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BIDVEST PLC
YEAR END RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2000
BIDVEST PLC IS A 76% HELD SUBSIDIARY OF THE BIDVEST GROUP LIMITED ("BIDVEST").
BIDVEST PLC IS BASED IN THE ISLE OF MAN AND LISTED ON THE LUXEMBOURG AND
AUSTRALIAN STOCK EXCHANGES WITH A MARKET CAPITALISATION OF APPROXIMATELY GBP240
MILLION. BIDVEST PLC IS MADE UP OF 3663 FIRST FOR FOODSERVICE (UNITED
KINGDOM), BIDVEST AUSTRALIA (AUSTRALIA) AND CREAN FOODSERVICE (NEW ZEALAND) AND
IS THE VEHICLE FOR BIDVEST TO FURTHER INTERNATIONALISE ITS FOODSERVICE
ACTIVITIES.
* TURNOVER - 492%
* OPERATING INCOME - 417%
* HEADLINE EARNINGS PER SHARE - 32%
* FURTHER STRATEGIC ACQUISITIONS MADE IN AUSTRALIA
* 3663 TRADING WELL AND POSITIONED AS A LEADING UK FOOD DISTRIBUTOR
* ACQUISITION OF CREAN FOODSERVICE PROVIDES NEW ZEALAND FOOTHOLD
BRIAN JOFFE, CHAIRMAN, COMMENTED:
"BIDVEST PLC HAS CONTINUED TO GROW IN LINE WITH ITS STATED STRATEGY. THIS
YEAR'S RESULTS INCLUDE 3663 FOR THE FULL YEAR. IN THE PERIOD UNDER REVIEW
MANAGEMENT HAS DELIVERED SATISFACTORY RESULTS COMING FROM CONTINUED GROWTH AND
IMPROVEMENT OF EFFICIENCIES AT 3663 FIRST FOR FOODSERVICE, NATIONAL
DISTRIBUTION IN AUSTRALIA, AND EXPANSION INTO NEW ZEALAND. THE COMPANY REMAINS
WELL PLACED TO PRODUCE EARNINGS GROWTH AND PURSUE OPPORTUNITIES TO INCREASE
CRITICAL MASS, BOTH BY ACQUISITION AND ORGANICALLY."
16 AUGUST 2000
ENQUIRIES:
THE BIDVEST GROUP LIMITED TEL: + 27 (0) 11 481 4129
BRIAN JOFFE, CHAIRMAN
COLLEGE HILL JOHANNESBURG TEL: + 27 (0) 11 447 3030
TOM ALLISON
BIDVEST PLC
YEAR END RESULTS FOR THE 12 MONTHS ENDED 30 JUNE 2000
GROWTH IN THE PERIOD UNDER REVIEW CONTINUED TO BE STRONG WITH TURNOVER
INCREASING BY 492% TO GBP1 BILLION (1999: GBP145 MILLION) AND OPERATING INCOME
GROWING BY 417% TO GBP19 MILLION (1999: GBP3 MILLION). HEADLINE EARNINGS PER
SHARE ROSE BY 32% TO 7,97P (1999: 4,87P). THESE NUMBERS REFLECT THE INCLUSION
OF 3663 RESULTS FOR THE FULL PERIOD UNDER REVIEW.
SHAREHOLDERS' INTEREST IS STATED AFTER THE CUMULATIVE DEDUCTION OF GBP75.3
MILLION (JUNE 30 1999 - GBP67.0 MILLION) IN RESPECT OF GOODWILL WRITTEN OFF IN
LINE WITH GAAP REQUIREMENTS.
BIDVEST PLC'S STRATEGY AND FOCUS REMAIN CLEARLY DEFINED IN FOODSERVICE
DISTRIBUTION. IN THE PERIOD UNDER REVIEW STRATEGIC ACQUISITIONS IDENTIFIED IN
AUSTRALIA AND NEW ZEALAND HAVE BEEN CAPITALISED ON AND ARE NOW TRADING WELL
WITHIN BIDVEST PLC. IT IS PARTICULARLY PLEASING THAT THE AUSTRALIAN BUSINESS
HAS NOW ACHIEVED NATIONAL COVERAGE. IN THE UNITED KINGDOM 3663 FIRST FOR
FOODSERVICE CONTINUES TO SEEK ACQUISITIONS TO FILL EXISTING GAPS, IN EITHER THE
REGIONAL OR PRODUCT NETWORK.
