Wrap Text
THE BIDVEST GROUP LIMITED
Results for the half year ended December 31 2000
Financial highlights
Headline earnings per share +18,2%
Headline earnings +19,7%
Operating income +17,0%
Consolidated income statement
Half year ended Year ended
December 31 June 30
2000 1999 Percentage 2000
R'000 Unaudited Unaudited change Audited
Revenue 14 486 254 13 739 553 5,4 26 427 620
Operating income 710 109 606 696 17,0 1 223 660
Net finance income
(expense) 3 850 (8 294) 221
Income before
taxation 713 959 598 402 19,3 1 223 881
Taxation (162 274) (133 383) (281 667)
Income after
taxation 551 685 465 019 18,6 942 214
Income from
associates 11 511 12 009 25 623
Outside shareholders'
interest (35 420) (35 983) (73 453)
Headline earnings 527 776 441 045 19,7 894 384
Amortisation of
goodwill (1 744) - -
Income attributable
to shareholders 526 032 441 045 19,3 894 384
Number of shares in
issue (weighted 000) 290 674 287 067 288 554
Headline earnings per
share (cents) 181,6 153,6 18,2 310,0
Earnings per share
(cents) 181,0 153,6 17,8 310,0
Dividends per share
(cents)* 81,0 72,0 12,5 150,3
Consolidated cash flow statement
Half year ended Year ended
December 31 June 30
2000 1999 2000
R'000 Unaudited Unaudited Audited
Cash flow from operating
activities (9 687) (228 729) 754 566
Operating income 710 109 606 696 1 223 660
Depreciation and other
non-cash items 190 283 173 137 352 541
Change in net working
capital (30 092) (765 852) (293 513)
Cash generated by operations 270 300 13 981 1 282 688
Net finance income (expense) 3 850 (8 294) 221
Taxation paid (127 739) (125 320) (190 638)
Dividends paid
- Company (145 977) (97 669) (305 929)
- subsidiaries (10 121) (11 427) (31 776)
Cash effects of investment
activities (298 557) (343 405) (1 113 702)
Net additions to fixed
assets (259 606) (171 999) (457 800)
Net acquisition of subsidiaires,
trading operations, associates
and investments (38 951) (171 406) (655 902)
Cash effects of financing
activities (89 256) 194 778 301 487
Proceeds from shares issued
- Company 29 113 9 821 16 364
- subsidiaries 2 273 205 783 219 181
Net borrowings raised
(repaid) (120 642) (20 826) 65 942
Net decrease in cash and
cash equivalents (397 500) (377 356) (57 649)
Net cash and cash equivalents
at the beginning of the
period 536 263 538 197 538 197
Currency adjustments 57 746 22 935 55 715
Net cash and cash equivalents
at the end of the period 196 509 183 776 536 263
Statement of changes in shareholders' interest
Half year ended Year ended
December 31 June 30
2000 1999 2000
R'000 Unaudited Unaudited Audited
Shareholders' interest at
the beginning of the period 3 199 823 3 146 201 3 146 201
Share capital issued 141 142 161
- in terms of the share incentive
scheme 61 39 58
- capitalisation issue 80 103 103
Share premium arising on shares
issued 29 052 9 782 16 306
- in terms of the share
incentive scheme 29 120 9 807 16 338
- costs (68) (25) (32)
Movement in non-distributable
reserves 27 239 41 966 67 009
- foreign currency translation
reserve 27 239 41 966 61 387
- revaluation of fixed assets - - 5 622
Movement in retained income 379 975 (39 306) (29 854)
- income attributable to
shareholders 526 032 441 045 894 384
- dividends and capitalisation
issues (146 057) (97 772) (306 032)
- secondary tax on companies - (245) (382)
- goodwill, patents, trademarks
and tradenames written off - (382 334) (617 824)
Shareholders' interest at the
end of the period 3 636 230 3 158 785 3 199 823
Consolidated Balance sheet
December 31 June 30
2000 1999 2000
R'000 Unaudited Unaudited Audited
Assets
Non-current assets 3 196 207 2 766 295 3 054 101
Fixed assets 2 147 088 1 871 187 2 052 281
Goodwill 58 958 - -
Deferred taxation 147 514 210 298 166 813
Investments and advances 540 069 586 928 623 986
Banking advances 302 578 97 882 211 021
Current assets 5 527 760 5 417 568 5 013 166
Other current assets 4 847 264 4 842 536 4 277 715
Liquid funds 680 496 575 032 735 451
Total assets 8 723 967 8 183 863 8 067 267
Equity and liabilities
Capital and reserves 3 952 802 3 405 804 3 502 595
Shareholders' interest 3 636 230 3 158 785 3 199 823
Outside shareholders'
interest 316 572 247 019 302 772
Non-current liabilities 75 850 52 149 146 337
Deferred taxation 32 737 25 271 32 600
Long-term portion of interest-bearing
borrowings 22 179 26 878 89 789
Banking liabilities 20 934 - 23 948
Current liabilities 4 695 315 4 725 910 4 418 335
Other current liabilities 4 145 904 4 270 146 4 151 393
Current portion of interest-bearing
borrowings 549 411 455 764 266 942
Total equity and
liabilities 8 723 967 8 183 863 8 067 267
Number of shares in issue 292 442 289 251 289 638
Net tangible asset value per
share (cents) 1 223 1 092 1 105
Segmental analysis
Half year ended
December 31
2000 1999 Percentage
R'000 Unaudited Unaudited change
Revenue
Bidfreight 5 921 626 5 144 435 15,1
Bidoffice 1 294 869 1 198 295 8,1
Bidpac 358 760 343 942 4,3
Bidserv 572 716 489 869 16,9
Caterplus 6 078 563 6 401 345 (5,0)
Local 689 346 641 196 7,5
Foreign 5 389 217 5 760 149 (6,4)
Combined Foods 334 705 336 327 (0,5)
I-Fusion 91 689 - -
Renfin 217 452 182 103 19,4
Inter Group eliminations (384 126) (356 763) -
14 486 254 13 739 553 5,4
Operating income
Bidfreight 164 932 143 265 15,1
Bidoffice 89 796 75 504 18,9
Bidpac 48 667 51 625 (5,7)
Bidserv 49 708 39 030 27,4
Caterplus 198 896 155 166 28,2
Local 55 014 49 017 12,2
Foreign 143 882 106 149 35,5
