Interfront 2023 Annual Report

THROUGH CAREFUL CONSIDERATION OF THE ASSETS INVOLVED, INCLUDING INTELLECTUAL PROPERTY, CUSTOMER RELATIONSHIPS AND TANGIBLE ASSETS, THE COMPANY HAS EFFECTIVELY UNLOCKED ADDITIONAL VALUE AND POSITIONED ITSELF FOR SUSTAINED GROWTH GOING FORWARD.” 87 FINANCIAL INFORMATION PART It is worth noting that the company’s successful execution of these transfers reflects its astute decision-making, meticulous planning and efficient implementation strategies. Through careful consideration of the assets involved, including intellectual property, customer relationships and tangible assets, the company has effectively unlocked additional value and positioned itself for sustained growth going forward. Statement of Financial Performance Rendering of services increased by 58.47% compared to the previous year, largely attributed to the additional income generated by the two new teams. Additionally, interest income rose by 48.5% due to significant increases in interest rates throughout the year. Employee costs saw a notable increase of 67.4% due to the addition of the eFiling and e@syFile teams. Administrative expenditure, excluding the abnormal once-off recruitment fee, grew by 26.4%, primarily driven by additional IT expenses associated with the newly acquired staff. There was an above-inflation increase of 8.27% in average salary, though a direct comparisonwith theprevious year is not viabledue to the inclusion of the two transferred teams (2023: R67 090; 2022: R61 966). The average staff count increased by 42.7% (2023: 155.9; 2022: 109.3). To address the lack of internal development skills and the scarcity of such skills in the market, Interfront continued to engage external developers, albeit at a reduced cost of 35.1% in the year under review. Auditors’ remuneration saw a significant increase of 120.8%, primarily because the previous year’s figure did not include the fee for internal audit, due to the timing of the audit activities. Notwithstanding, the volatility of the rand, Interfront recorded a marginal forex profit during the year. Currently, the limited risk associated with foreign revenue does not warrant hedging against future exchange rate fluctuations.