7,051,147,000 210,572,452,295 211,036,345,000
801,086,400
0.4%
92,704,427,259
10.3%
3.2%
88.9%
163,948
997,725
161,546
1,116,614
157,589
1,230,861
-2.1%
9.3%
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Number of Employees
Revenue per Employee
160,564
1,239,942
Revenue and Profitability
250,000,000,000
151,526
1,377,384
150,359
1,422,637
Return on Assets
25.0%
800,000,000,000
1.5%
5
Major Public Entities
5 Year Global Analysis










All major public entities, as defined in Schedule 2 of the KPMG report, made revenue
contributions amounting to an average of 8.7% of GDP from 2006 to 2010. A total of 21 entities
are listed in the KPMG database, which is in line with the entities listed in the PFMA schedules.
Total aggregate revenue grew by a CAGR of 6.9% from 2006 to 2010.
Net profit margins have improved dramatically from 13.8% in 2006 to 22.6%1 in 2010. The
average net profit margin for the entire universe was 13.8% for the four year period.
Total assets grew by a CAGR of 13.4% from 2006 to 2010, amounting to R723 billion in 2010.
Along a similar trajectory, total liabilities grew by a CAGR of 13.6% in the same period,
presumably largely to fund significant increases in capital expenditures, (particularly given the
dominance of capital intensive sectors), which grew by a CAGR of 32.1% from 2006 to 2010,
levelling off at R74 billion for the 2010 year.
Global ROA figures are disappointingly low showing an average of 0.7% from 2006 to 2010. By
most cross-sectoral standards, this data would suggest that capital, particularly in such large
quanta, is not being optimally deployed.
Conversely, an average liquidity ratio of 2.3x is encouraging, particularly when buttressed by
commendable average solvency ratios of 4.0x for the periods 2006 to 2010.
On the other hand interest coverage is abysmal, peaking at -764x in 2006 and settling at -154x in
2010.
Similarly, debt service coverage ratios have been very poor & erratic, improving from -57.7x to 18.9x from 2006 to 2010, with an average of -61.7x in the same period.
Though variable, with a peak of 9.7x in 2008, understandably, gearing ratios are generally
trending downwards and levelled off at 1.1x in 2010, averaging 3.3x from 2006 to 2010.
1This 2010 number is materially distorted by the profit proceeds accrued from the sale of Vodacom, which amounted to approximately R44
billion. This was reflected in Telkom’s profit numbers.
6
Major Public Entities
5 Year Global Analysis








Taxation paid has shown an erratic trend, with a negative CAGR of -3.2%, levelling off at R8.4
billion in 2010.
Dividend payments increased by a CAGR of 22.3% from 2006 to 2010, accruing to R11.7 billion in
2010 and averaged R6.3 billion over the 5 year period.
The Majors’ cash position has significantly increased from R43.4 billion in 2006 to R61.7 billion in
2010, growing by a CAGR of 9.2%. This may be distorted by the Vodacom unbundling proceeds.
Global cash flows from operating activities have been positive, though growth has trended
downwards with a -12.7% CAGR from 2006 to 2010.
Government subsidies have grown by a CAGR of 10.3% from 2006 to 2010, however, even in
2010, they remain below R1 billion. Government subsidies as a percentage of revenue have been
relatively constant at an average of 0.4% from 2006 to 2010, also remaining below R1 billion.
On the other hand, Government guarantees have grown by a CAGR of 89% from R16.6 billion in
2006 to R211 billion in 2010.
Total employee numbers have generally remained constant, with a slight negative CAGR of -2.1%
from 2006 to 2010.
Contrariwise, revenues per employee have shown a steady and slight upward trend growing by a
CAGR of 9.3% from 2006 to 2010. This is a meaningful number since it includes employee data
for all the largest entities including ACSA, Eskom, SAA, South African Post Office, Telkom and
Transnet.
7
Air Traffic & Navigation Services Company Limited
Sector: Transport
Air Traffic and Navigation Services Company Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
545,337,286
18.0%
891,924,788
327,216,678
171,279,495
2007
576,923,656
13.3%
939,339,837
298,173,079
82,233,339
2008
620,008,907
7.4%
1,072,677,624
385,751,431
45,412,457
2009
655,609,206
9.3%
1,171,911,128
423,847,244
40,790,192
2010
736,557,814
6.4%
1,264,018,682
468,813,269
86,118,019
Average
626,887,374
10.9%
1,067,974,412
380,760,340
85,166,700
3.0%
1.9
2.7
21.5
3.9
0.6
2.0%
0.9
3.2
9.2
(1.5)
0.5
1.0%
0.8
2.8
2.3
(1.1)
0.6
1.0%
1.0
2.8
4.2
(2.1)
0.6
1.0%
1.1
2.7
3.3
2.9
0.6
1.6%
1.1
2.8
8.1
0.4
0.6
37,173,191
-
32,037,647
-
29,534,691
-
22,649,163
-
18,734,432
-
28,025,825
-
-15.7%
#DIV/0!
151,582,094
133,458,105
182,042,535
212,187,040
131,067,337
223,720,683
78,444,298
147,737,556
192,555,148
147,019,576
147,138,282
172,824,592
6.2%
2.4%
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
#DIV/0!
#DIV/0!
CAGR
7.8%
9.1%
9.4%
-15.8%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
8
Air Traffic & Navigation Services Company Limited
Sector: Transport










2010 Revenue: R737 million
2010 Total Assets: R1.3 billion
2010 Audit Opinion: Unqualified
Steady increase in revenue growing at a
CAGR of 7.8% from 2006 to 2010.
In the same period, steep decline in net
profit margins from 18% to 6.4%.
Overall liquidity & solvency status has
been precarious, with an average
current ratio of 1.1x from 2006 to 2010,
dipping below 1.0x in the years 2007 &
2008.
Significant decline in the ability to cover
interest payments from 21.5x in 2006 to
3.3x in 2010.
Debt Service Coverage Ratio has been
erratic with from 3.9x in 2006 to 2.9x in
2010, with an average of 0.4x.
Taxation paid has declined from
R37 million to R19 million from 2006 to
2010, despite the reverse trend in
revenues.
Zero dividends declared for the last 5
years.
9
Air Traffic & Navigation Services Company Limited
Sector: Transport









Healthy average gearing ratio for the last
5 years of 0.6x.
Although positive operating cash flow
for the past 5 years the cash balance has
decreased by a CAGR of -15.7%.
Capital expenditures have increased by a
modest CAGR of 2.4%, leveling off at
R147 million.
Zero Government subsidies.
Zero Government guarantees.
Consistently increased its asset base by
a CAGR of 9.1%, with a corresponding
decrease in ROA from 3% in 2006 to 1%
in 2010.
Employee information: No data.
For the period 2008 to 2010 , 9 Key
Performance Indicators (KPI) identified,
4 were not achieved.
Management of transport costs and
infrastructure contribution to ASGISA
were consistently not achieved in all 3
years.
10
Airports Company of South Africa Limited (ACSA)
Sector: Transport
Airports Company of South Africa Limited(ACSA)
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2007
2008
2009
2010
Average
2,174,845,000 2,564,271,000 2,797,349,000 3,166,082,000 3,530,825,000 2,846,674,400
28.6%
25.9%
28.2%
14.0%
25.5%
24.4%
9,954,078,000 11,728,505,000 16,514,055,000 23,598,112,000 27,891,178,000 17,937,185,600
3,732,522,000 6,056,583,000 9,144,011,000 15,517,462,000 18,917,046,000 10,673,524,800
1,351,817,000 1,936,736,000
112,035,000
989,344,000
433,997,000
964,785,800
CAGR
12.9%
29.4%
50.0%
-24.7%
2.0%
0.7
2.7
8.3
(1.0)
0.6
1.0%
0.8
1.9
5.2
(8.2)
1.1
1.0%
0.2
1.8
4.5
(7.3)
1.2
0.0%
0.4
1.5
2.5
(0.5)
1.9
1.0%
0.4
1.5
2.3
(0.4)
2.1
1.0%
0.5
1.9
4.5
(3.5)
1.4
308,947,000
291,482,000
479,107,000
135,890,000
272,718,000
-
189,413,000
-
94,252,000
-
268,887,400
85,474,400
-25.7%
-100.0%
1,024,018,000
1,259,355,000
(355,985,000)
1,642,259,000
975,428,000
5,171,839,000
1,371,876,000
5,996,937,000
1,168,094,000
5,240,614,000
836,686,200
3,862,200,800
3.3%
42.8%
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
1,804
1,205,568
1,876
1,366,882
2,120
1,319,504
2,232
1,418,496
2,225
1,586,888
2,051
1,379,468
#DIV/0!
#DIV/0!
#DIV/0!
5.4%
7.1%
11
Airports Company of South Africa Limited (ACSA)
Sector: Transport










2010 Revenue: R3.5 billion
2010 Total Assets: R27.9 billion
2010 Audit Opinion: Unqualified
Consistent increase in revenue growing
at a healthy CAGR of 12.9% from 2006
to 2010.
Net profit margins of 25.5% in 2010,
with a sharp decrease in margins in
2009. ACSA generated average net profit
margins of 24.4% for the period 2006 to
2010.
Overall liquidity status is poor, with an
average current ratio of 0.5x from 2006
to 2010, however the average solvency
ratio of 1.9x is satisfactory.
Declining interest coverage ratio from
8.3x in 2006 to 2.3x in 2010.
Poor levels of DSCR ranging from -1.0x
to -.04x from 2006 to 2010.
Taxation paid has shown a declining
trend, with a negative 25.7% CAGR from
2006 to 2010, leveling off at R94.2
million in 2010.
Last dividend paid in 2007 amounting to
R136 million. No dividends declared
thereafter.
12
Airports Company of South Africa Limited (ACSA)
Sector: Transport









Average gearing ratio for the last 5 years
of 1.4x with a steady incline in gearing
from 0.6x in 2006 to 2.1x in 2010..
Operating cash flow have remained fairly
stagnant growing at mere CAGR of 3%.
Of more concern is the decline the cash
balance from R1.4 billion in 2006 to
R433 million in 2010.
This is possibly be explained by robust
capital expenditure increasing by a
CAGR of 48% from R1.3 billion in 2006 to
R5.2 billion in 2010.
Zero Government subsidies.
Zero Government guarantees.
Consistently increased its asset base by
a CAGR of 29%, with a decrease in ROA
from 2% in 2006 to 1% in 2010.
An increase in the number of employees
from 1,804 in 2006 to 2,225 in 2010
with a corresponding 7% positive CAGR
in revenue per employee.
8 KPIs identified from 2008 to 2010, of
which 4 were not achieved.
Failure to conduct aviation security
audits was consistent in all 3 years.
13
Alexkor Limited
Sector: Mining
Alexkor Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
154,758,244
-132.8%
541,559,855
319,734,295
35,579,749
2007
109,302,291
-1.4%
336,738,554
369,717,338
78,010,434
2008
139,824,507
6.9%
417,927,631
455,672,624
177,646,999
2009
127,517,726
-50.4%
519,925,867
623,379,221
276,856,274
2010
163,889,539
21.9%
656,577,249
723,917,512
418,613,925
Average
139,058,461
-31.2%
494,545,831
498,484,198
197,341,476
-9.0%
3.7
1.7
(16,156.0)
(1,271.5)
1.4
0.0%
1.4
0.9
(1,383.3)
(4,837.8)
-11.2
1.0%
2.6
0.9
1.6
11.8
-12.1
-3.0%
1.9
0.8
(12.3)
(4.1)
-6.0
1.0%
1.6
0.9
1.9
1.3
-10.8
-2.0%
2.2
1.1
(3,509.6)
(1,220.1)
(7.7)
(3,778,784)
-
231,786
-
(7,036,337)
5,828,323
(33,062,910)
1,253,853
(24,576,594)
251,257
(31,157,597)
1,039,168
8,075,304
4,551,566
(17,551,627)
2,584,833
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
1,850
83,653
1,326
82,430
1,126
124,178
679
187,802
770
212,844
1,150
138,181
-
-
-
(709,400)
-
CAGR
1.4%
4.9%
22.7%
85.2%
#DIV/0!
#DIV/0!
#NUM!
-6.0%
#DIV/0!
#DIV/0!
#DIV/0!
-16.6%
37.2%
14
Alexkor Limited
Sector: Mining










2010 Revenue: R164 million
2010 Total Assets: R657 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Although revenue grew by 29% in 2010,
historically revenue has been volatile
with a meager 1.4% CAGR from 2006 to
2010.
Net profit margin increased from
-50.4% in 2009 to 21.9% in 2010 , it has
also been volatile over the last 5 years
with an average net profit margin of
-31.2%.
Although the current ratio has
decreased from 3.7x in 2006 to 1.6x in
2010, liquidity still remains robust.
However; the decrease in the solvency
ratio from 1.7x in 2006 to 0.9x in 2010 is
of concern.
The Company has tremendously
improved its ability to cover interest
payments; achieving a coverage ratio of
1.9x in 2010 from -12.3x in 2009.
2006 DSCR data appears statistically
irrelevant, though it has dramatically
improved to 1.3x in 2010.
Taxes Paid: No meaningful trend data.
Zero dividends declared for the last 5
years.
15
Alexkor Limited
Sector: Mining









Poor average gearing ratio for the last 5
years of -7.7x.
Although the cash balance has increased at
a CAGR of 85% from 2006 to 2010, it is of
concern that operating cash flows average
R-18 million over the same period, leveling
off at a positive R8 million in 2010.
Capital expenditure trends have shown a Ushaped trend, leveling off at R4.5 million in
2010.
Zero Government subsidies.
Zero Government guarantees.
The asset base grew by a CAGR of 5% over
the last 5 years, however the ROA has
averaged a disappointing -2% for the same
period.
Increasing revenues per employee from
R84 million in 2006 to R213 million in 2010,
largely attributable to a decrease in the
number of employees from 1,850 in 2006
to 770 in 2010.
For the period 2008 to 2010 , 35 KPIs were
identified, with 11 not achieved.
The exiting of non core assets was the
major common KPI that was not achieved
over the same period.
16
Armaments Corporation of South Africa Limited
Sector: Other – Defense and Military
Armaments Corporation of South Africa Limited(Armscor)
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
1 092 900 000
1.4%
613 800 000
201 200 000
244 700 000
2007
1 634 000 000
3.5%
663 100 000
192 500 000
263 300 000
2008
1 462 000 000
3.0%
706 400 000
191 800 000
287 100 000
2009
2 116 900 000
1.8%
855 500 000
303 000 000
309 200 000
2010
1 094 400 000
-1.4%
816 900 000
280 200 000
341 100 000
Average
1 480 040 000
1.7%
731 140 000
233 740 000
289 080 000
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.0%
2.1
3.1
0.5
2.0%
2.4
3.4
0.4
2.0%
2.5
3.7
0.4
1.0%
2.3
2.8
24.7
5.9
0.6
0.0%
1.9
2.9
(34.5)
8.5
0.5
1.2%
2.2
3.2
(2.0)
2.9
0.5
Taxation Paid
Dividends Paid
-
-
-
-
-
-
CAGR
0.0%
7.4%
8.6%
8.7%
#DIV/0!
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
14 900 000
14 800 000
40 000 000
20 200 000
49 000 000
28 800 000
59 200 000
37 200 000
29 300 000
26 600 000
38 480 000
25 520 000
18.4%
15.8%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
315 400 000
28.9%
-
347 600 000
21.3%
-
415 600 000
28.4%
-
479 000 000
22.6%
-
528 900 000
48.3%
-
417 300 000
29.9%
-
13.8%
13.8%
#DIV/0!
952
1 535 714
1 324
1 598 867
1 324
826 586
1 200
1 320 389
17.9%
-26.6%
Number of Employees
Revenue per Employee
17
Armaments Corporation of South Africa Limited
Sector: Other – Defense and Military










2010 Revenue: R1.1 billion
2010 Total Assets: R817 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Stagnant revenue growth evidenced by
a CAGR of 0% from 2006 to 2010.
A steep decline in net profit margins
from 1.4% in 2006 to -1.4% in 2010.
Liquidity & solvency metrics have
generally been decent over the last 5
years, however the current ratio has
dipped below 2x in 2010.
Interest Coverage Ratio show an
alarming swing from 24.7x in 2009 to
-34.5x in 2010.
Debt Service Coverage Ratios have
shown an improving trend from 5.9x in
2009 to 8.5x in 2010.
Taxes paid: Zero.
Zero dividends declared for the last 5
years.
18
Armaments Corporation of South Africa Limited
Sector: Other – Defense and Military









Steady average gearing ratio for the last 5
years of 0.5x.
The cash balance has increased steadily at
a CAGR of 8.7% from 2006 to 2010,
supported by an average positive operating
cash flow generation of R38.5 million for
the same period.
Capital expenditure has shown steady
increases from R14.8 million in 2006 to
R26.6 million in 2010.
Average Government subsidies of
R417 million for the period 2006 to 2010,
representing 30% of revenue generated
during the corresponding period.
Zero Government guarantees.
The asset base has increased by a CAGR of
7% for the past 5 years, however ROA has
decreased sharply from a peak of 2% in
2007 to 0% in 2010.
Number of employees has increased from
952 in 2008 to 1,324 in 2010. Revenue per
employee has declined by a GAGR of 26%
in the same period.
For the period 2008 to 2010 , 34 KPIs were
identified, 11 were not achieved.
Acquisition, support, maintenance and
servicing of defense material and
technology being chief amongst these.
19
Broadband Infrastructure Company (Pty) Ltd
Sector: Communications
Broadband Infrastructure Company (Pty) Ltd
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
#DIV/0!
2007
-
2008
112 316 212
20.1%
1 327 826 706
681 048 264
51 019 316
2009
273 688 844
0.0%
1 511 634 841
134 998 231
712 933 790
2010
306 400 000
-9.2%
1 714 841 877
77 489 527
851 774 000
Average
230 801 685
3.6%
1 518 101 141
297 845 341
538 575 702
0.0%
7.5
11.2
6.7
(0.1)
0.1
0.0%
12.6
22.1
(19.9)
(291.3)
0.1
0.0%
7.1
11.8
-4.0
-97.4
0.4
#DIV/0!
-
CAGR
65.2%
13.6%
-66.3%
308.6%
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
-
-
0.0%
1.1
2.0
1.1
(1.0)
1.1
Taxation Paid
Dividends Paid
-
-
10 382 274
-
915 827
-
(11 485 851)
-
-62 583
-
#DIV/0!
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
-
-
19 340 007
611 904 378
46 097 821
89 327 560
102 376 203
245 333 083
55 938 010
315 521 674
#DIV/0!
#DIV/0!
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
Number of Employees
Revenue per Employee
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
20
Broadband Infrastructure Company (Pty) Ltd
Sector: Communications










2010 Revenue: R306 million
2010 Total Assets: R1.7 billion
2010 Audit Opinion: Unqualified
Revenue growth at a CAGR of 65% from
2008 to 2010.
In the same period, steep decline in net
profit margins from 20.1% to -9.2%.
Strong liquidity & solvency with an
average current ratio of 7.1x and an
average solvency ratio of 11.8x from
2008 to 2010.
Sharp decrease in the ability to cover
interest payments from 1.1x in 2008 to
-19.9x in 2010.
This is corroborated by a rapidly
declining and abysmal DSCR of -291.3x
in 2010.
Taxes paid declined from R10 million in
2008 to a tax credit of –R11.5 million in
2010.
Zero dividends declared for the last 3
years.
21
Broadband Infrastructure Company (Pty) Ltd
Sector: Communications










Improved gearing ratio from 1.1x in 2008
to 0.1x in 2010.
A healthy cash balance and positive
operating cash flows averaging
R539 million and R56 million
respectively over for the past 3 years.
Capital expenditure has declined from
R612 million in 2008 to R245 million in
2010.
Zero Government subsidies.
Zero Government guarantees.
An increase in its asset base by a CAGR
of 14% from 2008 to 2010.
Zero ROA.
Employee information: No data.
For the period 2009 to 2010 , 8 KPIs
identified, 4 were not achieved.
Major areas of non achievement
include: failure to restore networks
timeously, lack of network availability,
failure to meet targets of bringing
projects to commercial operation and
failure in meeting revenue targets.
22
Central Energy Fund (PTY) Ltd1
Sector: Energy
CEF (Pty) Ltd
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
2006
2007
2008
2009
2010
Average
7 621 772 000
9 099 642 000 10 421 277 000 12 337 673 000
8 559 043 000
9 607 881 400
37.1%
33.1%
21.3%
18.8%
-1.0%
21.8%
20 660 192 000 25 213 890 000 30 423 316 000 32 376 922 000 32 790 710 000 28 293 006 000
4 833 826 000
6 371 383 000
9 321 324 000
8 899 682 000
9 594 422 000
7 804 127 400
12 227 212 000 14 975 177 000 15 987 901 000 16 143 359 000 15 303 082 000 14 927 346 200
CAGR
2.9%
12.2%
18.7%
5.8%
3.0%
10.2
4.3
22.7
13.8
0.3
3.0%
7.7
4.0
11.0
6.6
0.3
2.0%
6.9
3.3
6.7
5.1
0.4
2.0%
8.5
3.6
0.3
1.2
0.4
0.0%
5.8
3.4
(3.3)
(0.9)
0.4
2.0%
7.8
3.7
7.5
5.1
0.4
92 801 000
-
343 672 000
-
695 020 000
-
29 241 000
-
(291 667 000)
-
173 813 400
-
4 755 592 000
1 590 119 000
4 047 649 000
1 253 647 000
2 867 064 000
1 178 054 000
2 632 592 000
1 992 001 000
412 574 000
1 445 689 000
2 943 094 200
1 491 902 000
-45.7%
-2.4%
0.0%
734 584 000
0.0%
674 500 000
0.0%
517 467 000
0.0%
419 284 000
0.0%
317 951 000
0.0%
532 757 200
#DIV/0!
#DIV/0!
-18.9%
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
Number of Employees
Revenue per Employee
#NUM!
#DIV/0!
1PetroSA, as the largest company under the purview of the CEF, accounted for 95% of revenue, 71% of total assets and 79% of total
liabilities in the 2010 financial year, according to the Company’s financial statements.
23
Central Energy Fund (PTY) Ltd
Sector: Energy










2010 Revenue: R8.6 billion
2010 Total Assets: R33 billion
2010 Audit Opinion: Unknown
2009 Audit Opinion: Unqualified with
emphasis of matter
Although revenue grew at a CAGR of 3%
for the period 2006 to 2010, revenue
decreased significantly in 2010 by 31%.
A consistent decline in net profit
margins from 37% in 2006 to -1% in
2010.
Strong liquidity & solvency position
evidenced by an average current ratio of
7.8x and an average solvency ratio of
3.7x.
Steep decline in the interest coverage
ratio from 22.7x in 2006 to -3.3x in 2010,
along with a reduction in the debt
service coverage ratio from 13.8x in
2006 to -0.9x in 2010.
Taxation paid has been extremely
erratic, peaking at R695 million in 2008
and leveling off at a tax credit of R293
million in 2010.
Zero dividends declared for the last 5
years.
24
Central Energy Fund (PTY) Ltd
Sector: Energy









