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BIDVEST INTERIM RESULTS

Release Date: 15/02/1999 09:19
Code(s): BVT
Wrap Text
THE BIDVEST GROUP LIMITED

INTERIM RESULTS FOR THE HALF YEAR ENDED DECEMBER 31 1998 FINANCIAL HIGHLIGHTS
OPERATING INCOME +35%
ATTRIBUTABLE INCOME +59%
EARNINGS PER SHARE +43%
DIVIDENDS PER SHARE +27%
ANNUAL COMPOUND GROWTH RATE - EPS (1990 - 1998) 30% CONSOLIDATED INCOME STATEMENT
HALF YEAR ENDED YEAR ENDED DECEMBER 31 JUNE 30 1998 1997 CHANGE 1998 R000'S REVIEWED REVIEWED % AUDITED TURNOVER 5 551 514 3 825 216 45,1 7 432 920 OPERATING INCOME 327 435 242 015 3 5,3 501 391 NET FINANCE INCOME 99 167 26 509 - 68 412 INCOME BEFORE TAXATION 426 602 268 524 58,9 569 803 TAXATION (110 540) (68 830) - (134 708) INCOME AFTER TAXATION 316 062 199 694 58,3 435 095 INCOME FROM ASSOCIATES 8 451 1 840 - 2 496 OUTSIDE SHAREHOLDERS' INTEREST (7 443) (1 446) - (3 207) INCOME ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS 317 070 200 088 58,5 434 384 NUMBER OF SHARES IN ISSUE
(WEIGHTED 000) 253 077 228 777 - 234 090 HEADLINE EARNINGS PER SHARE
(CENTS) 125,3 87,5 43,2 185,6 DIVIDENDS PER ORDINARY SHARE
(CENTS)* 59,8 47,0 27,2 101,3 CONSOLIDATED CASH FLOW STATEMENT
HALF YEAR ENDED YEAR ENDED DECEMBER 31 JUNE 30 1998 1997 1998 R000'S REVIEWED REVIEWED AUDITED CASH RETAINED FROM OPERATIONS
OPERATING INCOME 327 435 242 015 501 391 DEPRECIATION AND OTHER NON-CASH ITEMS 77 217 53 259 119 423 INCREASE IN NET-WORKING CAPITAL (223 827) (168 908) (129 687) FIXED ASSET ADDITIONS (NET) (105 029) (84 459) (184 221) CASH GENERATED FROM OPERATIONS 75 796 41 907 306 906 NET FINANCE INCOME 99 167 26 509 68 412 TAXATION PAID (162 483) (35 763) (87 617) CASH FLOW FROM OPERATIONS 12 480 32 653 287 701 DIVIDENDS PAID (30 191) (1 299) (1 299) NET CASH RETAINED (UTILISED) (17 711) 31 354 286 402 NET ACQUISITION OF SUBSIDIARIES, TRADING
OPERATIONS, ASSOCIATES, AND INVESTMENTS (1 363987) (261 534) (299 222) INTEREST BEARING DEBT - REPAID (27 453) (48 897) (129 701) PROCEEDS ON ISSUE OF INSTRUMENTS (NET) 1 233 141 21 939 778 784 CASH INFLOW (OUTFLOW) (176 010) (257 138) 636 263 CONSOLIDATED BALANCE SHEET
DECEMBER 31 JUNE 30 1998 1997 1998
R000'S REVIEWED REVIEWED AUDITED CAPITAL EMPLOYED
ORDINARY SHAREHOLDERS' INTEREST 3 079 958 1 777 902 660 920 OUTSIDE SHAREHOLDERS' INTEREST 200 172 97 692 108 712 DEFERRED TAX 36 204 17 406 13 646 INTEREST BEARING DEBT 151 831 65 400 60 892 3 468 165 1 958 400 2 844 170 EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 209 505 671 302 734 839 INVESTMENTS 341 960 82 639 87 604 NET CURRENT ASSETS 1 916 700 1 204 459 2 021 727 CURRENT ASSETS 3 284 181 1 691 735 1 685 485 LIQUID FUNDS 1 535 216 585 554 1 182 243 CURRENT LIABILITIES (2 902 697) (1 072 830)(1 146 001) 3 468 165 1 958 400 2 844 170 NUMBER OF SHARES IN ISSUE (000) 282 898 233 194 249 319 COMMENT
1. THE GROUP AGAIN REPORTS SATISFACTORY EARNINGS GROWTH FOR THE HALF YEAR UNDER REVIEW DESPITE THE CONTINUING SLOW DOWN IN THE ECONOMY. THE RESULTS INCLUDE THOSE OF RENNIES, FOR THE TWO MONTHS FROM NOVEMBER 1 1998.