A DIVIDEND OF 2.16 US CENTS, WHICH FOR SHAREHOLDERS ON THE AUSTRALIAN REGISTER
WILL BE 3.69 AU CENTS PER SHARE HAS BEEN DECLARED TO SHAREHOLDERS REGISTERED IN
THE BOOKS OF THE COMPANY AT THE CLOSE OF BUSINESS ON SEPTEMBER 8 2000.
THE BOARD REMAINS CONFIDENT THAT THE COMPANY WILL CONTINUE TO PRODUCE POSITIVE
EARNINGS GROWTH IN THE IMMEDIATE FUTURE. BIDVEST PLC'S STRUCTURED PROGRAMME OF
ORGANIC AND ACQUISITIVE GROWTH, COMBINED WITH ITS WORLD-CLASS MANAGEMENT TEAM,
POSITIONS THE GROUP TO BE A MAJOR PLAYER IN THE INTERNATIONAL FOODSERVICE
MARKET. THE SEARCH FOR SUITABLE ACQUISITION OPPORTUNITIES IN THE UNITED
KINGDOM, EUROPE, AUSTRALIA, NEW ZEALAND, SOUTHERN AFRICA AND THE UNITED STATES
OF AMERICA CONTINUES. BIDVEST PLC'S INTENTION REMAINS TO SEEK A LISTING ON THE
LONDON STOCK EXCHANGE ONCE IT HAS ACHIEVED CRITICAL MASS.
OPERATIONAL REVIEW
3663 FIRST FOR FOODSERVICE
THE BENEFITS OF JOINING THE BIDVEST GROUP HAVE ALREADY BEEN REALISED AT 3663
AND THE TRADING PERFORMANCE IN THE FIRST FULL YEAR AS PART OF BIDVEST PLC HAS
BEEN MOST SATISFACTORY WITH SIGNIFICANT INCREASES ACHIEVED IN BOTH OPERATING
PROFIT AND RETURN ON FUNDS EMPLOYED.
GROWTH WITHIN THE PERIOD HAS BEEN ORGANIC, BUT THE GROUP CONTINUES TO SEEK
COMPETITIVE ACQUISITION OPPORTUNITIES THAT WILL FURTHER DISTRIBUTION AND
NATIONAL COVERAGE.
THE NAME CHANGE TO "3663 FIRST FOR FOODSERVICE" WAS SUCCESSFUL AND 3663 IS THE
LEADING PROVIDER OF BRAND NAME PRODUCTS. THE RECENT LAUNCH OF ITS OWN LABEL
"3663 SMART CHOICE," HAS BEEN WELL RECEIVED BY CUSTOMERS AND IS EXPECTED TO
CONTRIBUTE IN THE IMMEDIATE FUTURE. TODAY 3663 IS A LEADING UK FOODSERVICE
DISTRIBUTOR, WITH 33 DEPOTS NATIONWIDE IN THE UK.
MANAGEMENT IS CONFIDENT THAT ADDITIONAL BENEFITS, ESPECIALLY FROM THE NEWLY
FORMED BUYING DEPARTMENT, WILL RESULT IN FURTHER PROGRESS BEING ACHIEVED,
DESPITE A SLIGHT WEAKENING IN MARKET CONDITIONS.
BIDVEST AUSTRALIA
EXCELLENT ORGANIC AND ACQUISITIVE GROWTH INCREASED BOTH SALES AND OPERATING
PROFITS IN THE PERIOD UNDER REVIEW. THE COMPANY IS NOW A NATIONAL PLAYER AND
OPERATES FOURTEEN BUSINESS UNITS ALONG THE EASTERN SEABOARD.
TWO STRATEGIC ACQUISITIONS OF SUBSTANCE WERE MADE THIS YEAR: REGENCY
FOODSERVICE (ADELAIDE, DECEMBER 1999), THE LARGEST FOODSERVICE DISTRIBUTOR IN
SOUTH AUSTRALIA AND WARRAMBA FOODSERVICE, (MELBOURNE, MAY 2000), A NICHE
OPERATOR. ALL ACQUISITIONS ARE TRADING SATISFACTORILY AND WILL IMPACT
POSITIVELY ON THE BUSINESS IN THE YEAR AHEAD.
