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BIDVEST PLC
INTERIM RESULTS FOR THE HALF YEAR ENDED DECEMBER 31 1999
FINANCIAL HIGHLIGHTS
OPERATING INCOME +1037%
INCOME ATTRIBUTABLE TO SHAREHOLDERS +869%
HEADLINE EARNINGS PER SHARE +176%
COMMENT
1. THE GROUP IS PLEASED TO ANNOUNCE HIGHLY SATISFACTORY RESULTS FOR THE FIRST
HALF OF THE CURRENT FINANCIAL YEAR. THESE RESULTS INCLUDE THE RESULTS OF 3663
FIRST FOR FOODSERVICE (FORMERLY BOOKER FOODSERVICE), ACQUIRED IN MAY 1999.
2. 3663 FIRST FOR FOODSERVICE
THE FIRST HALF OF THE YEAR HAS PRODUCED A STRONG PERFORMANCE AS A RESULT OF THE
COMMITMENT OF MANAGEMENT WHICH HAS IMPACTED FAVOURABLY ON THE OPERATIONS.
OPERATING PROFIT HAS IMPROVED DUE TO HIGHER MARGINS IN THE WHOLESALE DIVISION,
AN IMPROVED PERFORMANCE IN CENTRAL DISTRIBUTION AND SOLID TRADING FROM THE
MINISTRY OF DEFENCE DIVISION. THE RE-BRANDING TO 3663 IS WELL UNDER WAY AND THE
PROJECT WILL BE SUBSTANTIALLY COMPLETED BY THE YEAR-END.
3. BIDVEST AUSTRALIA
THE FIRST HALF OF THE FINANCIAL YEAR HAS BEEN PLEASING AND THE POSITIVE TREND
SHOWN IN THE FIRST QUARTER CONTINUED THROUGH TO THE SECOND, WITH TRADING
STRONGLY AHEAD OF THE PREVIOUS YEAR. BIDVEST AUSTRALIA CONTINUES TO CONSOLIDATE
ITS POSITION AS ONE OF THE LEADING FOODSERVICE DISTRIBUTORS IN AUSTRALIA.
SEVERAL SMALL BUT STRATEGIC ACQUISITIONS WERE MADE IN NOVEMBER AND DECEMBER
1999, THE IMPACT OF WHICH WILL BE REALISED IN THE NEXT PERIOD.
4. SHAREHOLDERS' INTEREST IS AFTER THE CUMULATIVE DEDUCTION OF US$112,0 MILLION
(JUNE 30 1999 - US$107.6 MILLION) IN RESPECT OF GOODWILL WRITTEN OFF.
5. MANAGEMENT REMAIN CONFIDENT THAT ALTHOUGH THE SECOND HALF OF THE GROUP'S
FINANCIAL YEAR DOES NOT INCLUDE THE MAIN SEASONAL PEAKS, THE GENERAL LEVEL OF
ECONOMIC ACTIVITY, ADDED TO THE CONTINUING INTEGRATION OF THE RECENT
ACQUISITIONS, SHOULD LEAD TO A SATISFACTORY PERFORMANCE IN THE SECOND HALF OF
THE FINANCIAL YEAR.
6. THE GROUP HAS A STRONG BALANCE SHEET WITH SUBSTANTIAL CASH RESOURCES WHICH
WILL FACILITATE GROWTH ORGANICALLY AND BY ACQUISITION.
INDEPENDENT REVIEW
THE RESULTS HAVE BEEN REVIEWED BY KPMG WHERE INDICATED AND THEIR REPORT IS
AVAILABLE FOR INSPECTION AT THE COMPANY'S REGISTERED OFFICE.
DIVIDEND
A DIVIDEND OF 2.0 US CENTS PER SHARE HAS BEEN DECLARED TO SHAREHOLDERS
REGISTERED IN THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON
MARCH 3 2000. DIVIDEND CHEQUES WILL BE POSTED OR FUNDS TRANSFERRED ON OR ABOUT
MARCH 10 2000.
FOR AND ON BEHALF OF THE BOARD
B. JOFFE P. J. WENTZEL
CHAIRMAN DIRECTOR
FEBRUARY 17 2000
DIRECTORS:
B JOFFE (CHAIRMAN) FJBARNES B LBERSON KHBIELBY MCHIPKIN
EMCOWLEY* AFISHER CHKRETZMANN PNYMAN* J L PAMENSKY*
T H REITMAN* D K ROSEVEAR* ASELLEY PJWENTZEL* *NON-EXECUTIVE.
