Wrap Text
THE BIDVEST GROUP LIMITED
("THE GROUP")
INTERIM RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31ST 1999
* HEADLINE EPS + 25.7%
* ATTRIBUTABLE PROFIT + 42.5%
* OPERATING INCOME + 85.3%
* TURNOVER + 147.5%
* SIGNIFICANT CONTRIBUTION FROM BIDVEST PLC
* BIDVEST WELL POSITIONED TO TAKE ADVANTAGE OF FORECAST UPTURN IN SA ECONOMY
BRIAN JOFFE, CHAIRMAN, COMMENTED:
"THE RESULTS FOR THIS PERIOD ARE A SOUND ACHIEVEMENT IN THE FACE OF EXTREMELY
DIFFICULT TRADING AND ECONOMIC CONDITIONS. BIDVEST'S MANAGEMENT HAVE APPLIED
THEMSELVES WITH ENERGY AND ENTHUSIASM AND CAN BE GENUINELY PROUD OF WHAT THEY
HAVE ACHIEVED. BIDVEST IS LEAN AND WELL POISED FOR FUTURE GROWTH. "
21ST FEBRUARY 2000
ENQUIRIES:
THE BIDVEST GROUP LIMITED TEL: + 27 (0) 11 481 4129
BRIAN JOFFE, CHAIRMAN
JACK HOCHFELD, GROUP CORPORATE FINANCE TEL: + 27 (0) 11 481 4103
CELL: + 27 (0) 82 459 7051
COLLEGE HILL JOHANNESBURG TEL: + 27 (0) 11 447 3030
TOM ALLISON
THE BIDVEST GROUP LIMITED
(THE "GROUP")
INTERIM RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31ST 1999
DESPITE THE DIFFICULT ECONOMIC CONDITIONS DURING THE PERIOD UNDER REVIEW, THE
BIDVEST GROUP LIMITED HAS PERFORMED SATISFACTORILY. FOR THE SIX MONTHS ENDED
31 DECEMBER 1999 HEADLINE EARNINGS PER SHARE INCREASED BY 25.7% TO 153.64
CENTS, DESPITE AN INCREASE IN THE NUMBER OF SHARES IN ISSUE. REFERENCE IS MADE
TO THE CONTENTS OF THE NOTE "CHANGES IN ACCOUNTING POLICY" WHICH IF NOT
IMPLEMENTED WOULD HAVE RESULTED IN A HEADLINE EARNINGS PER SHARE INCREASE OF
26,7%.
TURNOVER FOR THE PERIOD INCREASED TO R13,7 BN (1998: R5.5 BN). OPERATING INCOME
GREW 85.3% TO R606.7 MILLION (1998: R327.4 MILLION), AND ATTRIBUTABLE PROFIT
INCREASED 42.5% TO R441.0 MILLION (1998: R309.4 MILLION).
THE RESULTS FOR THIS PERIOD ARE A SOUND ACHIEVEMENT IN THE FACE OF EXTREMELY
DIFFICULT TRADING AND ECONOMIC CONDITIONS. BIDVEST'S MANAGEMENT HAVE APPLIED
THEMSELVES WITH ENERGY AND ENTHUSIASM AND CAN BE GENUINELY PROUD OF WHAT THEY
HAVE ACHIEVED.
IN THE PREVIOUS PERIOD BIDVEST SHOWED SUBSTANTIAL INTEREST INCOME AS A RESULT
OF THE FUNDS HELD OFFSHORE, PENDING THE BOOKER FOODSERVICE (RENAMED "3663")
ACQUISITION. SINCE THE ACQUISITION THE INTEREST INCOME HAS LARGELY BEEN
CONVERTED INTO OPERATING PROFIT.
THE SIX-MONTH PERIOD WAS CHARACTERISED BY RELATIVELY HIGH INTEREST RATES, LOW
ECONOMIC ACTIVITY, AND LOW CONSUMER SPENDING. IN ADDITION, THE EXPECTED
MILLENNIUM BOOM IN TOURISM, TRAVEL, HOTEL USAGE, CATERING AND THE RESTAURANT
TRADE DID NOT MATERIALISE AS PEOPLE CHOSE TO STAY AT HOME AMID Y2K TECHNOLOGY
FEARS. IN SOUTH AFRICA A SPATE OF BOMB ATTACKS IN CAPE TOWN FURTHER DETERRED
VISITORS. THE INVESTMENT IN WORKING CAPITAL INCREASED OVER THE MILLENNIUM
PERIOD AS BANKS SHUT DOWN THEIR PROCESSING TO ENSURE A SMOOTH TRANSITION INTO
THE YEAR 2000, RESULTING IN BOTH EARLY PAYMENTS TO SUPPLIERS AND LATE RECEIPTS
FROM CUSTOMERS. THE GROUP DID NOT EXPERIENCE ANY MAJOR Y2K TECHNOLOGY
DISRUPTION OVER THIS PERIOD.
