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Financial Results 2015
F.E.A.R CORPORATION
Web: www.ibmatteu.wordpress.comMail: [email protected]: +263 77 325 8478
Creativity | Technovation | Charity
EXECUTIVE STATEM
ENT
I begin by thanking you for the continued support throughout the year as we endeavour to improve people’s lifestyles.
We have achieved a lot and learnt a lot over the past year and we look forward to reach other milestones in the coming year. We remain motivated by passion and desire to do good and not by the fear of failure. We remain guided by the principles creativity, innovation and charity.
It’s the desire to improve people’s lives that toggles our creative and innovative minds in search of viable and sustainable solutions.
Thank you to our clients, associates and partners for the cordial working relationship during the successful year.
Hoping for a more prosperous year ahead.
Ittai Bryan Corporation President
ANN
UAL REPORT
Quarter Ended 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. TotalFiscal year 2014Revenue 8,215 13,650 13,000 33,620 $36,835 Gross profit 6,735 7,045 1,560 7,811 30,119Net income 2,614 1,549 1,315 720 8,168Fiscal year 2015Revenue 26,150 13,650 13,000 9,161 61,961 Gross profit -1,620 -7,045 -1,560 -1,751 -11,976Net income -2,528 -8,463 -2,563 -3,700 -17,254
(1) Includes charges totaling $750 (pre-tax) related to the acquisition of equipment for HOSE and $3115 in payments for VMP.
(2) Includes stock-based compensation charges totaling $220 for the employee stock option transfer program.
(3) Includes charges totaling $756 on (pre-tax) related to FEAR Group subsidiaries and other matters.
(4) Includes VAT payments totaling $3,000(5) Includes consultation fees during prospecting to set up GETIShop
Market Risk
Revenue 2015
42%
22%21%
15% 1st Qtr2nd Qtr3rd Qtr4th Qtr
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
-10000-8000-6000-4000-2000
0
Gross Profit Net Income
Interest rates Currency rates Equity prices Commodity prices0
40
80
2014 2015 AverageFiscal Year 2015 Annual Report
Fiscal Year 2015
MARKET SU
MM
ARY ANALYSIS
Market Distribution2015 Sales Figures
Our perennial 2nd Quarter boost was smaller than expected but it contributed towards consistent figures in 3rd Quarter and ultimately a stable year. Distribution of sales across the geographic markets shows a steady we continue rallying towards less depressed international markets.
Our new product lines (HOSEzw and Anarchy), released this year, are promising to take off though early in their adoption phase. We expect to see substantial revenue contribution from these products over the next two years.
Our local operations were hampered mainly by rising cost of business and high borrowing cost amidst falling demand.
Financial Summary
1st Qtr 2nd Qtr
3rd Qtr 4th Qtr0
2
4
6
8
10
Zimbabwe AfricaIntercontinental
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr0
5
10
15
20
25
30
OMP MBM GETIAgroFearo HOSE
BUSIN
ESS SUM
MARY
Market Share by Division
Group Member 2012 2013 2014 2015
GETI 5.3 % 5.1% 5.2% 7.0%
OMP 1.3% 2.3% 2.2% 2.7%
AgroFearo 12.0% 11.0% 8.9% 9.2%
MBM 0.5% 0.8% 1.1% 1.0%
HOSE 2.3% 2.9% 4.2% 6.1%
(1) Percentages based on domestic comparison to competitors in directly related industries.
(2) Percentages based on standing at the end of each fiscal year.(3) Values provided by a third party agency.
Organizational Structure
F.E.A.RCorporation
[GETI]Green Engineering
& Technology Innovations
[OMP]OpenMinds
Publications
[MBM]Merchant
BlackManagement
AgroFearo HOSE
Corporate & Social Responsibilities
Business Process Model
Summary
This has been a pivotal year for the company in growth, but also development of our infrastructure and business processes. We’ll continue to focus on strengthening our internal systems over the next year.
Specific growth areas include HOSE where The Corporation has seen a 6.7% increase in market share over the last two years. An area to monitor closely is OMP where local market share has dropped significantly.
Efforts are underway to operationalise GETIShop and MBM within the coming year. The institutions are expected to boost local revenue earnings.
Creativity
Optimization
Operation
Consultancy &
Support
Modification
GROU
P FUTU
RE PROSPECTS
Way ForwardThe growing ICT industry and ancillary services plus market appetite for digital media across the nation is expected to raise the group operations by 18% in the 1st quarter of 2016. Going forward, the group will undertake the following initiatives to unlock further profitability;
Focusing on growing the market share in the e-book industry
Reviewing the current portfolio of engineering section in GETI and operationalization of GETIShop
Increasing business through technology consultancy targeting SMEs
Exploring opportunities for synergies and partnerships with both local and international partners to raise low cost capital
Expanding through MBM into micro-financing to cushion low income earners
CORPO
RATE & SO
CIAL RESPON
SIBILITIESThe Corporation remains true to the principle of charity and has contributed towards the welfare of children and the less priviledged in the community.Voluntary Mentorship Program has continued to assist youths with educational materials and youth guidance and mentoring. In 2015, the program disbursed more than $3,000 towards educational assistance.Technology Initiative Africa has consistently provided technical and technological assistance to youth in marginalised areas like St. Paul’s Musami. TIA working with GETI targets to enroll rural youths for an MSiT certificate which will empower them with relevant digital skills in the information age.
e: [email protected] t: +263 77 325 8478
