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THE BIDVEST GROUP LIMITED
AUDITED RESULTS FOR THE YEAR ENDED JUNE 30 1999
"WE ARE IMMENSELY PROUD OF OUR ACHIEVEMENTS OVER THE YEARS WHICH WE BELIEVE IS
LARGELY DUE TO THE DEDICATION AND COMMITMENT OF OUR LOYAL AND TALENTED
MANAGEMENT AND STAFF."
FINANCIAL HIGHLIGHTS
OPERATING INCOME +44%
ATTRIBUTABLE INCOME +63%
DIVIDENDS PER SHARE +26%
EARNINGS PER SHARE +41%
EPS ANNUAL COMPOUND
GROWTH RATE 1991/99 33%
TOGETHER - WE'LL MAKE A WHOLE NEW WORLD
CONSOLIDATED INCOME STATEMENT
1999 1998 %
R000 R000 CHANGE
TURNOVER 14 646 146 7 432 920 +97,0
OPERATING INCOME 720 496 501 391 +43,7
NET FINANCE INCOME 161 583 68 412
INCOME BEFORE TAXATION 882 079 569 803 +54,8
TAXATION (176 860) (134 708)
INCOME AFTER TAXATION 705 219 435 095 +62,1
INCOME FROM ASSOCIATES 28 235 2 496
OUTSIDE SHAREHOLDERS' INTEREST (24 848) (3 207)
INCOME ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS 708 606 434 384 +63,1
NUMBER OF SHARES IN
ISSUE (WEIGHTED 000) 271 483 234 090
HEADLINE EARNINGS PER
SHARE (CENTS) 261,0 185,6 +40,7
DIVIDENDS PER
SHARE (CENTS)* 127,3 101,3 +25,7
- INTERIM 59,8 47,0
- FINAL 67,5 54,3
CONSOLIDATED CASH FLOW STATEMENT
1999 1998
R000 R000
CASH RETAINED FROM OPERATIONS
OPERATING INCOME 720 496 501 391
DEPRECIATION AND OTHER
NON-CASH ITEMS 224 731 119 423
CHANGE IN NET WORKING CAPITAL (85 806) (129 688)
FIXED ASSET REPLACEMENT (NET) (289 145) (184 221)
CASH GENERATED FROM
OPERATIONS 570 276 306 905
NET FINANCE INCOME 161 583 68 412
TAXATION PAID (176 033) (87 617)
CASH FLOW FROM OPERATIONS 555 826 287 700
DIVIDENDS PAID
- COMPANY (28 422) -
- SUBSIDIARY (5 328) (1 299)
NET CASH RETAINED 522 076 286 401
NET ACQUISITION OF TRADING
OPERATIONS AND INVESTMENTS (3 022 553) (299 222)
PROCEEDS ON ISSUE OF INSTRUMENTS
- COMPANY 1 344 086 703 214
- SUBSIDIARY 30 339 -
CASH INFLOW (OUTFLOW) (1 126 052) 690 393
CONSOLIDATED BALANCE SHEET
1999 1998
R000 R000
CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 2 780 842 2 660 920
OUTSIDE SHAREHOLDERS' INTEREST 52 098 108 712
DEFERRED TAX 32 515 13 646
INTEREST BEARING DEBT 55 664 35 892
2 921 119 2 819 170
EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 699 152 734 839
INVESTMENTS 525 036 87 604
NET CURRENT ASSETS 696 931 1 996 727
CURRENT ASSETS 5 057 989 1 685 485
NET LIQUID FUNDS 488 147 1 457 243
CURRENT LIABILITIES
- INTEREST FREE 4 849 205 (1 146 001)
2 921 119 2 819 170
NUMBER OF SHARES IN ISSUE (000) 286 398 249 319
NET ASSET VALUE PER SHARE (CENTS) 971 1 067
COMMENTS
1. THE GROUP AGAIN REPORTS SATISFACTORY EARNINGS GROWTH FOR THE YEAR UNDER
REVIEW DESPITE THE CONTINUING SLOW DOWN IN THE ECONOMY. ALL DIVISIONS OF THE
GROUP REPORTED IMPROVED PROFITS ON THE PREVIOUS YEAR. SPECIAL MENTION IS MADE
OF OUR BUSINESS IN AUSTRALIA WHICH IS NOW BENEFITING SIGNIFICANTLY FROM THE
STRATEGIES IMPLEMENTED AT THE ACQUISITION OF MANETTAS IN DECEMBER 1995.