SOUTH AFRICA FINDS ITSELF IN A LOWER INFLATIONARY ENVIRONMENT. YEAR ON YEAR EPS
AND CORPORATE GROWTH FIGURES INCLUDING INFLATION WILL BE LOWER. THE CONTINUED
EXPECTATION OF HIGHER CORPORATE GROWTH IN A LOWER INFLATIONARY ENVIRONMENT IS
UNREALISTIC AND THE BOARD BELIEVES THAT THE MARKET NEEDS TO TAKE THIS INTO
ACCOUNT IN ITS EXPECTATIONS.
BIDVEST IS BOTH ENTREPRENEURIAL AND OPPORTUNISTIC WITHIN ITS INDIVIDUAL
BUSINESS UNITS, AND IT PROUDLY CHERISHES AND ENCOURAGES THIS ETHIC THAT
PERVADES THE GROUP. GROWTH OPPORTUNITIES IN SOUTH AFRICA ARE STILL SUBSTANTIAL
AND THE GROUP WITH ITS COMMITTED MANAGEMENT AND STRONG BALANCE SHEET WILL
CONTINUE TO LOOK FOR AND EXPLOIT OPPORTUNITIES WHERE THEY MAY ARISE.
BIDVEST'S DISTRIBUTION CAPACITY HAS BEEN THE CORNERSTONE OF ITS STRATEGY AND
THE FUTURE USE OF THE INTERNET FOR E-COMMERCE TOGETHER WITH BIDVEST'S PHYSICAL
INFRASTRUCTURE MAKES AN INTERESTING AND POTENTIALLY UNIQUE, PROFITABLE
COMBINATION.
IN ACCORDANCE WITH RECENTLY AMENDED GENERALLY ACCEPTED ACCOUNTING PRACTICE
(GAAP) WITH REGARD TO DEFERRED TAX, THE GROUP HAS CHANGED ITS ACCOUNTING POLICY
AND NOW RECOGNISES DEFERRED TAX ASSETS WHEN IT IS PROBABLE THAT SUFFICIENT
TAXABLE PROFITS WILL BE AVAILABLE. THIS CHANGE HAS RESULTED IN AN ADDITIONAL
TAXATION CHARGE OF R14.8M FOR THE CURRENT PERIOD (1998: R7,6M). HAD THIS
CHANGE IN ACCOUNTING POLICY NOT TAKEN PLACE, THE HEADLINE EARNINGS PER SHARE
FOR THE PERIOD WOULD HAVE BEEN 158,8 CENTS PER SHARE. (1998: 125,3 CENTS PER
SHARE) AN INCREASE OF 26.7%.
FOLLOWING APPROVAL FROM THE COMPETITIONS COMMISSION, AN OFFER WAS MADE TO THE
SHAREHOLDERS OF ISLAND VIEW STORAGE ("IVS") FOR THE ACQUISITION OF THEIR SHARES
IN IVS. MORE THAN 90% OF THE OUTSTANDING SHAREHOLDERS HAVE ACCEPTED THE OFFER.
SUBSEQUENTLY, BIDVEST HAS INVOKED SECTION 440K OF THE COMPANIES ACT TO ACQUIRE
THE BALANCE OF OUTSTANDING SHARES. IVS'S CORE BUSINESS IS BULK LIQUID AND GAS
STORAGE AND THE ACQUISITION WILL PROVIDE BIDFREIGHT WITH A FOCUSED PORTFOLIO OF
TERMINALS ACROSS SOUTHERN AFRICA. THE TOTAL CONSIDERATION OF THE TRANSACTION,
FOR THE SHARES NOT ALREADY OWNED BY BIDVEST, WAS R 312 MILLION.
THE RESPONSE OF THE RESERVE BANK TO THE GROUP'S APPLICATION FOR THE GRANTING OF
A BANKING LICENCE, FOLLOWING BIDVEST'S CONDITIONAL PURCHASE OF ONS EERSTE
VOLKSBANK, IS EAGERLY AWAITED.
