July and August are the quiet season at D&S with many staff on holiday and activity generally at a low level before the heightened activities of the 'new term' in September when we prepare for the forthcoming year. This lull has been compounded by reduced national economic activity that has resulted from recent fiscal changes but nevertheless several important initiatives have taken place throughout the D&S Group. A most important one, held a few months ago, was the Strategy Review attended by all senior management staff and our valued non-Executive Directors and advisors when future Group priorities are debated and agreed. It is always a stimulating forum and I appreciate the contributions that everyone makes.

Another I would mention is activities by the recently established International Business Division under Executive Anthony Wangondu that is boldly expanding the Group's regional footprint. Various market recces have been carried out, several in Francophone West Africa that has involved translation of the Product Manual, and some good export orders received from Malawi, Burundi, DRC, Kinshasa, Djibouti, Mauritius and Comoros. There is great potential regional demand for the various products in the D&S portfolio and this is an important new business stream and now a focus. I much appreciate the IB team for their efforts.

Another important development I must mention is agreement with the international corporate giant Huawei to act as regional distributor for their solar inverter and power backup business. The arrangement was negotiated by Supply Director Henry Davis and we look forward to working closely with them as we develop this new opportunity.

Finally, an update on the ever-expanding D&S Branch network, now at 93 locations regionally. This has been a most successful initiative and we are proud taking the D&S product range to previously underserved areas where its availability at national pricing levels supported by D&S expertise really is Improving Lives. Ten new branches have been opened in the past year, most recently in Chuka and Busia in Kenya. There is a great deal of work involved in establishing a new branch and I am very grateful to Branch Executive Margaret Kuchio and her team and Premises Manager Timothy Kemboi, who arranges conversion of the premises, for their great efforts.