|
PRESS RELEASES 2011
SPREADING CHRISTMAS CHEER, FEEDING FAMILIES, HELPING HOPE RETURN… 30 November, 2011 (NOAH's Ark, Vosloorus) In the spirit of giving, Christmas came early for more than 90 children who regard NOAH's Ark in Vosloorus, Gauteng, as their place of safety. Father Christmas and his group of willing helpers from Mayibuye Group visited the children on Friday, 18 November, laden with gifts, food parcels and a jolly good time! Helping hope return to children and the aged in communities less fortunate than themselves is all in a day's work for the employees of Mayibuye Group. The Randburg-based, private equity specialist provides ongoing support to a number of homes and charities across the country, while the staff gives generously both of their time and goods to improve the lives of, and bring hope and dignity to selected communities in need. "This is a very special time of the year for us. We are fortunate to be in a position to spread some special Christmas cheer to children who would otherwise not celebrate this blessed and magical time. We support six children's homes around the country during this time, and hope that our contributions help in some small way to brighten up their festive seasons," comments Johan Meiring, Group CEO of Mayibuye Group. The 17 staff members who surprised the children at the home when they arrived laden with gifts, party treats and food hampers, represented CreditEdge, a loan portfolio management company within Mayibuye Group. The company provides support to this Vosloorus home throughout the year, and their support in time, money and goods is always gratefully received. Phindile Ndlovu, who is in charge of the children at Noah's Ark orphans, praised the ongoing assistance they receive from Mayibuye that has enabled them to create a better place for the children. "We have managed to secure new premises with increased security and space where the children can run around and play – all thanks to the continued support from Mayibuye. "The Christmas party is always a highlight for the children and this year was no exception – the arrival of Father Christmas with gifts for everyone and the wonderful party that followed created a special and memorable day for our children." In addition to the fun-filled day, the Mayibuye staff presented each child with an extra gift: a 'Feed-a-Family' food hamper to take home to the family so they too could participate in and enjoy the spirit of giving, while ensuring there is food on the table. One of the staff members, Durrell Kamhunga, commented that the smiles on the children's faces made the day worthwhile. "We had an opportunity to talk to and interact with the children while we played games with them, handed out their gifts and enjoyed lunch together. Being able to 'help hope return' to each of those children is a very special feeling." The Vosloorus Noah's Ark was established in 2005 and is based at the Khulisa Community Centre, an area surrounded by RDP houses and three informal settlements – Peter Mokaba, Thusong and Zama Zama. The centre currently offers day-care and after-care services to the children of the community, many of whom come from child-headed households as a result of the HIV and Aids pandemic. "At Mayibuye we believe that only with hope, can we start to improve the lives of all South Africans. We encourage people to dream and we help them to achieve their dreams through our various CSI initiatives. If each one of us – in our own small way - gets involved in making a difference, the overall impact is life-changing. As such, the spirit of volunteerism within the Group is tangible and the results are heartening," concludes Meiring. For more information, visit www.mgroup.co.za Back to top SPREADING CHRISTMAS CHEER, FEEDING FAMILIES, HELPING HOPE RETURN… 30 November, 2011 (NOAH's Ark, Mayfield) In the spirit of giving, Christmas came early for more than 200 children who regard NOAH's Ark in Mayfield, Benoni, in Gauteng, as their place of safety. Father Christmas and his group of willing helpers from Mayibuye Group visited them on Friday (25 November), laden with gifts, food parcels and a jolly good time! Helping hope return to children and the aged in communities less fortunate than themselves is all in a day's work for the employees of Mayibuye Group. The Randburg-based, private equity specialist provides ongoing support to a number of homes and charities across the country, while the staff gives generously both of their time and goods to improve the lives of, and bring hope and dignity to selected communities in need. "This is a very special time of the year for us. We are fortunate to be in a position to spread some special Christmas cheer to children who would otherwise not celebrate this blessed and magical time. We support six children's homes around the country during this time, and hope that our contributions help in some small way to brighten up their festive seasons," comments Johan Meiring, Group CEO of Mayibuye Group. "NOAH's Ark in Mayfield is one of the new charities that we started supporting this year as part of our 'Turning Dreams into Reality' CSI programme. The Christmas party was our first interaction with the home, and we spent a truly festive day with all the children." The 14 staff members who surprised the children at the home when they arrived laden with gifts, party treats and food hampers, represented CreditEdge, a loan portfolio management company within Mayibuye Group. The company provides support to this care centre throughout the year, and their support in time, money and goods is always gratefully received. Duduzile Magudulela, who is in charge of the home's orphans, was a member of the SANDF before joining the NOAH's Ark project, which was opened in April 2006 by local community members involved in a local craft and skills development programme. They identified the need for such a facility when some of their group members, sick and dying, were unable to care for their children. Their aim is to look after and support the orphaned and vulnerable children within the Mayfield community. "I had no interest in children, can you believe, until I came face to face with the poverty and suffering within the Mayfield community. However, an incident of abuse and rape to a woman in the community since she was a young girl, was the turning point for me. I realised I had an opportunity to provide a place of safety," commented Duduzile. "I believe it comes from within to want to make a difference and add value to a child's life so they don't get lost in the world. Even though being in the army taught me to be tough and hide my emotions, I feel that has been changed when I see a happy smile on a young child's face." When the Mayibuye staff, accompanied by Father Christmas, arrived at the centre, they ensured it was going to be a special day to remember for all the children. Personalised gifts were distributed and prizes were awarded to the talented winner and runner-up of the annual 'Design a Christmas Card' competition. Thereafter the children enjoyed lunch and an afternoon of fun and games such as 'Pick a Box' with the staff. "Every year we invite the children from the various homes that we support to enter the Christmas Card competition. In the true spirit of our 'Turning Dreams into Reality' initiatives, we asked the two lucky selected winners and four runners-up from their respective homes to give us their personal wish-list of three things they would really like, and we buy the prizes based on their lists. The sense of achievement and delight on the winners' faces is priceless," says Meiring. This year, NOAH's Ark in Mayfield featured both a winner, Noluthando, and a runner-up, Zandile. Top of Noluthando's wish-list was a new school uniform - she received both summer and winter uniforms, and some special clothes for Christmas including jeans, t-shirts and shoes. Zandile also asked for clothing and she was kitted out with a lovely new wardrobe for the holiday season including jeans, skirts, t-shirts, a hat and shoes. In addition to the fun-filled day, the Mayibuye staff presented each child with an extra gift: a 'Feed-a-Family' food hamper to take home to the family so they too could participate in and enjoy the spirit of giving, while ensuring there is food on the table. One of the staff members, Esther Nkabinde, commented: "It was an awesome experience! The kids were like angels and their faces lit up all the time that we were there. We played 'jika majika' and they danced for us doing impersonations of Zahara, Beyonce and Teargas. It is a blessing to b involved in such events." Mongezi Jwara stated that every minute spent with the children was a minute well spent, while Joey Govindasamy's experience of the day was awesome and fantastic. "The children sang and danced with excitement and joy! There were kids of all ages and the expressions on their faces when they received their gifts and meals just touched my heart. It was an amazing day." The Mayfield NOAH's Ark centre provides a place of safety for 209 orphaned and disadvantaged children from the community. The team of staff assists the children with their homework after school and engages them in activities such as traditional dance and sports. One of the Arks' team members, Julia, believes that life is great when you can change a child's life. "Our wish is to continue building people, building dreams and being in a position to spread our life-coaching lessons into the wider community and beyond just this centre. We are also hoping to expand the home and create a proper playground area for the children next year." "At Mayibuye we believe that only with hope, can we start to improve the lives of all South Africans. We encourage people to dream and we help them to achieve their dreams through our various CSI initiatives. If each one of us – in our own small way - gets involved in making a difference, the overall impact is life-changing. As such, the spirit of volunteerism within the Group is tangible and the results are heartening," concludes Meiring. For more information, visit www.mgroup.co.za Back to top SPREADING CHRISTMAS CHEER, FEEDING FAMILIES, HELPING HOPE RETURN… 30 November, 2011 (Happy Days Care Centre, Tshepisong) In the true spirit of giving, Christmas came early for the 30 children and staff of Happy Days Care Centre in Tshepisong, near Roodepoort. Father Christmas and his group of willing helpers from Mayibuye Group visited them on Wednesday (23 November), laden with gifts, food parcels and a jolly good time! Helping hope return to children and the aged in communities less fortunate than themselves is all in a day's work