BIDVEST OWNS IN EXCESS OF 100 MILLION SHARES IN SAFMARINE AND RENNIES HOLDINGS
LIMITED ("SAFREN"). SAFREN HAS ESTIMATED THAT THE NET REALISABLE VALUE PER
SHARE, AFTER DISPOSAL OF ALL REMAINING ASSETS AND THE SETTLEMENT OF ALL
LIABILITIES (EXCLUDING CONTINGENT LIABILITIES), SHOULD APPROXIMATE R3,55 PER
SHARE. BIDVEST HAS NOT TAKEN TO PROFIT THE DISTRIBUTION RECEIVED IN THIS PERIOD
DUE TO THE UNCERTAINTY IN RESPECT OF THE MAKEUP, TIMING, AND AMOUNT OF FUTURE
DISTRIBUTIONS.
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 UNITED KINGDOM AND
AUSTRALIA IN THE PERIOD UNDER REVIEW. IN THE UNITED KINGDOM, 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 CONTRIBUTED APPROXIMATELY 11%
OF THE GROUP'S ATTRIBUTABLE INCOME, AND THIS CONTRIBUTION WILL CONTINUE TO GROW
IN THE FUTURE.
SOUTH AFRICA IS AN EMERGING ECONOMY. BIDVEST'S UNDERLYING COMPANIES WILL
BENEFIT AS THE FULL POTENTIAL OF A HUGE EMERGING MIDDLE CLASS OF PEOPLE ASPIRE
TO IMPROVE THEIR LIVING STANDARDS AND BEGIN TO PARTICIPATE IN THE ECONOMY.
BIDVEST HAS, OVER THE YEARS, OPERATED IN A DIFFICULT ECONOMIC ENVIRONMENT IN
SOUTH AFRICA. IT IS BELIEVED THAT THE ECONOMY IS TURNING AND REAL GDP GROWTH IS
FORECAST. BIDVEST IS INVESTED IN GROWTH SECTORS IN INDUSTRY, AND WILL BENEFIT
FROM THIS IMPROVEMENT. SOUTH AFRICA HAS ENTERED A NEW ECONOMIC ERA, WITH LOWER
INFLATION, LOWER INTEREST RATES AND REAL GDP GROWTH PROSPECTS. BIDVEST IS LEAN
AND WELL POISED FOR FUTURE GROWTH BOTH IN SOUTH AFRICA AND ABROAD
NOTICE IS HEREBY GIVEN THAT AN INTERIM CASH DIVIDEND 72,0 CENTS PER SHARE HAS
BEEN DECLARED, (1998 - CAPITALISATION AWARD EQUIVALENT TO 59,8 CENTS PER SHARE
IN LIEU OF DIVIDEND), TO MEMBERS REGISTERED IN THE BOOKS OF THE COMPANY AT THE
CLOSE OF BUSINESS ON FEBRUARY 25 2000. CHEQUES IN RESPECT OF THE DIVIDEND WILL
BE POSTED TO MEMBERS AT THEIR REGISTERED ADDRESSES OR AMOUNTS DUE WILL BE
ELECTRONICALLY TRANSFERRED TO THEIR BANK ACCOUNTS, ON OR ABOUT FEBRUARY 29 2000
OPERATIONAL REVIEW
CATER PLUS
DESPITE INCREASED COMPETITION IN THE MARKET PLACE ALL BRANCHES OF THE OPERATION
HAVE PERFORMED ABOVE EXPECTATIONS. SALES AND PROFIT IMPROVED AGAINST THE
COMPARATIVE PERIOD AND AGAINST FORECASTS.
CATER PLUS HAS CONTINUED TO IMPROVE THE SERVICE IT OFFERS TO CUSTOMERS AND
THIS, COMBINED WITH A COMPREHENSIVE "BASKET" OFFERED TO CLIENTS, IS IMPACTING
POSITIVELY ON THE BUSINESS.
DECEMBER PROVED TO BE AN EXCEPTIONAL MONTH, WITH SIGNIFICANT CUSTOMER OFFTAKE
CONTRIBUTING TO THE OVERALL RESULTS. THE FROZEN DIVISION CONTINUED TO SHOW
IMPROVEMENTS AND FURTHER GROWTH IS ANTICIPATED.
