15262 ADvTECH All About Booklet_Version 1

WHY IS ADvTECH LISTED
ON THE STOCK EXCHANGE?
When ADvTECH’s founder, Brian Buckham, started a small IT training business in Anderson Street in
the Joburg CBD, he could not have known just how successful the ADvTECH Group would become.
In case you’re still in the dark about how ADvTECH came to be, here’s a short recap:
1978
Brian Buckham starts an IT training
business in Anderson Street,
Johannesburg
1987
Advanced Technical Systems Limited
lists on the Johannesburg Stock
Exchange (JSE) with a share price
of 55 cents.
1990
The end of apartheid is declared,
Nelson Mandela is released from prison
and a new political dawn breaks in
South Africa. Brian Buckham realises
that education would be the key to
South Africa’s success.
1995 & 1996
ADvTECH makes its first acquisition
in the education sector, including
Rosebank College and Varsity College
in 1996.
1998 – 2015
ADvTECH grows exponentially during
this period, to 124 education, training
and recruitment sites across South
Africa and the African continent.
From baby steps to giant leaps
The ADvTECH story is a great example of a small business
successfully making the transition from a privately held
company to a publically listed one. Taking this step allows a
company to raise funds through selling shares to the broader
public and specialist investment groups. ADvTECH’s listing on
the JSE in 1987 signaled the first step towards growing the
business towards what it is today. It enabled Brian to raise the
kind of capital needed to acquire the schools, universities and
resourcing businesses that the Group now owns.
The benefits of listing on
the stock exchange
Listing a company means that instead of
one or more (up to a maximum of 50)
people holding all the company’s shares,
the shares are made available on a stock
exchange where they are traded not only
as a way to raise funds, but to make ordinary
people a part of the success of our business.
There are quite a few steps to follow before
you can list on a stock exchange, read more
about them. In 1987 Brian and his
management team would have needed
to follow the applicable steps to get the
company listed.
Some of the benefits of listing include:
Companies can trade their shares securely
and efficiently through a fully automated
trading system.
Raising funds through selling shares
is better than entering into a debt
agreement with a bank. In the event that
companies need to make use of debt
facilities from a bank, they have the added
benefit of banks being more inclined to
lend them money. This is because the
banks know that the listed company is
now likely to be fiscally responsible as it is
expected to comply with listing and other
regulatory requirements. The company
therefore has both options available in
terms of raising capital to either pay off
existing debt or to fund expansion plans.
A listing attracts local analyst coverage
and media interest, which helps boost
the company’s reputation and profile.
A listing facilitates broad-based economic
empowerment deals.
How working for a listed company
benefits you
Listing not only holds advantages for the company, but also for its
people. Here are a couple of ways that you benefit from ADvTECH
being a listed company:
The company’s brand value increased after its listing, making
ADvTECH an attractive employer to talented people. You are one
of those people, and you benefit from working with and learning
from some of South Africa’s best and brightest individuals. Not to
mention that working at ADvTECH looks really good on your CV!
ADvTECH has better access to services and facilities offered by
banks and other service providers, which means that you can be
assured of timely salary payments and access to additional perks
and benefits not ordinarily available at smaller businesses.
As part of the JSE’s listing requirements, the company needs to
publish an integrated annual report every year. This report gives
shareholders and other stakeholders (like you, the employee)
valuable insight into how the company works and how it has
managed its financial and other resources during the applicable
reporting year. You have the benefit of knowing exactly which
challenges ADvTECH faces and how they are dealt with, and also
see the important role you and your division plays in making
the company a success. You can read the Integrated Annual
Report here.
We hope you’ve enjoyed this bit of insight into the benefits
of listing, but feel free to look at our FAQs if you’d like to
know more.
CORPORATE GOVERNANCE
What does it mean and
why does it matter?
Corporate governance is a term describing the system used to direct and control a
company. At ADvTECH our Board of directors oversees the management and control
structure that controls the Group’s overall direction.
The King Code of Corporate Governance
Corporate governance is a dynamic field, with constantly evolving requirements based on the
best practice principles controlling the sector the company operates in. Former High Court
judge Mervyn King S.C. is widely regarded as an expert in the field of corporate governance.
King published a report called the King Code of Corporate Governance in 2017, called King IV.
The report contains 75 reporting principles that guide organisations toward responsible,
transparent reporting that aligns with local and international standards. We have always
supported the values contained in the King Report and we constantly aim for greater
compliance to the Code of Corporate Practices section of the report.
REMUNERATION COMMITTEE
This Committee determines and
approves how much employees are
paid. The Group CEO and Group HR
executive attend these meetings by
invitation, but don’t have any say
regarding decisions about their own
remuneration.
AUDIT COMMITTEE
The Committee is responsible for
appointing the Group’s auditors,
agreeing the fees that must be paid
to them and settling on the terms of
their engagement. They also provide
recommendations to the Board about
a number of operational issues. A full
list of these is available.
RISK COMMITTEE
Every business faces several actual
and potential risks in the day-to-day
execution of their tasks. While the Risk
Committee has assumed responsibility
for monitoring and overseeing the
management of risk within the Group,
the Board, Exco and the internal audit
department continue to review and
assess the integrity and the quality of
our risk control systems and ensure that
risk policies and strategies are effectively
managed.
MORE ABOUT
THE BOARD
The ADvTECH Board consists of two
Executive and eight Non-Executive
Directors. The Board encourages greater
integration of corporate governance
principles across all areas of operation
to help the Group to run its business in
an efficient, ethical and sustainable way.
This in turn creates value and sustainable
returns, which means that more
investments will be made into the
private education sector.
The directors have a wide range of
experience in strategic, financial, legal,
Information Technology and educational
activities. This means that there is enough
intellectual capital to guide the business
towards long-term success. You can
find the directors’ details and a short
description of their CVs on the ADvTECH
website at www.advtech.co.za
The Board has six committees,
established as part of regulatory and
business requirements. Members of the
Board are appointed to Committees
based on their areas of expertise and
experience.
Why corporate
governance matters
While the Board and Group
Management team are ultimately
held accountable for the Group’s
ethical corporate governance, every
one of us plays an important role
in making our business one that is
operated with integrity. When we are
ill-informed about regulatory issues
that could negatively affect our
particular business unit, it places the
entire Group at risk for reputational
or even financial damage. It’s worth
understanding which laws and
regulations govern your particular
area of work and understanding
exactly what you can do to ensure
that we act with complete integrity
and transparency in everything
we do.
INVESTMENT COMMITTEE
The Investment committee reviews
and manages the funding and other
financial aspects that constitute part
of the investment strategy, such
as acquisitions. They provide
recommendations on where and
what to spend money on, in essence,
what would be worthwhile long-term
for the groups sustainability and growth.
TRANSFORMATION, SOCIAL AND
ETHICS COMMITTEE (TSEC)
TSEC monitors and oversees the
Group’s progress on aspects relating
to transformation at every level.
It considers social and ethical
aspects, and, where appropriate,
provides management with guidance
in this regard.
The divisional CEOs must attend the
majority of TSEC meetings held during
the year. This ensures that social and
ethical matters, as well as matters
pertaining to transformation remain
high on management’s agenda.
NOMINATIONS COMMITTEE
The Committee meets when necessary,
to nominate, evaluate and recommend
possible new appointments to the
Board.
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