A STRATEGIC DECISION HAS BEEN TAKEN TO IMPLEMENT A COMMON BRANDING AND ALL
OPERATIONS WILL NOW BE BRANDED UNDER THE "BIDVEST, FIRST FOR FOODSERVICE"
BANNER.
THE IMPACT OF THE SYDNEY 2000 OLYMPIC GAMES IS AN UNKNOWN FACTOR AT THIS STAGE,
BUT THE BOARD IS CONFIDENT THAT THE ONGOING FOCUS ON MARGIN MANAGEMENT AND
IMPROVEMENT, EXPENDITURE CONTROL AND ASSET MANAGEMENT WILL RESULT IN CONTINUED
GROWTH.
CREAN FOODSERVICE
BIDVEST PLC ENTERED THE NEW ZEALAND MARKET THROUGH THE ACQUISITION OF CREAN
FOODSERVICE ON APRIL 1 2000. THE COMPANY WAS FOUNDED IN 1982 AND HAS GROWN
BOTH ORGANICALLY AND BY ACQUISITION, TO BECOME THE LARGEST INDEPENDENT
DISTRIBUTOR IN NEW ZEALAND WITH AN EXCELLENT INDUSTRY REPUTATION FOR SERVICE.
CREAN DISTRIBUTES FROZEN AND CHILLED PRODUCTS, AS WELL AS A RANGE OF DRY GOODS.
CREAN HAS ONLY CONTRIBUTED TO BIDVEST PLC FOR THE LAST QUARTER OF THE
FINANCIAL YEAR, BUT THE COMPANY HAS ACHIEVED AN IMPRESSIVE PERFORMANCE YEAR ON
YEAR.
IMPROVED ECONOMIC AND TRADING CONDITIONS, COMBINED WITH AN INCREASED FOCUS ON
PROFITABILITY, HAS LEAD TO BETTER OPERATING EXPENSE CONTROL AND A GENERAL
IMPROVEMENT IN STAFF MORALE. IT IS ANTICIPATED THAT THE IMPROVEMENTS SHOWN IN
THE PERIOD UNDER REVIEW WILL CONTINUE INTO THE IMMEDIATE FUTURE AND BEYOND.
CONSOLIDATED INCOME STATEMENT
GBP000'S YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30 2000 JUNE 30 1999 JUNE 30 1999 (I) CHANGE
AUDITED AUDITED PROFORMA ON PRO-
FORMA
TURNOVER 1,071,455 145,217 180,990 + 492%
UNITED KINGDOM
- TRADING 490,601 48,726 48,726
- LOGISTICS 467,618 49,695 49,695
AUSTRALASIA 113,236 46,796 82,569
OPERATING INCOME 19,010 3,044 3,676 + 417%
UNITED KINGDOM 16,331 1,787 1,794
AUSTRALASIA 2,679 1,257 1,882
NET FINANCE EXPENSE (724) (303) (174)
INCOME BEFORE
TAXATION 18,286 2,741 3,502 + 422%
TAXATION (5,069) (765) (1,076)
INCOME ATTRIBUTABLE
TO SHAREHOLDERS 13,217 1,976 2,426 + 445%
NUMBER OF SHARES IN
ISSUE (WEIGHTED 000) 165,781 40,539 40,073
HEADLINE EARNINGS PER SHARE
BRITISH PENCE 7.97 4.87 6.05 + 32%
UNITED STATES CENTS ~ 12.69 7.77 9.66 + 31%
AUSTRALIAN CENTS ~ 20.36 12.48 15.50 + 31%
DIVIDENDS PER SHARE
BRITISH PENCE 2.76 0.82 0.82 + 237%
UNITED STATES CENTS 4.16 1.30 1.30 + 220%
AUSTRALIAN CENTS 6.84 2.00 2.00 + 242%
~ TRANSLATED AT THE AVERAGE RATE FOR THE YEAR
CONSOLIDATED BALANCE SHEET
GBP000'S JUNE 30 2000 JUNE 30 1999
AUDITED AUDITED
CAPITAL EMPLOYED
SHAREHOLDERS' INTEREST 80,477 49,043
DEFERRED TAXATION (II) (416) (1,666)
INTEREST BEARING DEBT 22,521 32,733
102,582 80,110
EMPLOYMENT OF CAPITAL
FIXED ASSETS
INVESTMENTS 64,255 58,694
38 45
NET CURRENT ASSETS 38,289 21,371
CURRENT ASSETS
LIQUID FUNDS 144,154 156,407
40,403 21,710
CURRENT LIABILITIES (146,268) (156,746)
102,582 80,110
NUMBER OF SHARES IN ISSUE (000) 196,095 152,059
NET ASSET VALUE PER SHARE
BRITISH PENCE 41.04 32.25
UNITED STATES CENTS * 62.13 50.84
AUSTRALIAN CENTS * 103.48 76.81
* TRANSLATED AT THE RATE AT THE END OF THE YEAR.
