Industry Overview. 4 LETTER FROM THE BOARD INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 THE AGREEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 INFORMATION ON HARVEST WELL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 INFORMATION ON SAFE2TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 SERVICES PROVIDED BY SAFE2TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 BUSINESS MODEL OF SAFE2TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 LICENCES AND MEMBERSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 SALES AND MARKETING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 SETTLEMENT METHODS AND CREDIT TERMS WITH CUSTOMERS AND SUPPLIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 AWARDS AND ACCOLADES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 CUSTOMER SERVICE AND QUALITY CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 HUMAN RESOUCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 INTELLECTUAL PROPERTY RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 FUTURE BUSINESS PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 FINANCIAL INFORMATION ON THE HARVEST WELL GROUP . . . . . . . . . . . . . . . . . 33 FINANCIAL INFORMATION ON SAFE2TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 DUE DILIGENCE REVIEW ON THE HARVEST WELL GROUP . . . . . . . . . . . . . . . . . . 36 COMPETITIVE STRENGTHS OF SAFE2TRAVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 REASONS FOR THE ACQUISITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 FINANCIAL EFFECTS OF THE ACQUISITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 FINANCIAL AND TRADING PROSPECTS OF THE ENLARGED GROUP . . . . . . . . . . . 40 GEM LISTING RULES IMPLICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 RECOMMENDATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...
Industry Overview. Nigeria's demand for LPG grew rapidly from 34,000 MT in 1980, to about 129,000 MT in 1990, however. due to epileptic supply and downtime of the nation's 4 refineries there was recurrent scarcity of the product leading to the decline in consumption and subsequent adoption of kerosene and firewood as alternative domestic fuels. With the entrance of the Nigerian Liquefied Natural Gas (NLNG) company there has been relative stability and guaranteed supply of LPG and this has led to a growth in consumption. Due to problems that plagued the industry prior to the intervention of NLNG there is a gap in the market in terms of cylinder/accessories, distribution infrastructure and coastal storage terminals to absorb the new supply. Considering market potential, roughly 1.230 million MT of Liquefied Petroleum Gas (LPG) or cooking gas await investors in Nigeria. The market for LPG will continue to expand as a result of increased awareness of LPG as an efficient energy source. To calculate the potential market size of the LPG market in Nigeria we considered the population of 150 million and the number of households in the country currently estimated at 9 million. The average home consumes one 12.5kg cylinder a month or 150 kg annually. This translates to 1.35 million MT per annum (l MT = 1,000 Kg) [n view of the total consumption in the country of about 120,000 MT, there is a market balance of about I .230 million MT per annum awaiting potential investors. Nigeria's LPG market is estimated to have a potential of over N37 billion per annum, with 50 per cent rate of return on investment. Further evidence of the untapped LPG market in Nigeria can be gleaned from a country-by-country comparison: Nigeria consumes 0.5 kilogram per capita per annum compared with Cameroon, Cote d'Ivoire, Ghana and Senegal with a combined average of 3.7 kilogram per capita per annum. Current State of the LPG Industry
Industry Overview. The restaurant industry is an important driving force in the economy. According to the National Restaurant Association there are over 1 million locations across the United States, employing at least 10% of the workforce and contributing to at least 4% of the nation’s GDP. Based on the latest reports from the National Restaurant Association, the industry registered approximately $709.2 billion in 2014. The industry has experienced moderate growth over the past five years as the national economy recovers from the economic slow down, with per capita income starting to increase, unemployment has begun to ease and consumer confidence continues to improves. Consumer Spending Consumer Preferences Consumer Confidence
Industry Overview. As a developing country, the demand for electricity is increasing day by day in Bangladesh. The growth in demand is almost 10% a year. On January 2015, installed power generation capacity was 10,817 MW. Transmission and Distribution networks also improved over the period. There are 63 plants have been commissioned, 33 plants are under construction and 22 projects are under tendering process. Population's access to electricity increased from 47% to 68% between FY ‘09 to FY ‘14. Per capita electricity consumption increased from 220 KWh to 348 KWh over the same period. Transmission and distribution (T&D) losses declined to 14.13% in FY ‘14 from 18.45% in FY ‘09. Private sector’s contribution in this sector is also notable amid government’s effort. For instance, the share of private power supply