for the employees of Mayibuye Group. The Randburg-based, private equity specialist provides ongoing support to a number of homes and charities across the country, while the staff gives generously both of their time and goods to improve the lives of, and bring hope and dignity to selected communities in need. "This is a very special time of the year for us. We are fortunate to be in a position to spread some special Christmas cheer to children who would otherwise not celebrate this blessed and magical time. We support six children's homes around the country during this time, and hope that our contributions help in some small way to brighten up their festive seasons," comments Johan Meiring, Group CEO of Mayibuye Group. "Happy Days Care Centre is a new charity that we started supporting this year as part of our 'Turning Dreams into Reality' CSI programme. The Christmas party was our first interaction with the centre and it was a truly joyous afternoon." The 12 staff members who surprised the children at the home when they arrived laden with gifts, party treats and food hampers, represented CreditEdge, a loan portfolio management company within Mayibuye Group. The company provides support to this care centre throughout the year, and their support in time, money and goods is always gratefully received. The centre, which is run by Magricia Segagape, in conjunction with Willie Vermaak of the Roodepoort Inner City Ministry – Cheerful Givers, offers day-care and after-care services to the 30 children from the Tshepisong township, which comprises formal and informal housing. Magricia is grateful for the support that the centre receives from the corporate sector. "Through the generous donations of CSI funds, and together with willing helpers from the community, we have managed to raise funds and secure building supplies to build two decent shelters for the children. For the moment I have set my dreams aside to focus on helping the children within our community as not all of them are fortunate enough to feel the love and support around them. Helping a child not only makes you forget about your own problems, but it gives you a new road to new beginnings. "Success can only take you up to a certain level but, if you can't add value to that person's life, how will those achievements be remembered? It is my intention to provide the tools that will guide the children through their lives and enable them to make the smart decisions and choices," Magricia states. One of her colleagues, Julia Kirakantswe, added: "All we want to see from these children is happiness and peace amongst themselves and in their hearts. Without the help from Mayibuye, Happy Days Care Centre would not be where it is today." When the Mayibuye staff, accompanied by Father Christmas, arrived at the centre, they ensured it was going to be a special day to remember for all the children. Personalised gifts were distributed and prizes were awarded to the lucky winners of the fun-filled 'Pick a Box' game. The children also enjoyed lunch and an afternoon of more fun and games with the staff, after which they treated the Mayibuye staff with a heartfelt rendition of our National Anthem. In addition to the fun-filled day, the Mayibuye staff presented each child with an extra gift: a 'Feed-a-Family' food hamper to take home to the family so they too could participate in and enjoy the spirit of giving, while ensuring there is food on the table. One of the staff members, Molly Khumalo, commented: "I realised that the way to the kids' hearts is through love. They only need love." Another CreditEdge staffer, Martie van der Walt, wished she could spend more time with the children. "Today was not just a happy day for the kids, but also for me. I enjoyed every minute of the party – playing games, giving them food – but most of all, helping them to open their presents and watching their faces light up!" Through its CSI programmes, the Mayibuye Group of companies constantly works towards uplifting and instilling hope in the communities in which it operates, particularly those people, both young and old, who are living in adverse circumstances. "At Mayibuye we believe that only with hope, can we start to improve the lives of all South Africans. We encourage people to dream and we help them to achieve their dreams through our various CSI initiatives. If each one of us – in our own small way - gets involved in making a difference, the overall impact is life-changing. As such, the spirit of volunteerism within the Group is tangible and the results are heartening," concludes Meiring. For more information, visit www.mgroup.co.za Back to top SPREADING CHRISTMAS CHEER, FEEDING FAMILIES, HELPING HOPE RETURN… 30 November, 2011 (Leliebloem House Children's Home, Athlone) In the spirit of giving, Christmas came early for more than 90 children who regard Leliebloem House Children's Home in Athlone, Cape Town, as home. Father Christmas and his group of willing helpers from Mayibuye Group visited them on Friday (25 November), laden with gifts, food parcels and a jolly good time! Helping hope return to children and the aged in communities less fortunate than themselves is all in a day's work for the employees of Mayibuye Group. The Randburg-based, private equity specialist provides ongoing support to a number of homes and charities across the country, while the staff gives generously both of their time and goods to improve the lives of, and bring hope and dignity to selected communities in need. "This is a very special time of the year for us. We are fortunate to be in a position to spread some special Christmas cheer to children who would otherwise not celebrate this blessed and magical time. We support six children's homes around the country during this time, and hope that our contributions help in some small way to brighten up their festive seasons," comments Johan Meiring, Group CEO of Mayibuye Group. The seven staff members who surprised the children at the home when they arrived laden with gifts, party treats and food hampers, represented Integer, the specialist home loans provider within Mayibuye Group. The company provides support to this care centre throughout the year, and their support in time, money and goods is always gratefully received. "Our annual programme of support, including the much anticipated year-end Christmas party, is of particular importance for these children, who are housed, fed, clothed, educated and cared for, bv the dedicated staff at Leliebloem House, yet the facility relies on support from the private sector and individuals' generosity," explains Meiring. "Over the past year or so, our staff has been most impressed with the work that the home is doing to make a difference, and we are delighted to be playing a role to help hope return to these young lives. It is through hope that people find the inspiration to dream of a better future and start to create it. As such, our staff prefers to play an active role by personally interacting with the communities in which we are involved, rather than by making impersonal, arms-length donations," Meiring adds. Leliebloem House, a registered not-for-profit organisation, is a residential centre for children from troubled families, i.e. children who are in difficult circumstances and in need of special care and intervention. This safe house endeavours to offer the least restrictive setting for the children placed there due to the inadequacy of or a complete breakdown in the primary care environment. Although it is located in a middle class neighborhood, the children come from high-risk environments where very poor and negative socio-economic conditions prevail. When the Integer staff, accompanied by Father Christmas, arrived at the home, they ensured it was going to be a special day to remember for all the children. The Christmas party is always a highlight for the children and this year was no exception. The children enjoyed lunch and an afternoon of fun, games and dancing to their favourite local DJ, Irshaad. The highlight of the afternoon was the arrival of Father Christmas and the handing out of colourful, personalised gift bags containing a pair of summer shoes, watches, jewelry boxes and art sets among other things, to all the children. In addition, the Integer Cape Town team was able to present the home with yet another wonderful gift, following a fund-raising dance that raised R1 850.00. The money will be used to buy a new crockery and cutlery set that the children will make use of for many years to come, and is a reflection of the strong and ongoing relationship that Integer Cape Town has with the management and children of Leliebloem Home. One of the staff members, Luke Bezuidenhout, commented: "All the hard work and planning was worth it when we saw the happiness and excitement on the faces of the children. And, with 79 kids, we quickly learned who was in control of the afternoon – and what a great afternoon it was!" Nawaal Dawood said it was heart-warming and wonderful to have shared a few hours with the children, and it made her realise just how fortunate she and her colleagues are. For Integer staffer, Ray Jones, the squeals of delight from the children when they received their gifts, was something to behold. "I realised again when seeing their faces, that they are like all other children – all they want is a little bit of love and attention." "At Mayibuye we believe that only with hope, can we start to improve the lives of all South Africans. We encourage people to dream and we help them to achieve their dreams through our various CSI initiatives. If each one of us – in our own small way - gets involved in making a difference, the overall impact is life-changing. As such, the spirit of volunteerism within the Group is tangible and the results are heartening," concludes Meiring. