VALUE CREATION

OUR STRATEGY, PERFORMANCE AND IMPACT

Financial Capital: Strengthening SAICA’s Sustainable Growth and Value

What Financial Capital Means to SAICA

Financial capital refers to the resources SAICA leverages to drive its operations, enable strategic investments, and deliver value to members and stakeholders. The revenue generated from member subscriptions, fees from products and services, and donor funding raised for learning and development programmes plays a central role in supporting SAICA’s mission to serve the accounting profession.

Our business model is built on two core principles that guide our financial strategy:

Manage cost − SAICA is committed to maximising operational efficiencies by doing more with the same or the same with less. This includes streamlining organisational structures, broadening spans of control, and eliminating duplication to reduce costs. Our focus on operational excellence ensures that financial resources are allocated in the most effective and sustainable way
Grow revenue and expand customer base − We aim to diversify our revenue streams, increase membership, and reach new and underrepresented segments within the profession. By expanding our offerings and enhancing member engagement, SAICA is positioned to grow its financial capital and support the continuous development of the accounting profession

Financial Viability and Impact Assessment

To ensure the long-term sustainability and success of our investments, SAICA implements a cost-benefit analysis for all proposed solutions, evaluating their financial viability and potential return on investment. This assessment includes considering both revenue and cost impacts, enabling us to identify opportunities for growth while managing financial risks effectively. By closely examining the financial implications of each initiative, we can prioritise investments that align with SAICA’s strategic goals and drive sustainable value creation for our members and stakeholders.

As part of the Winning Organisation strategic pillar, SAICA is committed to achieving financial sustainability under strategic objective 16. This objective focuses on ensuring that SAICA remains financially resilient while continuing to deliver value to members and stakeholders.

In 2024, SAICA introduced two new key performance indicators (KPIs) to enhance the measurement and management of financial performance:

Operating spend coverage

This metric evaluates the number of months of operating expenses that can be covered by the organisation’s available reserves. It provides an indication of SAICA’s financial stability and its ability to sustain operations in the event of unforeseen challenges

Cash Ratio

This financial metric assesses SAICA’s ability to meet short-term debts and obligations using its cash and cash equivalents. By focusing on this ratio, SAICA ensures liquidity and the capacity to respond effectively to immediate financial demands

These KPIs highlight SAICA’s proactive approach to monitoring financial health, enabling informed decision-making to support long-term sustainability and value creation.

SAICA Financial Performance for the 2024 Financial Year

The financial performance for the year ended 31 December 2024 demonstrates a stable foundation for SAICA’s continued growth and sustainability.

The increase in assets, driven by investments in property, and equipment, reflects our commitment to long-term value creation. Meanwhile, the overall decrease in liabilities is in line with strategic initiatives to support our ongoing commitments, such as the provision for leave pay and adjustments in deferred income. Revenue growth continues to be a key driver, bolstered by a rise in membership numbers and the successful inflationary adjustments across our offerings.

This report provides a summary of the statement of financial position, surplus or deficit, and cash flow for the year, highlighting the key changes and trends that have shaped SAICA’s financial outlook.

Summarised statement of financial position at 31 December 2024

	Group 2024 R'000	Group 2023 R'000	Change 2024/2023 %
Assets
Non-current assets	125,891	111,123	13,29%
Current assets	594,547	612,771	(2,97%)
Total assets	720,438	723,894	(0,48%)
Reserves and liabilities
Reserves	488,059	450,934	8,23%
Non-current liabilities	18,787	30,455	(38,31%)
Current liabilities	213,592	242,505	(11,92%)
Total reserves and liabilities	720,438	723,894	(0,48%)

Assets (1%) due to:

The increase in investment in the digitisation of SAICA resulted in a decrease in cash and the amortisation of capitalised projects
Depreciation of right of use asset R14,163
Cash comprises 75% (2023: 76%) of current assets

Liabilities (15%) due to:

Decrease due to unwinding of lease liability, provision of short-term incentive and an increase in the provision of leave pay of R17,425 (2023: R16,985)
Decrease of R10,625 in contract liabilities for membership fees due to the later billing of the 2025 subscriptions compared to the prior year

Summarised statement of surplus or deficit for the year ended 31 December 2024

	Group 2024 R'000	Group 2023 R'000	Change 2024/2023 %
Total income	753,786	794,108	(5,08%)
Revenue	538,295	518,325	3,85%
Other income	215,491	275,783	(21,86%)
Operating surplus before interest	(7,967)	(24,439)	(67,40%)
Finance income	51,507	48,554	6,08%
Finance costs	(5,104)	(4,220)	20,95%
Surplus for the year before tax	38,436	19,895	93,19%
Tax expense	(1,311)	(730)	79,59%
Surplus for the year after tax	37,125	19,165	93,71%
Opening reserves	450,934	431,769	4,44%
Total reserves at end of year	488,059	450,934	8,23%

Notes:

Due to the reported surplus distributed as follows: SAICA – R2,916; THF – R3,590; TEUF – R3,116
Operating margin maintained at range 5%-10%
Revenue growth represents an increase in professional development activities and net number of members
Other income declined due to transfer of TEUF-ISFAP legacy contracts to the ISFAP (RO: 2024 R79,224; 2023)
TEUF other income increased by R18,686 with additional bursaries and THF increased by R6,727 with revenue from projects

Summarised statement of cash flows for the year ended 31 December 2024

Operating activities

Our core operations generated an impressive R38,207 in additional cash through interest. The increase in the Group’s net cash is due to effective management of working capital and a large portion of income being cash-based

Investing activities

Investment of R31,245 was towards the digitisation programme for the Group (R25,726) and other operating assets (R5,598: right of use assets - Buildings, R1,328: leasehold improvements, R3,459: Computer Equipment) net of proceeds from disposal

Financing activities

SAICA Group buildings are leased from third parties and the amount reflects the payments of capital (R19,863) interest (R5,104) and new lease (R5,598) in line with IFRS 16

To view the SAICA 2024 Annual Financial Statements click here.

Renew

Water is life’s original reset button.

Water doesn’t just wash away - it awakens. It has the ability to renew, rehydrate, and revitalise from within. It clears the dust of yesterday and nourishes what’s ready to grow. It evaporates and returns anew – fresh and pure. To immerse in water is to immerse in renewal – every drop a chance to reset, recharge, and rise refreshed.