SOUTH AFRICAN BUREAU OF STANDARDS · SOUTH AFRICAN BUREAU OF STANDARDS 2014/15 Q4 Report to the...

SOUTH AFRICAN BUREAU OF STANDARDS 2014/15 Q4 Report to the Parliamentary Portfolio Committee on

Trade & Industry 18th August 2015

CELEBRATING 70 YEARS OF QUALITY ASSURANCE

1. INTRODUCTION

2. OPERATIONAL HIGHLIGHTS 2014/15

3. PERFORMANCE VS PREDETERMINED OBJECTIVES

4. FINANCIAL PERFORMANCE

CONTENTS

Q4 REPORT 2014/15


SABS CONFIDENTIAL

RENEWAL AFTER 65 YEARS OF REGULATORY • The SABS was established in terms of the Standards Act, 1945 (Act

No. 24 of 1945) • In 2008, the regulatory function of the SABS was removed -

Standards Act No. 8 of 2008 and NRCS Act of 2008

Sub headline

~1100 Employees

~130 Standards Development

~400 Laboratories

~350 Certification

~50 Training & Design Institute

~150 Corporate Services

SOLID FOUNDATION : 70 YEARS

~ 100 Contract Employees

Sub headline

Roles – International Platforms

SABS has customers in many countries and has key stakeholders that span the region, continent and the world.

Government

Services

Design Institute

Standards

Development

Training

Testing

Certification

75% - Services income 25% - Gov. Grant

FULL VALUE CHAIN OF SERVICES

Sub headline

ISO Council

New CASCO Chair

ARSO Council

IEC Council SADCSTAN Secretariat ISO TMB

Roles – International Platforms

OPERATIONAL INDICATORS Q4 REPORT 2014/15


AUDITOR GENERAL’S REPORT Q4 REPORT 2014/15


THE SABS HAS ACHIEVED A CLEAN AUDIT FOR THE 2014/15 PERFORMANCE YEAR

FOR

THE THIRD CONSECUTIVE YEAR

Annual growth in revenue increased by 8% compared to only 6% in the previous year

Expenditure increased by 5% as compared to the increase of 10% in the previous year



8%

6%

5%

10%

0%

2%

4%

6%

8%

10%

12%

2014/15 2013/14

Revenue Expenditure

Number of SMME beneficiaries of the Design Institute programme

Published home- grown standards



20

45

25

58

0

10

20

30

40

50

60

70

2013/14 2014/15

Target Achieved

179

225 219 232

0

50

100

150

200

250

2013/14 2014/15

Target Achieved

PERFORMANCE VS PREDETERMINED

OBJECTIVES Q4 REPORT 2014/15


An overall achievement of 81% (13 out of 16) of performance indicators in the business plan



STRATEGIC OBJECTIVE: GROWTH Q4 REPORT 2014/15


OUTPUT INDICATOR (S) 2014/15

Target Actual Comment on variance

Revenue Sales revenue (million)

Operating profit

580.2

3.7%

569.1

2.4%

Lower volumes (except Certification)

Revenue shortfall exerted

dampening effect

New Certification scheme

2 New schemes by

year end

Two

Two

Target met

New Training courses

3 New courses by

year end

Three

Three

Target met

Home Grown Standards

Number published

225

232

Target exceeded

STRATEGIC OBJECTIVE: PRODUCTIVITY Q4 REPORT 2014/15


Output Indicator (s)

2014/15


Increase in compulsory specifications that can be

tested at SABS

Percentage that can be tested fully

80% 80% Target met

Implementation of Laboratory Information Management

System (LIMS)

Percentage of

laboratories (36) on LIMS

100%

86%

Technical problems,

particularly in remote

laboratories

Reduced time for publication of standards

Number of days required

< 400

398

Target exceeded

Modernisation of laboratory facilities

Number of laboratories that are fully functional in the

new building

9

9

Target met

STRATEGIC OBJECTIVE: CUSTOMER/ STAKEHOLDER Q4 REPORT 2014/15



2014/15


An improvement in customer and stakeholder relations

Implementation of the actions in the customer & brand surveys Number of laboratories on the new CRM platform

80%

10

90%

15

Target exceeded Target exceeded

Development of SMMEs Number of SMMEs for whom projects were developed and implemented

25

58

Target exceeded

E-Committees that fully use the installed modules of the e-committee portal

Number of committees 80%

83%

Target exceeded

STRATEGIC OBJECTIVES: COMPETENT & EMPOWERED EMPLOYEES



2014/15


Graduate & student internship programmes

Number of graduates/ students on the internship programme intake

10

11

Target exceeded

Leadership development programmes

Number of managers who successfully complete a leadership development programme

50

59

Target exceeded

Workforce capacity Vacancy rate of identified critical positions (out of total employee complement)