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP EXPANDS WINTER WARMTH CAMPAIGN TO PRETORIA-BASED CHILDREN'S HOMES 4 August, 2011 Spreading its annual 'Winter Warmth' and cheer to those in need is something that Randburg-based private equity company, Mayibuye Group, is very good at – and 2011 is no different. This week saw a group of dedicated staff from one of its investment companies, micro-financier Blue Financial Services, visit two Pretoria-based homes for abandoned children, Bramley Children's Haven in Groenkloof and the Itumeleng Shelter. "We began supporting these two Pretoria-based homes, which together care for more than 70 children, in 2005. Since then, it has become an integral part of our group's CSI initiative, 'Helping Hope Return', as children have a very special place in all of our hearts," says Johan Meiring, Group CEO of Mayibuye Group. "It is a privilege for us that our company is in a position to be able to make a difference to these young children's lives, by bringing them some hope through our visit and the gifts that were shared with the young boys and girls." When the six staff members arrived at the home, they were warmly greeted by 71 smiling faces. And those smiles grew ever wider when the children received the generous gifts that the staff had brought with them. Each child was presented with a gift bag filled with heart-warming winter woollies including a scarf, hat and gloves, as well as a party pack. The Blue staff spent time getting to know the children as they played happily together and posed for photographs with their new accessories. Through various fundraising activities at Blue prior to the visit, the staff was also able to buy a number of essential items for Bramley Children's Haven such as toiletries, cleaning materials, clothes hangers, place mats, scatter cushions, loose mats and some pots and pans. In addition, the staff has made personal donations towards a fund to purchase tiles, cement and grouting to tile the floor of one of the children's bedrooms at the home. "Our 'Winter Warmer' programme is of particular importance for these children, who are housed, fed and cared for by the manager of both homes, Linda Nell and her dedicated staff. These facilities have to rely heavily on support from the private sector and individuals' generosity to keep going. "We are delighted to be playing a role to help hope return to these young lives. It is through hope that people find the inspiration to dream of a better future and start to create it. As such, our staff prefers to play an active role by personally interacting with the communities in which we are involved, rather than by making impersonal, arms-length donations," Meiring adds. Bramley Children's Haven houses orphans from Pretoria's Groenkloof area, while Itumeleng provides a safe shelter for homeless youths from Sunnyside and the surrounding suburbs. For the Mayibuye staff involved in the project, their reward is being able to make a positive difference and bring hope to a young person's life. Staff member Bianca Human found the experience heart-warming, commenting: "The smiles on the children's faces when they received their gifts were priceless. The experience has taught me to be grateful for everything that I have." Another Blue employee, Ina van Staden, summed up the day: "I loved seeing the joy and excitement on the children's faces when they opened their lucky packets. I wish there was more we could do to support all abandoned children in South Africa. They are the future of our country and they all deserve to be treated with respect and dignity." For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS WINTER WARMTH TO KIDS IN NEED 21 July, 2011 Spreading its annual ‘Winter Warmth’ and cheer to those in need is something that private equity company, Mayibuye Group, is very good at – and 2011 is no different. Last week, a group of dedicated staff from the company visited a home for abandoned children that has etched a special place in Mayibuye’s heart – Marie’s Home for Abandoned Kids in Mayfair West. “We were first alerted to the plight and needs of this very special home in December last year and, since then, it has been included in our company’s CSI initiative, ‘Helping Hope Return’”, says Johan Meiring, Group CEO of Mayibuye Group. “Children are very close to all of our hearts at Mayibuye. We are delighted to be in a position to make a difference to these children’s lives by bringing them some hope through our visit and and the gifts that we shared with the boys and girls.” When the Mayibuye staff arrived at the home, they were warmly greeted by 15 smiling girls and boys. And the children’s smiles grew ever wider when they received the generous gifts that the staff had brought with them - a special school bag for each child, filled with heart-warming winter woollies – a hat, gloves and socks, plus warm tops for the girls and funky hoodies for the boys! The children were also treated to sweet packs as the Mayibuye staff spent time getting to know them through play and interactive games. “Our ‘Winter Warmer’ programme is of particular importance for these children, who are cared for by an incredible woman, Marie Goss. She has opened her home and her heart to these children who have nowhere else to go, yet she receives very little support from the state. Her story and her actions touched us, and we are delighted to be playing a role to help hope return to these young lives,” comments Meiring. “It is through hope that people find the inspiration to dream of a better future and start to create it. As such, our staff prefers to play an active role by personally interacting with the communities in which we are involved, rather than by making impersonal, arms-length donations,” Meiring adds. Marie’s Home for Abandoned Kids cares for babies and children who have been abandoned by their parents or orphaned. Many of them are HIV positive, but Marie is determined to give them all a better future through education and a safe place to stay. Despite living on a small income, she somehow manages to make ends meet for the children in her care and is reliant on donations and support from the private sector. “The generosity and kindness Mayibuye has shown us over the past few months is most appreciated. The children’s faces light up when the staff come for a visit and their gifts are especially welcome as we try to keep warm during these cold winter months,” says Goss. For the Mayibuye staff involved in the project, their reward is being able to make a positive difference and bring hope to someone else’s life. Staff member Kewan Naidoo commented: “The kids were so warm and full of love, and it was a fantastic experience. I tried to put myself in their shoes and it was heartbreaking because they have so little. I would love to do it more often.” With Mayibuye’s ongoing commitment to the home, this is sure to happen. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP SPREADS WINTER WARMTH TO THE AGED IN ALEX 21 July, 2011 Spreading its annual winter warmth and cheer to those in need is something that private equity company, Mayibuye Group, is quite proficient at – and 2011 is no different. Last week saw a group of staffers from the company visiting the Itlhokomeleng Old Age Home in Alexandra, north of Johannesburg, to hand out blankets and items of warm clothing to the residents of the home and to share a delicious warm meal with them. Thereafter, the more than 80 residents of the home and the staff expressed their thanks and delight for the much-needed donations with an impromptu sing-along. “Many of our staff has been actively supporting the Itlhokomeleng Old Age Home for the past five years – and our ‘Winter Warmer’ programme is of particular importance for them. It forms part of our company’s overall ‘Helping Hope Return’ CSI initiative, which also includes making sure that the elderly residents of the home are well taken care of over the Christmas period too,” explains Johan Meiring, Group CEO of Mayibuye Group. “At Mayibuye, we believe that the most important gift we can offer to those less fortunate than ourselves, is to bring hope back into their lives. It is through hope that people find the inspiration to dream of a better future and start to create it. As such, our staff prefers to play an active role by personally interacting with the communities in which we are involved, rather than by making impersonal, arms-length donations,” Meiring adds. Last week’s celebration saw the residents proudly sporting lovely, warm beanies and berets, for the men and women respectively, comfortable and snug pairs of slippers, brightly-coloured polar-fleece blankets to keep out the harsh, winter chill and sweet packs. In addition, the Mayibuye staff presented the home with four large utility boxes on wheels for use as extra storage space and to secure possessions. Itlhokomeleng Old Age Home provides care and facilities for the aged and disabled people from the community within Alexandra, and is reliant on donations and support from the private sector. “The kindness Mayibuye has shown us over the years is so special – it is a blessing,” says the home’s manager, Margerie Manganye. For the Mayibuye staff involved in the project, their reward is being able to make a positive difference to someone else’s life. Clive Dawson’s highlight of the day was seeing the joy on the faces of those receiving the gifts. He said they don’t get a lot of attention and it was obvious that they really enjoyed the attention they received from their visitors last week. Said staff member Lebohang Mahlangu: “My highlight was knowing that we were doing something that was really appreciated. They were so happy to see us, and it felt good to make them so happy.” For more information, visit www.mgroup.co.za Back to top BLUE PREDICTS 90% IMPROVEMENT, REFLECTING CONTINUING POSITIVE TREND 28 June, 2011 A trading update from Blue Financial Services today indicated that the Group will do at least 90 per cent better in the first six months of this financial year compared with the same period last year, measured inter alia on a per share basis. This follows the news of Blue’s improved 2011 financial results earlier this month, and indicates the continuation of the positive trend stemming from the turnaround plan for the pan-African financial services provider. The turnaround strategy was put in place during the second half of the 2011 financial year by private equity company Mayibuye Group. The trend refers to the movement from a loss of more than R1.0-billion for the full 2010 financial year, to a loss for the full year of 2011 of R284.9-million. It is noteworthy that the loss for the second half of the 2011 year was R116.7-million, including once-off costs and write-offs related to the turnaround of over R100-million. This implies that if the once-off costs are not taken into account, only a small loss was made during this period. Concurrent Blue and Mayibuye CEO Johan Meiring says, "Overall, we have done better than in the comparative period in 2010, and we have also seen an improvement on the second six months of the year under review, as compared with the first six month period before the turnaround was implemented." The principle reasons for this are the right-sizing of Blue’s operations to enhance cost control and the improvements that have been made to Blue’s collections processes, which have led to significant cost savings in recent months. In addition, the