CHAIRMANS REPORT 2009

The year ending February 2009 has been an economic nightmare as we all witnessed and felt the impact of the global recession. Many property investors in various parts of the world including ours saw their investments depreciate drastically, with no hope of recovering their losses, yet alone the prospect of the a return on their investments. Our Minister of Finance at one stage reassured us that as a nation we were relatively immune and had made provision for the economic meltdown. We have seen the opposite. An increase in food prices, increase in unemployment and progressive decline in our manufacturing sector does not bode well for our economic future. The State Health sector has seen a steep decline in care, partly as a result of mass migration of nurses and doctors to greener pastures. The private sector has not been entirely exempt from these effects. One of the major players in the private health sector has even resorted to recruiting nurses from the Asian subcontinent. The performance of the Fordsburg Clinic during the year under review however runs against the trend.

The return on debentures increased to fifteen percent , up from twelve percent for the previous year. The current year's trend suggests that this will plateau for the next year. To stimulate growth and fully optimize utilization of the clinic , we have increased our focus on marketing.

Our efforts to establish a first class administrative process has met with significant challenges, however I am pleased to announce that we have come a long way in overcoming these.

The restructuring is nearing completion and this should be the last AGM of the Fordsburg Clinic as we have known it . The establishing of the holding and property companies will mean that you have shares in three different companies all linked. Despite the challenges of operating a private day clinic in an adverse climate, I still trust that this enterprise will yield significant returns on your investment

On behalf of the Board of Directors and Management

Dr Bazil S Fick

Chairman