The past year again reinforced an enduring lesson of operating in emerging markets: sustainable success is rarely the product of favourable conditions alone. Rather, it is forged through resilience in the face of volatility, adaptability amid structural shifts and disciplined stewardship over capital, people and partnerships. In FY2025, CA&S demonstrated each of these attributes with distinction.
I am pleased to present the 2025 Integrated Report, which provides stakeholders with an overview of the group's performance, governance and outlook.
Economic backdrop and operating environment
Macroeconomic conditions across the group's footprint remained demanding throughout the year. Currency volatility, divergent inflation trends, shifting interest rates, supply-chain disruptions and infrastructure constraints continued to define the operating environment.
In South Africa, early signs of recovery began to emerge, supported by incremental structural reforms in energy and infrastructure. While overall growth remains subdued, these measures are gradually strengthening the foundation for a more resilient medium-term outlook.
The broader context, however, remained complex. Domestic policy friction within the Government of National Unity weighed on investor sentiment and slowed the pace of reform, while heightened geopolitical tensions and trade tariffs contributed to global market volatility.
Encouragingly, moderating inflation and a firmer rand provided some relief and created scope for potential interest rate easing. Nonetheless, persistent structural constraints – including high unemployment and underinvestment in infrastructure – continued to limit the pace of economic expansion.
Financial performance
Despite the challenging environment alluded to, CA&S delivered another set of commendable results. Headline earnings per share increased by 17.1%, underscoring the quality and sustainability of earnings generated by the business. The group also declared a dividend of 28.69 cents per share for the year, amounting to a 17.4% increase on the prior year. In considering dividend distributions, the board remains mindful of maintaining an appropriate balance between returning value to shareholders and reinvesting in the business to support long-term growth and capability development.
The group continues to maintain a strong balance sheet and sound cash-generation capability, providing the flexibility required to pursue strategic acquisitions while preserving resilience in uncertain economic conditions.
One such strategic acquisition was CA&S' investment in Trapin Holdings Limited (Tradco), acquired during the reporting period as part of the group's geographical expansion strategy. This investment strengthens the group's presence in Kenya and across key East African markets, enabling it to deliver an expanded range of solutions to both new and existing clients.
Further details of the group's financial performance are provided in the annual financial statements on the company's website, www.cas.group.
Value creation
I am pleased with how we continue to create value for our shareholders and other stakeholders. Since listing on the JSE in June 2022, we have, inter alia:
- grown the business from turnover of R8.0bn to R12.8bn;
- grown the share price by 194% from R5.05 to R14.84 per share;
- distributed R282.7 million in dividends to shareholders;
- expanded into three new markets;
- created an additional 5 084 employment opportunities; and
- contributed R27.9 million to socio-economic development initiatives.
I am confident in the ability of our current management team to build on the progress made and unlock further value through strategic clarity and disciplined execution.
Sustainability and stakeholder outcomes
The group's long-term success remains closely linked to the social and environmental contexts in which it operates. Trust, responsible conduct and constructive stakeholder engagement are fundamental to sustaining value creation across our markets.
The board continues to oversee the integration of environmental, social and governance considerations into strategy, capital allocation and risk oversight. ESG is therefore embedded in how the group operates and engages, rather than treated as a separate initiative.
During the year, the group continued to invest in corporate social initiatives, with a particular emphasis on youth development and education. These initiatives support economic participation and strengthen the communities that underpin the group's long-term operating environment.
In parallel, selected operations progressed environmental initiatives aimed at improving energy efficiency, reducing emissions and supporting more sustainable supply chains. Further detail on ESG performance is provided in the sustainability review on pages 61 to 69 of this report.
Corporate governance
The CA&S board comprises of highly experienced individuals who bring with them a range of differing, yet complementary perspectives, ensuring that decisions are informed not only by business considerations but also by the broader socioeconomic context in which we operate.
Corporate governance at CA&S remains grounded in the board's role as the central point of accountability and stewardship. The board continues to align its governance practices with applicable regulatory requirements, including the South African Companies Act, the JSE Listings Requirements, the BSE Listings Requirements and the King Code.
During the year, the group commenced preparations for the transition to King V™ in the 2026 financial year. The board approaches this transition pragmatically, focusing on governance enhancements that strengthen transparency, decision-making quality and reporting integrity, while maintaining governance practices that are practical and outcome-focused.
Further information on the group's governance framework is provided in the corporate governance report on pages 71 to 73 of this report.
Outlook
Looking ahead, the board recognises that global and regional economic conditions are likely to remain complex and fluid. Trade policy developments, geopolitical dynamics and shifting global supply patterns will continue to influence operating conditions across our footprint.
Despite these uncertainties, the board retains confidence in the long-term opportunities presented by Southern and East Africa. Structural growth drivers, including demographic expansion, urbanisation and increasing consumer participation, continue to support demand across the group's markets.
The board believes that CA&S is well positioned to pursue these opportunities through continued investment in capability, digital integration and operational excellence delivered with cost discipline.
The board recognises that each phase of progress brings new responsibilities and our stewardship will remain focused on preparing the group for the opportunities and challenges that lie ahead.
Appreciation
As the African proverb reminds us, "It takes a village to raise a child". Similarly, the growth and resilience of CA&S as a successful dual-listed, pan-African growth company rest on the collaboration, trust and long-term partnership of many role players, whose contributions are invaluable to our success. Accordingly, I would like to extend my sincere appreciation to:
- my fellow directors for their guidance, stewardship and constructive challenge during the year, and to the Chairpersons and members of our board committees for the diligence with which they discharged their responsibilities;
- Duncan, Frans and the executive leadership team for their commitment, continued focus and consistent delivery in a demanding operating environment;
- our employees across all territories for the professionalism and dedication that underpin the group's performance;
- our clients, partners, customers and the communities in which we operate; and
- our shareholders, for your continued support and confidence in our business.
It remains a privilege to serve CA&S stakeholders and to contribute to the continued development of this proudly African organisation.
Johan Holtzhausen
Chairperson