Robust gearing ratio over the last 5 years
with an average of 0.4x.
Positive operating cash flow though has
declined from R4.8 billion in 2006 to
R413 million in 2010, a -46% CAGR,
however the cash balance has grown by a
CAGR of 5.8% in the same period, to
R15.3 billion in 2010.
Capital expenditure has remained relatively
constant averaging R1.5 billion from 2006
to 2010.
Zero Government subsidies.
Government guarantees for 2010 amount
to R318 million, decreasing from a peak of
R735 million in 2006.
A sharp decline in ROA from 3% in 2006 to
0% in 2010, as a result of a decrease in
profitability and an increase in the asset
base by a CAGR of 12% over the same
period.
Employee information: No data.
For the period 2008 to 2010, 13 KPIs were
identified, 10 were not achieved.
Major areas of non-achievement include:
contribute towards renewable energy
targets, development of human capacity &
investment in relevant energy research,
including alternative clean technology
initiatives.
25
Denel (Pty) LTD
Sector: Industrial
DENEL (Pty) Ltd
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2,773,200,000
-47.3%
4,677,200,000
4,062,400,000
730,200,000
2007
3,268,000,000
-15.5%
4,503,700,000
3,871,000,000
338,400,000
2008
3,818,000,000
-8.4%
5,140,300,000
3,812,800,000
963,600,000
2009
3,924,000,000
-13.6%
4,739,000,000
3,890,000,000
490,000,000
2010
3,610,000,000
-6.8%
5,055,000,000
4,411,000,000
1,038,000,000
Average
3,478,640,000
-18.3%
4,823,040,000
4,009,440,000
712,040,000
-7.0%
1.4
1.2
(5.0)
(0.8)
6.6
-3.0%
0.9
1.2
(2.1)
(0.8)
6.1
-2.0%
1.2
1.4
(1.7)
1.0
2.9
-3.0%
0.9
1.2
(3.1)
(0.8)
4.6
-1.0%
0.9
1.2
(0.9)
(0.1)
6.9
-3.2%
1.0
1.2
(2.6)
(0.3)
5.4
19,300,000
-
6,400,000
-
5,000,000
-
29,000,000
-
24,000,000
-
16,740,000
-
(1,146,600,000) (1,015,000,000)
138,600,000
129,100,000
72,000,000
298,000,000
(806,000,000)
336,000,000
(344,000,000)
93,000,000
(647,920,000)
198,940,000
CAGR
6.8%
2.0%
2.1%
9.2%
5.6%
#DIV/0!
-26.0%
-9.5%
#DIV/0!
0.0%
800,000,000
0.0%
-
0.0%
1,300,000,000
0.0%
1,300,000,000
0.0%
1,850,000,000
0.0%
1,050,000,000
#DIV/0!
23.3%
8,850
313,356
7,634
428,085
7,267
525,389
5,067
774,423
5,090
709,234
6,782
550,097
-12.6%
18.3%
26
Denel (Pty) LTD
Sector: Industrial










2010 Revenue: R3.6 billion
2010 Total Assets: R5.1 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue growth has been fairly stable
over the past 5 years, growing at a
strong CAGR of 7% during this period.
Although net profit margin improved
drastically from -47.3% in 2006 to
-6.8% in 2010, it remains a concern.
Liquidity and solvency status is poor
with average current ratio and solvency
ratios of 0.9x and 1.2x respectively
The ability to cover interest and debt
repayments is weak with an interest
coverage ratio and DSCR of -0.9x and
-0.1x respectively, in 2010.
Taxation paid has been erratic, averaging
R16.7 million from 2006 to 2010.
Zero dividends declared for the last 5
years.
The entity is highly geared with a
gearing ratio 6.9x in 2010 and averaging
5.4x from 2006 to 2010.
27
Denel (Pty) LTD
Sector: Industrial
•
•
•
•
•
•
•
•
Cash balance has grown from
R730 million in 2006 to R1 billion in
2010.
Capital expenditure has averaged
R199 million from 2006 to 2010,
declining by a CAGR of 9.5% over the
same period.
Zero Government subsidies.
Government guarantees provided
from 2006 to 2010 averaged
R1.1 billion.
The asset base has grown slightly by
a CAGR of 2%, which has assisted in
an improvement in ROAs from -7.0%
in 2006 to -1.0% in 2010.
Staff complement has decreased
from 8,850 in 2006 to 5,090 in 2010,
allowing revenue per employee to
increase by a CAGR of 18% in the
same period.
56 KPIs identified between 2008 and
2010, of which 9 were not achieved.
The most critical of these being:
failure in improving debtor collection
periods, liquidity ratios and GP
margins.
28
Development Bank of Southern Africa
Sector: Financial Services
Development Bank of Southern Africa
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
2007
2008
2009
2010
Average
2,240,054,000 2,545,947,000 2,853,603,000 3,461,399,000 3,602,473,000 2,940,695,200
41.4%
50.4%
44.4%
41.2%
17.3%
38.9%
26,418,714,000 27,877,902,000 33,246,297,000 40,381,638,000 45,143,921,000 34,613,694,400
13,200,058,000 13,339,671,000 17,466,424,000 23,146,135,000 27,253,638,000 18,881,185,200
1,453,997,000
890,357,000 2,313,803,000
24,750,950 2,706,788,000 1,477,939,190
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.0%
2.6
2.0
1.0
1.5
1.0
1.0%
1.0
2.1
1.0
1.5
0.9
1.0%
1.5
1.9
1.0
1.8
1.1
1.0%
2.4
1.7
0.9
0.8
1.3
0.0%
3.8
1.7
0.5
0.7
1.5
0.8%
2.3
1.9
0.9
1.3
1.2
Taxation Paid
Dividends Paid
-
-
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
620,758,000
32,199,000
464,475,000
2,695,000
1,434,933,000
30,750,000
783,372,000
75,569,000
451,139,000
91,567,000
750,935,400
46,556,000
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
506
4,426,984
514
4,953,204
578
4,937,029
N/A
N/A
CAGR
12.6%
14.3%
19.9%
16.8%
#DIV/0!
#DIV/0!
-7.7%
29.9%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
29
Development Bank of South Africa
Sector: Financial Services










2010 Revenue: R3.6 billion
2010 Total Assets: R45 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue has grown steadily at a CAGR of
13% from 2006 to 2010.
In the same period, net profit margin
has declined drastically from 41.4% to
17.3%, with the big drop-off occurring in
2010.
The liquidity position is robust with an
average current ratio of 2.3x from 2006
to 2010, however the solvency ratio has
decreased from 2.0x in 2006 to 1.7 x in
2010.
The ability to cover interest and debt
repayments is weak and showing a
declining trend, with an interest
coverage ratio and DSCR of 0.5x and
0.7x respectively, in 2010.
Zero taxes paid from 2006 to 2010.
Zero dividends declared for the last 5
years.
Although gearing has increased from a
ratio of 1x in 2006 to 1.5x in 2010, it
remains healthy.
Liquidity and Solvency
,4.0
,3.5
,3.0
,2.5
,2.0
,1.5
,1.0
,0.5
2006
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
30
Development Bank of South Africa
Sector: Financial Services









Although operating cash flows have
been positive over the last 5 years , they
have decreased by 8% from R621 million
in 2006 to R451 million in 2010,
however the cash balance has grown by
a CAGR of 17% in the same period, to
R2.7 billion in 2010.
Capital expenditure has increased by a
CAGR of 30% from 2006 to 2010, to a
level of R92 million in 2010.
Zero Government subsidies.
Zero Government guarantees .
The asset base has grown by a CAGR of
14% from R26 billion in 2006 to
R45 billion in 2010.
For the same period ROA has decreased
from 1% in 2006 to 0% in 2010.
Staff complement: 578 in 2008 with
revenue per employee of R4.9 million.
25 KPIs identified between 2008 and
2010, of which 9 were not achieved.
Major areas of non-achievement
include: failure to reduce cost to income
ratio, maintain staff competency levels
and to provide assistance for client
social and economic infrastructure.
31
Eskom
Sector: Energy
ESKOM
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2007
2008
2009
2010
Average
36,052,000,000 40,068,000,000 44,448,000,000 54,177,000,000 71,209,000,000 49,190,800,000
12.3%
18.0%
-0.4%
-17.8%
5.1%
3.4%
128,152,000,000 143,312,000,000 171,181,000,000 199,302,000,000 246,135,000,000 177,616,400,000
77,590,000,000 84,955,000,000 106,443,000,000 139,724,000,000 175,913,000,000 116,925,000,000
10,226,000,000
9,542,000,000 10,893,000,000 18,382,000,000 15,541,000,000 12,916,800,000
CAGR
18.5%
17.7%
22.7%
11.0%
1.0%
1.4
1.7
2.5
0.8
1.5
1.0%
1.5
1.7
2.5
0.2
1.5
0.0%
1.5
1.6
0.7
(1.0)
1.6
-1.0%
1.0
1.4
(2.7)
(1.5)
2.4
0.0%
1.0
1.4
2.5
(2.9)
2.5
0.2%
1.3
1.6
1.1
(0.9)
1.9
2,122,000,000
-
2,512,000,000
-
(205,000,000)
-
(3,786,000,000)
-
2,080,000,000
-
544,600,000
-
-0.5%
#DIV/0!
12,346,000,000
10,616,000,000
13,954,000,000
17,533,000,000
7,655,000,000
24,258,000,000
11,764,000,000
43,632,000,000
11,646,000,000
48,164,000,000
11,473,000,000
28,840,600,000
-1.4%
45.9%
0.0%
-
0.0%
5,000,000
149,000,000
0.0%
0.3%
0.0%
5,000,000 175,980,000,000 175,980,000,000
29,800,000
0.1%
70,394,000,000
31,548
1,142,767
32,674
1,226,296
35,404
1,255,451
37,857
1,431,096
39,222
1,815,537
35,341
1,374,229
#DIV/0!
#DIV/0!
#DIV/0!
5.6%
12.3%
32
Eskom
Sector: Energy










2010 Revenue: R71 billion
2010 Total Assets: R246 billion
2010 Audit Opinion: Unqualified
Revenue has grown by a healthy CAGR
of 19% from 2006 to 2010.
Although net profit margin has increased
from -18% in 2009 to 5.1% in 2010, it is
low when compared to a margin of
12.3% in 2006 and 18% in 2007.
The solvency status is satisfactory, with
an average solvency ratio of 1.6x for the
period 2006-2010, however the liquidity
position is poor with an average current
ratio of 1.3x for the same period.
The interest coverage ratio improved
from -2.7x in 2009 to 2.5x in 2010,
however the DSCR of -2.9x is of concern.
Taxation paid in 2010 was R2 billion,
though has been erratic from 2006 to
2010.
Zero dividends declared for the last 5
years.
Deteriorating gearing ratio from 1.5x in
2006 to 2.5x in 2010, with an average
1.9x over the period.
33
Eskom
Sector: Energy









Positive operating cash flows averaging
R11.4 billion for the past 5 years, facilitating
an increase in the cash balance from R10
billion in 2006 to R15.5 billion in 2010.
Capital expenditure has increased by a
CAGR of 46% from 2006 to 2010, leveling
off at R48 billion.
A government subsidy of R149 million was
provided to Eskom in 2009.
Government guarantees provided from
2006 to 2010 averaged R70 billion, peaking
at R176 billion in 2009 and 2010.
The asset base has grown by a CAGR of
18% from R128 billion in 2006 to
R246 billion in 2010.
For the same period ROA has decreased
from 1% in 2006 to 0% in 2010.
Staff complement has increased by 4% from
31,548 in 2006 to 39,222, however
revenue per employee has also increased
over the period by a CAGR of 12%.
59 KPIs identified between 2008 and 2010,
of which 25 were not achieved.
Major areas of non-achievement include:
transmission system minutes lost,
generation unplanned capacity lost, capital
expansion, financial efficiency and
infrastructure and capital expenditure.
34
Independent Development Trust
Sector: Development / Public Works
Independent Development Trust
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
6 326 000
-240.3%
1 600 384 000
21 961 000
45 164 000
2007
12 233 000
-688.3%
1 536 764 000
39 464 000
130 563 000
0.0%
3.0
72.9
(11.0)
19.7
0.0
-
2008
1 376 296 000
48 867 000
3 414 000
2009
20 043 000
-1713.2%
1 084 880 000
91 710 000
8 950 000
2010
36 586 000
-863.8%
731 021 000
50 711 000
5 040 000
Average
28 314 500
-1288.5%
1 265 869 000
50 542 600
38 626 200
-1.0%
3.8
38.9
(38.8)
36.5
0.0
-3.0%
15.1
28.2
(165.7)
(86.9)
0.0
-8.0%
8.0
11.8
(1 091.1)
13.9
0.1
-11.0%
11.2
14.4
(1 487.1)
(14.0)
0.1
-4.6%
8.2
33.2
(558.7)
(6.2)
0.0
-
-
-
-
-
CAGR
55.1%
-17.8%
23.3%
-42.2%
#DIV/0!
#DIV/0!
(18 736 000)
2 573 000
(62 415 000)
5 236 000
(227 995 000)
4 223 000
(256 701 000)
8 157 000
(291 198 000)
8 870 000
(171 409 000)
5 811 800
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
353
34 654
#VALUE!
#VALUE!
353
34 654
98.6%
36.3%
35
Independent Development Trust
Sector: Development / Public Works










2010 Revenue: R37 million
2010 Total Assets: R731million
2009 & 2010 Audit Opinion: No data
Revenue has increased by a CAGR of
55% from 2006 to 2010.
Net profit margins have dramatically
decreased from -240% in 2006 to -863%
in 2010.
The solvency status has also
dramatically deteriorated from 73x in
2006 to 14.4x in 2010, yet the liquidity
position has improved substantially from
3.0x to 11.2x in the same period.
The interest coverage ratio has
dramatically decreased from -11x to
-1487x, in the same vein, DSCR declined
from 19.7x to -14x from 2006 to 2010.
Zero taxation paid from 2006 to 2010.
Zero dividends declared for the last 5
years.
Neutral and low gearing ratio over the
2006 to 2010 period, averaging 0x.
Liquidity and Solvency
,100.0
,80.0
,60.0
,40.0
,20.0
(,20.0)
(,40.0)
(,60.0)
(,80.0)
(,100.0)
2006
2007
Current Ratio
2008
2009
2010
Solvency Ratio
Debt Service Cover Ratio
36
Independent Development Trust
Sector: Development / Public Works








Negative and consistently declining
operating cash flows from R-19 million
in 2006 to R-291 million in 2010, as a
result of this the cash balance has
decreased at a CAGR of -42%.
Capital expenditure has increased by a
CAGR of 36% from 2006 to 2010,
leveling off at R8.9 million in 2010.
Zero Government guarantees.
Zero Government subsidies.
The asset base has declined by a CAGR
of -18%.
For the same period ROA has decreased
from 0% in 2006 to -11% in 2010.
Staff complement was 353 in 2007.
7 KPIs identified between 2008 and
2010, of which all were achieved.
37
Independent Development Corporation of South Africa Limited (IDC)
Sector: Development
Industrial Development Corporation of South Africa
Limited(IDC)
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2007
2008
2009
2010
Average
4 524 000 000
5 169 000 000
7 299 000 000 14 985 000 000
7 785 000 000
7 952 400 000
16.6%
84.1%
54.1%
37.5%
28.6%
44.2%
48 155 000 000 63 615 000 000 90 433 000 000 73 377 000 000 88 631 000 000 72 842 200 000
9 171 000 000 11 041 000 000 14 585 000 000
8 332 000 000
9 076 000 000 10 441 000 000
3 558 000 000
4 466 000 000
5 370 000 000
5 607 000 000
2 866 000 000
4 373 400 000
CAGR
14.5%
16.5%
-0.3%
-5.3%
0.0%
1.4
5.3
0.8
4.1
0.2
2.0%
1.7
5.8
5.8
3.1
0.2
1.0%
1.3
6.2
4.3
2.9
0.2
2.0%
3.2
8.8
9.3
1.6
0.1
1.0%
2.2
9.8
3.8
(3.9)
0.1
1.2%
2.0
7.2
4.8
1.6
0.2
42 000 000
65 000 000
27 000 000
70 000 000
154 000 000
75 000 000
825 000 000
100 000 000
181 000 000
120 000 000
245 800 000
86 000 000
44.1%
16.6%
2 520 000 000
162 000 000
1 472 000 000
2 702 000 000
1 355 000 000
1 000 000 000
2 949 000 000
2 867 000 000
(761 000 000)
2 581 000 000
1 507 000 000
1 862 400 000
#NUM!
99.8%
0.0%
403 000 000
0.0%
697 000 000
0.0%
714 000 000
0.0%
1 671 000 000
0.0%
2 269 000 000
0.0%
1 150 800 000
#DIV/0!
#DIV/0!
54.0%
2 950
1 533 559
2 963
1 744 516
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
38
Industrial Development Corporation of South Africa Limited (IDC)
Sector: Development












2010 Revenue: R8 billion
2010 Total Assets: R89 billion
2010 Audit Opinion: Unqualified
Revenue increased by a CAGR of 15%
from 2006 to 2010.
Net profit margins have dramatically
declined from a peak of 84% in 2007,
though respectable at a level of 29% in
2010.
The solvency status is strong and has
improved from 5.3x in 2008 to 9.8x in
2010.
Solid liquidity ratio averaging 2.0x from
2006 to 2010.
The interest coverage ratio is at a
healthy 3.8x in 2010, though it has
declined from a high of 9.3x in 2009.
Steep decline in DSCR from 4.1x in 2006
to -3.9x in 2010.
Though erratic (underlying investments),
average taxes paid from 2006 to 2010
were R245.8 million.
Steady increase in dividends paid,
averaging R86 million from 2006 to
2010.
Low gearing ratio of 0.1x in 2010,
averaging 0.2x from 2006 to 2010.
39
Industrial Development Corporation of South Africa Limited (IDC)
Sector: Development








Cash balance has decreased slightly by a
CAGR of 5.3% from 2006 to 2010,
although the company has generated
average positive operating cash flows of
R1.5 billion over the same period.
Capital expenditure has been robust,
averaging R1.9 billion from 2006 to
2010.
Government guarantees have grown by
a CAGR of 54% from 2006 to 2010,
leveling off at R2.3 billion in 2010.
Zero Government subsidies.
The asset base has grown by a CAGR of
16.5% from 2006 to 2010.
For the same period, ROA has averaged
a disappointing 1.2% .
Staff complement increased from 2,950
in 2006 to 2,963 in 2007 with a
corresponding increase in revenue per
employee from R1.5 million in 2006 to
R1. 7 million in 2007.
No performance information available
for analysis.
40
Land and Agricultural Development Bank of South Africa
Sector: Financial Services
Land and Agricultural Development Bank of South Africa
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
2007
2008
2009
2010
Average
1 637 138 000
1 743 810 000
1 893 984 000
1 949 921 000
1 754 394 000
1 795 849 400
0.9%
-0.6%
0.9%
7.5%
20.2%
5.8%
19 686 629 000 18 652 748 000 17 142 111 000 17 563 924 000 16 877 808 000 17 984 644 000
17 965 176 000 16 956 031 000 14 712 919 000 15 236 057 000 13 170 852 000 15 608 207 000
3 249 884 000
1 467 455 000
1 443 684 000
4 023 284 000
2 857 916 000
2 608 444 600
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
0.0%
0.2
1.1
1.4
10.4
0.0%
0.2
1.1
(0.5)
10.0
0.0%
0.2
1.2
0.6
6.1
0.0%
0.4
1.2
2.8
6.6
1.0%
0.4
1.3
(0.0)
3.6
0.2%
0.3
1.2
0.9
7.3
Taxation Paid
Dividends Paid
-
-
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
CAGR
1.7%
-3.8%
-7.5%
-3.2%
#DIV/0!
#DIV/0!
2 519 752 000
26 621 000
(590 787 000)
51 418 000
1 464 673 000
4 280 000
1 002 226 000
1 319 000
(278 569 000)
20 518 000
823 459 000
20 831 200
#NUM!
-6.3%
0.0%
-
0.0%
1 500 000 000
0.0%
1 500 000 000
0.0%
1 500 000 000
0.0%
2 500 000 000
0.0%
1 400 000 000
#DIV/0!
#DIV/0!
18.6%
575
3 051 120
576
3 169 643
576
3 288 167
#VALUE!
#VALUE!
41
Land and Agricultural Development Bank of South Africa
Sector: Financial Services












2010 Revenue: R1.8 billion
2010 Total Assets: R16.9 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue increased by a CAGR of 2%
from 2006 to 2010.
Net profit margins have dramatically
improved from 0.9% to 20.2% for the
2006 to 2010 period.
Solvency has improved from 1.1x in 2006
to 1.3x in 2010.
Liquidity ratios have averaged 0.3x from
2006 to 2010.
The interest coverage ratio: Zero.
The DSCR declined from 1.4x in 2006 to
0.0x in 2010.
Zero taxes paid from 2006 to 2010.
Zero dividends paid from 2006 to 2010.
Gearing ratio has dramatically improved
from 10.4x in 2006 to 3.6x in 2010.
Liquidity and Solvency
,3.0
,2.5
,2.0
,1.5
,1.0
,0.5
(,0.5)
2006
2007
2008
2009
2010
(,1.0)
Current Ratio
Solvency Ratio
Debt Service Cover Ratio
42
Land and Agricultural Development Bank of South Africa
Sector: Financial Services










Declining operating cash flows from
2006 to 2010. 2010 cash flows were
-R279 million. Similarly, there is a
decline in the cash balance by a CAGR of
-3.2% from 2006 to 2010.
Capital expenditure has averaged
R21 million from 2006 to 2010.
Government guarantees averaged
R1.4 billion from 2006 to 2010.
Zero Government subsidies.
The asset base has declined by a CAGR
of -4%.
For the same period ROA has improved
from 0% in 2006 to 1% in 2010.
2010 staff complement of 575 people.
2010 revenue per employee was
R3 million.
13 KPIs identified of which 4 were not
achieved.
These included: loan book quality,
growth in value of loans and stabilisation
and sustainability of the turnaround
plan.
43
South African Airways (Pty) Limited
Sector: Transport
South African Airways (Pty) Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2007
2008
2009
2010
Average
19 423 000 000 20 524 000 000 22 257 000 000 26 376 000 000 22 263 000 000 22 168 600 000
0.3%
-4.3%
-4.9%
1.5%
2.6%
-0.9%
13 989 000 000 15 176 000 000 17 352 000 000 16 298 000 000 14 162 000 000 15 395 400 000
12 810 000 000 13 606 000 000 14 856 000 000 13 795 000 000 13 122 000 000 13 637 800 000
1 444 000 000
2 364 000 000
5 393 000 000
3 778 000 000
3 402 000 000
3 276 200 000
0.0%
0.6
1.1
1.0
2.2
10.9
-1.0%
0.8
1.1
(1.5)
0.5
8.7
-2.0%
1.0
1.2
(2.5)
1.8
6.0
1.0%
0.9
1.2
0.9
(0.1)
5.5
1.0%
0.8
1.1
2.7
1.9
12.6
-0.2%
0.8
1.1
0.1
1.2
8.7
12 000 000
-
42 000 000
-
(15 000 000)
137 000 000
22 000 000
359 000 000
15 000 000
233 000 000
15 200 000
145 800 000
327 000 000
340 000 000
237 000 000
368 000 000
1 375 000 000
217 000 000
(384 000 000)
415 000 000
1 387 000 000
534 000 000
588 400 000
374 800 000
0.0%
-
0.0%
1 300 000 000
0.0%
2 864 000 000
0.0%
2 864 000 000
0.0%
1 300 000 000
0.0%
1 665 600 000
11 524
1 685 439
11 977
1 713 618
10 177
2 186 990
7 989
3 301 540
8 034
2 771 098
9 940
2 331 737
CAGR
3.5%
0.3%
0.6%
23.9%
5.7%
#DIV/0!
43.5%
11.9%
#DIV/0!
#DIV/0!
#DIV/0!
-8.6%
13.2%
44
South African Airways (Pty) Limited
Sector: Transport










