What a boring subject. I would rather be talking about entrepreneurship, but this is important stuff! Should companies, even start-ups, have monthly management accounts? Entrepreneurs have a “feeling” of how a business is doing. A lot of business people will gauge the success of their business on how much money is in the bank.  While both methods might seem “adequate”, how do you really know what the actual situation of your company is? What are your trends? Are you growing or slowing down?


Management accounts are a necessity, period. Any entrepreneur worth their salt will make sure that they have monthly figures prepared by competent people. You need to know exactly how your business is doing financially and that can only be determined through management accounts. Although spouses can assist, it’s better to get the professionals involved.


It does not have to be an expensive exercise. The best option is to go for a monthly retainer that includes:

 

  • Management accounts;
  • VAT, PAYE and other returns;
  • CIPC returns;
  • Yearly financial statements;
  • Company tax return;
  • Personal tax returns.


For an average company R1, 500.00 per month should be sufficient to cover all the aspects detailed above. It is a good idea to have the same person that handles the company tax also handle the personal tax.


Also, management accounts should be compared to budgets. If you’re not on track to meet your own budgets, analyse why and fix the problem. We will be covering how to compile budgets and forecasts in our next blog. Again this is another process that is important.


Management accounts are not only important for the reasons stated above, but the following parties are also interested in seeing your results:

 

  • Bankers;
  • Your suppliers especially, if you want to negotiate extended terms;
  • Business partners.


If you’re trying to secure investors for your company, investors will ALWAYS ask for management accounts. It adds an enormous amount of credibility if they are properly prepared and you have a good understand as to where your company is financially. Furthermore they would probably conduct a due diligence, therefore your management accounts must be accurate. If during a due diligence process discrepancies are picked up, you can kiss your investor good bye.


In conclusion, have you hugged your accountant lately?

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COPY OF SHAREHOLDER COMMUNICATION

 

This document is important and requires action. If you need assistance in completing this offer please contact us through our Cape Town office on +2721 683 2425 and speak to our consulting director, Tony Malek.

 

Caban Capital Plc

 

Caban Capital Plc was established in 2013 as the holding company of Caban Investments Limited. The aim of the company is to establish a platform for the international expansion of the Caban business model. Caban Capital Plc will list on AIM of The London Stock Exchange with the aim of increasing its liquidity and for future capital raising purposes.

 

Caban Investments UK Limited, a subsidiary of Caban Capital Plc, will emulate the successful South African business model. It is the intention to start with a corporate finance company, TBL Capital UK Limited, which will be the first UK Service Provider. Caban Investments UK Limited is 70 % held by Caban Capital Plc.

 

The Offer

 

Caban Capital Plc hereby offers to 70% of your shareholding in Caban Investments Limited on a 10 to 1 basis at GBP 0.15 per share. This is an exchange of shares and there is no cash alternative.

 

Illustrative Example

 

If you hold 100,000 Caban Investment Limited shares and you accept the offer you will receive 7,000 Caban Capital Plc shares at GBP 0.15 per share. At the current exchange rate, it represents ZAR 2.74 per Caban Capital Plc share or ZAR 0.27 per Caban Investments Limited share.

 

Caban Investments Limited

 

The offer is for 70 % of your shareholding. You will receive a share certificate for the balance, that being 30% of your original shareholding.

 

Share Certificates

 

On the acceptance of the offer, you will receive two share certificates by 30 April 2014:

 

1.    Caban Capital PLC;
2.    Caban Investments Ltd for the remainder of the 30% not taken up by Caban Capital PLC


Listing

 

The company will list on the AIM sector of the London Stock Exchange on 4 September 2014. We advise our shareholders to hold onto the shares once the company has listed. We will advise our shareholders when it will be opportune time to start cashing in on some of the gains. We would like to let the listing settle first before any major selling takes place as this will have an impact on the share price.

 

Action Required

 

On receipt of this offer document, you’re required to send us an email accepting or rejecting the offer so that we can start preparing the company for the listing. The offer closes on 21 February 2014 (extended till 30 June). This offer is administered by TBL Capital Limited. All emails to be sent to Robin Botha on This email address is being protected from spambots. You need JavaScript enabled to view it. .