< 7%

< 3.4%

Target exceeded

FINANCIAL PERFORMANCE Q4 REPORT 2014/15


Revenue growth 8% for the full year

Total Expenses increased by 5% for the year

Employee benefits increased by 12% for the year as result of the three year NEHAWU agreement

Net profit of R32.2 million, 48% higher than prior year

Total assets increased by R44 million

Property, Plant and Equipment increased by R15 million

FINANCIAL OVERVIEW Q4 REPORT 2014/15


INCOME STATEMENT Q4 REPORT 2014/15


SABS GROUP

ACTUAL PRIOR YEAR

Var to

LYR DIVISIONAL INCOME STATEMENT ACTUAL PRIOR YEAR

Var to

LYR

Rm Rm % Month: MARCH 2015 Rm Rm %

172.2 160.3 7% Revenue 569.1 523.5 9%

51.8 44.8 16% Tests and services 178.2 173.1 3%

5.3 -0.6 -939% Rental Income 10.8 6.7 62%

3.6 4.1 -13% Training 13.8 16.1 -15%

91.9 88.8 4% Product and system certification 325.3 289.4 12%

11.7 15.1 -22% Design Institute Services 15.5 15.1 3%

7.9 8.2 -4% Sale of publications 25.5 23.1 11%

48.3 44.9 7% Core funding 193.1 179.8 7%

4.4 14.2 -69% Other income 14.8 25.2 -41%

224.9 219.5 2% Total income 777.0 728.4 7%

-199.5 -190.3 -5% Total Expenses -766.8 -730.2 -5%

-125.6 -105.7 -19% Employee Costs -474.0 -422.9 -12%

-64.0 -74.0 13% Other Expenses -255.4 -276.7 8%

-12.8 -13.5 5% Depreciation -47.9 -42.2 14%

2.9 2.9 3% Government grants in respenct of assets 10.5 11.6 -10%

25.4 29.2 Profit/ (loss) before interest and tax 10.2 -1.8

5.4 7.2 -25% Investment income 22.5 23.2 -3%

30.8 36.4 -15% Profit/ (loss) before corporate charges and tax 32.7 21.3 53%

-0.5 0.4 -222% Taxation -0.5 0.4 -222%

30.3 36.8 -18% Net profit/ (loss) for the period 32.2 21.7 48%

QUARTER YTD

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2015 Q4 REPORT 2014/15


Mar 2015 Mar 2014

Rm Rm

ASSETS

Non-Current Assets 802 696

Property, plant & equipment 365 345

Investment Properties 9 10

Intangible assets 12 15

Available-for-sale investments 396 305

Deferred taxation 20 21

Current Assets 341 403

Inventory 2 2

Trade receivables 135 113

Other receivables 4 5

Loans to group companies - -

Cash and Cash Equivalents 200 283

Total assets 1 143 1 099

EQUITY AND LIABILITIES

Equity and Reserves 616 561

General Reserve 54 54

Other Components of Equity 67 44

Accumulated Profit 495 462

-0 -0

Total Liabilities 527 538

Deferred Income 286 294

Trade Payables 56 54

Other Payables 74 79

Post Retirement Healthcare Benefits 84 86

Long Service Leave Awards 27 26

0 0

Total Equity and Liabilities 1 143 1 099

GROUP

Reserves of disposal group classified as held for sale

Liabilities of disposal group classified as held for sale

CHALLENGES Q4 REPORT 2014/15


Risk of Treasury MTEF reduction in future

0

200

400

600

800

1000

1200

2014/15 2015/16 2016/17 2017/18

R m

illio

n

Grant Total Income Employee benefits

25% 23% 21% 24% 600

650

700

750

800

850

900

2012/13Actual

2013/14Actual

2014/15Forecast

2015/16Budget

R m

illio

n

SABS Income and Expense - 4 year Trend

Total Income Total Expenses

Revenue growth has been slow. With increases in expenses (especially employee benefits), the revenue gap widens

Baseline cut

Role of the National Standards Bodies Q4 REPORT 2014/15


Are we optimally used in the economy?

THANK YOU

70 YEARS – GIVING YOU THE QUALITY EDGE

SOUTH AFRICAN BUREAU OF STANDARDS · SOUTH AFRICAN BUREAU OF STANDARDS 2014/15 Q4 Report to the...

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