COMBINED FOODS
THE DEREGULATION IN THE BAKING INDUSTRY HAS PUT CHIPKINS BAKERY SUPPLIES
MARGINS UNDER PRESSURE. THE RED MEAT INDUSTRY IS IN TURMOIL, AND WE
DELIBERATELY LIMITED OUR CREDIT EXPOSURE TO THIS INDUSTRY, WHICH HAS IMPACTED,
ON OUR SALES. CROWN NATIONAL STOCKED UP IN ADVANCE OF MILLENNIUM SALES
EXPECTATIONS WHICH DID NOT MATERIALISE. DESPITE THIS COMBINED FOODS HAVE
MAINTAINED PROFIT LEVELS AND RETURN ON FUNDS EMPLOYED. THE BUSINESSES REMAIN
WELL FOCUSED.
ANY SALES VOLUME INCREASES ARISING FROM AN ECONOMIC UPTURN WILL HAVE A
FAVOURABLE IMPACT ON PROFITABILITY FOR THE FULL YEAR.
BIDSERV
BIDSERV HAS PRODUCED GOOD RESULTS, WITH STEINER HYGIENE, PRESTIGE CLEANING, AND
SHIELD SECURITY ALL PERFORMING WELL DESPITE DIFFICULT ECONOMIC CONDITIONS.
STEINER HAS SUCCESSFULLY ENTERED THE WATER COOLER AND PURIFIED MINERAL WATER
MARKET AND MANAGEMENT BELIEVES THERE IS CONSIDERABLE POTENTIAL IN THIS NICHE.
PRESTIGE CLEANING HAS EXPERIENCED GROWTH IN ITS OPERATIONS AND THIS IS SET TO
CONTINUE. SHIELD SECURITY PRODUCED GOOD RESULTS AND ADDITIONAL SALES STAFF
HAVE BEEN EMPLOYED AHEAD OF THE ANTICIPATED GROWTH.
BIDSERV IS BENEFITING FROM AN IMPROVEMENT IN OVERALL TRADING CONDITIONS AND THE
OUTLOOK FOR THE SECOND HALF OF THE FINANCIAL YEAR REMAINS ENCOURAGING.
OUTSOURCING REMAINS AN UNTAPPED AND GROWTH MARKET FOR THE FUTURE.
BIDOFFICE
BIDOFFICE HAS PRODUCED GOOD RESULTS FOR THE HALF YEAR. LITHOTECH, WALTONS,
KOLOK AND MINOLCO WERE THE LARGEST CONTRIBUTORS AND THE DIVISION IS WELL PLACED
FOR CONTINUED GROWTH IN THE SECOND HALF OF THE YEAR.
THE MERGER OF WALTONS OFFICE AND OFFICE MART IS WELL UNDERWAY, AND HAS BEEN
RENAMED WALTONS OFFICE MART. THE MERGER IS EXPECTED TO RESULT IN CONSIDERABLE
ADDITIONAL SAVINGS. WALTONS ENJOYED BUOYANT "BACK TO SCHOOL" TRADE IN THE
SECOND QUARTER AND THIS IS EXPECTED TO IMPACT ON THE SECOND HALF OF THE
FINANCIAL YEAR. A GOOD PERFORMANCE AT LITHOTECH WAS FURTHER BOLSTERED BY
"ONE-OFF" CONTRACTS LIKE THE MOZAMBIQUE ELECTIONS AND THE OLD MUTUAL
DEMUTUALISATION.
THE FURNITURE DIVISION HAS BEEN EFFECTED BY ADVERSE TRADING CONDITIONS, BUT AN
IMPROVEMENT IN THE ECONOMY IS EXPECTED TO RELIEVE THE SITUATION.
BIDPAC
THE PERFORMANCE OF THE DIVISION WAS COMMENDABLE AND MARKET SHARE HAS BEEN
MAINTAINED OR IMPROVED. TRADING SHOWED A MARKED IMPROVEMENT IN NOVEMBER AND
DECEMBER AND MANAGEMENT IS CONFIDENT THAT IN THE SECOND HALF OF THE YEAR, WITH
FAVOURABLE ECONOMIC CONDITIONS, BIDPAC WILL PERFORM WELL. ALL OPERATIONS WITHIN
BIDPAC ARE WELL POSITIONED FOR GROWTH.
RENNIES FINANCIAL SERVICES
THE USUAL SEASONAL TRAVEL DID NOT MATERIALISE DUE TO Y2K FEARS AND THE FORECAST
MILLENNIUM EFFECT WAS HAMPERED BY VERY HIGH PRICES AND CANCELLATIONS BROUGHT
ABOUT BY THE CAPE TOWN BOMBINGS. THE SITUATION IS ALREADY IMPROVING.
