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AFRICAN DAWN ANNUAL REPORT 14

Comments from the Board continued Trading Conditions and Operational Review The Local Market The Gross Domestic Product (GDP) in South Africa contracted an annualized 0.60 percent in the first quarter of 2014 over the previous quarter. High unemployment and pressure on available domestic spending continues to impact on the micro lending space in South Africa. The unsecured lending space continues to be widely covered in the media and this market has come under pressure as consumers battle the debt trap resulting in higher bad debts being reported. Elite Elite continues to maintain good market creditability and exceptional systems in the unsecured lending space. The period under review remained challenging given the events that had transpired in the economy. Elite has not relaxed its credit criteria in assessing affordability and would rather retain a healthy credit quality in its book. Debt Management The internal bridging business remains a collection book which has proved very challenging to collect. Appreciation  The board extends its appreciation to the management and staff of the Group for their efforts during this reporting period. We also thank our customers and suppliers for their continued support. Jacques Groenewald EA van Heerden CA(SA) Acting Executive Chairman Financial Director AFRICAN DAWN 8 ANNUAL REPORT 2014 5 August 2014


AFRICAN DAWN ANNUAL REPORT 14
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