agreement by funders to convert R274-million of Blue’s funding obligations into equity at the end of the 2011 financial year, as well as increased production in most of the countries in which Blue operates, have had an effect on the improved results. "Blue is now focusing on maintaining acceptable provisions whilst increasing its lending activities - building on the solid foundation of enhanced systems which have been put in place as part of the turnaround," says Meiring. "We are still taking a conservative approach to achieve sustainable growth." For more information, visit www.mgroup.co.za Back to top BLUE'S YEAR END RESULTS REFLECT A 72 PER CENT IMPROVEMENT 1 June, 2011 Blue Financial Services has released its financial results for the year ended 28 February, showing a significant improvement compared with the last financial year as well as the interim results. The group reported a full year loss of R284.9-million after having reported a half year loss of R168.2-million. The additional loss of R116.7-million includes once-off operating expenses and loan advance write offs in excess of R100-million. This is clear evidence that the turnaround strategy is starting to bear fruit. In addition to the above, operational cash expenses were at an average of R30-million per month at the interim period and these were reduced by 27 per cent to R22-million by February 2011. In relation to the book, net impairments of R77.1-million reported at half year were reduced for the full year by R49.7-million to R27.4-million, after a once-off interest write off of R36.3-million. Based on the total provision release, it supports the contention that the rehabilitation of the previously provided book is gaining momentum. "The turnaround strategy is well underway and the business is now on a more solid platform to enable it to return to profitability," says Johan Meiring, who as concurrent CEO of Blue and private equity company Mayibuye, has driven the turnaround strategy. When turnaround specialist Mayibuye announced its intention to acquire a majority stake in Blue in June last year, it undertook to put in place a turnaround strategy to return Blue to profitability. Success has hinged first on right-sizing the company's expenditure to sustainable levels, rehabilitating non-performing loans with assistance from credit recovery company Pholosa Asset Management - a Mayibuye investment - and enhancing the group's compliance and control to enable it to raise quality loans. A critical part of the turnaround strategy is also to refocus on loan production. Blue has started down this route and commenced new lending, on which defaults are less than five per cent. Meiring further points out that the group has needed to concentrate on implementing new controls, systems and credit policies in collaboration with credit specialist CreditEdge - also a member of Mayibuye - to ensure sustainable new lending. This had the effect of loan advances for the full year decreasing by 30.4 per cent. "We expect to see the positive impact of a prudent approach to new lending in future periods," says Meiring. With the support of Blue's funders, based on their participation in an innovative debt rescheduling agreement, Blue has been able to defer repayment on its principal debt amounts for a period of three years. In addition, the agreement limits lenders' claims against Blue to the existing loan book only. In January this year, institutional funders further agreed to convert R274-million of debt into equity - a strong indication that the funders believed that the turnaround would yield results, as can now be seen. It can also be noted that apart from Mayibuye, which owns 51 per cent of Blue, 40 per cent is collectively owned by ABSA, International Finance Corporation (IFC), Renaissance Asset Management, Dutch Development Agency (FMO) and Pinebridge. Although not yet at the levels to be considered best of breed, there has been an overall improvement in Blue's processes, governance, internal controls and business sophistication. As a cornerstone of the turnaround strategy, Mayibuye has also re-aligned Blue's core values with those of Mayibuye Group – namely Respect, Reliability and Returns. In March, Blue rebranded to reflect the company's new ethos, direction and values, marking the start of a new era for Blue Financial Services and a definitive break with the past. As a truly pan-African micro-finance institution, Blue provides innovative micro-finance, business finance, housing finance, savings products, insurance and mobile products to low-income and financially under-served clients in 14 African countries. For more information, visit www.mgroup.co.za Back to top MAYIBUYE'S TURNAROUND AT BLUE LEADS TO DRAMATIC IMPROVEMENT IN RESULTS FOR PERIOD ENDED 28 FEB 2011 26 April, 2011 Following a turnaround at Blue Financial Services in just six months, the company has today released a trading update which confirms an improvement of not less than 75% on a per share basis in its financial results for the period ended 28 February, as compared with the same period last year. In February the pan-African financial services group said it anticipated an improvement of at least 20% for the year, but this improvement now looks to be far bigger than originally forecast – it may be more than 75% on a per share basis. While the full results for the 2011 financial year are expected to be released by end May, the audit process is almost complete and the trading update suggests that the loss incurred by Blue for the year ended 28 February 2011 will be reduced. These improvements can be attributed to the successful implementation of private equity company Mayibuye Group's turnaround strategy at Blue September last year. Concurrent Mayibuye and Blue CEO, Johan Meiring, explains the key reasons for the reductions in losses. "We have cut costs and improved collection processes through Pholosa Asset Management. We have also ensured that Blue has no further write-offs of financial and intangible assets as a result of the recapitalisation deal and its debt rescheduling agreement." The Mayibuye turnaround has impacted favourably on financial results and also provided the strategy to rebuild and sustain the business going forward. "With Blue now operating more efficiently and the business having stabilised, we are enhancing Blue's credit-granting procedures to build a solid growth platform for the future," Meiring says. Meiring points out that the full year results reflect the difficult six month period before Mayibuye's turnaround began, as well as the rapid change since the turnaround was initiated. The results for just the last six months show a large improvement in the loss when compared to the previous financial year end. "While there is a long road ahead to return Blue to profitability, the foundations of the business are now sound and we look forward to a positive year of growth through new lending." The results account for liabilities that may give rise to warranty claims that Mayibuye is entitled to settle as part of the deal which saw Mayibuye becoming majority shareholder of Blue last year. While the claims have not yet been confirmed, they will have no impact on Blue's 2011 income statement. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS EASTER FUN TO ORANGE FARM CHILDREN'S CENTRES 26 April, 2011 Last week, on 18 and 19 April, Mayibuye Group staff surprised sixty children at two children's centres in Orange Farm near Johannesburg with two special Easter parties. Children from Gatelopele Stepping Forward and the Luthando day care centre enjoyed separate parties organised by home loans provider Integer as part of private equity company Mayibuye Group's corporate social investment (CSI) programme, entitled "Helping Hope Return". Integer is one of Mayibuye's investment companies. Staff members from Integer arrived at the parties with chocolate eggs, hot cross buns and other treats for the young residents of the two children's homes. The Easter egg hunts saw the children searching high and low for chocolate eggs and Integer staff were called on for help during the enthusiastic pursuits. Integer staff member, Nthabiseng Malahlele, said, "I feel so blessed to be given a chance to visit the children at Gatelopele, it was a lovely day and we all had so much fun." The Easter Bunny, played at the Luthando centre gathering by Timothy De Jongh from Integer, was very popular with the children. He posed for photographs and handed out eggs to all the children. De Jongh said, "Hopping around as the Easter Bunny was a pleasure as the kids' faces lit up when they saw the bunny. It was wonderful to see how excited they were in finding the Easter eggs – there was great joy for me in giving back to the kids." The staff and children from both homes also enjoyed hot cross buns together and later took part in an energetic dancing competition. The events were held as part of the private equity company's CSI programme, which is aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings the spirit and fun of Easter to several children's homes around the country, with the intention of uplifting and inspiring hope in each child. Gatelopele Stepping Forward and the Luthando centre provide care for orphans and children from underprivileged families in the Orange Farm community. Mayibuye has been supporting these institutions for five years as part of its CSI programme. "At Mayibuye we believe the most important gift we can give to those less fortunate than ourselves is to help hope return and take root in their lives again," says Mayibuye CEO Johan Meiring. "It is only with hope that people are able to dream about a better life, and aspire to achieve it." "Our staff prefer to have face-to-face interaction with the people we help rather than simply giving impersonal, arms-length donations. It is a privilege for us to make an active contribution to the communities where we operate," Meiring adds. Mayibuye Group is a private equity specialist operating primarily in the credit sector. Its subsidiary companies include loan portfolio management company CreditEdge, credit recovery company Pholosa Asset Management, micro-financier Blue Financial Services and home loans provider Integer. Mayibuye's core values are Respect, Reliability and Returns. Mayibuye's CSI programme delivers material, spiritual and emotional 'Returns' to people and communities who desperately need hope to enter their lives and help create their future. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS EASTER FUN TO JOHANNESBURG CHILDREN'S HOME 21 April, 2011 Last Monday, 18 April, Mayibuye Group staff surprised twelve children at Marie's Home for Abandoned Kids, Johannesburg, with a special Easter party. The event was organised by loan portfolio management company CreditEdge as part of private equity company Mayibuye Group's corporate social investment (CSI) programme entitled "Helping Hope Return". CreditEdge is one of Mayibuye's investment companies. Ten staff members from CreditEdge arrived at the home in Mayfair with chocolate eggs, hot cross buns and other treats for the young residents of Marie's Home. The Easter egg hunt saw the children searching high and low for chocolate eggs and CreditEdge staff were called on for help during the enthusiastic pursuit. CreditEdge staff member, Naqeebah Hassenjee, said "This experience was so beautiful. I have 2 daughters - aged 4yrs and 10 months - and it was really nice to give a little love to other babies even just for a while. The highlight of my day was when one of the babies cried for me and it broke my heart to see that children are so fragile." The Easter Bunny, played enthusiastically by Esther Nkabinde from CreditEdge, was very popular with the children, posing for photographs and handing out eggs. Nkabinde said, "The kids are so amazing – just to see them enjoying the Easter Bunny and the celebration – it's the little things that make for such warmth and joy. One child in particular, called Nicole, got right under my skin and into my heart!" A giant 60cm Easter Bunny weighing 1kg, donated by Mayibuye CEO Johan Meiring, was given out as a prize for the Easter egg hunt. The staff and the children from the home also enjoyed hot cross buns together. The event was held as part of the private equity company's CSI programme, which is aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings Easter fun to several children's homes around the country, with the intention of uplifting and inspiring hope in each child. Marie's Home for Abandoned Kids is a new addition to the charities that Mayibuye supports in their Helping Hope Return CSI programme. Marie Goss, who runs the home, said, "This is such a special day for the children. Their faces shone with delight to see the Easter Bunny, and they ran around like crazy at the Easter egg hunt! Thank you so much - you have no idea how much this means to them." "At Mayibuye we believe the most important gift we can give to those less fortunate than ourselves is to help hope return and take root in their lives again," says Mayibuye CEO Johan Meiring. "It is only with hope that people are able to dream about a better life, and aspire to achieve it. "Our staff prefer to have face-to-face interaction with the people we help rather than simply giving impersonal, arms-length donations. It is a privilege for us to make an active contribution to the communities where we operate," Meiring adds. Mayibuye Group is a private equity specialist operating primarily in the credit sector. Its subsidiary companies include loan portfolio management company CreditEdge, credit recovery company Pholosa Asset Management, micro-financier Blue Financial Services and home loans provider Integer. Mayibuye's core values are Respect, Reliability and Returns. Mayibuye's CSI programme delivers material, spiritual and emotional 'Returns' to people and communities who desperately need hope to enter their lives and help create their future. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS EASTER FUN TO ATHLONE CHILDREN'S HOME 21 April, 2011 Last Friday, 15 April, Mayibuye Group staff surprised 55 children at Leliebloem Children's Home, Cape Town, with a special Easter party. The event was organised by home loans provider Integer as part of private equity company Mayibuye Group's corporate social investment (CSI) programme entitled "Helping Hope Return". Integer is one of Mayibuye's investment companies. Ten staff members from Integer arrived on the day with chocolate eggs, hot cross buns and other treats for the young residents of Leliebloem Children's Home. The Easter egg hunt saw the children searching high and low for chocolate eggs and Integer staff were called on for help during the enthusiastic pursuit. Integer staff member, Luke Bezuidenhout said, "I had a truly memorable time. Even though I don't have much exposure to children, these kids truly warmed my heart with their appreciative spirit." The Easter Bunny, played enthusiastically by Michelle Roos from Integer, was very popular with the children, posing for photographs and handing out eggs. The staff and the children from the home also enjoyed hot cross buns together. Alicia Samaai, another staff member who attended the party, said "It was great seeing the kids happy and smiling. I felt blessed to be a part of this initiative." The event was held as part of the private equity company's CSI programme, which is aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings Easter fun to several children's homes around the country, with the intention of uplifting and inspiring hope in each child. Leliebloem Children's Home, housing children from Athlone and the surrounds, has been part of Mayibuye's CSI programme for two years. Child care worker Kenny Louw said, "The children truly had a wonderful day. They were thrilled to see the Easter Bunny and really enjoyed the egg hunt!" "At Mayibuye we believe the most important gift we can give to those less fortunate than ourselves is to help hope return and take root in their lives again," says Mayibuye CEO Johan Meiring. "It is only with hope that people are able to dream about a better life, and aspire to achieve it." "Our staff prefer to have face-to-face interaction with the people we help rather than simply giving impersonal, arms-length donations. It is a privilege for us to make an active contribution to the communities where we operate," Meiring adds. Mayibuye Group is a private equity specialist operating primarily in the credit sector. Its subsidiary companies include loan portfolio management company CreditEdge, credit recovery company Pholosa Asset Management, micro-financier Blue Financial Services and home loans provider Integer. Mayibuye's core values are Respect, Reliability and Returns. Mayibuye's CSI programme delivers material, spiritual and emotional 'Returns' to people and communities who desperately need hope to enter their lives and help create their future. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS EASTER FUN TO PRETORIA CHILDREN'S HOME THROUGH BLUE FINANCIAL SERVICES 21 April, 2011 Last Friday, 15 April, Mayibuye Group staff surprised 23 children at Pretoria children's home, Bramley Children's Haven, with a special Easter party. The event was organised by micro-financier Blue Financial Services as part of private equity company Mayibuye Group's corporate social investment (CSI) programme. Since joining the Mayibuye stable of investment companies, Blue has adopted the Mayibuye corporate social investment (CSI) programme entitled "Helping Hope Return". Twenty staff members from Blue Financial Services arrived on the day with chocolate eggs, hot cross buns and other treats for the young residents of Bramley Children's Haven. The Easter egg hunt saw the children searching high and low for chocolate eggs and Blue staff were called on for help during the enthusiastic pursuit. Blue staff member, Marc Barclay said, "It was a warm and loving experience to see that something so small made such a big difference in a child's day. It was sheer magic to see when some of the kids got more eggs than others in the egg hunt, and they took aside those who got nothing and shared out their eggs with them." The Easter Bunny, played enthusiastically by Bianca Pretorius from Blue, was very popular with the children, posing for photographs and handing out eggs. The staff and the children from the home also enjoyed hot cross buns together. Alta Roussouw, a Blue staff member who attended the party, said, "It is always great to spend time with children less fortunate than your own." The event was held as part of the private equity company's CSI programme, which is aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings Easter fun to several children's homes around the country, with the intention of uplifting and inspiring hope in each child. Bramley Children's Haven, which houses orphans from the Groenkloof area, has been part of Mayibuye's CSI programme for five years, and for the first time this year is now also receiving support from Blue Financial Services. Manager of the home Linda Nell said, "The children truly had a wonderful day. They were thrilled to see the Easter Bunny and really enjoyed the egg hunt!" "At Mayibuye we believe the most important gift we can give to those less fortunate than ourselves is to help hope return and take root in their lives again," says Mayibuye CEO Johan Meiring. "It is only with hope that people are able to dream about a better life, and aspire to achieve it. For more information, visit www.mgroup.co.za Back to top SHAREHOLDERS GIVE THE GREEN LIGHT FOR BLUE TO CONVERT 325M DEBT TO EQUITY 28 February, 2011 Blue Financial Services shareholders have shown strong support for the conversion of almost R325-million rand of debt to equity by the company's funders. At the general meeting of shareholders on Friday, the vote was more than 98% in favour of the conversion, which entails Blue's key institutional funders - namely International Finance Corporation (IFC), ABSA Capital, Dutch Development Bank (FMO), RenAsset and Pinebridge - trading R274-million debt owed to them by Blue for equity in the pan-African micro-financier. In addition shareholders approved Blue's proposed BEE transaction, in terms of which Blue will convert a further R50-million of debt into equity for a future BEE shareholder. The company has recently announced its objective to raise Blue's BEE rating to a Level 3, with BEE equity ownership a key element. "The capital freed up through the conversion of a large portion of Blue's debt will significantly improve the company's capital structure and allow us to focus on sustainable growth through new lending," explains concurrent Blue and Mayibuye Group CEO, Johan Meiring. Meiring also notes that the support from both funders and shareholders for the conversion indicates the continued endorsement of Mayibuye's turnaround strategy for Blue. Under Meiring, private equity company Mayibuye Group has in recent months spearheaded a transformation at Blue with a view to stabilising and right-sizing the operations of the business to poise it for growth across the continent. Last week Blue launched its operations in Accra, with a view to capitalising on the favourable current business environment in Ghana. Through