2010 Revenue: R22 billion
2010 Total Assets: R14 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Relatively flat revenue growth of 3.5%
CAGR from 2006 to 2010 and showing a
decline of 16% in the most recent
period.
Erratic net profit margins averaging
-1.0% from 2006 to 2010, though
recently rebounded well from -4.9% in
2008 to 2.6% in 2010.
Both current & solvency ratios are
consistently below 2x, averaging 0.8x
and 1.1x respectively.
Though demonstrating an upward trend,
interest coverage ratios have been
inconsistent, with a weak 2006 – 2010
average of 0.1x.
Erratic DSCRs averaging 1.2x from 2006
to 2010.
Taxation paid has been erratic with an
average R15 million from 2006 to 2010.
Dividends have increased from R137
million in 2008 to R233 million in 2010.
Liquidity and Solvency
,3.0
,2.5
,2.0
,1.5
,1.0
,0.5
(,0.5)
(,1.0)
(,1.5)
(,2.0)
(,2.5)
(,3.0)
2006
2007
2008
2009
2010
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
45
South African Airways (Pty) Limited
Sector: Transport








Steep gearing ratio of 12.6x in 2010 and
averaging 8.7x from 2006 to 2010.
Generally positive operating cash flow
except in 2009, further evidenced by a
growth in the cash balance by a CAGR of
24% for the last 5 years.
Capital expenditure generally trending
upwards, with an average of
R375 million from 2006 to 2010.
Zero Government subsidies.
Government guarantees have averaged
R1.7 billion over the past 5 years,
peaking at R2.9 billion in 2008 & 2009.
Steady maintenance of its asset base
with meaningful improvements in ROA
from a 2007/8 low of -2% to 1% in 2010.
From a base of 11,524, staff complement
has decreased by 30% from 2006 to
2010. In the same period, revenues per
employee have improved from R1.7
million to R2.8 million.
For the period 2008 to 2010 , 20 Key
KPIs were identified, of which 13 were
not achieved. Passenger load factors,
average fare per passenger, turnover per
aircraft and daily block hours being chief
amongst these.
46
South African Broadcasting Corporation (SABC) Limited
Sector: Communications
South African Broadcasting Corporation Limited(SABC)
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
3 943 055 000
9.7%
3 307 519 000
1 351 314 000
145 028 000
2007
4 268 313 000
4.3%
3 550 735 000
1 411 338 000
707 557 000
2008
4 681 866 000
2.0%
4 460 557 000
1 999 019 000
165 561 000
2009
4 713 504 000
-16.8%
4 531 764 000
2 980 630 000
14 703 000
2010
4 739 112 000
-10.4%
4 617 613 000
3 552 509 000
114 529 000
Average
4 469 170 000
-2.2%
4 093 637 600
2 258 962 000
229 475 600
3.0%
2.3
2.5
42.5
2.5
0.7
1.0%
2.5
2.5
12.9
29.1
0.7
1.0%
2.2
2.2
0.5
(45.7)
0.8
-4.0%
1.1
1.5
(11.1)
(4.3)
1.9
-3.0%
1.8
1.3
(2.5)
(2.6)
3.3
-0.4%
2.0
2.0
8.5
(4.2)
1.5
Taxation Paid
Dividends Paid
162 924 000
-
76 300 000
-
52 862 000
-
(123 491 000)
-
679 000
-
33 854 800
-
-74.6%
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
615 103 000
198 275 000
64 177 000
245 126 000
(9 104 000)
363 069 000
(784 015 000)
368 931 000
(214 658 000)
409 121 000
(65 699 400)
316 904 400
#NUM!
19.9%
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
#DIV/0!
#DIV/0!
CAGR
4.7%
8.7%
27.3%
-5.7%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
47
South African Broadcasting Corporation (SABC) Limited
Sector: Communications











2010 Revenue: R4.7 billion
2010 Total Assets: R4.6 billion
2010 Audit Opinion: No data
2009 Audit Opinion: Unqualified
5% CAGR in revenue from 2006 to 2010.
Dramatic decline in net profit margins
from 9.7% in 2006 to -10.4% in 2010.
Respectable though declining current &
solvency ratios averaging 2.0x and 2.0x
respectively from 2006 to 2010.
Steep decline in interest coverage from
42.5x in 2006 to -2.5x in 2010. Similarly,
DSCR has declined from 2.5x in 2006 to
-2.6x in 2010.
Taxation paid has shown a declining
trend, averaging R33.9 million from 2006
to 2010.
Zero dividends paid from 2006 to 2010.
Deteriorating gearing ratio from 0.7x in
2006 to 3.3x in 2010, with an average
1.5x over the period.
48
South African Broadcasting Corporation (SABC) Limited
Sector: Communications









Decline in operating cash flow from
R615 million in 2006 to -R215 million in
2010. In the same period, the cash
balance has also declined by CAGR of
-5.7%.
Capital expenditure has shown an
increasing trend, growing by a CAGR of
20% from 2006 to 2010, leveling off at
R409 million in 2010.
Zero Government guarantees.
Zero Government subsidies.
Asset base has grown by an 8.7% CAGR
from 2006 to 2010.
In the same period, ROA has declined
from 3.0% to -3.0%.
Staff complement: No data.
For the period 2008 to 2010 , 50 KPIs
were identified with 10 not being
achieved
Major areas of non-achievement
include: financial stability, reducing
reliance on commercial revenue through
increased public funding, investing in
capacity building, optimising TV licence
funding and balancing mandate delivery
with commercial imperatives by being
cost effective.
49
South African Express (Pty) Limited
Sector: Transport
South African Express (Pty) Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
954 007 411
18.6%
995 812 583
1 270 450 793
6 135 813
2007
1 121 517 882
10.8%
940 664 451
792 577 732
7 847 197
2008
1 326 700 929
15.2%
1 109 000 415
575 422 821
8 477 041
2009
1 424 247 807
16.5%
1 453 556 980
442 370 361
80 646 821
2010
1 612 530 534
15.6%
1 680 793 406
486 643 674
74 318 801
Average
1 287 800 913
15.3%
1 235 965 567
713 493 076
35 485 135
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
4.0%
1.0
0.8
2.2
0.4
-4.6
3.0%
0.8
1.2
2.9
1.7
5.4
5.0%
0.8
1.9
4.2
1.4
1.1
4.0%
2.5
3.3
5.8
7.2
0.4
4.0%
2.9
3.5
56.9
9.7
0.4
4.0%
1.6
2.1
14.4
4.1
0.5
Taxation Paid
Dividends Paid
-
46 372 788
-
65 194 747
-
77 633 838
-
97 773 124
-
57 394 899
-
(79 552 545)
31 854 426
296 665 346
70 116 380
471 109 695
230 073 321
129 253 470
149 352 940
135 040 814
184 622 845
190 503 356
133 203 982
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
576
1 656 263
642
1 746 913
723
1 834 994
839
1 697 554
931
1 732 041
742
1 733 553
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
CAGR
14.0%
14.0%
-21.3%
86.6%
#DIV/0!
#DIV/0!
#NUM!
55.2%
#DIV/0!
#DIV/0!
#DIV/0!
12.8%
1.1%
50
South African Express (Pty) Limited
Sector: Transport











2010 Revenue: R1.6 billion
2010 Total Assets: R1.7 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
14% CAGR in revenue from 2006 to
2010.
Relatively stable net profit margins
averaging 15% from 2006 to 2010 with a
3% decline over the period.
Respectable and improving current &
solvency ratios from 1.0x to 2.9x and
0.8x to 3.5x respectively from 2006 to
2010.
Dramatic improvements in interest
coverage ratios from 2.2x in 2006 to
56.9x in 2010.
Dramatic improvement in DSCR from
0.4x in 2006 to 9.7x in 2010.
Steady increases in taxation paid,
averaging R57 million from 2006 to
2010.
Zero dividends paid.
Improving gearing ratio from 5.4x in
2007 to 0.4x in 2010.
Liquidity and Solvency
,9.0
,8.0
,7.0
,6.0
,5.0
,4.0
,3.0
,2.0
,1.0
(,1.0)
2006
2007
2008
2009
2010
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
51
South African Express (Pty) Limited
Sector: Transport










Improving operating cash flow from
operations from –R80 million in 2006 to
R135 million in 2010. With that said,
operating cash flows peaked at
R471 million in 2008.
Similarly the cash balance has increased
from R6 million in 2006 to R74 million in
2010.
Capital expenditure has increased by a
CAGR of 55% from 2006 to 2010,
leveling off at R185 million in 2010.
Zero Government guarantees.
Zero Government subsidies.
Asset base has grown by a 14% CAGR
from 2006 to 2010.
In the same period, ROA has remained
relatively flat, averaging 4% over the
period 2006 to 2010.
Staff complement has grown by a CAGR
of 13% from 2006 to 2010 with 931
employees in 2010.
In the same period, revenues per
employee have remained within a band
of R1.6 million to R1.8 million from 2006
to 2010.
Key Performance Indicators: No
measurable data available.
52
South African Forestry Company Limited (SAFCOL)
Sector: Other
South African Forestry Company Limited(SAFCOL)
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
-
0.0
2007
653 435 721
122.5%
2 769 422 618
722 050 999
333 612 832
2008
832 187 724
76.7%
3 628 662 768
933 675 389
432 979 030
2009
857 118 000
81.9%
4 454 998 000
1 069 657 000
295 941 000
2010
431 914 000
-5.0%
3 812 987 000
917 921 000
126 394 000
Average
554 931 089
69.0%
2 933 214 077
728 660 878
237 785 372
7.0%
3.8
3.8
555.8
13.3
0.4
4.0%
3.9
3.9
359.5
15.9
0.4
4.0%
6.7
4.2
1 013.0
(48.8)
0.3
0.0%
8.3
4.2
(1 800.2)
(99.5)
0.3
3.8%
5.7
4.0
25.6
(23.8)
0.3
CAGR
-12.9%
-134.3%
11.2%
8.3%
-27.6%
Taxation Paid
Dividends Paid
-
303 284 345
-
230 221 753
-
267 579 000
-
(120 122 000)
-
136 192 620
-
-173.4%
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
-
140 319 417
44 497 953
213 917 158
78 101 723
(42 976 000)
98 569 000
(117 245 000)
68 850 000
38 803 115
58 003 735
-194.2%
15.7%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
1 971
331 525
2 168
383 850
2 255
380 097
2 120
203 733
2 129
324 801
Number of Employees
Revenue per Employee
#DIV/0!
#DIV/0!
#DIV/0!
2.5%
-15.0%
53
South African Forestry Company Limited (SAFCOL)
Sector: Other











2010 Revenue: R432 million
2010 Total Assets: R3.8 billion
2010 Audit Opinion: Unqualified
Declining revenue at a CAGR of -13%
from 2007 to 2010.
Dramatic year-on-year erosion of net
profit margins from 122.5% in 2007 to
-5% in 2010.
Improving current and solvency ratios
averaging 5.7x and 4.0x respectively
from 2007 to 2010.
Declining interest coverage ratios from
556x in 2007 to -1800x in 2010.
Dramatically declining DSCR from 13.3x
in 2007 to -99.5x in 2010.
Taxation paid averaged R136 million
from 2007 to 2010, ending with a tax
credit of R120 million in 2010.
Zero dividends paid from 2006 to 2010.
Low and relatively flat gearing ratio
averaging 0.3x from 2007 to 2010.
54
South African Forestry Company Limited (SAFCOL)
Sector: Other











Operating cash flow has declined from a
surplus of R140 million in 2007 to a
shortfall of R117 million in 2010 ,
amounting to a -194% CAGR.
In the same period the cash balance has
decreased by a CAGR of -28%, R126
million in 2010.
Capital expenditure has averaged
R58 million a year from 2007 to 2010.
Asset base has grown by an 11% CAGR
from 2007 to 2010.
In the same period, ROA has
dramatically declined from 7% in 2006
to 0% in 2010.
Zero Government guarantees.
Zero Government subsidies.
Staff complement has grown by a
modest 2.5% CAGR from 2007 to 2010,
with 2,120 employees in 2010.
In the same period, revenues per
employee have declined by -15% CAGR,
averaging R325k from 2007 to 2010.
15 KPIs identified between 2008 and
2010, of which 3 were not achieved.
The most critical of these being SAFCOL’s
failure to meet short and long term
financial and commercial sustainability.
55
South African Nuclear Energy Corporation Limited
Sector: Energy
South African Nuclear Energy Corporation Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
601,417,000
-0.2%
450,960,000
548,599,000
101,716,000
2007
763,793,000
8.7%
548,766,000
532,430,000
134,237,000
2008
860,846,000
5.6%
724,332,000
720,608,000
167,682,000
2009
1,061,142,000
7.6%
918,787,000
858,005,000
222,690,000
2010
1,520,941,000
10.8%
1,496,943,000
937,830,000
326,372,000
Average
961,627,800
6.5%
827,957,600
719,494,400
190,539,400
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
0.0%
1.2
0.8
0.2
6.2
-5.6
3.0%
1.7
1.0
11.0
2.1
32.6
2.0%
1.6
1.0
4.8
3.7
193.5
2.0%
1.6
1.1
4.7
3.3
14.1
3.0%
2.0
1.6
7.8
5.2
1.7
2.0%
1.6
1.1
5.7
4.1
47.3
Taxation Paid
Dividends Paid
-
13,149,000
-
23,970,000
-
59,485,000
-
46,394,000
-
28,599,600
-
52.2%
#DIV/0!
107,734,000
34,858,000
85,813,000
58,916,000
100,914,000
63,671,000
200,355,000
133,133,000
226,230,000
89,766,000
144,209,200
76,068,800
20.4%
26.7%
0.0%
-
0.0%
160,000
0.0%
190,000
0.0%
160,000
0.0%
2,010,000
0.0%
504,000
#DIV/0!
#DIV/0!
132.5%
1,521
502,165
1,622
530,731
1,870
567,456
2,113
719,802
1,782
580,038
11.6%
12.8%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
CAGR
26.1%
35.0%
14.3%
33.8%
56
South African Nuclear Energy Corporation Limited
Sector: Energy











2010 Revenue: R1.5 billion
2010 Total Assets: R1.5 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Robust revenue growth at an impressive
26% CAGR from 2006 to 2010.
Dramatic improvement in net profit
margins from -0.2% in 2006 to 10.8% in
2010.
Improving current and solvency ratios
averaging 1.6x and 1.1x respectively
from 2006 to 2010.
Improving, though erratic interest
coverage ratio from 0.2x in 2006 to 7.8x
in 2010. On average interest coverage
has been 5.7x over the same period.
Relatively flat DSCR, averaging 4.1x from
2006 to 2010.
Taxation paid has increased strongly,
averaging R29 million from 2007 to
2010.
Zero dividends paid from 2006 to 2010.
Dramatically improved gearing ratio
falling from a peak of 194x in 2008 to
1.7x in 2010.
Liquidity and Solvency
,12.0
,11.0
,10.0
,9.0
,8.0
,7.0
,6.0
,5.0
,4.0
,3.0
,2.0
,1.0
-
2006
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
57
South African Nuclear Energy Corporation Limited
Sector: Energy










Operating cash flow and the cash
balance have dramatically increased at a
CAGR of 20% and 34% respectively from
2006 to 2010.
Capital expenditure has increased from
R35 million in 2006 to R90 million in
2010, a 27% CAGR.
Asset base has grown by 35% CAGR from
2006 to 2010.
In the same period, ROA has improved
from 0% in 2006 to 3% in 2010.
Zero Government subsidies.
Government guarantees have increased
by a CAGR of 133% from 2007 to 2010,
where they are currently at R2 million.
Staff complement has increased from
1,521 in 2006 to 2,113 in 2010.
In the same period, revenues per
employee have increased by a CAGR of
13%.
33 KPIs identified between 2008 and
2010, of which 13 were not achieved.
The most critical of these being: poor
investment and upgrading of
infrastructure, shortage of technical and
research staff, poor R&D capabilities and
poor management of nuclear waste
disposal.
58
South African Post Office Limited
Sector: Communications
South African Post Office Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
4,070,256,000
11.3%
5,382,719,000
4,505,301,000
2,096,730,000
2007
4,478,310,000
8.0%
6,900,624,000
5,682,305,000
3,315,706,000
2008
4,801,331,000
7.6%
7,528,303,000
5,959,790,000
3,420,401,000
2009
5,102,627,000
7.2%
8,484,372,000
6,545,845,000
3,554,006,000
2010
5,156,274,000
5.4%
9,257,270,000
7,044,158,000
3,497,130,000
Average
4,721,759,600
7.9%
7,510,657,600
5,947,479,800
3,176,794,600
CAGR
2.0%
1.0
1.2
9.9
2.6
5.1
1.0%
1.1
1.2
4.7
10.7
4.7
1.0%
1.1
1.3
3.9
(1.5)
3.8
1.0%
1.2
1.3
6.3
(6.0)
3.4
1.0%
1.2
1.3
6.0
(14.8)
3.2
1.2%
1.1
1.3
6.2
(1.8)
4.0
187,910,000
-
125,338,000
-
82,107,000
-
127,816,200
-
-23.8%
#DIV/0!
6.1%
14.5%
11.8%
13.6%
Taxation Paid
Dividends Paid
243,726,000
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
253,731,000
129,884,000
1,098,787,000
168,246,000
593,526,000
158,155,000
1,053,984,000
284,389,000
397,214,000
122,127,000
679,448,400
172,560,200
11.9%
-1.5%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
300,000,000
7.4%
38,649,000
351,439,000
7.8%
15,299,000
363,800,000
7.6%
9,490,000
371,600,000
7.3%
8,295
383,093,000
7.4%
8,384,000
353,986,400
7.5%
14,366,059
6.3%
0.2%
-31.8%
15,005
271,260
17,725
252,655
17,138
280,157
18,870
270,409
17,117
301,237
17,171
275,144
3.3%
2.7%
Number of Employees
Revenue per Employee
-
59
South African Post Office Limited
Sector: Communications











2010 Revenue: R5.2 billion
2010 Total Assets: R9.3 billion
2010 Audit Opinion: Unqualified
Steady revenue growth at a 6% CAGR
from 2006 to 2010.
Net profit margin erosion from 11.3% in
2006 to 5.4% in 2010.
Improving liquidity and solvency ratios
increasing from 1.0x to 1.2x and 1.2x to
1.3x respectively from 2006 to 2010.
Erratic and declining interest coverage
ratio averaging 6.2x from 2006 to 2009.
Declining DCSR ratio from 2.6x in 2006
to -14.8x 2010 and averaging -1.8x from
2006 to 2010.
Taxation paid declined by a CAGR of
23.8%, averaging R128 million from
2006 to 2010.
Zero dividends paid in the past 5 years.
Improving gearing ratio from 5.1x in
2006 to 3.2x in 2010.
60
South African Post Office
Sector: Communications










Operating cash flow has remained positive
from 2006 to 2010, increasing by a 12%
CAGR. The cash balance has grown by a
CAGR of 14%.
Capital expenditure has remained
relatively flat, averaging R173 million from
2006 to 2010.
Asset base has grown by a 15% CAGR from
2006 to 2010, to a quantum of R9.3 billion.
In the same period, ROA has declined from
2% in 2006 to 1% in 2010.
Government subsidies have remained
relatively stable, averaging R354 million and
7.5% of revenues over the 5 year period.
Government guarantees have decreased
from R39 million in 2006 to R8 million in
2010.
Staff complement has remained relatively
stable increasing by a CAGR of 3%. From
2006 to 2010.
Similarly and in the same period, revenues
per employee have increased by a CAGR of
3%.
18 KPIs were identified with 4 not being
met.
These included decreasing fraud and crime,
improving the social environment and
improving and strengthening the income
statement and balance sheet.
61
Telkom SA Limited
Sector: Communications
Telkom SA Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
2007
2008
2009
2010
Average
47 625 000 000 51 619 000 000 56 285 000 000 36 027 000 000 37 427 000 000 45 796 600 000
19.6%
17.1%
14.5%
11.8%
100.4%
32.7%
57 544 000 000 59 146 000 000 70 372 000 000 85 771 000 000 56 819 000 000 65 930 400 000
28 078 000 000 27 138 000 000 38 261 000 000 50 276 000 000 26 555 000 000 34 061 600 000
4 948 000 000
749 000 000
1 134 000 000
1 931 000 000
3 855 000 000
2 523 400 000
CAGR
-5.8%
-0.3%
-1.4%
-6.0%
4.0%
0.8
2.1
11.3
0.7
1.0
4.0%
0.6
2.2
11.2
0.1
0.9
3.0%
0.6
1.8
7.8
(0.2)
1.2
1.0%
1.0
1.7
3.4
(0.4)
1.4
17.0%
1.0
2.1
33.0
4.3
0.9
5.8%
0.8
2.0
13.3
0.9
1.1
Taxation Paid
Dividends Paid
4 523 000 000
4 884 000 000
2 803 000 000
4 784 000 000
2 647 000 000
5 732 000 000
1 765 000 000
3 336 000 000
4 485 000 000
11 380 000 000
3 244 600 000
6 023 200 000
-0.2%
23.5%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
9 506 000 000
7 396 000 000
9 536 000 000
10 037 000 000
10 603 000 000
11 657 000 000
11 432 000 000
13 191 000 000
(3 317 000 000)
4 545 000 000
7 552 000 000
9 365 200 000
#NUM!
-11.5%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
4 315 000 000
0.0%
4 537 000 000
0.0%
141 000 000
0.0%
138 000 000
0.0%
109 000 000
0.0%
1 848 000 000
#DIV/0!
#DIV/0!
-60.1%
31 458
1 513 923
33 047
1 561 987
33 616
1 674 351
25 445
1 415 877
25 274
1 480 850
29 768
1 529 398
-5.3%
-0.6%
Number of Employees
Revenue per Employee
62
Telkom SA Limited
Sector: Communications












2010 Revenue: R37 billion1
2010 Total Assets: R57 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue has declined by a CAGR of -6%
from 2006 to 2010.
Dramatic increase in net profit margins
from 20% in 2006 to 100% in 2010.
While liquidity is weak at an average of 0.8x
from 2006 to 2010, solvency is generally
respectable and improving at 2.1x in 2010.
Dramatic improvements in already strong
interest coverage ratios from 11.0x in 2006
to 33x in 2010.
Improving DSCR from 0.7x in 2006 to 4.3x in
2010.
Taxation Paid has taken a U shaped trend,
averaging R3.2 billion from 2006 to 2010.
R11.4 billion paid in dividends in 2010,
increasing by a CAGR of 24% from 2006 to
2010.
Relatively stable gearing ratio, averaging a
respectable 1.1x times from 2006 to 2010.
Improved operating cash flow from
R9.5 billion in 2006 to R11.4 billion in 2009
with a significant decline to
-R3.3 billion in 2010.
Liquidity and Solvency
,5.0
,4.0
,3.0
,2.0
,1.0
(,1.0)
2006
2007
2008
Current Ratio
2009
2010
Solvency Ratio
Debt Service Cover Ratio
1This
2010 number is materially distorted by the profit proceeds accrued from the sale of Vodacom, which amounted to
approximately R44 billion. This is reflected in Telkom’s profit numbers.
63
Telkom SA Limited
Sector: Communications









