Skip to content Skip to footer

The Year 2020/21 – By Stevie Ferreira

The year 2020 will remain in our thoughts for a very long time, although for the wrong reasons. For some it represents a very sad story; for others it was a very inconvenient year; and then there is the group for which it was the year of opportunity! At Renati we decided to adopt an attitude to look for the opportunity in the storm. There is a saying ” in every failure or storm there is a seed of success and peace”. It is very easy to get into a caretaker mindset where you only protect what you have. We have intentionally made it our goal to attack growth and use the time during lockdown regulations to prepare for exponential growth, to develop new product functionality and to offer our customers a better service than before Covid. Therefore, it is no surprise that we finished our financial year end on 28 February 2021 as one of the best years in the history of the group and business. The group’s capital reserves were more than adequate to weather the storm of Covid. There was no need for any retrenchments and employees were remunerated with full benefits!

The group’s business strategy and decision to only trade on a cash basis stand us in good stead against the financial risk of debtors’ inability to pay accounts. The disruptive technology nature and digital business approach of the group’s activities positioned the business perfectly to deal with the new Covid 19 business environment. We were able to service customers better and quicker than any of our competitors in the market with daily on the minute accurate information on the availability of diesel. This was especially proven to be true during the period from May 2020 to August 2020 when the country had a severe shortage of commercial diesel and where TFN achieved a 30% growth in fuel volume turnover compared to the same period the previous year. It was during this same period in August 2020 that TFN reached its 20m litres on-road volume turnover goal, and since then is already halfway to its next goal of 25m litres turnover for a month.

As mentioned, we did not slow down during Covid lockdown. We completed our product and technology partnership with Standard Bank in November 2020. In terms of the partnership Standard Bank provides TFN clients with a fuel credit facility for both on-road and bulk fuel purchases. The TFN product offer has since been extended to Standard Bank’s own clients. Needless to say, we are very excited on the impact that this relationship can have in our business with regards to growth and the potential to double our current on-road volume. We also successfully established the TFN/Linebooker partnership, where TFN offers Linebooker transporters fuel against their accumulated credit for services delivered for Linebooker. This smart and clever alternative way of digital factoring is a great and much cheaper alternative for transporters to obtain cash flow for fuel purchases and is expected to expand very quickly to other similar service providers.

So what lies ahead for 2021? A lot of new exciting ventures! Renati Exchange is officially launching its digital fuel trading platform in the market. The fuel trading platform has the objective to change a very formal and traditional wholesale supply industry into an entirely deregulated marketplace where end buyers have access to buy directly at the source of supply, instead of through a few layers of fuel brokers and small wholesalers. We are launching through Renati Technology a number of new technology products for the fuel industry, which includes a comprehensive fuel wholesale administration software, a technology advanced and much affordable homebase refuelling management solution, and system integration options with oil majors for B2B fuel purchases. This year also gave rise to a new exciting Fintech product which is launched and introduced to the market through Renati Capital. The product will revolutionize the market with regards to the availability of much needed credit to the SME business sector.

On the financial front the growth in business and turnover in all the group subsidiaries yielded a 42% increase in the consolidated group profit for the year. With all the expansion initiatives implemented in 2020/21 and new products and services we contemplate launching and introducing to the market, we are confident to achieve a 20%+ bottom line growth for the 2021/22 financial year.   

Suffice to say, Renati Group and its subsidiaries are very healthy and we are excited and are looking forward to what 2021/22 financial year holds for us. We have the seed in the ground to grow the group fuel volume, turnover and profit exponentially for the next 2 – 3 years. Our technology arm expansion in other sectors like Fintech, Customs and Forwarding and software products is the start of our diversification strategy into other business sectors, which will bring a new level of stability and capital value to the Group. It will be a gross injustice not to thank all the employees and management in the Group and its subsidiaries for their hard work and contribution towards all our achievements and growth. You are the biggest asset in the Group! And lastly, but not least, a BIG thank you for all the support of our customers, suppliers and partners; our guarantee to you is even better service and products in the future. Helping you to grow your businesses even bigger!

Leave a comment