THE RESERVE BANK HAS GRANTED OUR APPLICATION FOR A BANKING LICENCE, AND WE
EXPECT THAT ONCE THE BANK IS FULLY OPERATIONAL THIS WILL SUBSTANTIALLY ENHANCE
THE BUSINESS.
RENNIES TRAVEL IS EAGERLY AWAITING THE LAUNCH OF ITS E-COMMERCE AND ON-LINE
BOOKING CAPABILITY, WHICH WILL POSITION THE DIVISION AHEAD OF ITS COMPETITION
AND GIVE IT THE ELECTRONIC INTERNET BASE, WHICH IS SO IMPORTANT FOR ITS FUTURE.
BIDFREIGHT
IMPORT ACTIVITY WAS DOWN IN REAL TERMS, WHICH OBVIOUSLY AFFECTED OVERALL
VOLUMES. CUSTOMERS IMPORTED SMALLER SHIPMENTS MORE FREQUENTLY, INCREASING THE
WORKLOAD AND NOT THE VOLUMES, FORCING IMPROVED EFFICIENCY. SAFCOR IS A WELL RUN
BUSINESS WHICH PERFORMED WELL IN A TOUGH ENVIRONMENT, MAINTAINING ACCEPTABLE
PROFITABILITY AND RETURN ON FUNDS EMPLOYED, NOTWITHSTANDING A LOWER INTEREST
INCOME AS A RESULT OF THE LOWER INTEREST RATE.
RENFREIGHT CIRCLE HAS BEEN SUBJECTED TO SUBSTANTIAL COST CUTTING, AND THIS
EXERCISE HAS NOW LARGELY STABILISED, THE EFFECTS OF WHICH WILL STILL FLOW
THROUGH. RENFREIGHT HAS EXCELLENT RELATIONSHIPS WITH ITS OVERSEAS PRINCIPALS,
AND, OPERATING OFF A VERY LOW BASE IS WELL POSITIONED TO BENEFIT FROM INCREASED
TRADE.
THE LOGISTICS BUSINESS HAS SEEN AN INCREASE IN ITS ACTIVITIES, PARTIALLY AS A
RESULT OF THE UPSURGE IN BUYING THROUGH THE INTERNET AND THE REQUIREMENT FOR
THE ASSOCIATED DELIVERY. PROFITABILITY IS DRIVEN BY VOLUME AND THE DIVISION IS
WELL SET FOR FURTHER IMPROVEMENT. THE FEDEX BRAND HAS BECOME HIGHLY REGARDED IN
THE MARKET.
THE TERMINALS DIVISION NOW INCORPORATES ISLAND VIEW STORAGE, WHICH HAS HAD A
POSITIVE IMPACT ON PROFITS. DRY BULK HAS PERFORMED WELL AND WE EXPECT IT WILL
CONTINUE TO TRADE WELL AND ADD SIGNIFICANTLY TO PROFITS. THE PROFITABILITY OF
TERMINALS IS NOT ONLY RELATED TO THE GENERAL ECONOMY BUT MORE TO COMMODITY
PRICES AND THE RELATIVE AVAILABILITY (SURPLUS OR SHORTAGE) OF COMMODITIES
WITHIN SOUTH AFRICA.
LOGISTICS, PARTICULARLY LOGISTICS INCORPORATING THE COMPLETE IMPORT OR EXPORT
CHAIN, REMAINS AN ATTRACTIVE AND GROWTH INDUSTRY, A SECTOR IN WHICH BIDFREIGHT
IS WELL REPRESENTED.
BIDVEST PLC
3663 FIRST FOR FOODSERVICE
THE FIRST HALF OF THE YEAR HAS PRODUCED STRONG RESULTS DUE TO 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 DEFENSE 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 ITS 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 OF WHICH 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.