Although showing a negative CAGR of
-6% for the last 5 years, the cash balance
has steadily increased from R749 million
in 2007 to R3.9 billion in 2010.
Capital expenditure has been robust,
averaging R9.4 billion from 2006 to
2010.
Dramatic decrease in Government
guarantees from R4.3 billion in 2006 to
R109 million in 2010.
Zero Government subsidies.
Asset base has generally increased over
the 5 year period with a decline in 2010,
resulting in a -0.3% decline in CAGR
from 2006 to 2010.
In the same period, ROA has
dramatically improved from 4% in 2006
to 17% in 2010.
Staff complement has shrunk by a CAGR
of -5%. 2010 employees amounted to
25,274.
In the same period, revenues per
employee remained relatively flat
declining by a CAGR of -0.6%.
15 KPIs were identified with 1 not being
achieved from 2008 to 2010. Namely,
growing profitable revenue
internationally.
64
Trans-Caledon Tunnel Authority
Sector: Water
Trans-Caledon Tunnel Authority
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
2006
2007
2008
2009
2010
Average
1 776 000 000
1 951 000 000
2 088 792 000
2 361 000 000
2 757 000 000
2 186 758 400
-33.1%
-5.8%
-7.7%
-8.9%
-5.5%
-12.2%
16 746 000 000 19 102 000 000 20 953 000 000 23 860 000 000 24 626 000 000 21 057 400 000
20 103 000 000 22 471 000 000 24 504 000 000 27 621 000 000 28 539 000 000 24 647 600 000
1 000 000
16 000 000
3 400 000
-1.0%
0.2
0.8
0.7
0.5
-6.0
-
0.0%
0.3
0.9
0.7
(0.1)
-6.7
0.0%
0.5
0.9
0.7
(0.1)
-6.9
0.0%
0.7
0.9
0.7
(0.0)
-7.3
0.0%
0.9
0.9
0.7
0.4
-7.3
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(404 000 000)
404 000 000
(239 000 000)
1 547 000 000
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
10 285 000 000
0.0%
9 557 000 000
Number of Employees
Revenue per Employee
(560 000 000)
834 000 000
(731 000 000)
399 000 000
(249 000 000)
288 000 000
CAGR
11.6%
10.1%
9.2%
-100.0%
-0.2%
0.5
0.9
0.7
0.1
(6.8)
-
#DIV/0!
#DIV/0!
(436 600 000)
694 400 000
-11.4%
-8.1%
0.0%
0.0%
0.0%
0.0%
26 700 000 000 26 700 000 000 14 648 400 000
#DIV/0!
#DIV/0!
26.9%
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
65
Trans-Caledon Tunnel Authority
Sector: Water











2010 Revenue: R2.8 billion
2010 Total Assets: R24.7 billion
2010 Audit Opinion: Unqualified
Revenue has increased by a CAGR of
12% from 2006 to 2010.
Increasing net profit margins though
still negative averaging -12% from
2006 to 2010.
Weak liquidity and solvency positions
averaging 0.5x and 0.9x respectively
from 2006 to 2010.
Relatively flat though strained interest
coverage ratios averaging 0.7x from
2006 to 2010.
Weak DSCR averaging 0.1x from 2006
to 2010.
Zero taxation paid from 2006 to 2010.
Zero dividends paid in the same
period.
Dramatically declining and very weak
gearing ratios averaging -6.8x from
2006 to 2010.
Liquidity and Solvency
,1.0
,0.8
,0.6
,0.4
,0.2
(,0.2)
2006
2007
2008
2009
2010
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
66
Trans-Caledon Tunnel Authority
Sector: Water








Negative cash flow from operating
activities averaging -R436 million,
corroborated by a decline in the cash
balance to zero in 2010 from
R16 million in 2009.
Capital expenditure has been erratic,
averaging R694 million from 2006 to
2010.
Government guarantees amounted to
R27 billion in 2009 and 2010.
Zero Government subsidies.
Asset base has increased by a CAGR
of 10% from 2006 to 2010.
In the same period, ROA has
improved from -1% in 2006 to 0% in
2010.
Staff complement: No data.
1 KPI was identified and not achieved.
Namely, to deliver on directives in an
efficient manner in accordance with
key stakeholder expectations.
67
Transnet Limited
Sector: Transport
Transnet Limited
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
2007
2008
2009
2010
Average
26 360 000 000 28 214 000 000 30 091 000 000 33 592 000 000 35 610 000 000 30 773 400 000
17.3%
26.2%
15.1%
13.5%
8.6%
16.1%
77 333 000 000 77 254 000 000 98 686 000 000 118 534 000 000 138 885 000 000 102 138 400 000
49 627 000 000 39 821 000 000 47 725 000 000 60 200 000 000 74 429 000 000 54 360 400 000
1 400 000 000 3 347 000 000 5 980 000 000
5 880 000 000
7 918 000 000
4 905 000 000
CAGR
7.8%
15.8%
10.7%
54.2%
1.0%
1.1
1.6
3.3
0.8
1.8
2.0%
1.1
1.9
4.1
0.1
1.1
1.0%
0.7
2.1
4.1
0.4
0.9
1.0%
0.9
2.0
3.9
(1.0)
1.0
1.0%
1.2
1.9
2.4
(0.7)
1.2
1.2%
1.0
1.9
3.6
(0.1)
1.2
Taxation Paid
Dividends Paid
2 042 000 000
-
1 902 000 000
-
2 642 000 000
-
1 674 000 000
-
1 722 000 000
-
1 996 400 000
-
-4.2%
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
5 865 000 000
1 745 000 000
8 851 000 000
3 498 000 000
10 287 000 000
7 051 000 000
7 400 000 000
10 884 000 000
12 092 000 000
9 641 000 000
8 899 000 000
6 563 800 000
19.8%
53.3%
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
57 877
455 449
47 323
596 201
47 097
638 915
47 099
713 221
45 564
781 538
48 992
637 065
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
#DIV/0!
#DIV/0!
#DIV/0!
-5.8%
14.5%
68
Transnet Limited
Sector: Transport











2010 Revenue: R36 billion
2010 Total Assets: R139 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue has increased at a CAGR of 8%
from 2006 to 2010.
Declining net profit margins from 17% in
2006 to 8.6% in 2010.
While liquidity is stable at an average of
1.0x from 2006 to 2010, solvency is
generally stronger averaging 1.9x in the
same period.
Respectable, though declining interest
coverage ratio averaging 3.6x from 2006
to 2010.
Declining DSCR from 0.8x in 2006 to
-0.7x in 2010.
Taxation paid has been consistent,
averaging R2 billion from 2006 to 2010.
Zero dividends paid from 2006 to 2010.
Improving gearing ratio from 1.8x in
2006 to 1.2x in 2010.
Liquidity and Solvency
,5.0
,4.0
,3.0
,2.0
,1.0
-
(,1.0)
2006
2007
2008
2009
2010
(,2.0)
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
69
Transnet Limited
Sector: Transport









Improved operating cash flow levels
increasing by a CAGR of 20% from 2006
to 2010 to a quantum of R12 billion.
Similarly, the cash balance has improved
by a CAGR of 54.2% over the same
period, to R8 billion.
Capital expenditure has increased from
R1.8 billion in 2006 to R9.6 billion in
2010.
Zero Government guarantees.
Zero Government subsidies.
Asset base has increased by a CAGR of
16% from 2006 to 2010.
In the same period, ROA has remained
flat averaging 1.2% from 2006 to 2010.
Staff complement has shrunk by a CAGR
of -6% from 2006 to 2010. 2010
employees amounted to 45,564.
In the same period, revenues per
employee improved substantially,
increasing by a CAGR of 15%.
23 KPIs were identified with 5 not being
achieved from 2008 to 2010.
Consistently through the period, the
major failure included delivering
directives in an efficient manner for all
stakeholders.
70
Sector Education & Training
Authority (SETAs)
Sector Education and Training Authorities
5 Year Global Analysis
Global
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
4,169,970,000
4,094,485,000
1,079,364,000
3,159,825,000
645,354,000
2007
4,423,882,691
4,259,686,000
1,111,081,000
3,577,087,000
699,409,000
2008
5,262,858,928
5,297,257,402
1,004,363,130
4,721,615,026
725,098,710
2009
5,807,731,186
5,892,883,131
949,132,107
4,481,161,471
608,596,043
2010
4,949,088,960
4,964,760,258
827,058,153
3,758,569,577
474,301,246
Average
4,922,706,353
4,901,814,358
994,199,678
3,939,651,615
630,551,800
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
4.4
75.8%
77.2%
4.9
80.9%
84.0%
6.1
89.7%
89.1%
6.3
77.2%
76.0%
5.8
75.9%
75.7%
5.5
79.9%
80.4%
Accounts Payable as a % of Grants Received
15.5%
15.8%
13.8%
10.5%
9.6%
13.0%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(582,234,000)
19,231,000
581,499,766
50,770,000
1,032,175,824
19,749,000
911,250,159
55,055,000
210,916,655
17,209,000
430,721,681
32,402,800
#NUM!
-2.7%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
996,508,000
23.9%
616,000
1,033,913,000
23.4%
-
1,051,140,000
20.0%
200,000
1,153,769,548
19.9%
-
1,021,372,362
20.6%
-
1,051,340,582
21.5%
163,200
0.6%
-3.6%
-100.0%
710
5,873,197
594
7,447,614
1,073
4,904,808
756
7,682,184
1,103
4,486,935
847
6,078,948
11.6%
-6.5%
Grants Received as % of GDP
Number of Employees
Grants Received per Employee
CAGR
4.4%
4.9%
-6.4%
4.4%
-7.4%
72
Sector Education and Training Authorities
5 Year Global Analysis












All Sector Education and Training Authorities (SETAs) in Schedule 3a of the KPMG report received an average of
R4.9 billion in grants from 2006 to 2010. This amounted to an average of 0.2% of GDP for the same period. A total
of 23 entities are listed in the KPMG database which is in line with the Standard Industrial Classification (SIC) for
SETAs.
Total grants received grew by a CAGR of 4.4% from 2006 to 2010.
Total assets grew by a CAGR of 4.9% from R4.1 billion in 2006 to R5 billion in 2010.
Contrarily, total liabilities have declined from R1 billion in 2006 to R827K in 2010, a CAGR of -6.4%.
In that vein, SETA liquidity is very strong, averaging 5.5x from 2006 to 2010.
Cash on hand has increased moderately from R3.2 billion in 2006 to R3.8 billion in 2010.
Of note, is that cash on hand as a percentage of grants received is high, averaging 80% from 2006 to 2010, which
would suggest that corporate claims are low, resulting in low disbursement rates.
Cash on hand as a percentage of assets peaked at 89% in 2008 and averaged 80% from 2006 to 2010. Again, this
metric is indicative of a lazy industry-wide balance sheet and requires further interrogation into why these cash
balances are not being optimally disbursed.
Accounts payable, though a monthly metric, is included as a directional proxy to try and ascertain whether SETAs
are disbursing claims timeously or efficiently, (given that the major creditor would be the companies that need to
claim for training services rendered). Accounts payable as a percentage of grants received has averaged 13%.
Government subsidies have remained relatively flat from 2006 to 2010 growing by a meagre CAGR of 0.6%. The
average subsidy amount during the period was R1 billion, which amounts to a meaningful contribution of 21.5% of
total grants received.
Government guarantees are generally immaterial in this space, averaging a very low R163K from 2006 to 2010.
The 2010 staff complement of SETAs was 1,103. Employee numbers have grown by a CAGR of 11.6%. In the same
period, grants received per employee are showing a declining trend from R5.9 million to R4.5 million. The average
from 2006 to 2010 was R6.1 million.
73
Agricultural Sector Education and Training Authority
Sector: Education
Agricultural Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
107,377,000
149,047,000
35,624,000
121,359,000
34,432,000
2007
126,944,000
138,418,000
34,991,000
111,317,000
30,978,000
2008
133,172,000
153,217,000
32,291,000
144,779,000
28,405,000
2009
143,886,000
175,734,000
31,431,000
169,231,000
24,547,000
2010
170,138,000
167,473,000
35,120,000
159,174,000
34,436,000
Average
136,303,400
156,777,800
33,891,400
141,172,000
30,559,600
4.1
113.0%
81.4%
3.8
87.7%
80.4%
4.6
108.7%
94.5%
5.4
117.6%
96.3%
4.6
93.6%
95.0%
4.5
104.1%
89.5%
(71,131,000)
357,000
(9,807,000)
2,180,000
33,895,000
433,000
24,947,000
537,000
(9,750,000)
307,000
(6,369,200)
762,800
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
23
4,668,565
23
5,519,304
24
5,548,833
29
4,961,586
35
4,861,086
27
5,111,875
CAGR
12.2%
3.0%
-0.4%
7.0%
0.0%
-39.2%
-3.7%
#DIV/0!
#DIV/0!
#DIV/0!
11.1%
1.0%
74
Agricultural Sector Education and Training Authority
Sector: Education












2010 Grants Received: R170 million
2010 Total Assets: R167.5 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Steady increase in grants received growing
at a CAGR of 12.2% from 2006 to 2010.
Cash on hand has grown by a CAGR of 7%
and amounted to R159 million in 2010.
Cash on hand as percentage of grants
received has been erratic and high,
averaging 104.1% from 2006 to 2010,
suggesting low disbursement levels.
Cash as a percentage of assets has averaged
89.5% from 2006 to 2010.
Liquidity ratios are strong, averaging 4.5x
from 2006 to 2010.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 35 people and
grants received per employee have been
relatively flat from 2006 to 2010, amounting
to R5.1 million.
30 KPIs were identified from 2008 to 2010,
8 of which were not achieved. Chiefly, these
included: assisting designated groups to
participate in accredited work-based
programmes, promoting & accelerating
quality training.
Grants Received vs. Cash on Hand
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
5800,000
5600,000
5400,000
5200,000
5000,000
4800,000
4600,000
4400,000
4200,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
75
Banking Sector Education and Training Authority
Sector: Education
Banking Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
241,778,000
140,807,000
62,668,000
90,452,000
62,668,000
2007
252,768,000
167,213,000
82,893,000
96,949,000
82,893,000
2008
334,089,000
158,488,000
64,683,000
151,263,000
64,683,000
2009
373,980,000
152,764,000
35,662,000
150,535,000
33,384,000
2010
352,262,000
127,953,000
62,565,000
125,792,000
38,663,000
Average
310,975,400
149,445,000
61,694,200
122,998,200
56,458,200
2.2
37.4%
64.2%
2.0
38.4%
58.0%
2.4
45.3%
95.4%
4.3
40.3%
98.5%
2.0
35.7%
98.3%
2.6
39.4%
82.9%
(46,236,000)
204,000
6,713,000
216,000
54,694,000
380,000
(134,000)
594,000
(24,549,000)
194,000
(1,902,400)
317,600
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
18
13,432,111
21
12,036,571
24
13,920,375
28
13,356,429
31
11,363,290
24
12,821,755
CAGR
9.9%
-2.4%
0.0%
8.6%
-11.4%
-14.6%
-1.2%
#DIV/0!
#DIV/0!
#DIV/0!
14.6%
-4.1%
76
Banking Sector Education and Training Authority
Sector: Education












2010 Grants Received: R352 million
2010 Total Assets: R128 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Moderate increase in grants received growing
at a CAGR of 10% from 2006 to 2010.
Cash on hand has grown moderately by a
CAGR of 8.6% and amounted to R126 million in
2010.
Cash on hand as percentage of grants received
has averaged 39.4% 2006 to 2010.
Cash as a percentage of assets has shown a
robust increase from 64.2% in 2006 to 98.3% in
2010, averaging 82.9% over the period.
Liquidity ratios are strong, averaging 2.6x from
2006 to 2010 and peaking at 4.3x in 2009.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 31 people and
grants received per employee have shown a
slight decline from 2006 to 2010, amounting to
R11.4 million in 2010 from a high of R13.4
million in 2006.
21 KPIs were identified from 2008 to 2010, all
of which were achieved.
Grants Received vs. Cash on Hand
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
16000,000
14000,000
12000,000
10000,000
8000,000
6000,000
4000,000
2000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
77
Chemical Industries Education and Training Authority
Sector: Education
Chemical Industries Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
168,705,000
153,171,000
62,924,000
105,836,000
61,984,000
2007
205,978,000
202,135,000
112,707,000
180,330,000
104,699,000
2008
221,049,000
197,310,000
44,807,000
175,685,000
44,648,000
2009
290,703,000
261,354,000
25,422,000
237,541,000
23,417,000
2010
291,968,000
301,274,000
51,496,000
295,149,000
50,301,000
Average
235,680,600
223,048,800
59,471,200
198,908,200
57,009,800
CAGR
2.4
62.7%
69.1%
1.8
87.5%
89.2%
4.4
79.5%
89.0%
10.2
81.7%
90.9%
5.8
101.1%
98.0%
4.9
82.5%
87.2%
(73,611,000)
595,000
89,586,000
928,000
15,604,000
218,000
86,509,000
353,000
62,913,000
494,000
36,200,200
517,600
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
37
7,856,838
33
8,847,515
35
8,352,176
#VALUE!
#VALUE!
14.7%
18.4%
-4.9%
29.2%
-5.1%
#NUM!
-4.5%
78
Chemical Industries Education and Training Authority
Sector: Education












2010 Grants Received: R292 million
2010 Total Assets: R301 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR of
15% from 2006 to 2010.
Cash on hand has increased by a robust CAGR
of 29.2% from 2006 to 2010, and amounted to
R295 million in 2010.
Cash on hand as percentage of grants received
has increased dramatically, growing from 63%
in 2006 to 101% in 2010, an alarming peak
suggesting weak and declining disbursement
trends and quite possibly no disbursements.
Cash as a percentage of assets has shown a
robust increase from 69% in 2006 to 98% in
2010, averaging 87.2% over the period.
Liquidity ratios are erratic and improving,
averaging 4.9x from 2006 to 2010 and peaking
at 10.2x in 2009.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 33 people and
grants received per employee were R8.8 million
for the same year.
37 KPIs were identified from 2008 to 2010. 15
areas of non-achievement, mainly including:
promoting & accelerating quality training,
improving the quality and relevance of
provision, assisting designated groups to
participate in accredited work based programs.
Grants Received vs. Cash on Hand
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
10000,000
9000,000
8000,000
7000,000
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
79
Clothing, Textiles, Footwear & Leather Sector Education and Training Authority
Sector: Education
Clothing, Textiles, Footwear and Leather Sector Education and
Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
75,692,000
43,465,000
12,217,000
32,001,000
9,702,000
2007
62,196,000
36,220,000
10,705,000
32,870,000
10,455,000
2008
64,646,000
45,071,000
13,691,000
43,765,000
13,691,000
2009
69,351,000
52,747,000
11,039,000
50,505,000
11,039,000
2010
64,380,000
59,924,000
11,177,000
59,363,000
8,949,000
Average
67,253,000
47,485,400
11,765,800
43,700,800
10,767,200
3.5
42.3%
73.6%
3.3
52.8%
90.8%
3.3
67.7%
97.1%
4.8
72.8%
95.7%
5.4
92.2%
99.1%
4.0
65.6%
91.3%
(10,399,000)
195,000
900,000
31,000
10,996,000
107,000
6,825,000
85,000
8,877,000
19,000
3,439,800
87,400
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
19
3,983,789
16
3,887,250
19
3,402,421
21
3,302,429
22
2,926,364
19
3,500,451
CAGR
-4.0%
8.4%
-2.2%
16.7%
-2.0%
#NUM!
-44.1%
#DIV/0!
#DIV/0!
#DIV/0!
3.7%
-7.4%
80
Clothing, Textiles, Footwear & Leather Sector Education and Training Authority
Sector: Education












2010 Grants Received: R64.4 million
2010 Total Assets: R60 million
2010 Audit Opinion: Unqualified
Grants received have shown a slight decline by
a CAGR of -4% from 2006 to 2010.
Cash on hand has increased by a 16.7% CAGR
from 2006 to 2010 and amounted to R59.4
million in 2010.
Cash on hand as percentage of grants received
has more than doubled, growing from 42% in
2006 to 92.2% in 2010, suggesting declining
disbursement trends.
Cash as a percentage of assets has shown an
increase from 74% in 2006 to 99% in 2010,
averaging 91% over the period.
Liquidity ratios are strong, averaging 4.0x from
2006 to 2010 and peaking at 5.4x in 2009.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 22 people and
grants received per employee were
R2.9 million for the same year, declining from a
peak of R4 million in 2006.
22 KPIs were identified from 2008 to 2010, with
11 areas of non-achievement, mainly including:
quality assuring and certification of
qualifications, accreditation and annual
monitoring of training providers, quality
training and maintaining a national database of
all learners achievements.
Grants Received vs. Cash on Hand
80000,000
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
80000,000
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
4500,000
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
81
Education, Training & Development Practices Education and Training Authority
Sector: Education
Education, Training and Development Practices Sector Education
and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
2007
2008
240,349,000
293,724,000
28,620,000
287,554,000
23,876,000
2009
267,467,000
298,992,000
33,924,000
295,222,000
30,619,000
2010
295,238,000
268,409,000
26,566,000
265,393,000
22,843,000
Average
267,684,667
287,041,667
29,703,333
282,723,000
25,779,333
10.2
119.6%
97.9%
8.7
110.4%
98.7%
10.0
89.9%
98.9%
9.7
106.6%
98.5%
(4,534,000)
322,000
8,571,000
942,000
(28,333,000)
1,423,000
(8,098,667)
895,667
0.0%
-
0.0%
-
0.0%
-
0.0%
-
94
2,556,904
94
2,845,394
89
3,317,281
92
2,906,526
CAGR
10.8%
-4.4%
-3.7%
-3.9%
-2.2%
150.0%
110.2%
#DIV/0!
#DIV/0!
#DIV/0!
-2.7%
13.9%
82
Education, Training & Development Practices Education and Training Authority
Sector: Education












2010 Grants Received: R295 million
2010 Total Assets: R268 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR
of 10.8% from 2008 to 2010.
Cash on hand has declined by a CAGR of
-3.9% from 2008 to 2010 and amounted to
R265 million in 2010.
Cash on hand as percentage of grants
received has been on a declining trend,
though it remains high at 90% in 2010, and
averaging 106.6% from 2008 to 2010,
suggesting low disbursement trends.
Cash as a percentage of assets has remained
high and flat, averaging 98.5% from 2008 to
2010.
Liquidity ratios are very strong, averaging
9.7x from 2008 to 2010.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 89 people and
grants received per employee have grown
by a CAGR of 14% from 2006 to 2010,
settling at R3.3 million in 2010.
No performance information was available
for analysis.
Grants Received vs. Cash on Hand
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2008
Grants Received
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2008
Grants Received
2009
2010
Grants Received per Employee
83
Energy Sector Education and Training Authority
Sector: Education
Energy Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
100,712,000
111,469,000
35,642,000
97,530,000
35,371,000
2007
92,878,000
98,330,000
31,515,000
96,162,000
26,894,000
2008
110,613,000
87,718,000
32,593,000
74,521,000
31,768,000
3.1
96.8%
87.5%
3.1
103.5%
97.8%
2.7
67.4%
85.0%
2.9
89.2%
90.1%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
8,125,000
874,000
(4,911,000)
667,000
(21,192,000)
449,000
(5,992,667)
663,333
#NUM!
-28.3%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
1,010,000
1.0%
-
0.0%
-
0.0%
-
336,667
0
-
-100.0%
-100.0%
#DIV/0!
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
2009
2010
Average
101,401,000
99,172,333
33,250,000
89,404,333
31,344,333
#DIV/0!
#DIV/0!
CAGR
4.8%
-11.3%
-4.4%
-12.6%
-5.2%
#VALUE!
#VALUE!
84
Energy Sector Education and Training Authority
Sector: Education













