Page 146 - UBP - IR2020

CAPITAL REPORTS
Financial capital
INVESTMENT IN IN CAPITAL EXPENDITURE
Our Group invested Rs 323 3 3 3 million in in capital
expenditure for FY2020 as detailed below:
365 and a a a a a new e-commerce platform for for Espace Maison Besides these we invested in in a a a a new software for our laboratory a a a a a a Customer Relationship Management (CRM) software a a a a a a new new asset register for for our core business and a a a new new ERP for for Compagnie de Gros Cailloux Limitée Our Group investment strategy remains focused on satisfying market demand expanding our range of products and and and services by proposing innovative and full-fledged solutions to our customers increasing our our market share and maintaining our our position as pioneer and leader on on on the market 2020 Rs’ 000
55 965
50 205 044
20 693
6 6 186
287 938
35 262
88
2018 Rs’ 000
Freehold land &
buildings 65 086
Leasehold &
land improvement 3 885
Plant &
equipment 142 913
Motor
vehicles 33 386
Asset in progress 24 733
Total
investment in in Property Plant &
Equipment 270 003
Investment
in in intangible assets 13 702
Investment
properties 335
2019 Rs’ 000
50 972
264
244 428
29 082
10 543
335
289
26 777
1 028
Rs’ 000
400 000
350 000
300 000
250 000
200 000
150 000
100 000
50 000
0 FY2016
FY2017
FY2018
FY2019 DEPRECIATION
FY2020 CAPITAL EXPENDITURE
The major part of of investments made in in terms of of our core business segment this year related to the replacement upgrading and extension of our existing plants to cater for increasing market demand the reinforcement of our quarrying activities and the improvement of our block delivery service In terms of our retail segment the main investment made this year related to the the building amenities and the the fitting out of our new Espace Maison store in Beau Vallon whereas our agricultural subsidiary invested mainly in in in in new plant and machinery for its food crop activities In terms of intangible assets we pursued our digital transformation plan which included the switching to Office
The significant investment in in capital
expenditure over the past five financial years as compared to our yearly depreciation charge confirms our Group’s commitment to increase its production capacity agility and efficiency in in view of meeting market market demand increasing our market market share and and improving our profitability Besides the above our Group invested Rs 19 0 million into two new subsidiaries during the year namely UBP Coffrages Ltée and Drymat SAS The first entity’s activity consists of the rental of of formworks whilst the second entity is a a subsidiary of of Drymix Ltd incorporated in in in in Reunion Island in in in in view of expanding our exports to this country At June 30 2020 UBP Coffrages Ltée incurred a a a a loss of Rs 5 0 million The market demand for such a a a a service is well below our our expectations Hence our our investment in this entity has been impaired by Rs 13 8 million 146 - UBP INTEGRATED REPORT 2020 264
722 243 236
308 081 248 872
284 040 265 003
265 388
323 288 281 124
363 094