Chairman's Review

Since its inception 11 years ago, GPI has consistently been driven by two passions: to become a profitable and successful enterprise in the gaming and leisure industry, while at the same time uplifting and rewarding its thousands of shareholders. To achieve this GPI had to show exceptional growth, as well as maintain a regular dividend flow.

Over this period GPI’s share value has grown by a phenomenal 1 687%, from the original investment of R28 million to a net asset value of R1,6 billion.

GPI has also, through its participation and leadership, consistently sought to ensure that its investments are optimally leveraged for the benefit of all stakeholders and the broader community.

This is because our corporate business philosophy is to invest in transformation, thereby not only unlocking wealth for shareholders, but also embracing a philosophy that advocates an integrated approach to good governance. This is over and above the standard financial and regulatory aspects of corporate governance.

GPI subscribes to the principles of the Code of Corporate Practices and Conduct set out in King II, acknowledging that there must be a move away from the single bottom line (i.e. profit for shareholders) to a triple bottom line which embraces the economic, environmental and social aspects of a company’s activities. In this regard, we are privileged to have empowered our shareholders with the confidence and understanding to trade in the formal market.

Pleasing financial results

I am pleased and proud that GPI released its maiden financial year-end results on 2 September 2008 as a listed company.

I am equally pleased to announce that our shareholders will continue to benefit from their investment in GPI as we will be paying dividends for the sixth consecutive year.

Notwithstanding the fact that GPI has made major investments this year, we are able to pay a dividend for 2008 which is an increase of 33% on the dividend paid for 2007.

Major events in 2008

The release of the annual financial results follows on three major events in the past year: raising the GPI stake in SunWest to an effective 33,7%; the acquisition of 30,6% in RAH; and GPI’s listing on the JSE. The Chief Executive Officer’s report gives more detail on these transactions.

Despite the difficult economic conditions characterised by increasing volatility and uncertainty, we embarked on the journey mandated by our shareholders – to list GPI. This in itself proved to be an exceptional challenge but we were ultimately successful in June 2008.

We have also increased our staff complement this year and now boast a highly competent and skilled team headed by Adrian Funkey, the new Chief Executive Officer, who is a qualified chartered accountant, with extensive commercial experience in the gaming and leisure industries. Adrian replaces Richard Hoption who will focus on developing new business opportunities for GPI.

Looking ahead

We are confident about the year ahead and, as demonstrated in the past, we will continue to grow GPI in a responsible way. Our intention is to add value for our shareholders and expand GPI’s portfolio in ways that will consolidate and grow the company into a major player in the South African tourism and gaming industry, thereby achieving our primary mission.

In appreciation

Special thanks to Leaf Capital, our advisers, and PSG Capital, our sponsors, for their loyal service and wise counsel. I must also record a special thanks to our shareholders, my fellow directors and the members of our staff for their ongoing dedication and commitment to the success of GPI.

Hassen Adams
16 October 2008

City Hall, Grand Parade