2. DURING THE YEAR UNDER REVIEW THE GROUP CONTINUED ITS STRATEGY OF ORGANIC
GROWTH BY IMPROVED MARKET PENETRATION WITH ATTENTION TO ASSET MANAGEMENT. IN
ADDITION, THE GROUP CONTINUED ITS INVESTMENT POLICY OF INVESTING IN GROWTH
BUSINESSES IN THE FIELDS OF SERVICE, DISTRIBUTION AND TRADING, BOTH LOCALLY AND
INTERNATIONALLY. THE GROUP ACQUIRED THE RENNIES GROUP, EFFECTIVE FROM NOVEMBER
1 1998, WHICH HAS ALREADY MADE A VALUABLE CONTRIBUTION TO THE GROUP'S BOTTOM
LINE. THE BENEFIT OF THIS ACQUISITION WILL MANIFEST ITSELF OVER TIME AS
MANAGEMENT REALISES THE NEW STRATEGIES EXPRESSED AT THE TIME OF THIS
ACQUISITION. BOOKER FOODSERVICE GROUP WAS ACQUIRED EFFECTIVE FROM MAY 22 1999,
THROUGH THE GROUP'S 56% INTERNATIONALLY LISTED SUBSIDIARY, BIDVEST PLC.
MANAGEMENT OF BOOKER HAVE EMBRACED THE CHALLENGE OF REALISING THE ENORMOUS
POTENTIAL IN A GROWING UK FOOD DISTRIBUTION MARKET.
3. IN VIEW OF THE CONTINUING VOLATILITY OF THE SOUTH AFRICAN FOREIGN EXCHANGE
MARKETS, A GAIN ON THE GROUP'S FOREIGN FUNDS AMOUNTING TO R77,6 MILLION (1998 -
R112,5 MILLION) HAS AGAIN NOT BEEN BROUGHT TO ACCOUNT.
4. SHAREHOLDERS' INTEREST OF R2,8 BILLION (1998 - R2,7 BILLION) IS ARRIVED AT
AFTER DEDUCTING THE COST OF TRADEMARKS OF R0,8 BILLION 1998 - R0,5 BILLION) AND
GOODWILL OF R1,5 BILLION (1998 - R72 MILLION).
PROSPECTS
THE GROUP EXPECTS CONTINUED ABOVE AVERAGE GROWTH IN THE YEAR AHEAD FROM
INTERNALLY GENERATED ORGANIC GROWTH AND SELECTED ACQUISITIONS.
YEAR 2000 COMPLIANCE
THE GROUP IS NOW SUBSTANTIALLY YEAR 2000 COMPLIANT AND DOES NOT ANTICIPATE
INCURRING SIGNIFICANT COSTS DURING THE REMAINDER OF THE YEAR.
DIVIDEND DECLARATION AND CAPITALISATION ISSUE IN LIEU OF DIVIDEND
NOTICE IS HEREBY GIVEN THAT A FINAL CASH DIVIDEND OF 34,1 (1998 - 11,5) CENTS
PER SHARE HAS BEEN DECLARED AND A CAPITALISATION ISSUE OF SHARES HAS BEEN
AWARDED IN THE RATIO OF 0,72 NEW SHARES PER 100 SHARES HELD, BEING EQUIVALENT
TO 33,4 (1998 - 42,8) CENTS PER SHARE IN LIEU OF DIVIDEND TO MEMBERS REGISTERED
IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON SEPTEMBER 10 1999. THE
TOTAL VALUE AWARDED TO SHAREHOLDERS IS 67,5 (1998 - 54,3) CENTS PER SHARE.
SHARE CERTIFICATES IN RESPECT OF THE CAPITALISATION SHARES AND CHEQUES IN
RESPECT OF THE FINAL CASH DIVIDEND AND/OR FRACTIONAL ENTITLEMENTS WILL BE
POSTED TO MEMBERS AT THEIR REGISTERED ADDRESSES OR ELECTRONICALLY TRANSFERRED
TO THEIR BANK ACCOUNTS, ON OR ABOUT SEPTEMBER 17 1999.
APPLICATION WILL BE MADE TO THE JOHANNESBURG STOCK EXCHANGE FOR THE
CAPITALISATION SHARES TO BE LISTED WITH EFFECT FROM THE COMMENCEMENT OF
BUSINESS ON SEPTEMBER 15 1999.
FOR AND ON BEHALF OF THE BOARD
B JOFFE CHAIRMAN M CHIPKIN DEPUTY CHAIRMAN
AUGUST 23 1999
DIRECTORS: B JOFFE (CHAIRMAN) M CHIPKIN (DEPUTY CHAIRMAN) I A BERMAN A J
BEHRMANN N G CANCA L I CHIMES B R CHIPKIN E ELLERINE A M GRIFFITH C
H KRETZMANN (ALT. J ARAUJO) S KOSEFF D MASSON M G MBEKI P F NHLEKO P
NYMAN J L PAMENSKY L P RALPHS (ALT. J J LOUW) T H REITMAN* F E A
ROBARTS D K ROSEVEAR A C SALOMON (ALT. H L GREENSTEIN) C E SINGER P C
STEYN R WAINER C E WATT P D WOMERSLEY COMPANY SECRETARY: M S VILJOEN
*BRITISH
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
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