the debt to equity conversion process, Blue's new institutional shareholders now include FMO and RenAsset, while existing shareholders IFC, ABSA and Pinebridge will increase their current shareholding. For more information, visit www.mgroup.co.za Back to top NEW OPPORTUNITIES IN GHANA FOR BLUE FINANCIAL SERVICES 18 February, 2011 With Ghana identified as a key growth region, Blue Financial Services has today opened its brand new offices in Accra, Ghana. As a new era begins for the pan-African micro-financier, following the turnaround of Blue by private equity company Mayibuye Group, Blue is focusing on Ghana to capitalise on the thriving business environment the country is enjoying at present. "Blue is delighted to be entering into new business in Ghana at a time when the outlook has never been more positive for the country," says Blue CEO Johan Meiring. "The recent revision to Ghana's GDP has radically altered the macro-economic picture for Ghana, and made it a far more prominent economy in Sub-Saharan Africa. The priority currently being given to managing and maximising Ghana's energy and mineral resources is also very pleasing as Ghana looks forward to an influx of capital this year through oil sales. "With the move of the average Ghanaian upwards into the 'lower-middle income' status, we believe the people of Ghana are looking for greater financial empowerment. This, together with a favourable political climate and the pro-business reforms of recent years, makes Ghana an extremely promising area for the future growth of our business." As a responsible financial services provider, Meiring explains that Blue's mission is to be an enabler of progress, upliftment and improvement in people's lives. Blue is committed to establishing itself as a leading pan-African player, and currently has a footprint in 14 countries across the continent. "At Blue we believe that every person on the African continent should have access to financial empowerment. We are confident that Blue can make a positive contribution to Ghana through the personal financial empowerment of its people," says Meiring. Blue's initial product offering in Ghana will be unsecured loans. For more information, visit www.mgroup.co.za Back to top BLUE TO LAUNCH LONG-AWAITED BEE PROGRAMME, BEGINNING WITH BEE SHAREHOLDING 11 February, 2011 Blue Financial Services has announced its plans to introduce a broad-based black economic empowerment (B-BBEE) programme in 2011. This follows the announcement in January that Blue's key institutional funders have agreed to convert approximately R266.5-million worth of debt to equity. The pan-African micro-financier, which has offices in 14 countries across the continent, has to date not implemented BEE formally since its launch in 2001. Mayibuye Group CEO Johan Meiring, who is also the new CEO of Blue, understands that BEE is an important requirement for Blue and is committed to improving the company's BEE credentials. "It is not only imperative for Blue to fulfil its BEE obligations in South Africa in adherence with the Financial Services Charter (FSC), it is also critical, as a pan-African company, to support a programme for sustainable black economic growth across Africa," says Meiring, who has been leading the turnaround of the micro-lender since September last year. "We have done in-depth analysis on how to implement BEE most effectively and holistically at Blue, and have considered the principles established in the FSC and the B-BBEE Codes relating to key pillars of BEE, including ownership, management control, employment equity and procurement of services. The focus will start with Blue's shareholding." "The transaction with Blue already increases Blue's BEE equity ownership by virtue of Mayibuye's BEE ownership and it is the board's view that to target an effective equity ownership of approximately 15% in the medium term is a positive move," says Meiring. In order to achieve this Meiring explains that a BEE structure will be put in place whereby R50-million of Blue's debt will be converted into equity. This will not only enhance the capital structure of Blue, but will also be the start of the transformation process. "The process is currently underway, and we are considering several BEE partners. We will be announcing the successful bidders shortly," Meiring continues. Blue currently has a total staff complement of over 2000 and a footprint in South Africa, Botswana, Cameroon, Kenya, Lesotho, Malawi, Mauritius, Namibia, Nigeria, Rwanda, Swaziland, Tanzania, Uganda and Zambia. "Blue aims to uplift and empower its customers and the communities it services across Africa. We are taking these seriously as part of the birth of a new Blue," Meiring adds. For more information, visit www.mgroup.co.za Back to top BLUE TRADING UPDATE REFLECTS IMPROVEMENT OF MORE THAN 20% IN RESULTS BY END OF FEB 1 February, 2011 A trading update from Blue Financial Services today indicates that Blue's financial results for the period ending 28 February will show an improvement of more than 20%, compared with the same period last year. Mayibuye Group CEO Johan Meiring, who is also Blue CEO, attributes the anticipated favourable results as an early indication of Mayibuye's successful implementation of a turnaround strategy for Blue. Meiring explains the key reasons for the anticipated improvements. "There have been significant cost reductions as a result of right-sizing Blue and the introduction of enhanced credit and collection processes which caused improvements in provisioning. In addition, we are seeing the early benefits from the debt restructuring agreement and overall improvements in operational efficiencies and business sophistication." The debt rescheduling agreement effectively defers Blue's repayment on its principal debt amounts for a period of three years, and limits lenders' claims against Blue to the existing loan book only. "Going forward, the conversion of R266-million of debt into equity will further reduce financing costs," Meiring says. The agreement by Blue's institutional funders to convert R266-million of debt into equity was announced in January, and this promises to bolster the capital structure of the company. These actions provide a sound platform for future growth and returning the group to profitability. Meiring adds that the improved debt collection efficiency through Pholosa Asset Management is the first evidence of how Blue will benefit from synergies with other companies in the Mayibuye stable. Pholosa is a credit recovery company which was appointed to handle the debt collections for Blue in late 2010. Meiring hinted that synergies with other Mayibuye investments will further assist with Blue's growth plans. "We have also re-started lending in Africa with provisions below market norms. "These results reflect a healthier Blue, but there is more hard work ahead for us as we re-build a financially sustainable business," he concludes. For more information, visit www.mgroup.co.za Back to top CONVERSION OF DEBT TO EQUITY SHOWS INSTITUTIONAL SUPPORT FOR BLUE TURNAROUND 21 January, 2011 Key institutional funders of Blue Financial Services have agreed to convert R266.5-million of debt into equity once this has been approved by shareholders, it was announced today. The capital effectively freed up by the conversion will provide impetus for the growth of the business and further strengthen Blue's balance sheet. The agreement by funders to proceed with converting debt owed by Blue into equity indicates institutional support for Mayibuye's turnaround strategy for the pan-African micolender. The debt-to-equity concept was first approved in principle by funders last year, during the recapitalisation transaction which saw private equity company Mayibuye Group acquiring the majority shareholding in Blue. Five funders have agreed to the conversion. The International Finance Corporation (IFC) will convert around R60.5-million, RenaissanceAfrica MasterFund Limited (RenAsset) will convert approximately R44.4-million, while ABSA Bank will convert R37.4-million, Pinebridge, R43.9-million and the Nederlandse Financierings Maatschappji voor Ontwikelingslanden N.V. (FMO), circa R80-million. This means that Blue's new institutional shareholders now include FMO and RenAsset, while existing shareholders IFC, ABSA and Pinebridge have decided to increase their shareholding. "It is very encouraging to receive the continued support from our institutional shareholders and funders for the turnaround strategy, says Johan Meiring, new CEO of Blue and also current Mayibuye CEO. "The turnaround plan for Blue is gaining momentum." For more information, visit www.mgroup.co.za Back to top BLUE DEAL COMPLETE, MAYIBUYE NOW MAJORITY SHAREHOLDER 10 December, 2010 Following the conclusion of the funders’ agreement, Mayibuye Group has announced that it is subscribing for shares in Blue Financial Services today. This means that Mayibuye Group is now the majority shareholder of Blue. In terms of the lengthy and complex recapitalisation transaction, private equity company Mayibuye Group has acquired an effective 61% shareholding in the pan-African micro-financier. As a result of the transaction, Blue's financial position has improved considerably, due to R488-million of new proposed capital. This is comprised of R163-million from Mayibuye through the subscription of shares, and the proposed conversion of up to R325-million of debt to equity, which will be presented to shareholders in the near future. This also sends a strong signal that the funders believe in the future prospects of the Blue group based on the turnaround strategy. The implication is that Blue will have access to almost R1-billion over the next three years for the growth of Blue’s loan books. This is made up of R300-million in terms of a claim purchase agreement facilitated by Mayibuye, by which loans are sold to a special purpose vehicle. In addition to that almost R700-million will be provided by the existing funders of the business in terms of the Debt Rescheduling Agreement, together with the cash components of the increase in capital. With the deal now complete, the appointment of the new Blue board of directors will become effective today. Mayibuye CEO Johan Meiring has led the turnaround of Blue since September and his role as CEO of Blue has now been formalised. "It has been a long process and I am delighted that the deal has been successfully concluded," says Meiring. "I am grateful to the funders of Blue who have acted in a professional and very responsible manner throughout the process." Under Meiring’s leadership, Mayibuye has begun the implementation of a holistic