TRANSFER SECRETARIES:
MAITLAND SERVICES LIMITED, FALCON CLIFF,
PALACE ROAD, DOUGLAS,
ISLE OF MAN, 1M2 4LB.
COMPUTERSHARE LIMITED, LEVEL 3,
60 CARRINGTON STREET,
SYDNEY, NSW 1115 AUSTRALIA.
ADMINISTRATION OFFICE:
MURDOCH CHAMBERS, SOUTH QUAY
DOUGLAS, ISLE OF MAN, IM1 5AS.
REGISTERED OFFICE:
FALCON CLIFF, PALACE ROAD,
DOUGLAS, ISLE OF MAN, IM2 4LB.
REGISTRATION NUMBER: 92157C
CONSOLIDATED INCOME STATEMENT
HALF YEAR ENDED YEAR ENDED
DECEMBER 31 JUNE 30
1999 1998(I) 1999(II)
US$000'S REVIEWED PRO FORMA PRO FORMA
TURNOVER 942,336 65,485 288,660
UNITED KINGDOM - TRADING 413,453 - 77,713
UNITED KINGDOM -
CONTRACT DISTRIBUTION 438,514 - 79,258
AUSTRALIA 90,369 65,485 131,689
OPERATING INCOME 17,366 1,528 5,863
UNITED KINGDOM 14,778 - 2,861
AUSTRALIA 2,588 1,528 3,002
NET FINANCE INCOME (EXPENSE) (1,740) 237 (277)
INCOME BEFORE TAXATION 15,626 1,765 5,586
TAXATION (4,697) (637) (1,716)
INCOME ATTRIBUTABLE TO SHAREHOLDERS 10,929 1,128 3,870
NUMBER OF SHARES IN ISSUE
(WEIGHTED 000)(III) 138,779 39,495 40,073
HEADLINE EARNINGS PER SHARE (CENTS)(III) 7.88 2.86 9.66
DIVIDEND PER SHARE (CENTS)(III) 2.00 - 1.30
CONSOLIDATED CASH FLOW
HALF YEAR ENDED YEAR ENDED
DECEMBER 31 JUNE 30
1999 1998(I) 1999(II)
US$000'S REVIEWED PRO FORMA PRO FORMA
CASH FLOW FROM OPERATING ACTIVITIES 3,730 4,130 41,615
CASH GENERATED BY OPERATIONS 6,323 4,189 42,245
NET FINANCE INCOME (EXPENSE) (1,740) 237 (277)
TAXATION PAID (290) (296) (353)
DIVIDENDS PAID (563) - -
CASH EFFECTS OF INVESTMENT
ACTIVITIES (7,890) (4,923) (141,085)
DECREASE IN INVESTMENTS 57 5 413
FIXED ASSET ADDITIONS (2,068) (962) (6,317)
PROCEEDS ON DISPOSAL OF FIXED ASSETS 775 133 392
ACQUISITION OF BUSINESS (6,654) (4,099) 135,573)
CASH EFFECTS OF FINANCING
ACTIVITIES 35,894 33,066 154,597
PROCEEDS FROM SHARE ISSUES 50,895 - 200,074
INTEREST BEARING DEBT RAISED (REPAID) (15,001) 33,066 (45,477)
CASH INFLOW 31,734 32,273 55,127
*COMPARATIVEFIGURES AND ADJUSTMENT TO BASIS OF ACCOUNTING
IN VIEW OF THE FACT THAT THE REORGANISATION OF BIDVEST AUSTRALIA LIMITED AND
THE FORMATION OF BIDVEST PLC TOOK EFFECT FROM DECEMBER 10 1998 THE COMPARATIVE
FIGURES:
(I) ARE THOSE OF BIDVEST AUSTRALIA LIMITED FOR THE HALF YEAR ENDED DECEMBER 31
1998.
(II) ARE THOSE OF BIDVEST AUSTRALIA LIMITED FOR THE FULL PERIOD AND THOSE OF
3663 FIRST FOR FOODSERVICE (FORMERLY BOOKER FOODSERVICE), WHICH WAS ACQUIRED
WITH EFFECT FROM JUNE 7 1999, FOR TWENTY-FOUR DAYS.
(III) HAVE BEEN ADJUSTED FOR THE 1 FOR 4 SHARE CONSOLIDATION WHICH TOOK PLACE
IN NOVEMBER 1999.
