The value ADvTECH has created and distributed to its stakeholders in the year under review is summarised on the Value Added Statement on page 24 in the Annual Report. The Group generated total economic value of R1.2 billion in 2012 (2011: R1.2 billion) which was distributed as follows:
|Providers of capital||9%||8%|
|Reinvested in the group||8%||11%|
This does not, however, accurately reflect the indirect economic contribution of the Group, which is a multiple of this amount. At an individual level, ADvTECH enhances the employability of its students and job candidates. Each year, the thousands of ADvTECH alumni and job candidates who are active in the South African economy enjoy enhanced earning potential. This economic contribution increases annually with the addition of successive graduating classes and placement of new job candidates.
A key responsibility of management is to ensure that ADvTECH continues to serve many future generations of students and job seekers, and to build strong, reputable brands and institutions, while ensuring that we simultaneously operate within our means. At a strategic level this includes careful planning and the appropriate use of financial, physical, environmental and human resources.
Continuous growth and regeneration of resources is an important component and requires constant reinvestment in the Group’s future. In 2012, 8% (2011: 11%) of value created was reinvested to expand infrastructural capacity, the details of which can be found on page 24 of the Annual Report.