- ENDS -
CONSOLIDATED INCOME STATEMENT
REVIEWED
HALF YEAR ENDED YEAR ENDED
DECEMBER 31 JUNE 30
1999 1998 % 1999
R'000S RESTATED RESTATED CHANGE RESTATED
TURNOVER 13 739 553 5 551 514 147,5 14 646 146
OPERATING INCOME 606 696 327 435 85,3 720 496
NET FINANCE INCOME
(EXPENSE) (8 294) 99 167 161 583
INCOME BEFORE TAXATION 598 402 426 602 40,3 882 079
TAXATION (133 383) (118 169) (218 462)
INCOME AFTER TAXATION 465 019 308 433 50,8 663 617
INCOME FROM ASSOCIATES 12 009 8 451 28 235
OUTSIDE SHAREHOLDERS'
INTEREST (35 983) (7 443) (24 848)
INCOME ATTRIBUTABLE TO
SHAREHOLDERS 441 045 309 441 42,5 667 004
NUMBER OF SHARES IN
ISSUE (WEIGHTED 000) 287 067 253 077 271 483
HEADLINE EARNINGS
PER SHARE (CENTS) 153,6 122,3 25,7 245,7
DIVIDENDS PER
SHARE (CENTS)* 72,0 59,8 127,3
* INCLUDES CAPITALISATION ISSUES AT MARKET VALUE WHERE APPROPRIATE
CONSOLIDATED BALANCE SHEET
DECEMBER 31 JUNE 30
1999 1998 1999
R'000S RESTATED RESTATED
CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 2 950 523 3 380 621 3 048 531
OUTSIDE SHAREHOLDERS' INTEREST 247 019 200 172 52 098
DEFERRED TAX (185 027) (264 458) (234 174)
INTEREST BEARING DEBT 26 878 94 333 35 006
3 039 393 3 410 668 2 901 461
EMPLOYMENT OF CAPITAL
FIXED ASSETS 1 871 187 1 209 505 1 699 152
INVESTMENTS 578 161 341 960 525 036
NET CURRENT ASSETS 590 045 1 859 203 677 273
CURRENT ASSETS 4 949 185 3 284 181 4 399 122
LIQUID FUNDS (NET) 119 268 1 477 718 467 489
CURRENT LIABILITIES (4 478 408) (2 902 696) (4 189 338)
3 039 393 3 410 668 2 901 461
NUMBER OF SHARES IN ISSUE (000) 289 251 282 898 288 480
NET ASSET VALUE PER SHARE (CENTS) 1 020 1 195 1 057
CONSOLIDATED CASH FLOW
REVIEWED
HALF YEAR ENDED
DECEMBER 31 YEAR ENDED
JUNE 30
1999 1998 1999
R'000S RESTATED RESTATED RESTATED
CASH RETAINED FROM OPERATIONS
OPERATING INCOME 606 696 327 435 720 496
DEPRECIATION AND OTHER NON-CASH ITEMS 173 137 77 217 224 731
CHANGE IN NET WORKING CAPITAL (765 852) (223 827) (85 806)
FIXED ASSET REPLACEMENT (NET) (171 999) (105 029) (289 145)
CASH GENERATED FROM
(UTILISED BY) OPERATIONS (158 018) 75 796 570 276
NET FINANCE INCOME (EXPENSE) (8 294) 99 167 161 583
TAXATION PAID (125 320) (162 483) (176 033)
CASH FLOW FROM OPERATIONS (291 632) 12 480 555 826
DIVIDENDS PAID - COMPANY (97 669) (28 422) (28 422)
- SUBSIDIARIES (11 427) (1 769) (5 328)
NET CASH RETAINED (UTILISED) (400 728) (17 711) 522 076
NET ACQUISITION OF SUBSIDIARIES,
TRADING OPERATIONS, ASSOCIATES
AND INVESTMENTS (212 804) (1 363 987) (3 022 553)
INTEREST BEARING DEBT REPAID (14 626) (84 951) (119 125)
PROCEEDS FROM SHARE ISSUES
- COMPANY 9 821 1 233 141 1 344 086
- SUBSIDIARIES 205 783 - 30 339
CASH INFLOW (OUTFLOW) (412 554) (233 508) (1 245 177)
SEGMENTAL ANALYSIS OF OPERATING PROFIT
R'000S 1999 1998 %
CHANGE
BIDFREIGHT 147 685 58 727 151,5
BIDOFFICE 81 169 67 079 21,0
BIDPAC 54 116 52 551 3,0
BIDSERV 41 079 33 174 23,8
CATER PLUS 158 076 51 857 204,8
- LOCAL 51 927 42 809 21,3
- FOREIGN 106 149 9 048 1 073,2
COMBINED FOODS 38 738 41 913 (7,4)
RENNIES FINANCIAL SERVICES 25 948 7 531 244,5
OTHER 59 830 14 603 309,7
606 696 327 435 85.3
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