No data for 2009 and 2010
2008 Grants Received: R111 million
2008 Total Assets: R88 million
2008 Audit Opinion: Adverse / Disclaimer
Grants received have increased moderately,
by a CAGR of 4.8% from 2006 to 2008.
Cash on hand has declined by a CAGR of
-12.6% from 2006 to 2008 and amounted to
R75 million in 2008.
Cash on hand as percentage of grants
received has been on a declining trend,
decreasing from 96.8% in 2006 to 67.4% in
2008.
Cash as a percentage of assets has taken a
bell-shaped trend, peaking at 98% in 2007
and settling at 85% in 2008.
Liquidity ratios are strong, though
declining, averaging 2.9x from 2006 to
2008.
A R1 million Government subsidy was
received in 2006, amounting to 1% of grants
received for that year.
Government guarantees: Zero.
Staff complement : No data.
6 KPIs were identified in 2008, with 2 not
being achieved. Areas of non-performance
included improving the quality and
relevance of provision and promoting
employability and sustainable livelihoods
through skills development.
Grants Received vs. Cash on Hand
115000,000
110000,000
105000,000
100000,000
95000,000
90000,000
85000,000
80000,000
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
Grants Received
2007
2008
Cash on Hand as a % of Grants Received
Employee Productivity
115000,000
110000,000
105000,000
100000,000
95000,000
90000,000
85000,000
80000,000
1
1
1
1
1
1
0
0
0
0
2006
Grants Received
2007
2008
Grants Received per Employee
85
Food and Beverages Manufacturing Education and Training Authority
Sector: Education
Food and Beverages Manufacturing Industry Sector Education
and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
111,963,000
86,921,000
16,612,000
58,155,000
15,657,000
2007
123,108,000
102,859,000
18,584,000
91,594,000
11,904,000
2008
137,768,000
135,324,000
36,253,000
127,963,000
29,706,000
2009
175,812,000
141,376,000
15,959,000
125,793,000
13,864,000
2010
180,814,000
154,837,000
22,394,000
132,473,000
17,910,000
Average
145,893,000
124,263,400
21,960,400
107,195,600
17,808,200
5.2
51.9%
66.9%
5.5
74.4%
89.0%
3.7
92.9%
94.6%
8.7
71.5%
89.0%
6.8
73.3%
85.6%
6.0
72.8%
85.0%
(19,959,000)
607,000
23,455,000
342,000
37,041,000
672,000
(719,000)
1,451,000
7,690,000
377,000
9,501,600
689,800
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
26
4,306,269
28
4,396,714
34
4,052,000
35
5,023,200
37
4,886,865
32
4,533,010
CAGR
12.7%
15.5%
7.8%
22.9%
3.4%
#NUM!
-11.2%
#DIV/0!
#DIV/0!
#DIV/0!
9.2%
3.2%
86
Food and Beverages Manufacturing Education and Training Authority
Sector: Education












2010 Grants Received: R181 million
2010 Total Assets: R155 million
2009 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR of
12.7% from 2006 to 2010.
Cash on hand has increased by a robust CAGR
of 23% from 2006 to 2010 and amounted to
R133 million in 2010.
Cash on hand as percentage of grants received
has increased, growing from 52% in 2006 to
73% in 2010.
Similarly, cash as a percentage of assets has
increased from 67% in 2006 to 86% in 2010,
with a high average of 85% for the same
period.
Liquidity ratios are erratic and improving,
averaging 6.0x from 2006 to 2010 and peaking
at 8.7x in 2009.
Government subsidies: Zero.
Government guarantees: Zero.
2010 staff complement was 37 people ,
showing a CAGR increase of 9.2% from 2006 to
2010. Grants received per employee were
R4.9 million in 2010, improving by a CAGR of
3.2% in the same period.
32 KPIs were identified from 2008 to 2010. One
area of non-achievement was identified: poor
NGO and CBO organisational support.
Grants Received vs. Cash on Hand
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
87
Forest Industries Sector Education and Training Authority
Sector: Education
Forest Industries Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
61,863,000
64,159,000
17,274,000
53,274,000
9,345,000
2007
59,331,000
68,866,000
15,764,000
66,953,000
12,747,000
2008
68,974,000
73,272,000
20,367,000
68,515,000
8,519,817
2009
82,646,000
63,148,000
14,076,000
57,877,000
13,936
2010
87,113,000
51,631,000
23,000,000
50,401,000
21,030,000
Average
71,985,400
64,215,200
18,096,200
59,404,000
10,331,151
3.7
86.1%
83.0%
4.4
112.8%
97.2%
3.6
99.3%
93.5%
4.5
70.0%
91.7%
2.2
57.9%
97.6%
3.7
85.2%
92.6%
(37,462,000)
180,000
13,747,000
80,000
1,687,000
124,000
(10,409,000)
229,000
(7,241,000)
235,000
(7,935,600)
169,600
0.0%
-
0.0%
-
0.0%
-
0.0%
-
16,000
0.0%
-
3,200
0.0%
-
15
3,955,400
14
4,926,714
10
8,264,600
20
4,355,650
15
5,375,591
CAGR
8.9%
-5.3%
7.4%
-1.4%
22.5%
-33.7%
6.9%
#DIV/0!
#DIV/0!
#DIV/0!
10.1%
3.3%
88
Forest Industries Sector Education and Training Authority
Sector: Education












2010 Grants Received: R87 million
2010 Total Assets: R52 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR of
9% from 2006 to 2010.
Cash on hand has shown a declining trend
from R53 million in 2006 to R50 million in 2010.
Cash on hand as percentage of grants received
has had a bell shaped trajectory, peaking at
113% in 2007 and declining to 58% by 2010.
On the other hand, cash as a percentage of
assets has increased from 83% in 2006 to 98%
in 2010.
Liquidity ratios are been erratic and declining,
averaging 3.7x from 2006 to 2010 and settling
at a defensible 2.2x in 2010.
Government subsidies amounted to a
negligible R16,000 in 2010.
Government guarantees: Zero.
2010 staff complement was 20 people,
doubling from 10 people in 2009. Grants
received per employee were R4.4 million in
2010.
12 KPIs were identified from 2008 to 2010. Two
areas of non-achievement were identified:
assisting new entrants to participate in
accredited work programmes and improving
the quality and relevance of provision.
Grants Received vs. Cash on Hand
100000,000
90000,000
80000,000
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
100000,000
90000,000
80000,000
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
9000,000
8000,000
7000,000
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
89
Health and Welfare Sector Education and Training Authority
Sector: Education
Health and Welfare Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
143,460,000
225,754,000
17,002,000
205,118,000
12,309,000
2007
164,805,000
247,705,000
36,250,000
239,836,000
33,722,000
2008
169,275,000
270,662,000
27,160,000
262,795,000
24,564,000
2009
215,301,000
321,182,000
29,366,000
313,162,000
27,714,000
2010
239,913,000
341,018,000
21,620,000
330,623,000
21,262,000
Average
186,550,800
281,264,200
26,279,600
270,306,800
23,914,200
13.9
143.0%
90.9%
6.9
145.5%
96.8%
10.4
155.2%
97.1%
11.0
145.5%
97.5%
15.6
137.8%
97.0%
11.6
145.4%
95.8%
(17,774,000)
722,000
51,493,000
298,000
29,049,000
2,506,000
52,170,000
1,047,000
20,083,000
2,309,000
27,004,200
1,376,400
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
55
2,608,364
59
2,793,305
58
2,918,534
57
3,777,211
70
3,427,329
60
3,104,948
CAGR
13.7%
10.9%
6.2%
12.7%
14.6%
#NUM!
33.7%
#DIV/0!
#DIV/0!
#DIV/0!
6.2%
7.1%
90
Health and Welfare Sector Education and Training Authority
Sector: Education












2010 Grants Received: R240 million
2010 Total Assets: R341 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR of
13.7% from 2006 to 2010.
Similarly cash on hand has shown a
consistently growing trend from R205million in
2006 to R331 million in 2010, a CAGR of
12.7%.
Cash on hand as percentage of grants received
has been extremely high and greater than
100% from 2006 to 2010, averaging 145% over
the period, suggesting very poor disbursement
trends.
In the same vein, cash as a percentage of assets
has increased from 91% in 2006 to 97% in
2010.
As expected, liquidity ratios are very strong
averaging 11.6x from 2006 to 2010 and settling
at a high of 15.6x in 2010.
Government subsidies : Zero.
Government guarantees: Zero.
2010 staff complement was 70 people,
increasing by a CAGR of 6.2% from 2006 to
2010. Grants received per employee were
R3.4 million in 2010, having increased by a
CAGR of 7.1% in the same period.
32 KPIs were identified from 2008 to 2010, with
16 not being achieved. These included:
promoting and accelerating quality training in
the workplace, assisting designated groups and
promoting employability.
Grants Received vs. Cash on Hand
300000,000
160.0%
155.0%
150.0%
145.0%
140.0%
135.0%
130.0%
125.0%
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
300000,000
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
-
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
91
IT, Electronics & Telecommunications Sector Education and Training Authority
Sector: Education
Information Systems, Electronics and Telecommunications
Technologies Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
261,845,000
194,119,000
68,264,000
135,205,000
60,954,000
2007
274,670,000
121,427,000
68,923,000
112,469,000
1,105,000
2008
290,756,000
136,766,000
63,632,000
130,658,000
59,463,000
2009
340,738,000
197,313,000
35,968,000
193,494,000
1,125,000
2010
378,500,000
264,940,000
34,626,000
261,861,000
1,515,000
Average
309,301,800
182,913,000
54,282,600
166,737,400
24,832,400
2.8
51.6%
69.7%
1.7
40.9%
92.6%
2.1
44.9%
95.5%
5.5
56.8%
98.1%
7.6
69.2%
98.8%
3.9
52.7%
90.9%
(47,342,000)
137,000
(26,376,000)
258,000
17,040,000
446,000
62,998,000
268,000
68,904,000
537,000
15,044,800
329,200
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
45
5,818,778
47
5,844,043
38
7,651,474
27
12,619,926
30
12,616,667
37
8,910,177
CAGR
9.6%
8.1%
-15.6%
18.0%
-60.3%
#NUM!
40.7%
#DIV/0!
#DIV/0!
#DIV/0!
-9.6%
21.3%
92
IT, Electronics & Telecommunications Sector Education and Training Authority
Sector: Education












2010 Grants Received: R379 million
2010 Total Assets: R265 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR
of 9.6% from 2006 to 2010.
Cash on hand has increased from
R135 million in 2006 to R262 million in
2010.
Cash on hand as percentage of grants
received has had a U shaped trajectory,
peaking at 69.2% in 2010.
Cash as a percentage of assets has been
very high, leveling off at 98.8% in 2010.
Liquidity ratios have improved from 2.8x in
2006 to 7.6x in 2010. The average for the
period was a healthy 3.9x.
Government subsidies : Zero.
Government guarantees: Zero.
2010 staff complement was 30 people and
declined by a CAGR of -9.6% from 2006 to
2010. Grants received per employee
increased by a CAGR of 21.3% from 2006 to
2010 and equated to R12.6 million in 2010.
39 KPIs were identified from 2008 to 2010.
One area of non-achievement was
identified, namely, assisting designated
groups, including new entrants to
participate in accredited work-based
programmes.
Grants Received vs. Cash on Hand
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
14000,000
12000,000
10000,000
8000,000
6000,000
4000,000
2000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
93
Insurance Sector Education and Training Authority
Sector: Education
Insurance Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
154,844,000
123,254,000
45,223,000
93,145,000
41,143,000
2007
157,428,000
116,497,000
33,650,000
99,948,000
25,814,000
2008
185,247,000
143,175,000
42,787,000
139,585,000
38,123,000
2009
208,543,000
171,236,000
39,530,000
168,107,000
37,554,000
2.7
60.2%
75.6%
3.4
63.5%
85.8%
3.3
75.4%
97.5%
4.3
80.6%
98.2%
3.4
69.9%
89.3%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(5,173,000)
538,000
7,154,000
351,000
40,448,000
811,000
28,955,000
465,000
17,846,000
541,250
-277.6%
-4.7%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
148,153,000
95.7%
-
149,400,000
94.9%
-
173,474,000
93.6%
-
191,677,000
91.9%
-
165,676,000
94.0%
-
9.0%
-1.3%
#DIV/0!
24
6,559,500
23
8,054,217
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
2010
Average
176,515,500
138,540,500
40,297,500
125,196,250
35,658,500
24
7,306,859
CAGR
10.4%
11.6%
-4.4%
21.8%
-3.0%
#VALUE!
#VALUE!
94
Insurance Sector Education and Training Authority
Sector: Education













No 2010 Data
2009 Grants Received: R209 million
2009 Total Assets: R171 million
2009 Audit Opinion: Unqualified with
emphasis of matter
Grants received have increased by a CAGR of
10.4% from 2006 to 2009.
Cash on hand has increased from R93 million
in 2006 to R168 million in 2009.
Cash on hand as percentage of grants received
has increased from 60.2% in 2006 to 80.6% in
2009.
Similarly, cash as a percentage of assets has
increased from 75.6% in 2006 to 98.2% in 2009.
Liquidity ratios have improved from 2.7x in
2006 to 4.3x in 2009. The average for the
period was a healthy 3.4x.
Government subsidies grew by a CAGR of 9%
from 2006 to 2009, increasing from R148
million to R192 million in the same period.
Government subsidies as a percentage of
grants received have been consistently high,
averaging 94% from 2006 to 2009.
Government guarantees: Zero.
Staff complement was 23 people in 2008 with
grants received per employee amounting to
R8 million in the same year.
29 KPIs were identified from 2008 to 2009.
9 areas of non-achievement were identified.
Chiefly, these included assisting new entrants
into the labour market and quality workplace
training programmes.
Grants Received vs. Cash on Hand
250000,000
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
200000,000
150000,000
100000,000
50000,000
2006
Grants Received
2007
2008
2009
Cash on Hand as a % of Grants Received
Employee Productivity
250000,000
9000,000
8000,000
7000,000
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
-
200000,000
150000,000
100000,000
50000,000
2006
Grants Received
2007
2008
2009
Grants Received per Employee
95
Local Government and Water Sector Education and Training Authority
Sector : Education
Local Government, Water and Other Related Services Sector
Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
208,628,000
271,899,000
68,028,000
237,726,000
4,470,000
2007
202,104,000
262,474,000
15,887,000
251,470,000
1,095,000
2008
218,364,000
320,768,000
23,230,000
310,081,000
4,152,000
4.0
113.9%
87.4%
16.3
124.4%
95.8%
13.6
142.0%
96.7%
11.3
126.8%
93.3%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(38,495,000)
346,000
14,528,000
653,000
59,145,000
564,000
11,726,000
521,000
#NUM!
27.7%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
38,622,000
18.5%
-
24,119,000
11.9%
-
0.0%
-
20,913,667
10.1%
-
-100.0%
-100.0%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
2009
2010
Average
209,698,667
285,047,000
35,715,000
266,425,667
3,239,000
CAGR
2.3%
8.6%
-41.6%
14.2%
-3.6%
96
Local Government and Water Sector Education and Training Authority
Sector : Education












2008 Grants Received: R218 million
2008 Total Assets: R321 million
2008 Audit Opinion: Unknown
A slight increase in grants received growing
at a CAGR of 2.3% from 2006 to 2008.
Cash on hand has grown by a CAGR of
14.2% and amounted to R310 million in
2008.
Cash on hand as a percentage of revenue
has been increasing and is high, averaging
126.8% from 2006 to 2008, suggesting low
disbursement levels.
Cash as a percentage of assets has averaged
93.3% from 2006 to 2008.
Liquidity ratios are strong, averaging 11.3x
from 2006 to 2008.
Government subsidies of R39 million and
R24 million were received in 2006 and 2007
respectively.
Zero government guarantees.
Staff complement: No data.
For the period 2006 to 2008 , 8 KPIs
identified, 1 was not achieved, being the
failure to assist designated groups to
participate in work based programmes.
Grants Received vs. Cash on Hand
220000,000
160.0%
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
215000,000
210000,000
205000,000
200000,000
195000,000
190000,000
2006
Grants Received
2007
2008
Cash on Hand as a % of Grants Received
Employee Productivity
220000,000
1
1
1
1
1
1
0
0
0
0
-
215000,000
210000,000
205000,000
200000,000
195000,000
190000,000
2006
Grants Received
2007
2008
Grants Received per Employee
97
Manufacturing and Engineering Sector Education and Training Authority
Sector : Education
Manufacturing, Engineering and Related Services Sector
Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
540,270,000
609,080,000
79,611,000
514,583,000
78,284,000
2007
586,589,000
617,356,000
77,646,000
472,701,000
76,466,000
2008
703,995,000
893,594,000
65,728,000
632,900,000
65,589,000
2009
817,013,000
1,088,101,000
99,643,000
6,153,000
99,563,000
2010
819,023,000
1,020,076,000
133,910,000
88,849,000
133,830,000
Average
693,378,000
845,641,400
91,307,600
343,037,200
90,746,400
7.6
95.2%
84.5%
7.8
80.6%
76.6%
13.5
89.9%
70.8%
10.8
0.8%
0.6%
7.5
10.8%
8.7%
9.4
55.5%
48.2%
17,742,000
5,900,000
80,672,000
3,688,000
282,651,000
2,919,000
62,810,000
5,684,000
41,414,000
3,903,000
97,057,800
4,418,800
0.0%
-
0.0%
-
46,000
0.0%
-
218,000
0.0%
-
22,146,000
2.7%
-
4,482,000
0.5%
-
-
220
3,722,832
112
4,823,839
-
148
4,756,723
CAGR
11.0%
13.8%
13.9%
-35.5%
14.3%
23.6%
-9.8%
#DIV/0!
#DIV/0!
#DIV/0!
98
Manufacturing and Engineering Sector Education and Training Authority
Sector : Education












2010 Grants Received: R819 million
2010 Total Assets: R1 billion
2010 Audit Opinion: Unqualified
Grants received has grown steadily at a
CAGR of 11% from 2006 to 2010.
Cash on hand has decreased from
R515 million in 2006 to R89 million in 2010.
Cash on hand as a percentage of grants
received has decreased from 95.2% in 2006
to 10.8%, suggesting regular
disbursements.
Cash as a percentage of assets has averaged
48.2% from 2006 to 2010.
Liquidity ratios are strong, averaging 9.4x
from 2006 to 2010.
Government subsidies were received for
the last 3 years, peaking at R22 million in
2010.
Zero government guarantees.
2010 staff complement of 220 people and
grants received per employee amounted to
R3.7 million in the same year.
For the period 2008 to 2010 , 15 KPIs
identified, 2 were not achieved. The main
one being the failure to promote
employability through skills development.
Grants Received vs. Cash on Hand
900000,000
800000,000
700000,000
600000,000
500000,000
400000,000
300000,000
200000,000
100000,000
-
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
900000,000
800000,000
700000,000
600000,000
500000,000
400000,000
300000,000
200000,000
100000,000
-
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
99
Media, Advertising, Publishing, Printing and Packaging SETA
Sector : Education
Media, Advertising, Publishing, Printing and Packaging Sector
Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
149,325,000
210,087,000
73,045,000
179,187,000
2,651,000
2007
134,235,000
175,654,000
77,799,000
159,915,000
6,326,000
2008
142,950,000
163,978,000
93,369,000
155,532,000
62,022,000
2009
171,020,000
179,186,000
57,845,000
172,749,000
34,243,000
2010
171,992,000
199,565,000
45,541,000
195,712,000
25,443,000
Average
153,904,400
185,694,000
69,519,800
172,619,000
26,137,000
2.9
120.0%
85.3%
2.3
119.1%
91.0%
1.8
108.8%
94.8%
3.2
101.0%
96.4%
4.6
113.8%
98.1%
2.9
112.5%
93.1%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
35,939,000
2,675,000
(11,234)
8,114,000
(4,334,000)
48,000
17,324,000
108,000
23,309,000
374,000
14,445,353
2,263,800
-10.3%
-38.9%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
149,325,000
100.0%
-
134,235,000
100.0%
-
142,950,000
100.0%
-
158,573,000
92.7%
-
164,611,000
95.7%
-
149,938,800
97.7%
-
2.5%
-1.1%
#DIV/0!
36
4,147,917
45
2,983,000
54
2,647,222
38
4,500,526
48
3,583,167
44
3,572,366
7.5%
-3.6%
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
CAGR
3.6%
-1.3%
-11.1%
2.2%
76.0%
100
Media, Advertising, Publishing, Printing and Packaging SETA
Sector : Education












2010 Grants Received: R172 million
2010 Total Assets: R200 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Slight increase in grants received growing at
a CAGR of 3.6% from 2006 to 2010.
Cash on hand has grown by a CAGR of
2.2% and amounted to R196 million in
2010.
Cash on hand as a percentage of grants
received has been erratic and is high,
averaging 112.5% from 2006 to 2010,
suggesting low disbursement levels.
Cash as a percentage of assets has averaged
93.1% from 2006 to 2010.
Liquidity ratios averaged 2.9x from 2006 to
2010.
Government subsidies have more or less
equaled grants received, averaging 97.7%
of grants received from 2006 to 2010.
Zero government guarantees.
2010 staff complement of 48 people and
grants received per employee averaged
R3.6 million from 2006 to 2010.
No performance information was available
for analysis.
Grants Received vs. Cash on Hand
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
125.0%
120.0%
115.0%
110.0%
105.0%
100.0%
95.0%
90.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
5000,000
4500,000
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
101
Mining Qualifications Authority
Sector : Education
Mining Qualifications Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
346,547,000
295,549,000
120,575,000
217,765,000
4,378,000
2007
360,662,691
313,397,000
117,577,000
229,779,000
8,616,000
2008
447,659,000
314,665,000
103,222,000
307,677,000
6,970,000
2009
547,635,000
458,105,000
183,743,000
452,996,000
6,621,000
2.4
62.8%
73.7%
2.6
63.7%
73.3%
3.0
68.7%
97.8%
2.5
82.7%
98.9%
2.6
69.5%
85.9%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(90,631,000)
1,090,000
9,126,000
896,000
77,909,000
605,000
140,002,000
679,000
34,101,500
817,500
-215.6%
-14.6%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
5,411,000
1.6%
-
0.0%
-
1,861,000
0.4%
-
6,095,000
1.1%
-
3,341,750
0.8%
-
4.0%
-10.7%
#DIV/0!
Number of Employees
Grants Received per Employee
62
5,589,468
60
6,011,045
64
6,994,672
71
7,713,169
64
6,577,088
4.6%
11.3%
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
2010
Average
425,625,923
345,429,000
131,279,250
302,054,250
6,646,250
CAGR
16.5%
15.7%
15.1%
27.7%
14.8%
102
Mining Qualifications Authority
Sector : Education












2009 Grants Received: R548 million
2009 Total Assets: R458 million
2009 Audit Opinion: Unknown
Steady increase in grants received growing
at a CAGR of 16.5% from 2006 to 2009.
Cash on hand has grown significantly by a
CAGR of 27.7% and amounted to
R453 million in 2010.
Cash on hand as a percentage of grants
received has risen from 62.8% in 2006 to
82.7% in 2009, suggesting a decreasing
trend in disbursements.
Cash as a percentage of assets has averaged
85.9% from 2006 to 2009.
Liquidity ratios average 2.6x from 2006 to
2009.
Government subsidies have been erratic,
averaging R3.3 million from 2006 to 2009.
Zero government guarantees.
2009 staff complement of 71 people and
grants received per employee averaging
R6.6 million from 2006 to 2009.
For the period 2008 to 2009 , 12 KPIs
identified, 2 were not achieved, being the
failure to promote employability through
skills development.
Grants Received vs. Cash on Hand
600000,000
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
500000,000
400000,000
300000,000
200000,000
100000,000
2006
2007
Grants Received
2008
2009
Cash on Hand as a % of Grants Received
Employee Productivity
600000,000
9000,000
8000,000
7000,000
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
-
500000,000
400000,000
300000,000
200000,000
100000,000
2006
2007
Grants Received
2008
2009
Grants Received per Employee
103
Public Sector Education and Training Authority
Sector : Education
Public Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
2007
2008
1,674,928
30,858,402
1,880,130
15,315,026
1,829,893
2009
1,182,186
16,679,131
9,238,107
13,688,471
9,238,107
2010
988,960
16,681,258
8,283,153
10,120,577
8,283,153
Average
1,282,025
21,406,264
6,467,130
13,041,358
6,450,384
8.2
914.4%
49.6%
1.8
1157.9%
82.1%
2.0
1023.4%
60.7%
4.0
1031.9%
64.1%
2,094,824
-
1,129,159
-
8,655
-
1,077,546
-
0.0%
-
823,548
69.7%
-
863,362
87.3%
-
562,303
52.3%
-
19
88,154
15
78,812
23
42,998
19
69,988
CAGR
-23.2%
-26.5%
109.9%
-18.7%
112.8%
-93.6%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
10.0%
-30.2%
104
Public Sector Education and Training Authority
Sector : Education













