Chairperson’s Report
I am pleased to present my first Chairpersonโs report to Super Groupโs stakeholders on behalf of the Board of directors and to reflect onย theย Groupโs achievements and progress over the past year.
First and foremost, I express my appreciation to our valued shareholders for their support and trust in our vision. Your continued confidenceย has been instrumental in our success, and we remain committed to maximising shareholder value.
In a year marked by unique challenges and ongoing socio-economic volatility, Super Group has continued to demonstrate resilience, adaptability and ingenuity. Our dedicated team of employees has worked tirelessly to navigate market uncertainties and manage risks, whileย leveraging opportunities and achieving significant organisational milestones.
Super Group capitalised on its diversity, scale and technology to deliver a strong financial performance. Against a backdrop of intensified consumer cost pressures and protracted supply chain disruptions, the business continued to leverage the opportunities inherent in challenging markets. Super Groupโs competitiveness was evidenced by significant new client wins, contract renewals and market share gains. This performance is a testament to the Groupโs quality leadership, a robust growth strategy and adaptive business models. Theย Board is accordingly pleased to declare a cash dividend of 80ย cents per share.
Global trends impacting our markets
In guiding and evaluating strategy, the Board actively monitors and analyses global trends โ identifying those most relevant to Superย Groupโs markets and industries while focusing on trends that have the potential to disrupt the Groupโs business models or createย new opportunities. Supported by experienced committees and management teams, the Board ensures that insights gainedย from this analysis are incorporated into strategic planning and risk management processes.
- Geopolitical tensions. The world is grappling with a range of complex geopolitical tensions that have the potential to significantly impact global stability. The competition for economic and technological dominance has intensified, leading to strained political relationships and potential flashpoints. Ongoing regional conflicts and territorial disputes have added fuel to existing tensions, with escalating rivalry between major powers. The war in Ukraine continues to affect the global economy, driving higher commodity prices and supply chain disruptions.
- Macroeconomic volatility. High inflation and a steep rise in interest rates have placed the global consumer under increasing pressure, eroding purchasing power and reducing standards of living. In many countries, the impact has been exacerbated by high unemployment rates and the increasing inaccessibility of healthcare and housing.
- Supply chain disruptions. The fallout from the Covid-19 pandemic and the ongoing war in Ukraine are still evident in global supply chains, with a scarcity of key components, delivery delays and extended lead times remaining problematic.
- Changing consumer behaviour. Partly out of economic necessity, consumers have become more selective and demanding, seeking personalised experiences, convenience, sustainability and social responsibility. Businesses have had to adapt to these evolving expectations, tailoring their business models, products and services accordingly.
- Digitisation and the rise of artificial intelligence (AI). Rapid technological advancements โ such as AI, machine learning, automation and digitisation โ are transforming industries and operations. These technologies have become essential for competitiveness and growth, offering fertile opportunities for increased efficiency, improved decision-making and innovative business models.
- The transition to a low-carbon economy. Environmental concerns have come to the fore globally, with businesses expected to reduce their carbon footprint, adopt renewable energy sources and incorporate sustainable practices throughout their value chains. Customers, investors and regulators are increasingly evaluating companies based on their environmental initiatives.
- Workforce transformation. Accelerated by Covid-19, the nature of work has undergone significant changes due to automation and digitisation. Flexible arrangements and the gig economy have led to a shift in workforce dynamics and management practices. Companies are focusing on upskilling and reskilling their employees to meet the demandsย of a digital era.
Read more about how Super Group is leveraging the opportunities inherent in these trends in Divisional performance.
BOARD FOCUS AREAS IN 2023
Ensuring the Groupโs ability to create sustainable value is always on the Boardโs agenda. This is all the more important in volatile times when agility is needed to manage risk and leverage growth opportunities. Read more about the Groupโs financial performance.
A focus on effective cash generation and management of working capital saw the Group remain highly cash-generative, providing the required flexibility to respond to market changes and seize growth opportunities. Super Group continued to investigate value-accretive acquisitions as part of its growth strategy, with the balance sheet providing significant capacity to make acquisitions that complement our existing business and enhance our competitive advantage. Readย more about the Groupโs latest acquisitions.