(IV) HAVE BEEN ADJUSTED TO REFLECT A DEFERRED TAX ASSET AS AT JUNE 30 1999 IN
ACCORDANCE WITH THE CHANGE TO GENERALLY ACCEPTED ACCOUNTING PRACTICE WHICH
REQUIRES THAT A DEFERRED TAX ASSET SHOULD BE RECOGNISED WHEN IT IS PROBABLE
THAT SUFFICIENT TAXABLE PROFIT WILL BE AVAILABLE. PREVIOUSLY, AS AT JUNE 30
1999, THE DEFERRED TAX ASSET WAS WRITTEN OFF AS PART OF THE GOODWILL ON
CONSOLIDATION.
CONSOLIDATED BALANCE SHEET
DECEMBER 31 JUNE 30
1999 1998(I) 1999
US$000'S REVIEWED REVIEWED AUDITED
CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 135,367 36,336 77,317
DEFERRED TAXATION(IV) (1,756) - (2,627)
INTEREST BEARING DEBT 36,596 33,550 51,597
170,207 69,886 126,287
EMPLOYMENT OF CAPITAL
FIXED ASSETS 87,791 12,662 92,519
INVESTMENTS 13 119 71
NET CURRENT ASSETS 82,403 57,105 33,697
CURRENT ASSETS 265,885 29,699 246,545
LIQUID FUNDS 65,286 45,330 34,221
CURRENT LIABILITIES (248,768) (17,924) (247,069)
170,207 69,886 126,287
NUMBER OF SHARES IN ISSUE (000)(III) 196,046 39,495 152,059
NET ASSET VALUE PER SHARE (CENTS)(III) 69.05 92.00 50.85
STATEMENT OF CHANGES IN SHAREHOLDERS' INTEREST
HALF YEAR YEAR
ENDED ENDED
DECEMBER 31 JUNE 30
1999 1999
US$000'S REVIEWED AUDITED
SHAREHOLDERS' INTEREST AT THE BEGINNING
OF THE PERIOD 77,317 -
SHARE CAPITAL ISSUED FOR CASH 1,760 6,082
- RE-ORGANISATION OF THE GROUP - 1,731
- SHARE OPTION PLAN - 1
- RIGHTS OFFER 1,760 4,350
SHARE PREMIUM 49,135 175,794
- RE-ORGANISATION OF THE GROUP - 46,332
- SHARE OPTION PLAN - 17
- RIGHTS OFFER 49,414 130,470
- SHARE ISSUE EXPENSES (279) (1,025)
NON-DISTRIBUTABLE RESERVE
- MOVEMENT ON FOREIGN CURRENCY RESERVE
DURING THE PERIOD 625 404
DISTRIBUTABLE RESERVE 6,530 (104,963)
- INCOME FOR PERIOD(II) 10,929 3,870
- PRE-ACQUISITION PROFITS(II) - (707)
- DIVIDEND - (563)
- GOODWILL WRITTEN OFF (4,399) (110,190)
- PRIOR YEAR DEFERRED TAX ADJUSTMENT ARISING
ON CHANGE IN ACCOUNTING POLICY(IV) - 2,627
SHAREHOLDERS' INTEREST AT THE END OF THE
PERIOD 135,367 77,317
PRESS RELEASE
INTERIM RESULTS FOR THE HALF YEAR ENDED DECEMBER 31 1999
FINANCIAL HIGHLIGHTS
TURNOVER USD 942 336 000 + 1339%
OPERATING INCOME USD 17 366 000 + 1037%
INCOME ATTRIBUTABLE TO SHAREHOLDERS USD 10 929 000 + 869%
HEADLINE EARNINGS PER SHARE US 7.88 CENTS PER SHARE + 176%
REVIEW
BIDVEST PLC IS A FOODSERVICE DISTRIBUTION GROUP OPERATING IN AUSTRALIA AND THE
UNITED KINGDOM, AND IS A 76.3% SUBSIDIARY OF THE BIDVEST GROUP LIMITED OF SOUTH
AFRICA. BIDVEST PLC IS INCORPORATED IN THE ISLE OF MAN AND QUOTED ON BOTH THE
LUXEMBOURG AND AUSTRALIAN STOCK EXCHANGES.
BIDVEST PLC'S STRATEGY AND FOCUS REMAINS CLEARLY DEFINED IN FOODSERVICE
DISTRIBUTION. SIGNIFICANT TIME AND ENERGY WAS SPENT ON IDENTIFYING SUITABLE
ACQUISITIONS IN THE FOODSERVICE INDUSTRIES IN BOTH THE UK AND AUSTRALIA DURING
THE PERIOD UNDER REVIEW. IN THE UK, ACQUISITIONS ARE BEING SOUGHT TO FILL ANY
EXISTING GAPS, IN EITHER THE REGIONAL OR PRODUCT NETWORK. IN AUSTRALIA,
SIGNIFICANT PROGRESS HAS BEEN MADE IN ACHIEVING THE GOAL OF BECOMING A NATIONAL
PLAYER.