2010 Grants Received: R989k
2010 Total Assets: R17 million
2009 Audit Opinion: Unqualified with
emphasis of matter.
A decrease in grants received evidenced by
a CAGR of -23.2% from 2008 to 2010.
In the same period, cash on hand also
decreased by a CAGR of -18.7%.
Cash on hand as a percentage of grants
received has been increasing from 914% in
2008 to 1023% in 2010, suggesting a
decreasing trend in disbursements.
Cash as a percentage of assets has been
erratic averaging 64.1% from 2008 to 2010.
Although liquidity ratios average 4x from
2008 to 2010, it has decreased from 8.2x in
2008 to 2x in 2010.
Government subsidies has been averaging
R562k from 2008 to 2010.
Zero Government guarantees.
Staff complement has grown to 23 people
in 2010, with grants received per employee
decreasing to R43k in 2010 from R88k in
2008.
For the period 2008 to 2010 , 12 KPIs
identified, 5 were not achieved.
Major areas of non achievement include:
failure to assist designated groups to
participate in work based programmes and
failure to promote quality training.
Grants Received vs. Cash on Hand
1800,000
1600,000
1400,000
1200,000
1000,000
800,000
600,000
400,000
200,000
-
1400.0%
1200.0%
1000.0%
800.0%
600.0%
400.0%
200.0%
0.0%
2008
Grants Received
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
1800,000
1600,000
1400,000
1200,000
1000,000
800,000
600,000
400,000
200,000
-
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
2008
Grants Received
2009
2010
Grants Received per Employee
105
Safety and Security Sector Education and Training
Sector : Education
Safety and Security Sector Education and Training
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
101,036,000
158,154,000
16,037,000
136,817,000
14,469,000
2007
132,618,000
167,266,000
18,391,000
162,012,000
6,291,000
2008
168,912,000
180,993,000
11,541,000
174,087,000
8,579,000
2009
185,328,000
227,546,000
26,996,000
220,252,000
23,948,000
2010
183,599,000
197,080,000
31,935,000
190,078,000
29,098,000
Average
154,298,600
186,207,800
20,980,000
176,649,200
16,477,000
9.7
135.4%
86.5%
9.1
122.2%
96.9%
15.4
103.1%
96.2%
8.2
118.8%
96.8%
6.1
103.5%
96.4%
9.7
116.6%
94.6%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(6,340,000)
1,241,000
27,492,000
2,214,000
15,300,000
3,316,000
47,973,000
1,357,000
(28,339,000)
1,600,000
11,217,200
1,945,600
45.4%
6.6%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
93,685,000
92.7%
616,000
120,892,000
91.2%
-
151,904,000
89.9%
200,000
159,981,000
86.3%
-
165,769,000
90.3%
-
138,446,200
90.1%
163,200
15.3%
-0.7%
-100.0%
41
2,464,293
75
1,768,240
76
2,222,526
76
2,438,526
89
2,062,910
71
2,191,299
21.4%
-4.3%
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
CAGR
16.1%
5.7%
18.8%
8.6%
19.1%
106
Safety and Security Sector Education and Training
Sector : Education













2010 Grants Received: R184 million
2010 Total Assets: R197 million
2010 Audit Opinion: Unqualified
Grants received has grown at a CAGR of 16.1%
from 2006 to 2010.
Cash on hand has grown at a CAGR of 8.6%
and amounted to R190 million in 2010.
Cash on hand as a percentage of grants
received has been erratic and is high, averaging
116.6% from 2006 to 2010, suggesting low
disbursement levels.
Cash as a percentage of assets has averaged
94.6% from 2006 to 2010.
Liquidity ratios are robust, averaging 9.7x from
2006 to 2010.
Government subsidies have grown at a CAGR
of 15.3% from 2006 to 2010. In the same
period government subsidies as a percentage
of grants received averaged 90.1%.
Zero government guarantees.
Staff complement has increased from 41
people in 2006 to 89 people in 2010 with
grants received per employee averaging
R2.2 million.
For the period 2008 to 2010 , 13 KPIs identified,
8 were not achieved.
Major areas of non achievement include:
failure to train young people, failure to
establish two provider institutes in each
province and failure to increase the number of
BEE firms that are supported by skills
development.
Grants Received vs. Cash on Hand
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
160.0%
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
200000,000
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
107
Services Sector Education and Training Authority
Sector : Education
Services Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
442,927,000
233,605,000
60,230,000
136,560,000
48,565,000
2007
490,854,000
372,784,000
127,424,000
352,582,000
121,417,000
2008
635,563,000
624,461,000
71,456,000
594,355,000
69,101,000
2009
780,353,000
751,987,000
105,761,000
671,416,000
103,095,000
2010
871,271,000
765,220,000
154,195,000
675,655,000
143,093
Average
644,193,600
549,611,400
103,813,200
486,113,600
68,464,219
3.6
30.8%
58.5%
2.8
71.8%
94.6%
8.5
93.5%
95.2%
6.7
86.0%
89.3%
4.7
77.5%
88.3%
5.3
72.0%
85.2%
38,153,000
1,270,000
206,733,000
903,000
243,583,000
1,748,000
115,214,000
38,936,000
(1,747,000)
4,319,000
120,387,200
9,435,200
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
214
4,071,360
194
3,862,010
185
2,394,200
174
3,652,661
CAGR
18.4%
34.5%
26.5%
49.1%
-76.7%
#NUM!
35.8%
#DIV/0!
#DIV/0!
#DIV/0!
3.7%
14.2%
108
Services Sector Education and Training Authority
Sector : Education













2010 Grants Received: R871 million
2010 Total Assets: R765 million
2010 Audit Opinion: Unqualified
Grants received has grown at a CAGR of 18.4%
from 2006 to 2010.
Cash on hand has grown at a CAGR of 49.1%
from R137 million in 2006 to R676 million in
2010.
Cash on hand as a percentage of grants
received has been erratic, averaging 72% from
2006 to 2010, suggesting moderate
disbursement levels.
Cash as a percentage of assets has averaged
85.2% from 2006 to 2010.
Liquidity ratios are robust, averaging 5.3x from
2006 to 2010.
Zero government subsidies.
Zero government guarantees.
2010 staff complement of 214 people with
grants received per employee amounting to
R4 million.
For the period 2008 to 2010 , 42 KPIs identified,
10 were not achieved.
Major areas of non achievement include:
failure to train young people, failure to provide
work experience to learners and failure to
assist unemployed to enter learnership
programmes.
Grants Received vs. Cash on Hand
1000000,000
900000,000
800000,000
700000,000
600000,000
500000,000
400000,000
300000,000
200000,000
100000,000
-
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
1000000,000
900000,000
800000,000
700000,000
600000,000
500000,000
400000,000
300000,000
200000,000
100000,000
-
4500,000
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
109
SETA for Finance, Accounting, Management Consulting and Other Financial Services
Sector : Education
SETA for Finance, Accounting, Management Consulting and
Other Financial Services
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
166,044,000
143,095,000
70,698,000
68,205,000
2007
172,802,000
116,344,000
60,136,000
56,410,000
2008
192,661,000
130,344,000
60,860,000
57,095,000
2009
223,391,000
131,242,000
58,300,000
58,099,000
2010
216,057,000
96,461,000
53,809,000
53,587,000
Average
194,191,000
123,497,200
60,760,600
58,679,200
2.0
0.0%
0.0%
1.9
0.0%
0.0%
2.1
0.0%
0.0%
2.2
0.0%
0.0%
1.8
0.0%
0.0%
2.0
0.0%
0.0%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
5,351,000
367,000
(2,657,000)
221,000
9,682,000
229,000
8,365,000
186,000
(35,043,000)
85,000
(2,860,400)
217,600
#NUM!
-30.6%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
158,888,000
95.7%
-
164,963,000
95.5%
-
182,263,000
94.6%
-
199,020,000
89.1%
-
201,452,000
93.2%
-
181,317,200
93.6%
-
6.1%
-0.6%
#DIV/0!
18
9,224,667
20
8,640,100
20
9,633,050
21
10,637,667
21
10,288,429
20
9,684,782
3.9%
2.8%
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
CAGR
6.8%
-9.4%
-6.6%
#DIV/0!
-5.9%
110
SETA for Finance, Accounting, Management Consulting and Other Financial Services
Sector : Education












2010 Grants Received: R216 million
2010 Total Assets: R97million
2010 Audit Opinion: Unqualified with
emphasis of matter.
Grants received has grown at a CAGR of
6.8% from 2006 to 2010.
Cash on hand : No data.
Cash on hand as a percentage of grants
received: No data.
Cash on hand as a percentage of assets: No
data.
Liquidity ratios are satisfactory, averaging
2x from 2006 to 2010.
Government subsidies have grown at a
CAGR of 6.1% from 2006 to 2010 and as
percentage of grants received averaged
94% for the same period.
Zero government guarantees.
Staff complement has remained relatively
flat growing from 18 people in 2006 to 21
people in 2010, with grants received per
employee amounting to R9.7 million in
2010.
For the period 2008 to 2010 , 27 KPIs
identified, of which all were achieved.
Grants Received vs. Cash on Hand
250000,000
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
200000,000
150000,000
100000,000
50000,000
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
250000,000
12000,000
200000,000
10000,000
8000,000
150000,000
6000,000
100000,000
4000,000
50000,000
2000,000
-
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
111
Tourism, Hospitality & Sport Education and Training Authority
Sector : Education
Tourism, Hospitality & Sport Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Grants Received per Employee
2006
117,697,000
160,135,000
28,674,000
141,935,000
5,421,000
2007
115,244,000
127,463,000
21,631,000
121,195,000
4,548,000
2008
130,695,000
122,912,000
41,262,000
117,523,000
7,997,000
2009
161,525,000
40,950,000
31,140,000
36,633,000
17,153,000
2010
159,317,000
18,689,000
26,361,000
13,753,000
7,008,000
Average
136,895,600
94,029,800
29,813,600
86,207,800
8,425,400
5.6
120.6%
88.6%
5.9
105.2%
95.1%
3.0
89.9%
95.6%
1.3
22.7%
89.5%
0.7
8.6%
73.6%
3.3
69.4%
88.5%
(55,197,000)
92,000
(25,096,000)
715,000
(3,782,000)
981,000
(81,775,000)
115,000
(23,657,000)
224,000
(37,901,400)
425,400
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
37
3,532,297
33
4,894,697
31
5,139,258
34
4,522,084
35
3,362,771
CAGR
7.9%
-41.6%
-2.1%
-44.2%
6.6%
-19.1%
24.9%
#DIV/0!
#DIV/0!
#DIV/0!
-3.0%
11.2%
112
Tourism, Hospitality & Sport Education and Training Authority
Sector : Education












2010 Grants Received: R159 million
2010 Total Assets: R19 million
2010 Audit Opinion: Unqualified with
emphasis of matter
Grants received has grown at a moderate
CAGR of 7.9% from 2006 to 2010.
Cash on hand has decreased steeply from
R142 million in 2006 to R14 million in 2010.
Cash on hand as a percentage of grants
received has declined from 120.6% in 2006
to 8.6% in 2010, suggesting improved
distribution levels.
Cash on hand as a percentage of assets has
averaged 88.5% from 2006 to 2010.
Liquidity ratios are strong, averaging 3.3x
from 2006 to 2010.
Zero government subsidies.
Zero government guarantees.
2010 staff complement of 31 people with
grants received per employee amounting to
R5.1 million.
For the period 2008 to 2010 , 4 KPIs
identified, of which all were achieved.
Grants Received vs. Cash on Hand
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
180000,000
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
113
Transport Education and Training Authority
Sector : Education
Transport Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
128,456,000
164,311,000
32,849,000
141,935,000
5,421,000
2007
130,362,000
149,524,000
25,464,000
121,195,000
4,549,000
5.0
110.5%
86.4%
5.9
93.0%
81.1%
5.4
101.7%
83.7%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
(55,197,000)
92,000
(25,095,000)
715,000
(40,146,000)
403,500
-54.5%
677.2%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
85,586,000
66.6%
-
101,224,000
77.6%
-
93,405,000
72.1%
-
18.3%
16.5%
#DIV/0!
38
3,430,579
38
3,430,579
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
2008
2009
2010
Average
129,409,000
156,917,500
29,156,500
131,565,000
4,985,000
CAGR
1.5%
-9.0%
-22.5%
-14.6%
-16.1%
#VALUE!
#VALUE!
114
Transport Education and Training Authority
Sector : Education













2010 Grants Received: No data.
2010 Total Assets: No data
2010 Audit Opinion: Unknown
Grants received in 2006 and 2007 amounted to
R129 million and R130 million respectively.
Cash on hand averaged R132 million from 2006
to 2007.
Cash on hand as a percentage of grants
received has declined from 110.5% in 2006 to
93% in 2007.
Cash on hand as a percentage of assets has
averaged 83.7% from 2006 to 2007.
Liquidity ratios are strong, averaging 5.4x from
2006 to 2007.
Government subsidies amounted to R86 million
and R101 million for 2006 and 2007
respectively.
Zero government guarantees.
2007 staff complement of 38 people with
grants received per employee amounting to
R3.4 million for the same year.
For the period 2006 to 2007, 15 KPIs identified,
6 were not achieved.
Major areas of non achievement include:
failure to promote quality training, failure to
promote employability and failure to assist
designated groups to acquire critical skills.
Grants Received vs. Cash on Hand
131000,000
130500,000
130000,000
129500,000
129000,000
128500,000
128000,000
127500,000
115.0%
110.0%
105.0%
100.0%
95.0%
90.0%
85.0%
80.0%
2006
Grants Received
2007
Cash on Hand as a % of Grants Received
Employee Productivity
131000,000
130500,000
130000,000
129500,000
129000,000
128500,000
128000,000
127500,000
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
2006
Grants Received
2007
Grants Received per Employee
115
Wholesale and Retail Sector Education and Training Authority
Sector : Education
Wholesale and Retail Sector Education and Training Authority
Grants Received
Total Assets
Total Liabilities
Cash and Cash Equivalents
Accounts Payable
2006
321,738,000
493,412,000
85,320,000
431,192,000
-
2007
339,080,000
499,778,000
49,029,000
489,745,000
-
2008
398,642,000
602,209,000
49,082,000
596,491,000
-
2009
437,382,000
781,187,000
49,624,000
768,605,000
-
2010
466,515,000
913,529,000
84,460,000
904,173,000
-
Average
392,671,400
658,023,000
63,503,000
638,041,200
-
5.8
134.0%
87.4%
10.1
144.4%
98.0%
12.2
149.6%
99.1%
15.7
175.7%
98.4%
10.8
193.8%
99.0%
10.9
159.5%
96.4%
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
67,583,000
1,405,000
59,776,000
1,235,000
10,713,000
887,000
173,067,000
1,222,000
136,377,000
809,000
89,503,200
1,111,600
19.2%
-12.9%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
315,828,000
98.2%
-
339,080,000
100.0%
-
398,642,000
100.0%
-
437,382,000
100.0%
-
466,515,000
100.0%
-
391,489,400
99.6%
-
10.2%
0.5%
#DIV/0!
77
4,403,636
90
4,429,356
89
4,914,404
90
5,183,500
87
4,732,724
Current Ratio
Cash on Hand as a % of Grants Received
Cash on Hand as a % of Total Assets
Number of Employees
Grants Received per Employee
CAGR
9.7%
16.6%
-0.3%
20.3%
#DIV/0!
#VALUE!
#VALUE!
116
Wholesale and Retail Sector Education and Training Authority
Sector : Education












2010 Grants Received: R467 million
2010 Total Assets: R914 million
2010 Audit Opinion: Unqualified
Grants received has grown at a moderate CAGR
of 9.7% from 2006 to 2010.
Cash on hand has grown at a CAGR of 20.3%
and amounted to R904 million in 2010.
Cash on hand as a percentage of grants
received has been increasing and is high,
averaging 159.5% from 2006 to 2010,
suggesting low disbursement levels.
Cash as a percentage of assets has averaged
96.4% from 2006 to 2010.
Liquidity ratios are robust, averaging 10.9x from
2006 to 2010.
Government subsidies have grown at a CAGR
of 10.2% from 2006 to 2010. In the same
period government subsidies as a percentage
of grants received averaged 99.6%.
Zero government guarantees.
Staff complement has increased by 13 people
from 2006 to 90 people in 2010. In the same
period, grants received per employee has
grown by a CAGR of 5.6% and averaged
R4.7 million over the same period.
For the period 2008 to 2010 , 9 KPIs identified,
of which all were achieved.
Grants Received vs. Cash on Hand
500000,000
450000,000
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
250.0%
200.0%
150.0%
100.0%
50.0%
0.0%
2006
2007
Grants Received
2008
2009
2010
Cash on Hand as a % of Grants Received
Employee Productivity
500000,000
450000,000
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
2006
2007
Grants Received
2008
2009
2010
Grants Received per Employee
117
Water Boards
Water Boards
5 Year Global Analysis
Global
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
5,319,280,967
15.6%
10,117,832,770
4,811,405,020
692,621,266
2007
6,329,767,288
18.8%
12,693,838,440
5,593,932,052
1,452,132,534
2008
6,910,046,144
20.0%
15,364,647,000
5,758,385,252
2,060,810,516
2009
7,754,775,000
16.9%
16,963,729,000
6,080,982,000
2,159,936,527
2010
7,850,385,000
12.0%
16,051,445,000
5,627,371,000
1,394,581,000
Average
6,832,850,880
16.6%
14,238,298,442
5,574,415,065
1,552,016,369
Revenue as % of GDP
0.3%
0.3%
0.3%
0.3%
0.3%
0.3%
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.8%
1.9
4.0
26.9
1.0
1.3
1.3%
3.4
4.9
189,931.7
2.2
0.9
1.5%
2.2
6.0
41,074.3
2.0
0.4
0.7%
2.1
5.5
0.3
(3.9)
0.2
2.8%
1.9
4.5
(35.8)
(0.0)
0.9
1.6%
2.3
5.0
46,199.5
0.3
0.7
(1,580,000)
-
1,432,000
-
1,706,000
-
5,401,000
-
5,310,000
-
2,453,800
-
1,501,009,844
457,265,303
1,971,973,551
711,057,534
2,226,886,842
896,841,000
1,947,059,714
1,444,188,000
1,541,304,000
1,502,566,000
1,837,646,790
1,002,383,567
0.0%
-
0.0%
-
21,348,000
0.3%
-
36,226,000
0.5%
-
42,934,000
0.5%
-
20,101,600
0.3%
-
1,140
4,666,036
1,436
4,407,916
1,407
4,911,191
2,225
3,485,292
2,102
3,734,722
1,662
4,241,031
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
Revenue and Profitability
CAGR
10.2%
12.2%
4.0%
19.1%
#NUM!
#DIV/0!
0.7%
34.6%
#DIV/0!
#DIV/0!
#DIV/0!
16.5%
-5.4%
Return on Assets
119
10,000,000,000
25.0%
20,000,000,000
3.0%
Water Boards
5 Year Global Analysis












All major Water Boards as defined in Schedule 3b of the KPMG report made revenue contributions
amounting to an average of 0.3% of GDP from 2006 to 2010. Of the 27 entities in Schedule 3b, this
report covers all 14 of the water boards or water companies as defined in the PFMA schedules.
Total aggregate revenue grew by a CAGR of 10.2% from 2006 to 2010.
Net profit margins; however, have experienced a declining trend from 15.6% in 2006 to 12% in 2010.
They have; however, averaged at 16.6% for the same period.
Total assets grew by a CAGR of 12.2% from 2006 to 2010, amounting to R16 billion in 2010.
Also on a growing trajectory, though at a lower pace, total liabilities increased by a CAGR of 4% from
2006 to 2010, amounting to R5.6 billion in 2010.
ROA has had a U shape performance curve, peaking at 2.8% in 2010.
Capital expenditure has shown robust growth increasing by a CAGR of 34.6% from R457 million in 2006
to R1.5b billion in 2010. This suggests that South African is attempting to deal with its issues of low
water quality, ostensibly evidenced by aggressive maintenance capital.
Cash flows from operating activities have been consistently positive, though they grew at a meagre
CAGR of 0.7% from 2006 to 2010.
Cash balances have shown an upward trend improving from R693 million in 2006 to R1.4 billion in 2010,
demonstrating a CAGR of 19.1%.
Water Boards have maintained respectable liquidity ratios averaging 2.3x from 2006 to 2010.
Similarly they demonstrated impressive solvency ratios averaging 5.0x from 2006 to 2010.
On the other hand, interest coverage is extremely variable, declining from a high of 190,000x in 2007 to
a low of -35.8x in 2010.
120
Water Boards
5 Year Global Analysis









Debt service coverage ratios have been erratic and poor, averaging 0.3x from 2006 to 2010.
Gearing ratios are low, averaging 0.7x from 2006 to 2010.
According to the database, the Government collected zero taxes from Water Boards from 2006 to 2010.
Similarly, zero dividend payments were received.
Government subsidies have grown by a CAGR 42% from 2008 to 2010, averaging R20 million in the same
period.
Government subsidies as a percentage of revenue have been relatively constant at an average of 0.3%
from 2008 to 2010.
On the other hand, Water Boards have received zero Government guarantees from 2006 to 2010.
Total employee numbers have increased by a CAGR of 16.5% from 2006 to 2010, levelling off at a mere
2,102 employees in 2010.
Revenue per employee has declined by a CAGR of -5.4% with an average revenue contribution per
employee of R4,2 million.
121
Albany Coast Water Board
Sector : Water
Albany Coast Water Board
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2007
1,978,000
22.4%
13,586,000
736,000
1,050,000
2008
3,328,000
22.6%
14,154,000
550,000
864,000
2009
3,333,000
8.8%
16,335,000
738,000
1,007,000
2010
3,409,000
-28.8%
10,204,000
1,119,000
1,011,000
Average
3,012,000
6.3%
13,569,750
785,750
983,000
1.0%
20.1
18.5
10.1
1.2
0.1
1.0%
3.8
25.7
8.0
0.7
0.0
0.0%
2.0
22.1
13.7
1.6
0.1
-2.0%
1.3
9.1
(492.5)
3.0
0.1
0.0%
6.8
18.9
(115.2)
1.6
0.1
-
-
-
-
-
788,000
340,000
803,000
603,000
919,000
700,000
1,994,000
2,007,000
1,126,000
912,500
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
#DIV/0!
#DIV/0!
CAGR
19.9%
-9.1%
15.0%
-1.3%
#DIV/0!
#DIV/0!
36.3%
80.7%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
122
Albany Coast Water Board
Sector : Water











