01 Mar

Caban Group of Companies: Our three year journey

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Today marks the third year since the company was officially launched. Conceptualised in 2012 and launched on 1 March 2013, the company has come a long way since then. It was initially a tough task to persuade people to invest in our unique business model, a model that is disruptive in our approach to venture capital, but we managed to secure the investment needed. Our business model and overall approach has also received accolades from established private equity practitioners in the global capital of private equity – London – where we are now head-quartered. 

 

We have created a new business model to assist entrepreneurs. Our belief is that entrepreneurs require more than just cash. They require a range of services and mentorship to lift the profile of the company to increase sales and obtain start-up or developing capital for their company. More often than not, the entrepreneur does not have the necessary resources to afford the required services to achieve the above goals.

 

I am proud to do a brief analysis of our accomplishments so far: 

 

Investments

 

In total, the Caban Group of Companies has interests in 52 operations. Of the 52, nine are based in the UK while 43 in South Africa. For a full listing, please go to www.cabancapital.co.uk/portfolio.  

 

We have interest in renewable energy, technology, media, financial services and whole host of other exciting industries. While the criteria is a strong return of investment, due care is taken in the selection. This is a list that is growing all the time and we will start with some exits during the beginning of 2017. Our first dividend declaration will be February 2018.

 

Entrepreneurs and Jobs Created

 

Our purpose is to generate profits for our stakeholders. Our mantra is to assist entrepreneurs, our collective passion. We have to date assisted over 60 entrepreneurs in various ways resulting in jobs for themselves and they have employed over 20 staff. Together within the Caban Group of Companies, we have created over 100 jobs and are growing all the time. This figure will reach over 300 in the current financial year. 

 

Management Team

 

Due to our business model (a collaboration of independent entrepreneurs), the Caban Group of Companies boasts an experienced entrepreneurship team who are highly qualified consisting of:

 

  • 5 CA (SA);
  • 1 LLB, 1 LLM;
  • 2 MBA, 2MSC, 1Mphyl;
  • 6 Bachelor Degrees

Furthermore, the Cabanites boast a whole array of diplomas and other significant qualifications. These highly qualified entrepreneurs are invaluable to the success of the Group and offer enormous support to companies and entrepreneurs alike. 

 

We believe that only entrepreneurs can mentor other entrepreneurs. All the above Cabanites are entrepreneurs.

 

Financials

 

Over the years we have raised R3,8 million in capital. From this low capital base, we have achieved the following:

 

Net Income for the respective years: 

 

  • Feb 2014     R5,7 million;
  • Feb 2015     R9,8 million.

 

Total Assets for the respective years: 

 

  • Feb 2014   R11 million;
  • Feb 2015   R22,5 million.

 

The above was achieved while only increasing group operational costs by 3% year on year. 

 

With 220 million shares issued and the register closed, the net asset value per share as at February 2015 was 8,2 cents. On an 8 historical PE, the shares are worth 36 cents per share. Results are available for download on the shareholder login page. Investors who do not have login details please email  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

UK and Listing

 

The company is held through our UK holding company, Caban Capital PLC. This was created to obtain capital through global markets and to roll out our unique business model globally. We have an impressive team headed by Ben Botes based in London. After assessing various markets for over a year, it has been decided to list the company onto the ISDX growth sector. Strand Hanson has been a tremendous support in making this complex decision. 

 

Community Investment Companies (CIC)

 

Caban is innovative in its approach to business. One of our greatest achievements to date is the creation of three Community Investment Companies (CIC). Our company is a private equity company committed to achieving returns for our investors. We have applied our business model to make NPOs, NGOs and communities self-sustainable. At this point I must emphasise that this is not a corporate social investment (CSI) initiative. These projects are done for profit. A percentage of a CIC is held via an NPO and the sharing of the profits the NPOs become self-sustainable. 

 

Through Mgcawu Holdings in the Northern Cape we are officially the corporate advisor's to the N//nǂe – the Bushmen of the Kalahari. N//nǂe means "people" in ǂNuu, one of the oldest languages on earth. In Atlantis and Khayelitsha we have partnered with organisations that provide nutrition and care for children and the elderly. Beyond making these organisations financially sustainable, there is also a transfer of skills through mentorship.

 

We are proud to have Strand Hanson (the third biggest merchant bank in London) as a partner in these initiatives.

 

Influence

 

We have 100 000 followers on social media and are followed due to our positive message and advice we give through our various platforms.

 

So what about our future?

 

There are three incubators on the horizon, a listing on the ISDX, new partnerships to be negotiated, our own investment fund, additional entrepreneurs will be joining us and finally raising capital for our incubatees. That's just a taste of what's to come.

 

I would like to thank the Cabanites that have made the above achievements possible. It has been an awesome journey so far!

 

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