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BIDVEST PLC
INTERIM RESULTS FOR THE QUARTER ENDED SEPTEMBER 30 2000
BIDVEST PLC IS A 76% HELD SUBSIDIARY OF THE BIDVEST GROUP LIMITED. BIDVEST PLC
IS BASED IN THE ISLE OF MAN AND LISTED ON THE LUXEMBOURG AND AUSTRALIAN STOCK
EXCHANGES. BIDVEST PLC IS MADE UP OF 3663 FIRST FOR FOODSERVICE (UNITED
KINGDOM), BIDVEST AUSTRALIA AND CREAN FOODSERVICE (AUSTRALASIA) AND IS THE
VEHICLE FOR BIDVEST TO FURTHER INTERNATIONALISE ITS FOODSERVICE ACTIVITIES.
* ATTRIBUTABLE INCOME GBP4,6M +70%
* OPERATING INCOME GBP6,2M +18%
* TURNOVER GBP251,3M -16%
* HEADLINE EARNINGS PER SHARE 2,33P -10%
* SATISFACTORY RESULTS DESPITE WEAK TRADING CONDITIONS AND SHORTER REPORTING
PERIOD FOR 3663
* RIGHTS ISSUE DEBT REPAYMENT HAS NEGATIVE IMPACT, BUT PROVIDES LARGER CAPITAL
BASE
BRIAN JOFFE, CHAIRMAN, COMMENTED:
"BIDVEST PLC HAS DONE WELL TO IMPROVE OPERATING PROFIT, MAINLY THROUGH TIGHT
COST CONTROL AND IMPROVED MARGIN MANAGEMENT, DESPITE TIGHT TRADING CONDITIONS
AND A SHORTER REPORTING PERIOD FOR THE 3663 BUSINESS. THE COMPANY REMAINS WELL
PLACED TO INCREASE CRITICAL MASS, BOTH BY ACQUISITION AND ORGANICALLY."
9 NOVEMBER 2000
ENQUIRIES:
THE BIDVEST GROUP LIMITED TEL: + 27 (0) 11 481 4129
BRIAN JOFFE, CHAIRMAN
JACK HOCHFELD, GROUP CORPORATE FINANCE CELL: + 27 (0) 82 459 7051
COLLEGE HILL JOHANNESBURG TEL: + 27 (0) 11 447 3030
TOM ALLISON
BRENDAN TEMPLETON
BIDVEST PLC
INTERIM RESULTS FOR THE
QUARTER ENDED SEPTEMBER 30 2000
BIDVEST PLC IS PLEASED TO ANNOUNCE SATISFACTORY RESULTS FOR THE FIRST QUARTER
THAT WAS A WEEK SHORTER FOR THE 3663 BUSINESS THAN THE COMPARABLE PERIOD LAST
YEAR. DESPITE SLIGHTLY WEAKENED MARKET CONDITIONS, OPERATING PROFIT INCREASED
BY 18% TO GBP6,2 MILLION AND INCOME ATTRIBUTABLE TO SHAREHOLDERS INCREASED TO
GBP4,6 MILLION, 70% MORE THAN THE COMPARABLE PERIOD LAST YEAR.
THE 10% REDUCTION IN EARNINGS PER SHARE TO 2,33 PENCE FOR THE FIRST QUARTER IS
NOT STRICTLY COMPARABLE WITH THE SAME PERIOD LAST YEAR. THIS REDUCTION IS DUE
TO THE DISTORTION ON SHARE WEIGHTING ARISING OUT OF THE LARGE ISSUE OF SHARES
FOLLOWING THE NINE-FOR-TWO RIGHTS ISSUE IN SEPTEMBER 1999. THE EFFECTS OF THESE
TRANSACTIONS HAS HAD A NEGATIVE IMPACT ON EARNINGS PER SHARE, BUT HAS PROVIDED
A LARGER CAPITAL BASE FROM WHICH THE GROUP CAN GROW. THE NEGATIVE IMPACT ON THE
RIGHTS ISSUE, ON EARNINGS PER SHARE, WILL BE REDUCED OVER THE FULL YEAR.
OPERATIONS
UNITED KINGDOM
A STRINGENT FOCUS ON REDUCING COSTS IN THE TRADING DIVISION WAS LARGELY THE
CAUSE OF THE FURTHER INCREASE IN OPERATING MARGINS AND COST CONTROL WILL REMAIN
A PRIORITY. ENCOURAGING RESULTS HAVE BEEN ACHIEVED FROM THE INVESTMENT IN THE
NEW DEDICATED FROZEN PRODUCTS' SALES FORCE. IMPROVEMENTS HAVE BEEN MADE IN THE
INDEPENDENT CUSTOMER SECTOR, WHILST THE IMPACT ON NATIONAL ACCOUNTS SALES WILL
TAKE A LITTLE LONGER TO COME THROUGH.