Combined Foods 36 324 36 926 (1,6)
I-Fusion (982) - -
Renfin 41 166 25 948 58,6
Investment and other income 62 949 61 629 2,1
Group properties 18 653 17 603 6,0
710 109 606 696 17,0
Comment
The Group reports satisfactory results in the face of an extremely difficult
trading period and weak economic conditions, exacerbated by the change in
consumer spending trends. Headline earnings per share increased by 18,2% to
181,6 cents. Operating income increased by 17,0% of which approximately 15,5%
was organic growth. The activities of the Group comprise substantially the same
businesses as in the comparable period. It is pleasing to report that each
division in the Group posted commendable results against the backdrop of their
own specific challenges in the economy. Whilst revenue in southern Africa grew
by 14,0%, Group revenue grew by 5,4% as a result, in the United Kingdom, of a
one week shorter trading period and the move away from lower margin
distribution activities to bespoke logistics solutions for customers.
Bidvest is entrepreneurial and opportunistic, both as a Group and within its
individual business units, and has always encouraged this ethic. During the
review period the Group has taken strategic stakes in various JSE listed
companies, which are complementary to Bidvest's operating activities. In
January 2001 Rennies Bank obtained a foreign exchange licence, which will
enable it to absorb the Group's travel related foreign exchange activities.
The Group is committed to be at the forefront of technology. Although this
fundamental strategy will not initially contribute to the Group's operating and
financial performance, it will entrench the Group's long-term competitive
advantage.
The period under review is seasonal in that working capital management is
affected by the December holidays and shut down period.
Prospects
Bidvest believes the fundamentals of the South African economy are sound. The
Government is pursuing an investor-friendly programme, remains committed to
privatisation and has maintained a disciplined effective approach to the
reduction of its budget deficit and inflation. Bidvest has experienced
increased economic activity in January and February this year and management is
hopeful that this is the start of an economic recovery, and is gearing up for
growth.
Opportunities in South Africa remain attractive and the Group, with its strong
financial position, will continue to pursue local opportunities.
Bidvest plc, the Group's 76% foreign owned subsidiary, which operates in the
United Kingdom, Australia and New Zealand, performed well, and Bidvest is
confident that growth in foreign markets will continue. Bidvest plc, with its
large capital base, is well placed to take advantage of suitable international
acquisitions in order to secure enhanced procurement benefits, and to provide
international solutions for customers.
Bidvest is proud of its management capabilities, which will enable the Group to
take advantage of appropriate opportunities, both locally and internationally.
*Distribution out of share premium and capitalisation issue in lieu of dividend
Notice is hereby given that, in lieu of an interim dividend, a cash payment of
40 cents per share will be paid out of share premium, and a capitalisation
issue of shares will be awarded in the ratio of 0,8631 new shares per 100
shares held, being equivalent to 41 cents per share, to members registered in
the books of the Company at the close of business on March 16 2001. The total
value awarded to shareholders in lieu of a dividend is 81 (1999 - 72) cents per
share. Share certificates in respect of the capitalisation shares and cheques
in respect of the cash payment out of share premium and any fractional
entitlements will be posted to members at their registered addresses or
electronically transferred to their bank accounts on or about March 21 2001.
After the payment out of share premium, the Company will be able to pay its
debts as they become due in the ordinary course of business, and its
consolidated assets, fairly valued will exceed its consolidated liabilities.
In terms of a special resolution passed at the Annual General Meeting held on
November 16 1999, it was agreed that dividends and/or fractional payments
amounting to R10,00 or less would be aggregated and donated to the Bidvest
Chairman's Fund, for distribution to charitable institutions.
Application will be made to the JSE Securities Exchange for the capitalisation
shares to be listed with effect from the commencement of business on March 19
2001.
For and on behalf of the board
B Joffe M Chipkin
Executive Chairman Deputy Chairman
Johannesburg
February 20 2001
Directors
B Joffe (Executive Chairman), M Chipkin (Deputy Chairman), AJ Behrmann, IA
Berman, LG Boyle, NG Canca, LI Chimes, BR Chipkin, E Ellerine, RW Graham, AM
Griffith, CH Kretzmann (Alternate J Araujo), S Koseff, D Masson, SP Ngwenya, PF
Nhleko, P Nyman, JL Pamensky, LP Ralphs, TH Reitman (British), FEA Robarts, DK
Rosevear, AC Salomon (Alternate HL Greenstein), CE Singer, PC Steyn, R Wainer,
CE Watt, PD Womersley.
Company secretary
MS Viljoen
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000.
Registered office
Milner Place, Sunnyside Office Park, 4 Carse O'Gowrie Road, Parktown, 2193.
PO Box 87274, Houghton, 2041.
Registration number
1946/021180/06
URL
www.bidvest.com
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