2021/22 AT A GLANCE
During the past financial year, we achieved revenue of R99.7m, even though we were trading normally for only three months of the year. The recovery in revenue has been pleasing but return to profit will be gradual due to operational costs over the pandemic period.
THE ART
OF RESILIENCE
MESSAGE FROM THE MAYOR OF CAPE TOWN
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MESSAGE FROM THE PREMIER OF THE WESTERN CAPE
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MESSAGE FROM THE CHAIRPERSON OF THE CTICC
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REVIEW BY THE CHIEF EXECUTIVE OFFICER
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FOREWORDS
The CTICC is the leading conference venue on the African continent and is designed to welcome international, regional and local conferences, exhibitions, trade fairs, banquets, film and photo shoots and other events to South Africa and the Mother City. Our complex consists of two buildings, CTICC 1 and CTICC 2, connected by a Skybridge, allowing people to meet, work together, flourish and find solutions. We provide a wide range of venue, food and beverage options – from large auditoria, exhibition halls and boardrooms to office space, warehousing, storage and cafés.
BACK INTO BLOOM
"We have cemented a reputation that sets the global standard for excellence in adaptive and inspirational event hosting"
ABOUT THE CTICC
In April 2022, KwaZulu-Natal (KZN) was struck by severe floods, resulting in landslides that caused the death of over 400 people. 40 000 people were displaced and more than 12 000 homes were destroyed. The floods also damaged roads, schools, sanitation, health and community services, leaving countless people destitute and at risk of infection. When the dust settled, clinics, hospitals, mortuaries and communities needed one important resource – clean drinking water. The Gift of the Givers Foundation answered this call and partnered with the CTICC to assist.
A STORY OF SOUTH AFRICAN HUMANITY
THE GIFT OF RESILIENCE
In the year under review, 226 events were held, compared to 53 in the previous year. Event numbers revised more quickly than anticipated, bearing in mind that the final health and lockdown regulations were only lifted on 22 June 2022, just before the financial year-end. International events only began again from the third quarter in 2022, so international delegate numbers are significantly down. In line with our forward-thinking approach, we continued to host as many events as possible, while also diversifying our event offerings and embracing flexibility.
EMERGING FROM THE FIRE
THIS YEAR’S EVENTS
The long shadow of the coronavirus, along with several other particularly South African socio-economic headwinds, loomed over the country in the year under review. Covid-19 travel and meeting size restrictions continued to affect our revenue in the first two quarters, only really opening up for large events in the fourth quarter. However, our revenue rose to R99.7m compared to the R52.1m reported in 2020/21. In line with this, we anticipated that we would return an earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of R91.4m but we managed to reduce it to R34.0m (a 63% improvement on target). As business levels improve, revenue and cash generation will also improve.
OUR EVOLVING ECONOMY
OUR ECONOMIC CONTRIBUTION
The year in review was marked by continuing lockdowns, which eased in 2022. We did our best in these circumstances to continue delivering visibly and substantially on the social aspects of our long-established environmental, social and governance (ESG) commitment. The total value of our community support work this year has risen substantially due to several important venue sponsorships, chief of which was the Gift of the Givers water collection point we provided in April 2022. Such venue sponsorships grew the value of our corporate social responsibility (CSR) support to R2.5m for the 2021/22 financial year. In addition, there were several community activations, both with our Local Community Partners (LCPs) and other organisations in need.
PROMOTING RESILIENT COMMUNITIES
OUR SOCIAL PARTNERSHIPS
The end of the year in review saw the extensive relaxation of health-related restrictions on gatherings. This meant that we could finally completely open our doors again, bringing back, in full force, the passionate service for which we are well known. We were pleased to be able to re-hire some permanent staff and welcome back our seconded staff. It is thanks to our resilient employees that we maintained our excellent client satisfaction score. With them, we are unstoppable.
RECLAIMING A FUTURE
"Our people have risen to the challenges presented by Covid-19 and their commitment continues to inspire us all"
OUR RESILIENT
PEOPLE
This financial year, event numbers rose considerably as business activity revived after lockdown regulations were lifted. Just as delegate and visitor numbers increased, so too did our energy and water use, along with waste production. Our water consumption increased by 26.2% and we experienced a 17.8% year-on-year surge in energy usage. Greenhouse gas emissions also rose and we diverted 200 metric tonnes of waste from landfill. Despite these figures, we remain committed to sustainability and are dedicated to the United Nations Global Compact (UNGC), as well as the global Sustainable Development Goals (SDGs).
STAYING SUCCESSFULLY SUSTAINABLE
OUR VITAL ENVIRONMENT
The Board of Directors is committed to upholding good ethical standards and applying corporate governance principles in accordance with the King IV Report on Corporate Governance for South Africa, 2016™ (“King IV™”). During the year under review, we established the Strategic Subcommittee and engaged with key stakeholders.
ENSURING BEST PRACTICE GOVERNANCE
"King IV encourages organisations to take a proactive approach to corporate governance, which is exactly what the CTICC is doing"
GOVERNANCE
In some ways, the pandemic forced us to “pause”, to stop and think – particularly during hard lockdowns. This time provided us with the space and quiet we needed to think out of the box and create a new future for the CTICC. And so, we began a germination phase, much like a flower before bloom. This process led to the formation of our new strategy. We believe the result will be as striking as the phoenix-like protea itself. We also grew our own events segment, secured 11 new conferences during the year under review and over 70 events have been confirmed from December 2022 to November 2029.
FORWARD TO A SMART NEW TOMORROW
THE FUTURE
The Annual Financial Statements consist of the Directors' Responsibility Statement, the Report of the Directors, the Risk Management Report, the Company Secretary’s Certificate, the Board Committee Reports, the Report of the Auditor-General, the Statements of Financial Position and Performance, the Statement of Changes in Net Assets, the Cash Flow Statement, the Statement of Comparison of Budget and Actual Amounts, Accounting Policies, as well as the Notes to the Financial Statements and General Information.
OUR FULL FINANCIAL REPORT FOR 2021/22
ANNUAL FINANCIAL STATEMENTS