 

On Behalf Of the Board,

 


Ben Botes
Joint CEO
Caban Capital PLC

It has been a while since our last newsletter. Over the period some significant milestones have been achieved which are detailed in this newsletter. The Caban Group is growing at a fast pace. This growth puts us in a better position to fulfil our stated commitment to assisting entrepreneurs.


BBBEE Competition


Our BBBEE Competition was finalised early as there was a clear winner. The team based in the North, officially now known as Investure (Pty) Ltd,  which was declared Caban’s BBBEE transactional partner in October last year. The South team were the runners-up and are now known as Diversified Investment Group (Pty) Ltd. Both companies are now active businesses.


Further, Investure has acquired two interests in their role as our transactional partners:

 

  • 26.1 % of LifeStraw CSI (Pty) Ltd
  • 26.1% of United Renewable Energy Group (Pty) Ltd


As a result of the competition, the members of Investure asked us if they could be our Gauteng representatives. The intention was always to have representation in Gauteng and after due consideration, TBL Capital Gauteng (Pty) Ltd was established as a joint company equally held by the Caban Group and the members of Investure. Dylan James Media Gauteng (Pty) Ltd, also as a joint venture, is in the process of being launched. Dylan James Media Gauteng’s first project is a charity calendar of art donated by the legendary Prof. Kirendra Thathiah, entitled “Remembering the Great Baobab”. More information on this will be available shortly.

Service Providers


We have restructured the holding within the group of the three main service providers. Caban Investments Ltd now holds 51% of each service provider which are run as subsidiaries.

 

  • TBL Capital (Ltd) Pty – Financial Services Cluster;
  • Dylan James Media (Pty) Ltd – Creative Cluster;
  • Caban Enterprises (Pty) Ltd – Sales and Marketing Cluster.


This streamlines the group and allows us to focus on the key areas of entrepreneurship development. Within the three main clusters there are a range of services that are detailed on our website. As per our business model, these services are provided on credit to the businesses that successfully apply. The entrepreneur only pays for the services once the company is showing profits. For the risk, Caban Investments Ltd acquires shares in the company.


Caban Enterprises


A business’ survival is squarely linked to its ability to sell its product or service. Recognising that not all business owners are specialist sales professionals, the Caban Investments Ltd executive team decided to establish a business that focusses solely on selling. The establishment of Caban Enterprises, headed up by sales veteran Tony Malek in the role of Sales Director, strengthens the groups’ offerings and adds massive value to the group.
Caban Enterprises will be further expanded during the course of the year and will be a significant contributor to Caban’s profits.


Caban’s Investments


Caban Investments Ltd, as a result of its business model, has shares in the following companies:

 

  • 40 % - United Renewable Energy Group (Pty) Ltd
  • 25 % - LifeStraw (Pty) Ltd
  • 40 % - Investure (Pty) Ltd
  • 40 % - Diversified Investment Group (Pty) Ltd
  • 25 % - OG Safety (A Close Corporation in the process of being converted into a private company)


A range of services have been provided to the above companies. The next phase is to have them fully capitalised by the end of April 2014. Particulars of the various companies can be obtained through the company website.


Ambassadors


We are proud to announce that Jared Pillai has joined the group as an Ambassador. Jared is a serial entrepreneur, an eccentric, fast-paced marketing professional, advisor to emerging companies, a speaker on entrepreneurship, marketing, social media and product development, founder of Million Baby, inventor of TodPod and is passionate about Innovation, web technology and startups.


A runner up in season 2 of the Big Break Legacy reality TV show and a national finalist in the 2013 step-up technology innovation awards, he is also the founder of @PreneursUnite movement which is about creating a global entrepreneurial society bringing entrepreneurs together in promoting entrepreneurship via networking events locally and soon globally.


Jared adds great value and is passionate about making a difference to local and international entrepreneurs. We welcome Jared to the team!


Directors


The company has appointed the following new directors over the period:

 

  • Mark van Hoff


Their bios are reflected on our website. The board now consist of 5 members. We are currently seeking a suitable Chairman for the company.


UK Operations


Two new companies were established in United Kingdom. Caban Capital Plc has been established as the Group’s holding company and will be listed on the AIM sector of the London Stock Exchange. The purpose is to raise capital in a regulated environment to be partly invested in emerging economies through Caban Investments Ltd in South Africa.


Caban Investments UK Limited has also been established. This company will replicate in the UK the successful business model that we are currently rolling out in South Africa. 

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