Interfront 2024 Annual Report

INTERFRONT ANNUAL REPORT 2024 Financial Report Five-Year Financial Overview STATEMENT OF FINANCIAL PERFORMANCE Description 2020 2021 2022 2023 2024 Rendering of services 112 536 279 105 363 506 108 405 948 171 790 485 215 828 131 Interest and other 4 241 825 1 450 850 1 427 710 3 041 629 3 499 004 Expenditure (119 136 291) (118 166 081) (117 869 059) (187 421 011) (213 521 935) EBT (2 358 187) (11 351 725) (8 035 401) (12 588 897) 5 805 200 EAT (2 361 021) (8 769 728) (6 383 966) (9 793 627) 4 078 142 STATEMENT OF FINANCIAL POSITION Description 2020 2021 2022 2023 2024 Total assets 106 960 416 86 202 838 80 298 775 81 061 430 87 367 198 Total liabilities (18 482 521) (19 090 519) (19 570 421) (30 126 704) (32 354 330) Total net assets 88 477 895 67 112 319 60 728 854 50 934 726 55 012 868 Equity/‌Shareholder’s loan (12 595 853) 1 1 1 1 Accumulated surplus (75 882 042) (67 112 319) (60 728 353) (50 934 725) (55 012 867) Statement of Financial Performance Interfront’s financial performance for the year yielded a net accounting surplus of R4 078 142, in stark contrast to the deficit of R9 793 627 in 2023. That deficit was attributed mainly to the one-time recruitment fee of R5 561 186 incurred during the section 197 transfer facilitating the acquisition of staff for the development and support of the eFiling solution. Over the past two financial years, Interfront has undergone significant changes, with the incorporation of two new teams and their associated product lines, which have led to a 78% growth in staff numbers. Although it has faced internal challenges stemming from these two section 197 transfers, Interfront takes pride in achieving a modest accounting surplus in the reviewed year, having overcome various obstacles. The 25.6% increase in service delivery compared to the previous year can be largely credited to the enhanced revenue from the e@syFile stream, now contributing for a full 12 months versus only three months in the prior financial period. Furthermore, interest income surged by 27.5%, attributable to marginal rises in average interest rates and increased cash on hand due to revenue growth. Employee costs climbed by 21% due to the inclusion of the e@syFile team for the entire 12-month period, compared to only three months in the previous fiscal year. Although the average salary saw a modest increase of 1.85% (2024: R68 332, 2023: R67 090), a reduction