TURNOVER IN THE LOGISTICS DIVISION SHOWS A SUBSTANTIAL FALL IN THE CURRENT
PERIOD DUE TO THE MOVE TO A DEDICATED RESOURCE ALLOCATION MODE OF OPERATION IN
THE THIRD QUARTER OF LAST YEAR AND THE LOSS OF ACCOUNTS DUE TO THE CHANGEOVER.
OVERALL, THE QUARTER'S RESULTS ARE A CREDITABLE ACHIEVEMENT, GIVEN THE WEAKER
TRADING CONDITIONS AND THE LOSS OF A WEEK'S TURNOVER DUE TO THE WAY THE JUNE 30
1999 YEAR END FELL.
AUSTRALASIA
GOOD ORGANIC GROWTH AND ACQUISITIONS MADE LAST YEAR SPURRED RESULTS IN
AUSTRALASIA WHERE OPERATIONS CONTINUE TO SHOW IMPROVED PERFORMANCE. THE SYDNEY
2000 OLYMPICS HAD A NEGLIGIBLE IMPACT ON THE QUARTER'S TRADING RESULTS, DUE TO
BOTH OUR GEOGRAPHIC DIVERSITY AS WELL AS A SHIFT IN TRADITIONAL EATING-OUT
PATTERNS FOR THE PERIOD OF THE GAMES.
CREAN FOODSERVICE IN NEW ZEALAND, ACQUIRED IN APRIL 2000, PERFORMED AHEAD OF
EXPECTATIONS AND CONTINUED TO CONSOLIDATE ITS POSITION IN THE MARKET, WITH A
SMALL ACQUISITION BEING MADE IN THE PERIOD.
PROSPECTS
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 UK, EUROPE,
AND AUSTRALASIA CONTINUES.
-ENDS-
CONSOLIDATED INCOME STATEMENT
GBP000'S QUARTER QUARTER YEAR ENDED CHANGE
ENDED ENDED ENDED ON LAST
SEPTEMBER 30 SEPTEMBER 30 JUNE 30 YEAR
2000 1999 2000
UNAUDITED UNAUDITED AUDITED
TURNOVER 251,288 299,195 1,071,455 -16%
UNITED KINGDOM - TRADING 121,494 131,076 + 490,601
- LOGISTICS 92,253 141,786 + 467,618
AUSTRALASIA 37,541 26,333 113,236
OPERATING INCOME 6,164 5,223 19,010 +18%
UNITED KINGDOM 5,234 4,556 + 16,331
AUSTRALASIA 930 667 2,679
NET FINANCE EXPENSE (50) (1,249) (724)
INCOME BEFORE TAXATION 6,114 3,974 18,286 +54%
TAXATION (1,548) (1,284) (5,069)
INCOME ATTRIBUTABLE TO
SHAREHOLDERS 4,566 2,690 13,217 +70%
NUMBER OF SHARES IN ISSUE
(WEIGHTED 000) 196,097 103,735 165,781
HEADLINE EARNINGS PER SHARE
BRITISH PENCE 2.33 2.59 7.97 -10%
UNITED STATES CENTS ~ 3.44 4.20 12.69 -18%
AUSTRALIAN CENTS ~ 6.08 6.50 20.36 -6%
DIVIDENDS PER SHARE
BRITISH PENCE 2.76 0.82 2.76 + 237%
UNITED STATES CENTS 4.16 1.30 4.16 + 220%
AUSTRALIAN CENTS 6.84 2.00 6.84 + 242%
~ TRANSLATED AT THE AVERAGE RATE FOR THE PERIOD
+ TRANSLATED AT THE RATE AT THE END OF THE YEAR
+ THE PRIOR YEAR QUARTER INCLUDED AN EXTRA TRADING WEEK FOR 3663 COMPARED TO
THIS YEAR.
CONSOLIDATED BALANCE SHEET
GBP000'S SEPTEMBER 30 SEPTEMBER 30 JUNE 30
2000 1999 2000
UNAUDITED UNAUDITED AUDITED
ASSETS
NON CURRENT ASSETS 67,927 58,069 64,709
PROPERTY PLANT AND EQUIPMENT 67,490 56,355 64,255
GOODWILL # 114 - -
DEFERRED TAX 294 1,662 416
INVESTMENTS 29 52 38
CURRENT ASSETS 181,634 182,654 184,557
INVENTORIES
CURRENT ASSETS 147,668 156,841 144,154
LIQUID FUNDS 33,966 25,813 40,403
TOTAL ASSETS 249,561 240,723 249,266
EQUITY AND LIABILITIES
CAPITAL AND RESERVES
ORDINARY SHAREHOLDERS'
INTEREST 80,384 75,007 80,477
CURRENT LIABILITIES 169,177 165,716 168,789
LIABILITIES 147,584 145,127 146,268
VENDORS FOR ACQUISITION
TAXATION
SHAREHOLDERS FOR DIVIDENDS
INTEREST BEARING DEBT 21,593 20,589 22,521
TOTAL EQUITY AND
LIABILITIES 249,561 240,723 249,266
NUMBER OF SHARES IN ISSUE
(000) 196,099 187,309 196,095
NET ASSET VALUE PER SHARE
BRITISH PENCE 40.99 40.04 41.04
UNITED STATES CENTS * 60.61 66.28 62.13
AUSTRALIAN CENTS * 111.91 101.14 103.48
* TRANSLATED AT THE RATE AT THE END OF THE PERIOD.