BIDVEST PLC HAS A STRONG BALANCE SHEET WITH SUBSTANTIAL CASH RESOURCES WHICH
WILL FACILITATE GROWTH BOTH ORGANICALLY AND BY ACQUISITION.
THE MANAGEMENT OF BIDVEST PLC'S OPERATIONS ARE HIGHLY MOTIVATED AND THE
PROSPECTS FOR THE GROUP ARE EXCELLENT.
3663 FIRST FOR FOODSERVICE
THE FIRST HALF OF THE YEAR HAS PRODUCED STRONG RESULTS AS A RESULT OF THE
COMMITMENT OF MANAGEMENT, WHICH HAS IMPACTED FAVOURABLY ON THE OPERATIONS.
OPERATING PROFIT HAS IMPROVED, DUE TO HIGHER MARGINS IN THE WHOLESALE DIVISION
AS A RESULT OF FOCUSING ON THE HIGHER PROFIT FREE TRADE SECTOR, AN IMPROVED
PERFORMANCE IN CENTRAL DISTRIBUTION, AND SOLID TRADING FROM THE MINISTRY OF
DEFENCE DIVISION. THE RE-BRANDING TO 3663 IS WELL UNDER WAY AND THE PROJECT
WILL BE SUBSTANTIALLY COMPLETED BY THE YEAR-END.
THE WHOLESALE BUSINESS HAS BEEN REFOCUSED BY THE CREATION OF TWO DISTINCT
DIVISIONS, NAMELY MULTI-TEMPERATURE AND FROZEN, EACH WITH THEIR OWN DEDICATED
MANAGEMENT TEAMS. THIS SHOULD IMPROVE 3663'S MARKET PENETRATION IN EACH
BUSINESS AND GIVE IMPETUS TO SPECIFIC ACQUISITIONS.
THE BUYING DEPARTMENT IS NOW FULLY SETTLED AND FUNCTIONING WELL. SIGNIFICANT
PROGRESS HAS BEEN MADE IN BUYING WHICH SHOULD FURTHER IMPROVE MARGINS, THE FULL
BENEFIT WILL BEGIN TO SHOW THROUGH IN THE SECOND HALF OF THE FINANCIAL YEAR,
PARTICULARLY AS THE NEW OWN BRAND LABEL BECOMES AVAILABLE.
THE DIVISION'S SUCCESSFUL INTEGRATION INTO BIDVEST CONTINUES WITH A
MUCH-IMPROVED PERFORMANCE ACROSS THE OPERATIONS.
BIDVEST AUSTRALIA
THE FIRST HALF OF THE FINANCIAL YEAR HAS BEEN PLEASING AND THE POSITIVE TREND
SHOWN IN THE FIRST QUARTER CONTINUED THROUGH TO THE SECOND, WITH TRADING
STRONGLY AHEAD OF THE PREVIOUS YEAR. TURNOVER IS 38% AHEAD AND OPERATING INCOME
IS 69% AHEAD OF THE COMPARATIVE PERIOD.
BIDVEST AUSTRALIA CONTINUES TO CONSOLIDATE ITS POSITION AS ONE OF THE LEADING
FOODSERVICE DISTRIBUTORS IN AUSTRALIA. THE DIVISION HAS CONTINUED ITS DRIVE TO
BECOME A NATIONAL PLAYER AND WITH THIS IN MIND SEVERAL ACQUISITIONS WERE MADE
DURING THE PERIOD UNDER REVIEW. THEY INCLUDE QUEENSLAND INDEPENDENT VENDORS
BASED IN BRISBANE, DAILY FRESH IN WOLLONGONG, AND REGENCY THE LARGEST
FOODSERVICE DISTRIBUTOR IN SOUTH AUSTRALIA BASED IN ADELAIDE. THE IMPACT OF
THESE ACQUISITIONS IN THIS FINANCIAL PERIOD HAS BEEN MINIMAL, BUT THEY WILL BE
FULLY INTEGRATED AND THEIR IMPACT ON THE GROUP FELT BY THE YEAR-END.
BIDVEST AUSTRALIA IS NOW ONE OF THE LARGEST PLAYERS IN THE AUSTRALIAN MARKET,
AND IS CONFIDENT OF CONTINUED GROWTH BOTH IN THE REMAINING FINANCIAL YEAR AND
THE LONGER TERM.
FEBRUARY 17 1999
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