CONSOLIDATED CASH FLOW STATEMENT
GBP000'S YEAR ENDED PERIOD ENDED YEAR ENDED
JUNE 30 2000 JUNE 30 1999 JUNE 30 1999 (I)
AUDITED AUDITED PROFORMA
CASH FLOW FROM OPERATING
ACTIVITIES 29,483 22,308 26,093
CASH GENERATED BY OPERATIONS 35,243 22,633 26,488
NET FINANCE EXPENSE (724) (303) (174)
TAXATION PAID (2,261) (22) (221)
DIVIDENDS PAID (2,775) - -
CASH EFFECTS OF INVESTMENT
ACTIVITIES (29,590) (85,707) (88,460)
DECREASE IN INVESTMENTS - - 259
FIXED ASSET ADDITIONS (13,688) (3,533) (3,961)
PROCEEDS ON DISPOSAL OF
FIXED ASSETS 1,149 123 246
ACQUISITION OF BUSINESS (17,051) (82,297) (85,004)
CASH EFFECTS OF FINANCING
ACTIVITIES 16,660 97,377 96,932
PROCEEDS FROM SHARE ISSUES 26,872 115,382 125,446
INTEREST BEARING DEBT REPAID (10,212) (18,005) (28,514)
CASH INFLOW 16,553 33,978 34,565
CHANGE IN REPORTING CURRENCY
THE FIGURES PRESENTED IN THIS REPORT HAVE BEEN STATED IN POUNDS STERLING.
PRIOR TO MARCH 31 2000 RESULTS HAVE BEEN PRESENTED IN US DOLLARS. THE COMPANY
CONSIDERS THAT POUNDS STERLING BETTER REFLECT THE ECONOMIC RESULTS OF THE GROUP
AS THIS IS THE MAIN FUNCTIONAL CURRENCY.
COMPARATIVE FIGURES AND ADJUSTMENT TO BASIS OF ACCOUNTING
IN VIEW OF THE FACT THAT THE RE-ORGANISATION 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 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.
(II) 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 PROFITS WILL BE AVAILABLE. PREVIOUSLY, AS AT JUNE 30
1999, THE DEFERRED TAX ASSET WAS WRITTEN OFF AS PART OF THE GOODWILL ON
CONSOLIDATION.
STATEMENT OF CHANGES IN SHAREHOLDERS' INTEREST
GBP000'S
YEAR ENDED YEAR ENDED
JUNE 30 2000 JUNE 30 1999
AUDITED AUDITED
SHAREHOLDERS' INTEREST AT THE BEGINNING
OF THE YEAR 49,043 -
SHARE CAPITAL ISSUED FOR CASH 940 3,858
- RE-ORGANISATION OF THE GROUP - 1,098
- SHARE OPTION PLAN 1 1
- RIGHTS OFFER 939 2,759
SHARE PREMIUM 25,934 111,523
- RE-ORGANISATION OF THE GROUP - 29,393
- SHARE OPTION PLAN 34 11
- RIGHTS OFFER 26,106 82,769
- SHARE ISSUE EXPENSES (206) (650)
NON-DISTRIBUTABLE RESERVE
- MOVEMENT ON FOREIGN CURRENCY
RESERVE DURING THE YEAR 2,063 (942)
DISTRIBUTABLE RESERVE 2,497 (65,396)
- INCOME FOR PERIOD (I) 13,217 1,976
- DIVIDEND (2,458) (353)
- GOODWILL WRITTEN OFF (II) (8,262) (67,019)
SHAREHOLDERS' INTEREST AT THE END OF THE YEAR 80,477 49,043
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