SIMON BROWN: I’m chatting now with Keith McLachlan from Integral Asset Management. Keith, I appreciate the early morning time. Pepkor results were out a couple of weeks ago, and of course, everyone knows that’s Ackermans; it’s Pep itself. Those are the big brands.
Then they’ve got the cellular of the business, where it distributes SIMs and cellphones. It’s very, very successful. Large proportional phones sold in South Africa are already out of this. And at the same time, the SIMs allow them, once they’ve been activated, to actually earn annuity income out of it.
SIMON BROWN: I was double-checking this morning; in their last set of results, which is a half-year set of results, they mentioned Flash four times. That’s it – four times in the entire thing. [To] give you a sense, in the last set of results management turnover was up 11% as R15.8 billion cash digitised in their ecosystem will convert to revenue, but they reported revenue in terms of IFRS that was down 8%. So you are empowering traders to sell items they couldn’t. And you are empowering consumers and traders with real optionality in terms of how they consume as well, if IFRS really doesn’t like it, but at the core you receive the business; it’s in the ecosystem.