in terms of installed capacity increased from 26% in FY ‘08 to 46% in FY ‘14. Bangladesh power sector is heavily reliant on gas. As on January 2015, 61.8% power producing plants are gas based, 29.2% are fuel oil based, 4.6% are imported, 2.3% are coal based and 2.1% are Hydro based. The Country’s demand of petroleum products is mainly sourced by import from different countries and some are sourced from local gas fields. The Country’s oil refinery companies obtain the crude oil and gas condensate and conduct necessary procedures to transform these raw materials into various finished petroleum products. The Eastern Refinery Ltd. (ERL), a subsidiary of BPC, is supplying around 40% of the country’s current petroleum products’ demand. Besides ERL, there are other five private oil refinery companies in Bangladesh. Company Fundamentals Market Cap (BDT mn) 26,361.3 Market weight 1.0% No. of Share Outstanding (in mn) 133.1 Free-float Shares 24.3 Paid-up Capital (BDT mn) 1,331.4 3-month Average Turnover (BDT mn) 50.8 3-month Return -14.2% Current Price (BDT) 198.0 52-week price range (BDT) 35-338.8 Sector Forward P/E 12.3 2011-12 2012-13 2013-14 2014-15 (6m Xxx.) Financial Information (BDT mn): Sales 1,367 1,447 5,056 9,584 Operating Profit 536 582 996 1,711 Profit After Tax 273 243 449 1,177 Assets 6,602 8,209 11,112 10,495 Long Term Debt 2,911 3,268 2,609 2,167 Equity 2,683 2,914 3,214 4,010 Dividend (C/B)% N/A N/A 25/5 -/- Margin: Gross Profit 42.3% 43.6% 22.8% 20.2% Operating 39.2% 40.2% 19.7% 17.8% Pretax Profit 20.6% 21.3% 10.4% 13.4% Net Profit 20.0% 16.8% 9.3% 12.1% Growth: Sales -3.9% 5.8% 249.4% 89.6% Gross Profit -1.9% 9.2% 82.9% 67.4% Operating -3.0% 8.5% 71.2% 71.8%...
Industry Overview. The role of software continues to evolve in today’s businesses, and software is a vital part of today’s economic landscape. As software is utilized to make businesses more efficient and profitable, the products used to create software become more innovative. Competitive advantage is often obtained by finding new uses of this important enabler. The same principles that guide businesses to become more productive also guide the software development industry itself. In addition to making software more productive, software is also utilized to make software developers more productive. New software development languages and platforms for rapid application development (“RAD”) continue to enable today’s enterprise applications to be developed more efficiently. Software development tools take advantage of these new technologies to automate tedious and repetitive tasks. Two software development initiatives that are rapidly gaining momentum in the software development industry are J2EE and .NET. Of these two competing technologies, J2EE has been gaining traction in the software industry since the mid 1990s. Industry giants IBM, BEA and Sun continue to Table of Contents advance this technology as well as compete for market share. The .NET initiative is newer but has been gaining ground due to the market power of its champion, Microsoft. These two initiatives bring greater levels of complexity to the software development community. New systems must often co-exist with legacy systems. In some cases these legacy systems will be integrated with new technology; at other times they are simply phased out in favor of new technologies. To integrate these systems, new technologies such as Web Services are entering the market. Web Service technology allows interfaces to be defined to legacy and new systems and published for use. In addition, Web Services hold promise for exposing system interfaces to a greater number of applications. However, native Web Service development is a tedious task. Software development tools move this task from tedious to simple by automating most of it. In addition to technological complexity, large projects introduce their own complications based on the size of teams and the size of the overall project. Also, the size of today’s software project continues to grow. Size becomes a complexity issue as the number of communication channels grows exponentially with the number of people on a given project. The result is that software development of today’s e...
Industry Overview. As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, managed services, ERP, HCM, WMS, CRM, and BI. Additionally, we have our own development staff building software solutions for various ERP enhancements. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. The majority of our customers are small and medium businesses. Organic Growth Our organic growth strategy is to increase our market penetration and client retention through the upgrade of, and expanded sales efforts with our existing products and managed services and development of new and enhanced software and technology solutions. Our client retention is sustained by our providing responsive, ongoing software and technical support and monitoring and maintenance services for both the solutions we sell, and other client technology needs we provide. Repeat business from our existing customer base has been key to our success and we expect it will continue to play a vital role in our growth. We focus on nurturing long-standing relationships with existing customers while also establishing relationships with new customers.