An awareness of shifts in the macro-environment, market trends and changing stakeholder needs enabled the Board to effectively assess the risks that could impact Super Groupโs value creation capability. The Board reviewed the material matters and associated risks facing the Group, while carefully assessing the extent and effectiveness of the mitigating actions in place. Read more about Super Groupโs material matters and risk management.
Super Groupโs technological capability enhances its competitive advantage and enables the Group to better serve its clients and address their evolving needs. Technology has become an essential part of the Groupโs DNA, influencing everything from training to solution design.
The Board interacted with executive management to understand the digital products and solutions in development, those that have been successfully implemented, and the benefits being realised as a result. Read more about Super Groupโs innovative technology.
The Board is acutely aware that while technology presents countless benefits, it also presents significant risk. Cybercrime has become a global scourge and mitigating cyber risk is critical for business continuity.
The Board ensures that the Group continually evaluates its cyber risk exposure and evolves its pre-emptive and reactive plans to ensure the integrity of IT systems, processes and infrastructure in the event of a cyber-attack. Read more about Super Groupโs cyber security measures.
In a business spanning multiple geographies and industries, governance is a complex and critical focus area. Failure can have far-reaching consequences for the business and its stakeholders.
Maintaining strong corporate governance practices is thus of paramount importance to the Board. We oversaw the Groupโs ongoing work to enhance governance frameworks and ensure transparency, accountability and the highest ethical standards across all levels of the Group.
Supported by its committees and management teams, the Board routinely reviewed the systems in place to ensure compliance with legal and regulatory requirements. Read more about our governance report.
The impact of climate change on the business and its stakeholders remained a focus area. Extreme weather events such as floods, heatwaves and wildfires continued to take place at unprecedented rates.
The Board considered such events from multiple related perspectives, including ways of minimising the impact of the Groupโs activities on the environment, business continuity consequences, and the effect ofย sustainability initiatives on efficiency and cost saving.
The Board is satisfied with the progress made across the Group in implementing sustainability initiatives that positively impact the environment and organisational effectiveness. Read more here.
The Board is pleased with the improvements made in monitoring, measuring and recording key metrics related to environmental performance. A useful snapshot of key metrics is available.
Leveraging technology and partnering with market leaders has improved the Groupโs ESG disclosure and helped us better understand our global environmental performance.
Ensuring that the Board has the appropriate mix of skills, experience and tenure remained a priority. The Board welcomed Jack Phalane, who brings a wealth of legal and commercial experience, as an Independent Non-Executive Director at the end of September 2022. Read more about the composition of Super Groupโs Board and its expertise and experience is available here.
The transition of the chairmanship of the Board was carefully managed, with a seamless handover from Phillip Vallet. My institutional knowledge and long-standing relationships with my Board colleagues have served me well in my new role, and I look forward to serving the Group and its shareholders into the future.
With the important objectives of continuity, stability and strategic alignment, the Board increasingly applied its mind to the issue of executive succession. Identifying and fostering a pipeline of qualified candidates who possess the necessary skills, knowledge and experience to transition into executive roles when the need arises, was subsequently identified as an essentialย responsibility of the current leadership.
BOARD CHANGES AND APPRECIATION
The AGM in November 2022 saw the retirement of Phillip Vallet and my appointment to the role of Chairperson. I would like to thank Phillip for his counsel over the many years we were Board colleagues. His support and guidance in anticipation of my chairmanship has been invaluable, and I am grateful for his generosity in sharing advice.
I also express my gratitude to my fellow Board members for their contributions. Super Group is fortunate to have such a dynamic group ofย individuals serving on its Board, and I look forward to continuing our collaborative journey.
In conclusion, I extend my appreciation to our executive leadership, dedicated employees, loyal clients and valued shareholders for theirย significant contributions to Super Groupโs success. We will continue to forge a path of excellence and drive sustainable growth.
Valentine Chitalu Chairperson 29 September 2023