confidence - Investing In Africa

Management Discussions & AnalysisOperation Review (cont’d)investors in investment decisions through high levels of personalised service,continuous client contact and proactive advice.The Company’s objective is to build collaborative processes with SBM businessesand third party vendors, across the value chain, to deliver faster solutions tomarket, as well as to drive operational efficiency.During the period under review, SBM Securities Ltd achieved a turnover of Rs3.2Mand a net profit of Rs2.6M.SBM Investments LtdSBM Investments Ltd (SIL) is the domestic investment arm of SBM that focuses onequity investments for strategic and long-term capital gain. During the year, SILdisinvested most of it passive quoted equity investment to the tune of Rs57.0Mand reduced its issued capital to Rs25,000/- from Rs25.0M. At June 30, 2005 theCompany had equity investments worth Rs129.5M against Rs190.6M at June 30,2004. Profit for the year ended June 30, 2005 from its operations and share ofprofits of its subsidiaries amounted to Rs18.3M.SBM Global Investments LtdSBM Global Investments Ltd (SGI) is the investment arm of SBM Group for non-Mauritian rupee equity investments. It holds 79.99% of the equity of BanqueSBM Madagascar and 20.1% of the equity of SBM Nedcor Holdings Ltd. Duringthe year SGI reduced its issued and fully paid up share capital fromUS$6,000,002 to US$2,000. Profits of the Company including the share ofprofits of its subsidiary and associate increased from US$955,166 in 2004 toUS$1,987,674 in 2005SBM Financials LtdSBM Financials Ltd is a wholly owned subsidiary of the SBM Group. It providesshare registry services and debenture holder’s representative and otherfiduciary services.97The company achieved profits of Rs1.3M for the year ended June 30, 2005compared to Rs1.8M last year. The Company made a one-time profit ofRs0.9M in 2004 from the processing of share applications for a client listed onthe Stock Exchange of Mauritius.SBM IT LtdSBM IT Ltd is the technology arm of SBM and is a support service provider forthe SBM Group. During the year the Company reduced its issued share capitalfrom Rs10.0M to Rs25,000/-.