Industry Overview. The International Energy Agency is scheduled to release its annual World Energy Outlook report on November 10th. We cannot provide any assurances as to the International Energy Agency’s new forecast for global oil demand, including potential substantial downward revisions from its prior forecast.
Industry Overview. From 1990 to 1997, home healthcare was among the fastest growing segments of national healthcare expenditures because, among other things, it provided low-cost healthcare services to many homebound patients. During this period, home healthcare expenditures rose from $3.7 billion to $17.8 billion. The Balanced Budget Act of 1997 (“BBA”), however, was drafted to substantially decrease Medicare expenditures over five years and targeted the home healthcare industry to generate approximately 14% of the total savings—a number that exceeded the industry’s percentage of total Medicare spending. Medicare-certified (Part A) home health nursing agencies and providers of respiratory therapy to Medicare patients were most impacted by BBA’s cuts. In the two years following BBA’s passage, a significant number of nursing and home oxygen providers closed nationwide. Precipitating the impact of the BBA were media reports highlighting fraud at many levels of the industry. The government’s declarations that as much as 40% (later shown to be less than 3%) of all home health billing claims might be fraudulent only exacerbated regulatory scrutiny. Legislative attention was gained when the rapid increase in Medicare home health expenditures was shown to be disproportionate due to an increase in the number of home health visits provided to each patient as opposed to an increase in the number of beneficiaries receiving services. From 1990 to 1996, Medicare beneficiaries receiving home health services increased from 1.9 million to 3.6 million, or 89%, while the number of home health visits provided to each beneficiary increased from 36 to 79, or 119%. These statistics, pointing to an overutilization of services, moved Congress and the Health Care Finance Administration (“HCFA”) to overhaul the Medicare home health payment system. The payment reform imposed per beneficiary cost caps in addition to existing per visit cost-limit caps. This modified payment methodology—also known as the Interim Payment System (“IPS”) negatively impacted the industry as well. Medicare home health nursing expenditures decreased from $16 billion in 1997 (pre-IPS) to approximately $7 billion in 1999. Congress mandated the move to a prospective payment system (“PPS”) effective October 1, 2000. PPS compensates providers by paying on a 60-day episodic or prospective basis for homecare and on a per-patient day for hospice care. It allows providers to keep any profits collected from maintaining costs below a pro...
Industry Overview. As a value-added reseller of business application software, we offer solutions for accounting and business management, financial reporting, managed services, ERP, HCM, WMS, CRM, and BI. Additionally, we have our own development staff building software solutions for various ERP enhancements. Our value-added services focus on consulting and professional services, specialized programming, training, and technical support. The majority of our customers are small and medium businesses. Organic Growth Our organic growth strategy is to increase our market penetration and client retention through the upgrade of, and expanded sales efforts with our existing products and managed services and development of new and enhanced software and technology solutions. Our client retention is sustained by our providing responsive, ongoing software and technical support and monitoring and maintenance services for both the solutions we sell, and other client technology needs we provide. Repeat business from our existing customer base has been key to our success and we expect it will continue to play a vital role in our growth. We focus on nurturing long-standing relationships with existing customers while also establishing relationships with new customers. Enterprise Resource Planning Software Strategy Our ERP software strategy is focused on serving the needs of our expansive installed base of customers for our Sage 100, Sage 500 , and Sage BusinessWorks practices, while rapidly growing the number of customers using Sage Intacct and Acumatica. We currently have approximately 5,000 active ERP customers using one of these five solutions, including customers using certain add-on support products to these solutions. In the past, we had focused primarily on on-premise mid-market Sage Software solutions, but in the past few years, we have focused on cloud ERP solutions. This has allowed us to increase our average deal size and to keep pace with the changing trends that we see in the industry. Geographic Expansion Generally, our technology offerings require some on-premise implementation and support. When we expand into new geographic territories, we prefer to find qualified personnel in an area to augment our current staff of consultants to service our business. The need for hands-on implementation and support may also require investment in additional physical offices and other overhead. We believe our approach is conservative. We may accelerate expansion if we find complementary busine...
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