2. DURING THE PERIOD THE GROUP ACQUIRED APPROXIMATELY 100 MILLION SHARES IN SAFMARINE AND RENNIES HOLDINGS LIMITED (SAFREN). NO INCOME ATTACHING TO THIS HOLDING HAS BEEN TAKEN INTO ACCOUNT IN THE INCOME STATEMENT OTHER THAN THE DIVIDEND RECEIVED ON THESE SHARES. THE SURPLUS ARISING ON THE DISPOSAL OF 45 MILLION OF THESE SHARES HAS BEEN UTILISED TO REDUCE THE CARRYING COST OF THE BALANCE OF THESE SHARES.
3. THE TRANSLATION GAIN ON THE GROUP'S FOREIGN CASH HOLDINGS AMOUNTING TO THE R112 MILLION AT JUNE 30 1998 HAD REDUCED TO R103 MILLION AT DECEMBER 31 1998. IN VIEW OF THE CONTINUING VOLATILITY OF THE RAND/US DOLLAR EXCHANGE RATE THIS AMOUNT HAS NOT BEEN TAKEN INTO ACCOUNT IN THE INCOME STATEMENT.
4. ORDINARY SHAREHOLDERS' INTEREST OF R3 080 MILLION (1997 - R1 778 MILLION) HAS BEEN ARRIVED AT AFTER DEDUCTING THE COST OF TRADEMARKS OF R773 MILLION (1997 R459 MILLION). YEAR 2000
THE GROUP IS CONTINUING TO ADDRESS THE RELEVANT ISSUES POSED BY THE YEAR 2000 AND THE TARGET DATE FOR COMPLIANCE IS JUNE 1999. PROSPECTS
THE BOARD EXPECTS CONTINUED GROWTH FOR THE SECOND HALF OF THE FINANCIAL YEAR FROM INTERNALLY GENERATED ORGANIC GROWTH AND FROM THE UNDOUBTED BENEFITS WHICH WILL FLOW FROM THE RENNIES ACQUISITION. THE GROUP CONTINUES TO SEEK ACQUISITION OPPORTUNITIES, BOTH LOCALLY AND ABROAD. INDEPENDENT REVIEW
THE RESULTS HOVE BEEN REVIEWED BY KPMG AND THEIR REPORT IS AVAILABLE FOR INSPECTION AT THE COMPANY'S REGISTERED OFFICE. *CAPITALISATION ISSUE IN LIEU OF DIVIDEND
NOTICE IS HEREBY GIVEN THAT A CAPITALISATION ISSUE OF SHARES HAS BEEN AWARDED IN LIEU OF DIVIDEND IN THE RATIO OF 1,3 NEW SHARES PER 100 SHARES HELD (BEING EQUIVALENT TO 59,8 (1997 - 47,0) CENTS PER SHARE) TO MEMBERS REGISTERED AS SUCH AT THE CLOSE OF BUSINESS ON FEBRUARY 19 1999. PAYMENTS IN RESPECT OF FRACTIONAL ENTITLEMENTS WILL BE TRANSACTED ON OR ABOUT FEBRUARY 26 1999. NEW CERTIFICATES WILL BE POSTED ON THE SAME DAY.
APPLICATION WILL BE MADE TO THE JOHANNESBURG STOCK EXCHANGE FOR THE
CAPITALISATION SHARES TO BE LISTED WITH EFFECT FROM THE COMMENCEMENT OF BUSINESS ON OR ABOUT MARCH 1 1999. FOR AND ON BEHALF OF THE BOARD B JOFFE M CHIPKIN
CHAIRMAN DEPUTY CHAIRMAN FEBRUARY 15 1999
DIRECTORS: B JOFFE (EXECUTIVE CHAIRMAN) M CHIPKIN (DEPUTY CHAIRMAN) A J BEHRMANN* N G CANCA* L I CHIMES B R CHIPKIN* E ELLERINE* A M GRIFFITH S KOSEFF* C H KRETZMANN D MASSON* M G MBEKI* P F NHLEKO* P NYMAN J L PAMENSKY* L R RALPHS T H REITMAN* (BRITISH) F E A ROBARTS D K ROSEVEAR A C SALOMON C E SINGER P C STEYN R WAINER C E WATT P D WOMERSLEY * NON-EXECUTIVE TRANSFER SECRETARIES: MERCANTILE REGISTRARS LIMITED
11 DIAGONAL STREET 2001 JOHANNESBURG PO BOX 1053 2000 JOHANNESBURG REGISTERED OFFICE:
MILNER PLACE SUNNYSIDE OFFICE PARK 4 CARSE O'GOWRIE ROAD 2193 PARKTOWN REG. NO. 05/21180/06 OUR GRASP EXCEEDS OUR REACH

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