turnaround strategy for Blue with a focus on restarting the company’s lending operations, cutting costs and ensuring that Blue's compliance procedures are stepped up. According to Meiring, this is all part of the process of returning Blue to profitability. "We have started implementing the recovery strategy for Blue, but plenty of hard work still lies ahead for us," Meiring adds. "We are now in the process of transforming Blue into a thriving pan-African group that will live up to its new core values of Respect, Reliability and Returns." Blue currently operates in 14 African countries. For more information, visit www.mgroup.co.za Back to top MAYIBUYE GROUP BRINGS FUN AND CHRISTMAS CHEER TO PRETORIA CHILDREN’S HOMES 1 December, 2010 Last Saturday, 27 November, Mayibuye Group staff made sure that Christmas came a little early for 73 children from two Pretoria children’s homes. The young residents of Bramley Children’s Haven and the Itumeleng Shelter enjoyed a special end-of-year party put on by Mayibuye Group as part of the private equity company’s corporate social investment (CSI) programme. The joint event took place at Laerskool Anton van Wouw in Waterkloof. Nearly 50 staff members from two of Mayibuye Group’s subsidiary companies, CreditEdge and Pholosa Asset Management, arrived on the day with individually wrapped and personalised gifts for each child. These were handed out by Father Christmas, played enthusiastically by the husband of a staff member. Back-to-school stationery for every child and other essential items which the homes urgently needed were also donated by Mayibuye Group. The staff and their families, including more than 70 staff children, enjoyed lunch and played fun, high energy games with the children from the homes. These included sack and egg-and-spoon races, which brought out the competitive spirit in children and adults alike. "The way our children interacted with the children of the home and just accepted each other was one of the highlights of the day," said one CreditEdge staff member, Amanda de Lange. The event was held as part of the private equity company’s corporate social investment (CSI) programme, which is aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings the spirit of Christmas to seven children’s homes around the country. Bramley Children’s Haven houses orphans from the Groenkloof area, while Itumeleng provides shelter for homeless youths from Sunnyside and the surrounds. Mayibuye has been supporting these homes for four years as part of its CSI programme, with the intention of uplifting and inspiring hope in each child. Manager of both homes Linda Nell said, "The children truly had a wonderful day. They were thrilled with their gifts and the delicious braai was enjoyed by all!" "Mayibuye is passionate about being actively involved in improving life for all South Africans, and it all starts with hope," says Mayibuye CEO Johan Meiring. We believe that without aspirations, which can only exist where there is hope, the human spirit diminishes to less than it can truly be. It is people’s aspirations that make them look upwards to see the stars instead of looking down and seeing only the gutter. "Our staff prefers to have face-to-face interaction with the people who we help rather than simply giving impersonal, arms-length donations. It is a privilege for us to make an active contribution to those less fortunate," Meiring adds. Puleng Zokufa and Esther Nkabinde, two other CreditEdge staff members who attended the party on Saturday, supported this view. "Seeing the joy and happiness on the children’s faces is priceless. I am glad to have been part of the experience," said Zokufa. "My kids are still talking about it now and saying they cannot wait for next year. It was a blessing to see all the children smiling and in good spirit regardless of where they came from," said Nkabinde. Tiffany, a staff member’s child (11 years old), said, "I was so happy that kids less fortunate than us could also get the opportunity to enjoy Christmas". A futher highlight of the day was the announcement that Tebogo (12 years old) from Bramley Children’s Haven was one of the winners of the annual Christmas card design competition which Mayibuye opens to children of the homes it supports. His drawing will be displayed on the Christmas cards sent to clients and friends of Mayibuye during December. "I was very excited because I did not think that I could win a competion involving art! I can now see art playing a role in my life," said Tebogo, who received a CD player for his winning design. Mayibuye Group is a private equity specialist operating primarily in the credit sector. Its subsidiary companies include loan portfolio management company CreditEdge, credit recovery company Pholosa Asset Management, micro-lender Blue Financial Services and home loans provider Integer. Mayibuye’s core values are Respect, Reliability and Returns. Mayibuye’s CSI programme delivers material, spiritual and emotional ‘Returns’ to people and communities who desperately need hope to enter their lives and help create their future. For more information visit www.mgroup.co.za Back to top MAYIBUYE MAKES SURE THAT CHRISTMAS COMES EARLY FOR ATHLONE ORPHANS 9 November, 2010 More than 70 orphans from Leliebloem House in Athlone enjoyed the spirit of an early Christmas last Saturday, 6 November, when Mayibuye Group staff members and their families put on a special end-of-year party at the home, complete with gifts handed out by Santa himself. The Leliebloem House party forms part of Mayibuye’s corporate social investment (CSI) programme aimed at uplifting the communities in which the business operates, and restoring hope to those who have almost forgotten its meaning. Every year, Mayibuye personally brings the spirit of Christmas to seven children’s homes around the country. Leliebloem House is an orphanage housing children from Athlone and the surrounds. For the first time in 2010, Mayibuye has included Leliebloem House in its orphanage Christmas programme with the intention of uplifting and inspiring hope in each child. Staff from Integer, a subsidiary company of private equity specialist Mayibuye, arrived laden with individually wrapped and personalised gifts for each child, sweets and cooldrinks and a festive lunch for everyone. The staff and their families were given the opportunity to play games such as musical chairs, pass-the-orange and three-legged races with the children from the home. Integer also arranged a band, led by staff member Andrew Anthony, which performed to a receptive audience. A supply of toiletries and other essential items which were on the home’s wish list were also provided. "We loved the music and the dancing and all the games. It made us realise that there are people out there that care about us and love us," said Merlon Wildsckut, a 15 year old resident of Leliebloem House. Child care worker Kenny Louw had this to say: "The day with the group from Integer was so blessed. I feel humbled by what has been done for the children." "Mayibuye is passionate about being actively involved in improving life for all South Africans, and it all starts with hope," says Mayibuye CEO Johan Meiring. We believe that without aspirations, which can only exist where there is hope, the human spirit diminishes to less than it can truly be. It is people’s aspirations that make them look upwards to see the stars instead of looking down and seeing only the gutter. "Our staff prefers to have face-to-face interaction with the people who we help rather than simply giving impersonal, arms-length donations. It is a privilege for us to make an active contribution to those less fortunate," Meiring adds. Vesha Poonsamy, an Integer staff member who attended the party on Saturday, supported this view. "For me personally it was the most fulfilling day, and it made me realise the importance of giving." One staff member’s child, Jordan Masimila (7 years old), said, "It was really fun and I enjoyed helping Father Christmas hand out the presents and sweets to the children. I saw how happy it made them and that made me feel happy." Mayibuye Group is a private equity specialist operating primarily in the credit sector. Its subsidiary companies include home loans provider Integer, credit recovery company Pholosa Asset Management, micro-lender Blue Financial Services and loan portfolio management company CreditEdge. Mayibuye’s core values are Respect, Reliability and Returns. Mayibuye’s CSI programme delivers material, spiritual and emotional ‘Returns’ to people and communities who desperately need hope to enter their lives and help create their future. Back to top SHAREHOLDERS OVERWHELMINGLY IN FAVOUR OF MAYIBUYE TRANSACTION, WHICH WILL SEPARATE FUTURE BLUE BUSINESS FROM PAST 29 October, 2010 A key principle underlying the Mayibuye-Blue recapitalisation transaction is that it aims to separate the future business of Blue Financial Services from the mistakes of the past. This was the message today from Johan Meiring, incoming CEO of Blue, following the positive outcome of today’s general meeting of Blue’s shareholders, during which shareholders showed overwhelming support of more than 94% for the transaction. A critical aspect of the transaction is an innovative debt rescheduling agreement which will defer cash outflows on the majority of Blue’s debt for the next three years, to assist the company to recover financially. "The strategy is for the new funding to be used primarily to grow a new book, and profitability is expected to improve as operating expenses are spread across new and exisiting books," says Meiring. "The debt rescheduling agreement is one of the complexities of the transaction which is important for the market to grasp if they are to understand how the new funding will be deployed," says Meiring, who will hold the position of Mayibye CEO concurrently with his role at the helm of Blue. "The agreement allows Blue to defer repayment on the principal debt amounts for a period of three years, and limits the existing lenders’ claims against Blue to the existing loan book only. The objective is to close the shortfall between the existing book and existing liabilities, while allowing lenders to convert debt to equity in Blue at the future share price if there is a shortfall after three years." Because of the way the deal is structured, shareholders can benefit from future business generated by the new management of Blue, while overhang from the past is ring-fenced. In other words, new income does not have to pay for the mistakes of the old Blue – the new book will not be exposed at all. "Our approach for Blue is not