Sacos holds shareholders’ meeting-● Declares R60 dividend per share – a return of 34% on investment |25 July 2012

Members heard that 2011 proved a year of good results, despite growing competition, and the meeting recommended a dividend of R60 per share. This amounts to the total sum of R12 million, representing a 34.28% return on investment.

At the packed gathering in the Seychelles Trading Company’s conference room, Sacos chairman Michel Felix noted this is an increase of dividend to shareholders from R50 in 2010.

“We remain conscious of the need to build up our retained earnings and maintain a good level of shareholders funds, which will stand at R117 million after dividends.

Mr Felix said with the challenging business environment, competition was intense last year and will likely continue for some time.

“We have noted continuous approaches made to our existing clients who are being offered higher discount rates than the norm -- as high as 30%. In many cases, we have had to make concessions to ensure that we do not lose our good clients. Furthermore, we have had to relook our strategy to continue driving the business forward.”

The group’s full-year performance for 2011 has once again delivered significant profitable growth, which shows confidence in the future of the company. The consolidated results showed profit before tax of R33.62 million (compared to R27 million in 2010). After provision for business tax, Sacos is left with R26.16 million for disposal.

Life insurance remains the most profitable line of business.  The Life department has continued with its policy of investment for better returns and improving value to policy holders.

Rental incomes increased considerably as a result of additional income from the Quincy Village flats. This will further improve in 2012 with the 18 units at Anse Etoile, now all leased. Sacos is also planning the construction of 50 to 60 more units at Anse Royale in two phases, to be followed by development of two other properties at Anse Aux Pins and Majoie.
Demand for housing units far surpass supply.

Overall the Life Fund is progressing well and in the last five years has risen from R142 million in 2006 to R338 million in 2011.

There were suggestions that shareholders be given priority for rental of Sacos properties. The managing director, Antonio Lucas, announced the setting up of the Sacos Finance Company, which instead of being used for hire purchase, as initially planned, will also be used to issue loans to shareholders for commercial purposes.

One shareholder stated that the stock exchange – which he said is persistently being delayed -- is being used as a pretext not to sell any more shares.

One Sacos director said the stock exchange has already been licenced and it will be decided in due course whether to put new shares on the market.

It appears that health insurance was a line of business neglected by Sacos. That was linked to confusing information about the types of cover issued. It has now been confirmed with Sacos’ partner, SWAN Insurance of Mauritius, that any patient with health insurance is covered once the panel of mainly private doctors here confirms that the treatment is necessary.

Countries where patients can go for advanced medical care are Mauritius, India and South Africa. In most cases, the patient is accompanied by a companion paid for by the company on behalf of the health insurance policy holder.

One shareholder suggested that since a good share of the health insurance clients are women, there is a need to include obstetricians and gynaecologists on the panel.

At the end of the meeting, two insurance agents, Dolor Ernesta and Daniel Lafleur, received awards for outstanding work with the company.

Mr Ernesta received the Certificate of Achievement for being the best salesman, while Mr Lafleur was the best insurance broker.

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