# SEE NOTE ON ADJUSTMENT TO BASIS OF ACCOUNTING
CONSOLIDATED CASH FLOW STATEMENT
GBP000'S QUARTER ENDED QUARTER ENDED YEAR ENDED
SEPTEMBER 30 SEPTEMBER 30 JUNE 30
2000 1999 2000
UNAUDITED UNAUDITED AUDITED
CASH FLOW FROM OPERATING
ACTIVITIES 2,554 (6,804) 29,483
CASH GENERATED BY
OPERATIONS 6,491 (4,193) 35,243
NET FINANCE EXPENSE (50) (1,249) (724)
TAXATION PAID (1,224) (1,011) (2,261)
DIVIDENDS PAID (2,663) (351) (2,775)
CASH EFFECTS OF INVESTMENT
ACTIVITIES (7,226) (251) (29,590)
DECREASE IN INVESTMENTS - - -
FIXED ASSET ADDITIONS (7,187) (215) (13,688)
PROCEEDS ON DISPOSAL OF
FIXED ASSETS 56 - 1,149
ACQUISITION OF BUSINESSES (95) (36) (17,051)
CASH EFFECTS OF FINANCING
ACTIVITIES (926) (27,019) (18,340)
PROCEEDS FROM SHARE ISSUES 2 20,125 26,872
INTEREST BEARING DEBT
REPAID (928) (47,144) (45,212)
CASH (OUTFLOW) (5,598) (34,074) (18,447)
~ TRANSLATED AT THE AVERAGE RATE FOR THE PERIOD
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.
ADJUSTMENT TO BASIS OF ACCOUNTING
IN ACCORDANCE WITH RECENTLY AMENDED SOUTH AFRICAN GENERALLY ACCEPTED
ACCOUNTING PRACTICE WITH REGARD TO GOODWILL, THE GROUP HAS NOW CHANGED ITS
ACCOUNTING POLICY:
- FOR ACQUISITIONS THAT HAVE TAKEN PLACE ON OR AFTER JULY 1 2000, GOODWILL
ARISING WILL BE CAPITALISED AND AMORTISED OVER A PERIOD NOT EXCEEDING 20 YEARS;
- FOR ACQUISITIONS PRIOR TO JULY 1 2000 THE GOODWILL HAS BEEN WRITTEN OFF
AGAINST RESERVES. IN THE CURRENT QUARTER, FURTHER EXPENDITURE OF GBP 0.2
MILLION HAS BEEN INCURRED ON THESE ACQUISITIONS, BRINGING THE CUMULATIVE AMOUNT
OF GOODWILL WRITTEN OFF RESERVES TO GBP 75.5 MILLION.
STATEMENT OF CHANGES IN SHAREHOLDERS' INTEREST
GBP000'S
QUARTER ENDED QUARTER ENDED YEAR ENDED
SEPTEMBER 30 SEPTEMBER 30 JUNE 30
2000 1999 2000
UNAUDITED UNAUDITED AUDITED
SHAREHOLDERS' INTEREST AT THE
BEGINNING OF THE PERIOD 80,477 49,043 49,043
SHARE CAPITAL ISSUED FOR CASH - 721 940
- RE-ORGANISATION OF THE
GROUP - - -
- SHARE OPTION PLAN - - 1
- RIGHTS OFFER - 721 939
SHARE PREMIUM 2 19,407 25,933
- RE-ORGANISATION OF THE
GROUP - - -
- SHARE OPTION PLAN 2 - 34
- RIGHTS OFFER - 19,576 26,106
- SHARE ISSUE EXPENSES - (169) (207)
NON-DISTRIBUTABLE RESERVE
- MOVEMENT ON FOREIGN
CURRENCY RESERVE (1,638) 3,182 2,064
DISTRIBUTABLE RESERVE 1,543 2,654 2,497
- INCOME FOR PERIOD 4,566 2,690 13,217
- PREACQUISITION PROFITS
(II) - - -
- PRE-ACQUISITION PROFITS - - -
- DIVIDEND (2,824) - (2,458)
- GOODWILL WRITTEN OFF (199) (36) (8,262)
- PRIOR YEAR DEFERRED TAX
ADJUSTMENT ARISING ON
CHANGE IN ACCOUNTING POLICY
(IV) - -
SHAREHOLDERS' INTEREST AT THE
END OF THE PERIOD 80,384 75,007 80,477
INDEPENDENT REVIEW
THE RESULTS HAVE BEEN REVIEWED BY KPMG WHERE INDICATED AND THEIR REPORT IS
AVAILABLE FOR INSPECTION AT THE COMPANY'S REGISTERED OFFICE.
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