2010 Revenue: R3.4 million
2010 Total Assets: R10 million
2010 Audit Opinion: Unknown
Revenue has increased at a CAGR of 20%
from 2007 to 2010.
Net profit margins have shown a steep
decline from 22.4% in 2007 to -28.8% in
2010.
Liquidity ratios have shown a dramatic
decline from 20.1x in 2007 to 1.3x in
2010, averaging 6.8x during the period.
Solvency ratios, though strong, have
halved from 18.5x in 2007 to 9.1x in
2010.
Interest coverage has shown a
dramatically declining trend from 10.1x
in 2007 to -492.5x in 2010.
DSCR: Conversely, and very curiously,
DSCR have improved from 1.3x in 2007
to 3x in 2010.
Taxes Paid: Zero.
Dividends paid: Zero.
Healthy average gearing ratio of 0.1x
from 2007 to 2010.
Revenue and Profitability
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
-
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
2007
2008
Total Revenue
2009
2010
Net Profit Margin %
Liquidity and Solvency
30.0
25.0
20.0
15.0
10.0
5.0
2006
2007
Current Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
123
Albany Coast Water Board
Sector : Water








Cash balances have remained relatively
flat from 2007 to 2010, averaging R983k
and declining by a meager -1.3% CAGR
over the same period. Cash flows from
operating activities have shown a steady
and encouraging increases to almost
R2 million in 2010, evidenced by a
positive CAGR of 36% from 2007 to
2010.
Capital expenditure has increased
from R340k million in 2007 to
R2 million in 2010, representing a
CAGR of 80.7%.
Zero Government guarantees.
Zero Government subsidies.
Asset base has shown an slow decline
from R13.6 million in 2007 to R10.2
million in 2010, a CAGR of -9%.
In the same period ROA has declined
from 1% in 2007 to -2% in 2010.
Employee information: No data.
No performance information was
available for analysis.
Return on Assets
18000,000
16000,000
14000,000
12000,000
10000,000
8000,000
6000,000
4000,000
2000,000
-
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
-2.0%
-2.5%
2007
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
4000,000
3500,000
3000,000
2500,000
2000,000
1500,000
1000,000
500,000
-
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
2007
2008
Total Revenue
2009
2010
Revenue per Employee
124
Amatola Water Board
Sector : Water
Amatola Water Board
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
88,035,000
6.4%
350,088,000
57,147,000
56,823,000
2007
106,625,000
8.7%
355,583,000
53,384,000
52,501,000
2008
200,803,000
6.2%
396,013,000
81,331,000
61,056,000
2009
250,549,000
-3.9%
425,649,000
101,247,000
35,875,000
2010
239,546,000
-7.3%
437,290,000
120,539,000
26,798,000
Average
177,111,600
2.0%
392,924,600
82,729,600
46,610,600
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
0.0%
1.5
6.1
(3.7)
7.5
0.2
1.0%
1.7
6.7
2.4
(0.0)
0.2
1.0%
1.4
4.9
1.3
3.2
0.3
-1.0%
1.7
4.2
(3.6)
(6.3)
0.3
-1.0%
1.2
3.6
(21.5)
(1.4)
0.4
0.0%
1.5
5.1
(5.0)
0.6
0.3
Taxation Paid
Dividends Paid
-
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
-
32,130,000
11,076,000
3,224,000
4,955,000
33,843,000
23,606,000
(2,950,000)
20,306,000
(15,869,000)
41,363,000
10,075,600
20,261,200
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
232
379,461
250
426,500
291
690,045
331
756,946
367
652,714
294
581,133
CAGR
28.4%
5.7%
20.5%
-17.1%
#DIV/0!
#DIV/0!
#NUM!
39.0%
#DIV/0!
#DIV/0!
#DIV/0!
12.1%
14.5%
125
Amatola Water Board
Sector : Water












2010 Revenue: R240 million
2010 Total Assets: R437 million
2010 Audit Opinion: Unqualified
Revenue has increased at a CAGR of
28.4% from 2006 to 2010.
Net profit margins have declined from
6.4% in 2006 to -7.3% in 2010, averaging
2% over the same period.
Liquidity has remained stable and
respectable, averaging 1.5x from 2006 to
2010. In the same period solvency ratios
have declined significantly from 6.1x to
3.6x in the same period.
Interest coverage ratios have been
consistently erratic, averaging -5.0x from
2006 to 2010, peaking at -21.5x in 2010.
DSCRs have deteriorated dramatically
from 7.5x in 2006 to -1.4x in 2010.
Taxes Paid: Zero.
Dividends paid: Zero.
Respectable gearing ratio averaging 0.3x
for the last 5 years.
The cash balance has decreased from
R57 million in 2006 to R27 million 2010,
declining at a CAGR of -17.1%. Similarly,
operating cash flows have declined
dramatically from R32 million in 2006 to
-R16 million in 2010.
Revenue and Profitability
300000,000
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
7.0
6.0
5.0
4.0
3.0
2.0
1.0
2006
2007
Current Ratio
2008
2009
2010
Solvency Ratio
126
Amatola Water Board
Sector : Water









Capital expenditure has increased by a
CAGR of 39% from 2006 to 2010, to a
level of R41 million in 2010.
Zero Government guarantees.
Zero Government subsidies.
Asset base has increased by a CAGR of
5.7% from 2006 to 2010.
In the same period ROA has shown a
reverse U trajectory with a long tail,
going from 0% in 2006 to -1.0% in 2010.
Staff complement has grown by a CAGR
of 12% from 2006 to 2010, leveling off at
367 staff members in 2010.
Revenue per employee has increased
almost two-fold from R380k in 2006 to
R652k in 2010, representing a CAGR of
14.5%.
10 KPIs were identified with 4 not being
achieved from 2008 to 2010.
Areas of non-achievement include:
Promoting and influencing institutional
reform, supporting national , provincial
& local government imperatives, and to
promote & influence institutional
reform.
Return on Assets
500000,000
450000,000
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
2006
2007
Total Assets
2008
2009
2010
Return on Assets
Employee Productivity
300000,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
-
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
127
Bloem Water
Sector : Water
Bloem Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2007
180,078,000
14.5%
784,471,000
307,582,000
45,592,000
2008
196,796,000
23.6%
842,956,000
316,298,000
191,552,000
2009
222,037,000
19.9%
922,174,000
350,575,000
238,415,000
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.0%
2.5
2.6
1.8
1.1
0.6
1.0%
2.9
2.7
1.9
3.3
0.6
1.0%
4.7
2.6
1.4
0.9
0.6
1.0%
3.4
2.6
1.7
1.7
0.6
Taxation Paid
Dividends Paid
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
2010
Average
199,637,000
19.3%
849,867,000
324,818,333
158,519,667
61,790,000
4,304,000
92,758,000
5,468,000
16,606,000
21,099,000
57,051,333
10,290,333
0.0%
-
0.0%
-
0.0%
-
0.0%
-
183
1,075,388
240
925,154
212
1,000,271
CAGR
11.0%
8.4%
6.8%
128.7%
#DIV/0!
#DIV/0!
-48.2%
121.4%
#DIV/0!
#DIV/0!
#DIV/0!
31.1%
-14.0%
128
Bloem Water
Sector : Water












No Data for 2010
2009 Revenue: R222 million
2009 Total Assets: R992 million
2009 Audit Opinion: Unknown
Revenue has increased at a CAGR of 11%
from 2007 to 2009.
Net profit margins have increased from
14.5% in 2007 to 19.9% in 2009,
averaging 19% over the same period.
Strong liquidity ratios averaging 3.4x
from 2007 to 2009. Similarly solvency
ratios have averaged a healthy 2.6x over
the same period.
Satisfactory interest coverage ratios and
DSCRs, both averaging 1.7x from 2007 to
2009.
Taxes Paid: Zero.
Dividends paid: Zero.
Stable gearing ratio of 0.6x for each of
the years presented.
The cash balance has increased
substantially, growing at a CAGR of 129%
from 2007 to 2009 and peaking at
R238.4 million in 2009.
Revenue and Profitability
250000,000
25.0%
200000,000
20.0%
150000,000
15.0%
100000,000
10.0%
50000,000
5.0%
-
0.0%
2007
Total Revenue
2008
2009
Net Profit Margin %
Liquidity and Solvency
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
-
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
Debt Service Cover Ratio
129
Bloem Water
Sector : Water









Capital expenditure has averaged
R10 million from 2007 to 2010, growing
significantly at a CAGR of 121% over the
same period.
Zero Government guarantees.
Zero Government subsidies.
Asset base has increased by a CAGR of
8.4% from 2007 to 2009.
In the same period ROA has remained
flat at 1.0% for the same period.
Staff complement has grown from 183
employees in 2008 to 240 in 2009.
In the same period, revenue per
employee has declined by -14%.
42 KPIs were identified with 14 not
being achieved from 2008 to 2010.
The areas of non-achievement included:
enhanced business structure, contracts
being aligned to government’s model,
customer satisfaction, capacity building,
sufficient water supply, skills
development, stakeholder relationships,
enhanced water forums, organisational
efficiency and corporate financial
performance being principal amongst
these.
Return on Assets
950000,000
1.2%
900000,000
1.0%
0.8%
850000,000
0.6%
800000,000
0.4%
750000,000
0.2%
700000,000
0.0%
2007
2008
Total Assets
2009
Return on Assets
Employee Productivity
250000,000
1100,000
200000,000
1050,000
150000,000
1000,000
100000,000
950,000
50000,000
900,000
-
850,000
2007
Total Revenue
2008
2009
Revenue per Employee
130
Botshelo Water
Sector : Water
Botshelo Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2008
56 025 000
16.2%
48 467 000
78 561 000
22 821 000
2009
136 168 000
-5.8%
56 020 000
78 639 000
7 570 000
2010
110 128 000
2.4%
132 146 000
110 369 000
(11 953 000)
Average
100 773 667
4.2%
78 877 667
89 189 667
6 146 000
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
5.0%
0.4
0.6
-2.6
-4.0%
0.6
0.7
-3.5
0.0%
0.9
1.2
5.1
0.3%
0.6
0.8
(0.3)
Taxation Paid
Dividends Paid
-
-
-
2006
2007
-
CAGR
40.2%
65.1%
18.5%
#NUM!
#DIV/0!
#DIV/0!
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
11 383 000
2 963 000
(7 947 000)
1 285 000
2 626 000
18 432 000
2 020 667
7 560 000
-52.0%
149.4%
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
21 348 000
38.1%
-
22 495 000
16.5%
-
0.0%
-
21 921 500
18.2%
-
2.7%
-100.0%
#DIV/0!
Number of Employees
Revenue per Employee
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
131
Botshelo Water
Sector : Water











2010 Revenue: R110 million
2010 Total Assets: R132 million
2010 Audit Opinion: Unknown
Revenue has almost doubled from R56
million in 2008 to R110 million in 2010.
Net profit margins have declined
significantly from 16.2% in 2008 to 2.4%
in 2010, with a disappointing dip to 5.8% in 2009.
Poor liquidity ratios averaging 0.6x from
2008 to 2010. Similarly weak solvency
ratios averaging 0.8x over the same
period.
Interest coverage: Zero according to the
database.
DSCR: Zero according to the database.
Taxes Paid: Zero.
Dividends paid: Zero.
Increasing gearing ratio from -2.6x in
2008 to 5.1x in 2010.
Revenue and Profitability
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
2008
Total Revenue
2009
2010
Net Profit Margin %
Liquidity and Solvency
1.4
1.2
1.0
0.8
0.6
0.4
0.2
2008
2009
Current Ratio
2010
Solvency Ratio
132
Botshelo Water
Sector : Water









The cash balance has decreased
substantially, from R23million in 2008 to
–R12 million in 2010.
Capital expenditure has increased
significantly by a CAGR of 149% from
2006 to 2010, leveling off at R18 million
in 2010.
Zero Government guarantees.
Government subsidies averaged
R22 million in 2008 and 2009, falling off
to zero in 2010. Subsidies as a
percentage of revenue have declined
from a high of 38% in 2008 to 16.5% in
2009.
Asset base has grown from
R49 million in 2008 to R132 million in
2010.
In the same period ROA has declined
from 5% in 2008 to 0% in 2010.
Employee information: No data.
17 KPIs were identified with 4 not being
achieved from 2008 to 2010.
The areas of non-achievement included:
internal business excellence, business
development, treatment of sewage and
sewage quality control.
Return on Assets
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
160000,000
140000,000
120000,000
100000,000
80000,000
60000,000
40000,000
20000,000
-
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
2008
Total Revenue
2009
2010
Revenue per Employee
133
Bushbuckridge Water Board
Sector : Water
Bushbuckridge Water Board
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
44,562,967
43.0%
70,994,770
9,191,020
4,550,266
2007
60,264,143
1.7%
80,058,920
19,078,800
1,878,018
7.0%
4.8
7.7
369.4
0.7
0.2
0.0%
3.5
4.2
(0.5)
(1.6)
0.3
-
-
1,182,844
999,303
(1,452,291)
3,129,534
0.0%
-
0.0%
251
240,096
2008
0.0%
-
-
2009
0.0%
-
0.0
2010
0.0%
-
0.0
0.0
-
-
-
-
-
-
0.0%
-
0.0%
-
0.0%
-
Average
52,413,555
22.4%
75,526,845
14,134,910
3,214,142
CAGR
35.2%
12.8%
107.6%
-58.7%
3.5%
4.2
6.0
184.5
(0.5)
0.2
(134,724)
2,064,419
#DIV/0!
#DIV/0!
-222.8%
213.2%
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
251
240,096
#VALUE!
#VALUE!
134
Bushbuckridge Water Board
Sector : Water












No data for 2008, 2009 & 2010
2007 Revenue: R60 million
2007 Total Assets: R80 million
2007 Audit Opinion: Qualified
Revenue increased by a CAGR of 35%
over the two years.
Net profit margins have declined
dramatically from 43% in 2006 to 1.7%
in 2007.
Liquidity appeared strong though
declining slightly from 4.8x in 2006 to
3.5x in 2007. Similarly, solvency was
strong though declining from 7.7x in
2006 to 4.2x in 2007.
Interest coverage took a wild decline
from 369.4x in 2006 to -.05x in 2007.
DSCR also declined though less
aggressively from 0.7x in 2006 to -1.6x in
2007.
Taxes Paid: Zero.
Dividends paid: Zero.
Gearing ratios remained relatively flat
averaging 0.2x and 0.3x in 2006 and
2007, respectively.
Revenue and Profitability
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2006
Total Revenue
2007
Net Profit Margin %
Liquidity and Solvency
10.0
8.0
6.0
4.0
2.0
(2.0)
2006
2007
(4.0)
Current Ratio
Solvency Ratio
Debt Service Cover Ratio
135
Bushbuckridge Water Board
Sector : Water








The cash balance has decreased
substantially, from R4.6 million in 2006
to R1.9 million in 2007.
Capital expenditure increased by a CAGR
of 213% from R999k in 2006 to R3
million in 2007.
Zero Government guarantees.
Zero Government subsidies.
Asset base has grown from R71 million
in 2006 to R80 million in 2007.
In the same period ROA has declined
from 7% in 2008 to 0% in 2010.
Employee information: 251 employees
in 2007.
No performance information was
available for analysis.
Return on Assets
82000,000
80000,000
78000,000
76000,000
74000,000
72000,000
70000,000
68000,000
66000,000
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2006
Total Assets
2007
Return on Assets
Employee Productivity
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
2006
2007
Total Revenue
136
Lepelle Northern Water
Sector : Water
Lepelle Northern Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
171,375,000
33.5%
605,859,000
158,930,000
73,346,000
2007
197,575,000
33.9%
737,776,000
205,810,000
192,723,000
2008
205,084,000
7.6%
781,446,000
171,343,000
244,952,000
2009
226,900,000
18.0%
802,954,000
220,294,000
334,382,000
2010
244,948,000
19.0%
842,600,000
215,728,000
354,366,000
Average
209,176,400
22.4%
754,127,000
194,421,000
239,953,800
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2.0%
2.1
3.8
2.9
3.4
0.4
2.0%
2.3
3.6
12.0
10.0
0.4
1.0%
3.3
4.6
3.4
1.5
0.3
1.0%
2.5
3.6
8.5
10.9
0.4
1.0%
2.9
3.9
4.3
2.7
0.3
1.4%
2.6
3.9
6.2
5.7
0.4
Taxation Paid
Dividends Paid
-
13,000
-
3,000
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
-
-
3,200
-
73,346,000
-
130,669,000
4,012,000
57,269,000
8,353,000
104,575,000
23,391,000
54,789,000
30,216,000
84,129,600
13,194,400
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
#DIV/0!
#DIV/0!
CAGR
9.3%
8.6%
7.9%
48.3%
#DIV/0!
#DIV/0!
-7.0%
96.0%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
137
Lepelle Northern Water
Sector : Water











2010 Revenue: R245 million
2010 Total Assets: R843 million
2010 Audit Opinion: Unknown
Revenue increased by a CAGR of 9.3%
from 2006 to 2010.
Net profit margins have declined
dramatically from 34% in 2006 to 19%
in 2010.
Liquidity is strong averaging 2.6x from
2006 to 2010. Similarly, solvency ratios
are robust averaging 3.9x in the same
period.
Interest coverage is erratic, peaking at
12x in 2007 and tapering off to 4.3x in
2010. The average for the period was
6.2x.
DSCRs have been erratic peaking at
10.9x in 2009 and declining to 2.7x in
2010. The average for the period was
5.7x.
Taxes Paid: Zero.
Dividends paid: Zero.
Gearing ratios remained flat and low,
averaging 0.4x from 2006 to 2010.
Revenue and Profitability
300000,000
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
14.0
12.0
10.0
8.0
6.0
4.0
2.0
2006
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
138
Lepelle Northern Water
Sector : Water









The cash balance has grown at an
impressive 48% CAGR to R354 million in
2010.
Capital expenditure has increased from
R4 million in 2007 to R30 million in
2010, a 96% CAGR.
Zero Government guarantees.
Zero Government subsidies.
Asset base has grown at a respectable
CAGR of 8.6% from 2006 to 2010.
In the same period ROA has declined
from 2% in 2006 to 1% in 2010.
Employee information: No data.
13 KPIs were identified of which 4 were
not achieved.
These included expansion of existing
services, effective financial procedures
and policies, improved stakeholder
relations and replacement and
rehabilitation of ageing infrastructure.
Return on Assets
900000,000
800000,000
700000,000
600000,000
500000,000
400000,000
300000,000
200000,000
100000,000
-
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2006
2007
Total Assets
2008
2009
2010
Return on Assets
Employee Productivity
300000,000
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
250000,000
200000,000
150000,000
100000,000
50000,000
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
139
Magalies Water
Sector : Water
Magalies Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
0.0%
-
-
2007
0.0%
-
0.0
0.0
Taxation Paid
Dividends Paid
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
-
-
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
-
0.0%
-
Number of Employees
Revenue per Employee
2008
158,046,000
30.8%
1,022,524,000
71,109,000
21,402,000
2009
166,985,000
18.7%
1,048,867,000
66,146,000
15,047,000
1.0%
5.4
14.4
11.1
3.1
0.1
1.0%
6.4
15.9
(41.6)
(41.4)
0.1
-
-
67,141,000
17,993,000
25,567,000
19,992,000
0.0%
-
0.0%
-
2010
0.0%
-
0.0
Average
162,515,500
24.8%
1,035,695,500
68,627,500
18,224,500
5.7%
2.6%
-7.0%
-29.7%
1.0%
5.9
15.1
(15.2)
(19.1)
0.1
-
CAGR
46,354,000
18,992,500
0.0%
-
0.0%
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
-61.9%
11.1%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
140
Magalies Water
Sector : Water












No data for 2006, 2007 & 2010.
2009 Revenue: R167 million.
2009 Total Assets: R1 billion
2010 Audit Opinion: Unknown
Revenue increased by a CAGR of 5.7%
from 2008 to 2009.
Net profit margins have declined from
31% in 2008 to 19% in 2009.
Liquidity is strong averaging 5.9x over
2008 and 2009. Similarly, solvency ratios
are robust averaging 15.1x in the same
period.
Interest coverage is erratic, peaking at
11.1x in 2008 and falling off to -41.6x in
2009.
Similary the debt service cover declined
from 3.1x in 2008 to -41.4x in 2009;
Taxes Paid: Zero.
Dividends paid: No data.
Gearing ratios remained flat and low,
averaging 0.1x over the two year period
between 2008 and 2009.
Revenue and Profitability
168000,000
166000,000
164000,000
162000,000
160000,000
158000,000
156000,000
154000,000
152000,000
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2008
Total Revenue
2009
Net Profit Margin %
Liquidity and Solvency
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
2008
Current Ratio
2009
Solvency Ratio
141
Magalies Water
Sector : Water









The cash balance declined by
-29.7% CAGR between 2008 and 2009.
Capital expenditure increased from R18
million in 2008 to R20 million in 2009.
Zero Government guarantees.
Zero Government subsidies.
Asset base grew by a 2.6% CAGR
between 2008 and 2009.
In the same period ROA remained flat at
1%.
Employee information: No data.
7 KPIs were identified of which 1 was
not achieved.
This being maintaining bulk sanitation
performance.
Return on Assets
1055000,000
1050000,000
1045000,000
1040000,000
1035000,000
1030000,000
1025000,000
1020000,000
1015000,000
1010000,000
1005000,000
1.2%
1.0%
0.8%
0.6%
0.4%
0.2%
0.0%
2008
Total Assets
2009
Return on Assets
Employee Productivity
168000,000
166000,000
164000,000
162000,000
160000,000
158000,000
156000,000
154000,000
152000,000
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
2008
Total Revenue
2009
Revenue per Employee
142
Mhlathuze Water
Sector : Water
Mhlathuze Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
0.0%
-
0.0
Taxation Paid
Dividends Paid
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
-
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
-
Number of Employees
Revenue per Employee
2007
130,275,000
18.5%
401,063,000
250,391,000
76,982,000
2008
135,556,000
20.9%
441,467,000
262,398,000
82,854,000
2009
141,041,000
25.9%
456,477,000
249,690,000
97,104,000
2010
191,891,000
8.7%
509,390,000
258,972,000
23,348,000
Average
149,690,750
18.5%
452,099,250
255,362,750
70,072,000
2.0%
1.6
1.6
1.6
1.0
1.7
2.0%
1.5
1.7
1.6
1.5
1.5
2.0%
0.8
1.8
9.1
(20.7)
1.2
1.0%
0.3
2.0
2.2
(5.1)
1.0
1.8%
1.1
1.8
3.6
(5.8)
1.3
-
-
-
-
-
35,628,000
52,693,000
56,607,000
67,823,000
34,067,000
125,437,000
53,275,000
150,347,000
44,894,250
99,075,000
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
#DIV/0!
#DIV/0!
CAGR
13.8%
8.3%
1.1%
-32.8%
#DIV/0!
#DIV/0!
14.4%
41.8%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
143
Mhlathuze Water
Sector : Water











2010 Revenue: R192 million
2010 Total Assets: R509 million
2010 Audit Opinion: Unqualified
Revenue has increased at a CAGR of
13.8% from 2007 to 2010.
Net profit margins increased steadily
from 18.5% in 2007 to 25.9% in 2009,
however dramatically decreased in 2010
to 8.7%.
Liquidity is poor with an average of 1.1x
from 2007 to 2010 and dipping to 0.3x
in 2010 , however the solvency is
satisfactory with an average of 1.8x in
the same period.
Interest coverage ratio is healthy at an
average of 3.6x for the period 2007 to
2010.
The DSCR is poor and erratic, declining
from a peak of 1.5x in 2008 to -5.1x in
2010.
Taxes Paid: Zero.
Dividends paid: Zero.
Improving gearing ratio from 1.7x in
2007 to 1.0x in 2010.
Revenue and Profitability
250000,000
30.0%
200000,000
25.0%
20.0%
150000,000
15.0%
100000,000
10.0%
50000,000
5.0%
-
0.0%
2007
2008
Total Revenue
2009
2010
Net Profit Margin %
Liquidity and Solvency
15.0
10.0
5.0
-
(5.0)
2007
2008
2009
2010
(10.0)
(15.0)
(20.0)
(25.0)
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
144
Mhlathuze Water
Sector : Water