a quick, unsustainable turnaround. Instead we are focusing on building sustainable growth," says Meiring. "Once we have solidified the current position, we have growth plans to expand the business." He confirmed that Blue aims to retain its listing on the JSE. Back to top TV INTERVIEW 'JOHAN MEIRING EXPLAINS THE BLUE TRANSACTION' October, 2010 Back to top DELOITTE BEST COMPANIES ACHIEVER MAYIBUYE SETS SIGHTS HIGH FOR BLUE 1 October, 2010 Following Mayibuye Group (Pty) Ltd’s successes in the 2010 Deloitte Best Company to Work for survey, Mayibuye has announced that all of the key conditions precedent for its acquisition of Blue Financial Services have been met. This news signifies the official start of a new era for the JSE AltX-listed microlender, pending the results of a shareholders’ meeting in October. New Blue chief executive Johan Meiring believes that Blue can follow Mayibuye’s lead to become one of the best companies to work for in Africa. Meiring concurrently holds the position of Mayibuye CEO. "Mayibuye has been voted second in the Financial Services category of the 2010 Deloitte Best Companies To Work For survey, up from fourth place in 2009, and we are very proud to have risen to sixth place overall with our peers," says Meiring. "We are committed to making ongoing improvements in this area as part of our culture of development and growth. "With the formalisation of the acquisition of Blue after the shareholders’ meeting next month, Mayibuye looks forward to being able to accelerate the roll-out of a multi-faceted turnaround strategy to restore the company to profitability. Our goal will be to turn Blue, within the stable of Mayibuye Group and with more integration of its IP and skills, into one of the most desirable African companies to work for as well," he continues. This process will unfold under the leadership of a new board, announced by Blue today. The new board meets the requirements of King III and comprises two executive directors and nine non-executive directors of whom six will be independent non-executive directors. The designations are as follows: Chief Executive Officer: Johan Meiring; Chief Financial Officer: Shaun Strydom; non-executives: Alan Ber, Tony Couloubis, Moss Mashishi; independent non-executives: Sipho Twala, Robert Emslie, Leonard Fine, James French, Mike Meehan, Timothy Till. Twala has been appointed the non-executive Chairman of the board, while Emslie takes the position of non-executive Deputy Chairman. Meiring commented that the new Blue board brings with it a wealth of banking, accounting and legal knowledge, and a significant breadth of local and international experience and expertise, which he believes will be instrumental in providing the required leadership for Blue. Twala has held senior positions at Shell Oil, Nestle, Otis Elevator and African Bank, and is currently the chairman of 1Time Holdings Ltd, while Emslie has in the past headed Absa Corporate and Business Bank as well as Absa Africa. New CEO Meiring is the driving force behind Mayibuye Group, specialising in company turnaround for the past ten years. Mayibuye’s turnaround strategy for Blue will entail reducing costs, increasing credit recovery, improving corporate governance and risk management, and protecting the rights and interests of funders. Simultaneously there will be a focus on generating new loans on a cost-effective basis and selling additional products in the Mayibuye stable to Blue’s customer base across Africa. For more information, visit www.mgroup.co.za Back to top MAYIBUYE MOVES FORWARD WITH BLUE TURNAROUND STRATEGY 13 August, 2010 Mayibuye Group (Pty) Ltd has announced that it will shortly begin its turnaround strategy for Blue Financial services. This is in response to a request from the current Blue board to start implementing the turnaround plan. Together with the approval of the South African Competitions Authority and shareholder support of over 70%, this has prompted Mayibuye to proceed with cautious optimism. "Due to the continued poor financial performance that Blue is experiencing, it has become imperative to start the turnaround strategy even before the transaction has been fully completed," says Mayibuye Group CEO Johan Meiring. The initial phase of the turnaround will begin next week. One of the key changes is the alignment of the core values of Blue with that of Mayibuye Group – namely Respect, Reliability and Returns. This will be supported by a staff wellness programme. In addition there will be further aggressive cost cutting, revamping of Blue’s collections process and the implementation of a new credit approval process. This marks the start of a new era for Blue Financial Services and a definitive break with the past. "The transaction was heavily conditional and we have moved quickly but there are still a few issues that require resolution before the transaction is unconditional, including but not limited to regulatory and other issues that pertain to the ‘old Blue’," Meiring explains. "A new Blue board will shortly be announced that will bring with it a wealth of banking knowledge, experience and expertise, and will be instrumental in providing the required leadership for Blue. "As we have previously stated, the turnaround strategy will take 18 months," continues Meiring. "Although improvements will be seen along the way, the end of February 2012 is our target to have completed the turnaround on a sustainable basis." Mayibuye’s strategy is multi-faceted - including reducing costs, increasing credit recovery, improving corporate governance and risk management, and protecting the rights and interests of funders. Simultaneously there will also be focus on generating new loans on a cost-effective basis and selling additional products in the Mayibuye stable to Blue’s customer base across Africa. Two years ago, Blue was the highest rated share on the JSE AltX. Mayibuye – meaning ‘let it return’- invests in solid companies in the credit environment which show growth potential but have underperformed. In essence, through strategic application of its servicing platform and collection capability, Mayibuye ‘turns around’ the problem areas and restores these enterprises to excellent all-round businesses. Mayibuye is a South African company with a 27% BEE equity component, a staff complement of over 200, and a group profit after tax of R252-million for 2010. For more information, visit www.mgroup.co.za Back to top MAYIBUYE ACQUISITION OF BLUE IS A SOUND STRATEGIC FIT 21 June, 2010 In a deal worth R163-million, Mayibuye Group (Pty) Ltd – an investment specialist in the credit environment - today signed an agreement which will give it a 65% shareholding in struggling JSE AltX-listed micro-lender Blue Financial Services. Two years ago, Blue was the highest rated share on the JSE AltX. Mayibuye intends implementing a turnaround strategy at Blue Financial Services to return the organisation to profitability, before sustainably expanding a range of services into the African market. The strategic fit is a good one, according to Mayibuye CEO, Johan Meiring, who points out that the companies already in the Mayibuye equity stable have the proven credit-related core skills, service platform and credit recovery expertise to get this right. "Blue represents a growth opportunity for the Mayibuye Group, as it has a great distribution channel into Africa. In turn, we have the ability through CreditEdge (Pty) Ltd to create and service credit customers on a cost effective basis," says Meiring. Meiring is upbeat on the potential of micro-lending in South Africa and particularly Africa, saying that successful players are those that have managed to keep costs under control, effectively use people and process, and obtain funding at appropriate rates. "As the credit market is fairly mature in South Africa, the local potential lies in stabilising the business and increasing product offering. In Africa, on the other hand, there is enormous opportunity as the growing population of around 1-billion becomes more aware of micro-lending," points out Meiring. But first Meiring and his management team will need to restore Blue to profitability. To achieve this, Mayibuye’s strategy is multi-faceted - including reducing costs, increasing credit recovery, improving corporate governance and risk management, and protecting the rights and interests of funders. Once Mayibuye has achieved this, the focus will move to generating new loans on a cost-effective basis and selling additional products in the Mayibuye stable to the customer base. To reduce costs, Mayibuye will restructure the business model using CreditEdge’s servicing platform. CreditEdge is an IP-rich organisation within the Mayibuye Group that provides innovative, relevant and practical credit outsourcing solutions for business. CreditEdge currently manages more than 700 000 credit accounts in South Africa. The expertise of Pholosa Asset Management will be used to improve collections. Pholosa is a credit recovery company that provides structured solutions to consumer credit grantors through its ‘ahead of the pack’ credit solutions. All the while, Mayibuye will keep a close eye on corporate governance and sound business practices. Mayibuye – meaning ‘let it return’- invests in solid companies in the credit environment which show growth potential but have underperformed as a result of less-than-optimal business models in particular problem areas. In essence, through strategic application of its servicing platform and collection capability, Mayibuye ‘turns around’ the problem areas and restores these enterprises to excellent all-round businesses. Mayibuye is a South African company with a 27% BEE equity component, a staff complement of over 200, and a group profit after tax of R252-million for 2010. Institutional investors and funders include the likes of Investec and Old Mutual. Mayibuye’s turn-around track record includes that of the Integer Home Loans business from an R80-million loss, to a profitable organisation in under 10 months. Integer is a specialised residential home loan and related financial solutions provider whose products are innovative, fresh and competitively priced. Its flagship product is a home loan combined with transactional banking convenience and associated with a VISA-based debit card. The Blue transaction has potential to boost Integer’s success further by offering housing loans through Blue’s African distribution channel. Based on the strong turn-around strategy, Mayibuye has full support for the transaction from Blue’s major institutional shareholders. For more information, visit www.mgroup.co.za Back to top |
|
|
|