Although the cash balance decreased
from R97 million in 2009 to R23 million
2010, operating cash flows remain
robust with an average of R45million
from 2007 to 2010.
Capital expenditure increased by a CAGR
of 42% from R53 million in 2007 to R150
million in 2010.
Zero Government guarantees.
Zero Government subsidies.
Asset base has increased by a CAGR of
8.3% from 2007 to 2010.
In the same period ROA averaged 1.8%,
decreasing sharply from 2% in 2009 to
1% in 2010.
Employee information: No data.
5 KPIs were identified with 4 not being
achieved from 2008 to 2010.
These include: winning new contracts,
meeting sales budget and the
developing of new business were
amongst these.
Return on Assets
600000,000
2.5%
500000,000
2.0%
400000,000
1.5%
300000,000
1.0%
200000,000
0.5%
100000,000
-
0.0%
2007
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
250000,000
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
200000,000
150000,000
100000,000
50000,000
2007
2008
Total Revenue
2009
2010
Revenue per Employee
145
Namqua Water Board
Sector : Water
Namaqua Water Board
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
2006
0.0%
-
0.0
Taxation Paid
Dividends Paid
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
-
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
0.0%
-
Number of Employees
Revenue per Employee
2007
9,620,145
27.3%
101,154,520
10,790,252
164,516
2008
9,620,144
27.3%
101,155,000
10,790,252
164,516
2009
9,640,000
177.2%
85,167,000
11,897,000
(351,473)
1.0%
0.5
9.4
2.2
5.9
0.1
1.0%
0.5
9.4
2.2
5.9
0.1
5.0%
0.2
7.2
8.1
0.4
0.2
-
-
-
11,238,842
-
11,238,842
-
(1,150,286)
-
0.0%
-
0.0%
-
0.0%
-
38
253,162
38
253,162
2010
0.0%
-
0.0
0.0%
-
Average
9,626,763
77.3%
95,825,507
11,159,168
(7,480)
CAGR
0.1%
-8.2%
5.0%
#NUM!
2.3%
0.4
8.6
4.1
4.0
0.1
-
#DIV/0!
#DIV/0!
7,109,133
-
#NUM!
#DIV/0!
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
38
253,162
#VALUE!
#VALUE!
146
Namqua Water Board
Sector : Water














The Namaqua data is incomplete and it
appears that the data for 2007 and
2008 is the same. Hence not much
reliance can be placed on this data and
the analysis performed below.
2010 Revenue: No data
2010 Total Assets: No data
2010 Audit Opinion: No data
2009 Audit Opinion: Unknown
Revenue has increased insignificantly at
a CAGR of 0.1% from 2007 to 2009.
Net profit margins dramatically
increased from 27.3% in 2008 to 177.2%
in 2009.
Liquidity is weak with an average of 0.4x
from 2007 to 2009.
The solvency status is healthy with an
average of 8.6x in the same period.
Improving interest coverage ratio from
2.2x in 2007 to 8.1x in 2009.
Declining DSCR from 5.9x in 2007 to 0.4x
in 2010.
Taxes Paid: Zero.
Dividends paid: Zero.
Healthy average gearing ratio of 0.1x for
the period 2007 to 2010.
Revenue and Profitability
9645,000
9640,000
9635,000
9630,000
9625,000
9620,000
9615,000
9610,000
200.0%
180.0%
160.0%
140.0%
120.0%
100.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2007
Total Revenue
2008
2009
Net Profit Margin %
Liquidity and Solvency
10.0
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
Debt Service Cover Ratio
147
Namqua Water Board
Sector : Water







A decrease in the cash balance from
R165k in 2008 to –R351K in 2009,
further evidenced by a shortfall in
operating cash flows of R1.2 million in
2009.
Capital expenditure: Zero.
Zero Government guarantees.
Zero Government subsidies.
As a result of a decrease in the asset
base by a CAGR of -8.2% from 2007 to
2009, ROA has increased from 1% in
2007 to 5% in 2009.
The staff complement of 38 personnel
remained stagnant between 2007 and
2008. No employee data for 2009.
No KPI information in the KPMG report.
Return on Assets
105000,000
6.0%
100000,000
5.0%
95000,000
4.0%
90000,000
3.0%
85000,000
2.0%
80000,000
1.0%
75000,000
0.0%
2007
Total Assets
2008
2009
Return on Assets
Employee Productivity
9645,000
9640,000
9635,000
9630,000
9625,000
9620,000
9615,000
9610,000
280,000
260,000
240,000
220,000
200,000
180,000
160,000
140,000
120,000
100,000
2007
Total Revenue
2008
2009
Revenue per Employee
148
Overberg Water
Sector : Water
Overberg Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
17,347,000
17.8%
59,406,000
31,893,000
(632,000)
2007
18,378,000
28.4%
62,807,000
30,515,000
2,954,000
2008
19,443,000
9.9%
63,868,000
28,856,000
2,924,000
2009
20,381,000
12.2%
72,186,000
28,028,000
4,325,000
2010
11,000,000
33.8%
5,255,000
614,000
3,528,000
Average
17,309,800
20.4%
52,704,400
23,981,200
2,619,800
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.0%
1.7
1.9
1.2
1.2
2.0%
3.0
2.1
2,659,000.0
3.2
0.9
1.0%
3.6
2.2
575,000.0
1.2
0.8
1.0%
4.2
2.6
(3.9)
0.6
18.0%
5.8
8.6
0.1
4.6%
3.7
3.5
646,800.0
0.3
0.7
Taxation Paid
Dividends Paid
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
-
-
-
-
-
1,508,000
367,000
5,037,000
1,439,000
2,990,000
1,095,000
3,384,000
6,240,000
4,073,000
1,462,000
3,398,400
2,120,600
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
#DIV/0!
#DIV/0!
CAGR
-10.8%
-45.5%
-62.8%
#NUM!
#DIV/0!
#DIV/0!
28.2%
41.3%
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
149
Overberg Water
Sector : Water











2010 Revenue: R11 million
2010 Total Assets: R5 million
2010 Audit Opinion: Unknown
Revenue has declined at a CAGR of
10.8% from 2006 to 2010.
In the same period net profit margins
averaged 20.4%, increasing significantly
to 33.8% in 2010 from 12.2% in 2009.
Overall liquidity and solvency status is
strong with an average current ratio of
3.7x and an average solvency ratio of
3.5x over the last 5 years.
Interest coverage ratio data appears
meaningless.
The company's ability to service debt
has declined dramatically from 1.2x in
2006 to -3.9x in 2009.
Taxes Paid: No data
Zero dividends declared over the last 5
years.
An improvement of the gearing ratio
from 1.2x in 2006 to 0.1x in 2010.
Revenue and Profitability
25000,000
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
20000,000
15000,000
10000,000
5000,000
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
-
2006
2007
Current Ratio
2008
2009
2010
Solvency Ratio
150
Overberg Water
Sector : Water







The cash balance is healthy, increasing
from R-632k in 2006 to R3.5million in
2010, which is further evidenced by cash
flows from operating activities
increasing at a CAGR of 28.2% in the
same period.
Capital expenditure has increased by a
CAGR of 41.3% from 2006 to 2010 to
R1.4 million in 2010.
Zero government guarantees.
Zero government subsidies.
Asset base has dramatically decreased
by a CAGR of 45.5% from R59 million in
2006 to R5 million in 2010. As a result
ROA have improved significantly from
1% in 2006 to 18% in 2010.
Employee information: No data.
No KPI information.
Return on Assets
80000,000
70000,000
60000,000
50000,000
40000,000
30000,000
20000,000
10000,000
-
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2006
2007
Total Assets
2008
2009
2010
Return on Assets
Employee Productivity
25000,000
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
20000,000
15000,000
10000,000
5000,000
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
151
Pelladrift Water Board
Sector : Water
Pelladrift Water Board
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
5,593,000
-6.0%
10,592,000
1,799,000
1,337,000
2007
7,075,000
-8.7%
10,661,000
2,485,000
1,301,000
2008
6,475,000
0.3%
10,882,000
2,683,000
1,466,000
2009
6,785,000
-19.4%
10,895,000
4,011,000
1,262,000
2010
11,640,000
22.2%
10,756,000
1,334,000
1,347,000
Average
7,513,600
-2.3%
10,757,200
2,462,400
1,342,600
-1.0%
0.8
5.9
0.2
-1.0%
0.6
4.3
0.3
0.0%
0.6
4.1
0.3
-3.0%
0.4
2.7
0.6
6.0%
1.2
8.1
0.1
0.2%
0.7
5.0
0.3
-
-
-
-
#DIV/0!
#DIV/0!
-
-
CAGR
20.1%
0.4%
-7.2%
0.2%
(335,000)
-
(36,000)
-
165,000
-
(204,000)
-
85,000
-
(65,000)
-
#NUM!
#DIV/0!
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
#VALUE!
#VALUE!
152
Pelladrift Water Board
Sector : Water











2010 Revenue: R12 million
2010 Total Assets: R11 million
2010 Audit Opinion: Unknown
Revenue has grown at a CAGR of 20.1%
from 2006 to 2010.
In the same period net profit margins
have been very erratic peaking in 2010
at 22.2% and averaging a disappointing
-2.3%.
Overall liquidity status is poor with an
average current ratio of 0.7x for the last
5 years, however the solvency ratio for
the same period is more than
respectable with an average of 5x.
Interest Coverage Ratio: No data.
DSCR: No data.
Taxes Paid: No data.
Zero dividends declared over the last 5
years.
Healthy average gearing ratio of 0.3x
from 2006 to 2010.
Revenue and Profitability
14000,000
12000,000
10000,000
8000,000
6000,000
4000,000
2000,000
-
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
-25.0%
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
9.0
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
2006
2007
Current Ratio
2008
2009
2010
Solvency Ratio
153
Pelladrift Water Board
Sector : Water







The cash balance has been fairly
stagnant over the past 5 years with an
average of R1.3 million. In the same
period, operating cash flows have been
inconsistent averaging R-65k.
Capital expenditure: Zero data.
Zero government guarantees.
Zero government subsidies.
Asset base has remained flat from 2006
to 2010. ROA has shown improvement
from -1% in 2006 to 6% in 2010,
averaging 0.2% during the period.
Employee information: No data.
5 KPIs were identified of which all were
achieved.
Return on Assets
10950,000
10900,000
10850,000
10800,000
10750,000
10700,000
10650,000
10600,000
10550,000
10500,000
10450,000
10400,000
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
2006
2007
Total Assets
2008
2009
2010
Return on Assets
Employee Productivity
14000,000
12000,000
10000,000
8000,000
6000,000
4000,000
2000,000
-
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
-
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
154
Rand Water
Sector : Water
Rand Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
3,672,119,000
16.2%
5,386,837,000
1,615,081,000
510,116,000
2007
4,118,601,000
18.0%
6,257,337,000
1,748,329,000
994,697,000
2008
4,274,363,000
18.9%
7,020,392,000
1,713,280,000
1,349,588,000
2009
4,676,938,000
12.7%
7,934,141,000
1,995,727,000
1,351,203,000
2010
4,997,701,000
6.0%
8,460,604,000
2,238,420,000
924,858,000
Average
4,347,944,400
14.4%
7,011,862,200
1,862,167,400
1,026,092,400
CAGR
3.0%
1.4
3.3
5.2
0.5
0.4
3.0%
2.0
3.6
9.9
6.4
0.4
3.0%
2.5
4.1
7.8
4.3
0.3
2.0%
1.8
4.0
5.4
1.0
0.3
1.0%
1.5
3.8
3.0
(1.1)
0.4
2.4%
1.8
3.8
6.3
2.2
0.4
(1,615,000)
-
1,432,000
-
1,693,000
-
5,398,000
-
5,310,000
-
2,443,600
-
720,898,000
362,007,000
937,734,000
456,016,000
1,000,666,000
640,154,000
970,745,000
967,380,000
535,330,000
910,029,000
833,074,600
667,117,200
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
#DIV/0!
#DIV/0!
#DIV/0!
733
6,380,543
755
6,619,472
744
6,500,007
#VALUE!
#VALUE!
8.0%
11.9%
8.5%
16.0%
#NUM!
#DIV/0!
-7.2%
25.9%
155
Rand Water
Sector : Water











2010 Revenue: R5 billion
2010 Total Assets: R8.4 billion
2010 Audit Opinion: Unqualified
An increase in revenue growing at a
CAGR of 8.0% from 2006 to 2010.
Although averaging 14.4% over the past
5 years, net profit margins have been
volatile, decreasing from 12.7% in 2009
to 6.0% in 2010.
Strong liquidity & solvency status with
an average current ratio of 1.8x and an
average solvency ratio of 3.8x from 2006
to 2010.
Even though the interest coverage ratio
decreased from 5.2x in 2006 to 3.0x in
2010, it remains healthy.
DSCRs have shown a declining trend
from 0.5x in 2006 to -1.1x in 2010.
Taxes Paid: Increased from a negative
balance in 2006 to R5.3 billion in 2010.
Zero dividends declared over the last 5
years.
A robust average gearing ratio of 0.4x
from 2006 to 2010.
Revenue and Profitability
6000000,000
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
5000000,000
4000000,000
3000000,000
2000000,000
1000000,000
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
12.0
10.0
8.0
6.0
4.0
2.0
(2.0)
2006
2007
2008
2009
2010
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
156
Rand Water
Sector : Water










The cash balance has consistently been
increasing growing at a healthy CAGR of
16.0% from 2006 to 2010.
Capital expenditure has increased by a
CAGR of 26% to R910 million from 2006
to 2010.
Zero government guarantees.
Zero government subsidies.
The asset base grew by a CAGR of 11.9%
over the past 5 years.
ROA has decreased from 3% in 2006 to
1% in 2010.
The number of employees increased
slightly from 733 in 2009 to 755 in 2010.
Revenue per employee also increased
slightly from R6.3 million in 2009 to
R6.6 million in 2010.
35 KPIs identified between 2008 and
2010, of which 12 were not achieved.
The most critical of these being: internal
audit, employment equity, health and
safety, operational performance,
financial performance and commercial
equity.
Return on Assets
9000000,000
8000000,000
7000000,000
6000000,000
5000000,000
4000000,000
3000000,000
2000000,000
1000000,000
-
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2006
2007
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
6000000,000
7000,000
6000,000
5000,000
4000,000
3000,000
2000,000
1000,000
-
5000000,000
4000000,000
3000000,000
2000000,000
1000000,000
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
157
Sedibeng Water
Sector : Water
Sedibeng Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
2006
235 705 000
5.5%
636 980 000
330 459 000
33 652 000
2007
311 269 000
19.6%
652 760 000
364 058 000
61 131 000
2008
355 472 000
3.6%
960 464 000
382 861 000
67 530 000
2009
401 330 000
8.2%
1 048 900 000
437 318 000
66 399 000
2010
407 079 000
10.9%
1 334 878 000
459 958 000
69 588 000
Average
342 171 000
9.6%
926 796 400
394 930 800
59 660 000
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
1.0%
1.7
1.9
1.5
1.0
1.1
2.0%
1.7
1.8
2.6
1.7
1.3
0.0%
1.7
2.5
1.3
1.3
0.7
1.0%
1.6
2.4
1.0
1.0
0.7
1.0%
1.2
2.9
1.3
1.1
0.5
1.0%
1.6
2.3
1.5
1.2
0.9
Taxation Paid
Dividends Paid
-
-
-
-
-
-
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
CAGR
14.6%
20.3%
8.6%
19.9%
#DIV/0!
#DIV/0!
27 626 000
477 000
63 155 000
6 916 000
47 711 000
18 464 000
58 170 000
21 381 000
58 380 000
14 199 000
51 008 400
12 287 400
20.6%
133.6%
0.0%
-
0.0%
-
0.0%
-
13 731 000
3.4%
-
13 293 000
3.3%
-
13 512 000
1.3%
-
#DIV/0!
#DIV/0!
#DIV/0!
17
23 945 824
17
23 945 824
#VALUE!
#VALUE!
158
Sedibeng Water
Sector : Water











2010 Revenue: R407 million
2010 Total Assets: R1.3 billion
2010 Audit Opinion: Unqualified with
emphasis of matter
Revenue increased by a CAGR of 14.6%
from 2006 to 2010.
Net profit margins have been erratic
though improving from 5.5% in 2006 to
10.9% in 2010.
Liquidity is reasonable averaging 1.6x
between 2006 and 2010. Solvency ratios
have improved from 1.9x in 2006 to 2.9x
in 2010.
Interest coverage has followed an
inverted U trend, going from 1.5x in
2006, peaking at 2.6x in 2007 and
settling at 1.3x in 2010. The average for
the period was 1.5x.
DSCR averaged 1.2x from 2006 to 2010.
Taxes Paid: Zero.
Dividends paid: Zero.
Gearing ratios have shown improvement
from 1.1x in 2006 to 0.5x in 2010.
Revenue and Profitability
450000,000
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
3.5
3.0
2.5
2.0
1.5
1.0
0.5
-
2006
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
159
Sedibeng Water
Sector : Water









The cash balance has grown by a CAGR
of 20% from 2006 to 2010, leveling off at
R69.6 million in 2010.
Capital expenditure has increased
dramatically by a CAGR of 134% from
2006 to 2010.
Zero Government guarantees.
Government subsidies are reflected for
2009 and 2010, averaging R13.5 million.
Asset base has grown by an impressive
20.3% CAGR from 2006 to 2010.
In the same period ROA remained
relatively flat averaging 1% from 2006 to
2010.
Staff complement in 2010, was a curious
17 people, each generating an
impressive R24 million in revenues.
9 KPIs were identified of which 5 were
not achieved.
These included reliability of supply,
increased access to services, water
losses, positive internal audit reports
and water quality compliance.
Return on Assets
1600000,000
1400000,000
1200000,000
1000000,000
800000,000
600000,000
400000,000
200000,000
-
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2006
2007
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
450000,000
400000,000
350000,000
300000,000
250000,000
200000,000
150000,000
100000,000
50000,000
-
30000,000
25000,000
20000,000
15000,000
10000,000
5000,000
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
160
Umgeni Water
Sector : Water
Umgeni Water
Total Revenue
Net Profit Margin %
Total Assets
Total Liabilities
Cash and Cash Equivalents
Return on Assets
Current Ratio
Solvency Ratio
Interest Coverage Ratio
Debt Service Cover Ratio
Gearing Ratio
Taxation Paid
Dividends Paid
Cash Flow from Operating Activities
Cash Flows utilised for Cap-Ex
Government Subsidy
Government Subsidy as % of Revenue
Government Guarantees
Number of Employees
Revenue per Employee
2006
1,084,544,000
12.7%
2,997,076,000
2,606,905,000
13,429,000
2007
1,188,029,000
21.1%
3,236,581,000
2,600,773,000
21,159,000
2008
1,289,035,000
30.5%
3,660,859,000
2,638,325,000
13,637,000
2009
1,492,688,000
35.3%
4,083,964,000
2,536,672,000
7,699,000
2010
1,633,043,000
33.1%
4,308,322,000
2,220,318,000
1,690,000
Average
1,337,467,800
26.5%
3,657,360,400
2,520,598,600
11,522,800
1.0%
1.2
1.2
0.9
0.6
6.7
2.0%
1.2
1.2
1.5
1.9
4.1
3.0%
1.4
1.4
2.1
2.6
2.6
3.0%
1.0
1.6
2.4
2.0
1.6
3.0%
2.4
1.9
2.7
0.6
1.1
2.4%
1.4
1.5
1.9
1.5
3.2
-
-
-
-
35,000
-
CAGR
10.8%
9.5%
-3.9%
-40.4%
7,000
-
-100.0%
#DIV/0!
7.1%
42.0%
644,654,000
82,339,000
724,198,000
177,253,000
844,312,000
110,319,000
745,278,000
236,977,000
846,621,000
334,511,000
761,012,600
188,279,800
0.0%
-
0.0%
-
0.0%
-
0.0%
-
29,641,000
1.8%
-
5,928,200
0.4%
-
908
1,194,432
897
1,324,447
895
1,440,263
921
1,620,725
963
1,695,787
917
1,455,131
#DIV/0!
#DIV/0!
#DIV/0!
1.5%
9.2%
161
Umgeni Water
Sector : Water











2010 Revenue: R1.6 billion
2010 Total Assets: R4.3 billion
2010 Audit Opinion: Unqualified
Revenue increased by a CAGR of 10.8%
from 2006 to 2010.
Net profit margins have improved
strongly from 12.7% in 2006 to 33.1% in
2010.
Liquidity strength has doubled from 1.2x
in 2006 to 2.4x in 2010. Solvency ratios
have also shown a strong positive
trajectory from 1.2x in 2006 to 1.9x in
2010.
Interest coverage ratios have also shown
an upward trend from 0.9x in 2006 to
2.7x in 2010.
DSCR have has had a bell shape
trajectory going from 0.3x in 2006,
peaking at 2.1x in 2008 and leveling off
at 0.6x in 2010.
Taxation information for 2006 only,
reflecting a meager R35,000.
Dividends paid: Zero.
Gearing ratios have shown significant
improvement from 6.7x in 2006 to 1.1x
in 2010.
Revenue and Profitability
1800000,000
1600000,000
1400000,000
1200000,000
1000000,000
800000,000
600000,000
400000,000
200000,000
-
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
2006
2007
Total Revenue
2008
2009
2010
Net Profit Margin %
Liquidity and Solvency
3.0
2.5
2.0
1.5
1.0
0.5
-
2006
2007
Current Ratio
Interest Coverage Ratio
2008
2009
Solvency Ratio
2010
Debt Service Cover Ratio
162
Umgeni Water
Sector : Water










The cash balance has declined
dramatically from R13.4 million in 2006
to R1.7 million in 2010. A CAGR of
-40.4%.
Capital expenditure has increased
dramatically by a CAGR of 42% from R82
million in 2006 to R334 million in 2010.
Government guarantees: Zero.
A Government subsidy of R29.6 million
was received in 2010, amounting to
1.8% of revenue for that year.
Asset base has grown by a CAGR of 9.5%
from 2006 to 2010.
In the same period ROA improved from
1% in 2006 to 3% in 2010, averaging
2.4% over the period.
Staff complement has remained
relatively flat, growing by a mere 1.5%
from 2006 to 2010 and leveling off at
963 staff members in 2010.
Revenues per employee have grown by
an impressive 9.2% CAGR from 2006 to
2010, amounting to R1.7 million in 2010.
12 KPIs were identified of which 2 were
not achieved.
These included exceeding customer
expectations and growing & increasing
the customer base.
Return on Assets
5000000,000
4500000,000
4000000,000
3500000,000
3000000,000
2500000,000
2000000,000
1500000,000
1000000,000
500000,000
-
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
2006
2007
2008
Total Assets
2009
2010
Return on Assets
Employee Productivity
1800000,000
1600000,000
1400000,000
1200000,000
1000000,000
800000,000
600000,000
400000,000
200000,000
-
1800,000
1600,000
1400,000
1200,000
1000,000
800,000
600,000
400,000
200,000
-
2006
2007
Total Revenue
2008
2009
2010
Revenue per Employee
163