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Bidvest plc - Results for the Half Year ended December 31, 2001

Release Date: 06/02/2002 16:46
Code(s): BVT
Wrap Text
Press release

Bidvest plc is a 80,8% held subsidiary of The Bidvest Group Limited. Bidvest plc is listed on the Luxembourg and Australian Stock Exchanges with a market capitalisation of approximately GBP282 million. Bidvest plc comprises 3663 First for Foodservice (United Kingdom), Bidvest Australia and Crean
Foodservice (New Zealand). Bidvest plc's strategy to create shareholder value is to become an integrated, international foodservice distributor, supplying value added products and services to the foodservice, hospitality and leisure markets.
* Turnover GBP646,3 million +29%
* Operating income GBP16,2 million +22%
* Headline earnings GBP11,6 million +18%
* Headline earnings per share 5,90p +18%
* Dividend per share 1,80p +25% * 3663 First for Foodservice * Strong first half performance
* All divisions contributed to the improved performance Bidvest Australia
John Lewis fundamentally restructured and integrated into Bidvest Australia Existing businesses performed well
Crean Foodservice gained further market share through strong organic growth Brian Joffe, Chairman, commented:
"I believe that Bidvest plc will continue to build on its leading position in its markets, through strong organic and acquisitive growth, becoming the supplier of choice, whilst delivering above average returns for all its stakeholders." February 6 2002 Enquiries: Bidvest plc
Brian Joffe, Chairman Tel: + 27 (0) 11 481 4129 Jack Hochfeld, Group Corporate Finance Tel: + 27 (0) 11 481 4103 David Cleasby, Group Corporate Finance Tel: + 27 (0) 11 481 4104 College Hill Johannesburg Tel: + 27 (0) 11 447 3030 Nick Elwes Robyn Hunt Bidvest plc ("the Group") Results for the half year ended December 31, 2001 General Overview
Bidvest plc announced commendable results for the period under review. Revenue rose 29% to GBP646,3 million (2000: GBP502,1 million) with operating income increasing 22% to GBP16,2 million (2000: GBP13,3 million). Headline earnings improved 18% to GBP11,6 million (2000: GBP9,8 million) with
headline earnings per share also rising 18% to 5,90pence (2000: 5,00 pence). A dividend of 1,80 pence per share (2000: 1,44 pence) has been declared to shareholders registered in the books of the Company at the close of business on March 8, 2002. Dividend cheques will be posted on or about March 15, 2002. Operational Review United Kingdom
3663 First for Foodservice recorded a strong result for the period under review which was particularly pleasing given the somewhat difficult market conditions, with all divisions contributing to the improved results.
The Multi-Temperature division continued its excellent performance gaining new national business mandates as well as higher margin independent
business. The Frozen Products division continued to grow sales in the independent customer sector. This contributed to improved results in the area of the market where competition has been particularly strong. The Logistics division increased profitability mainly due to operational
improvements in Central Distribution and, extra activity in the MOD division relating to the military exercises in Oman. Fred Barnes, Chief Executive of 3663 First for Foodservice, commented: "What is particularly pleasing about our results is that all divisions contributed to the improved performance, each performing well. Our market share gains in a tough market environment have been impressive." Australasia
Bidvest Australia had a satisfactory first half. This period has been very challenging with the aftermath of September 11 and the collapse of
Australia's second largest airline, Ansett, and the consequential effect of these events on tourism and consumer spending. However the Australian economy remains relatively robust.
In the period under review John Lewis (acquired with effect from June 1 2001) has been fundamentally restructured and integrated into the business, leading to short-term disruptions which impacted on some branches. Gross margins have decreased due to some very low margin contract business
acquired as part of John Lewis. These contracts are being actively
renegotiated. The full benefits of the John Lewis acquisition are still to be realised.
All gains made by Creans in the last 6 months have arisen from increased market share. The benefits of national expansion in the prior year continue to impact positively.
Bernard Berson, Managing Director of Bidvest Australasia, commented: "The fundamental restructuring and integration of John Lewis posed a huge
challenge to our management team, but we have broken the back of the
exercise, and look forward to the positive contribution by John Lewis to our business." Prospects
The Group intends to consolidate its position internationally in the
foodservice, hospitality and leisure markets, through organic as well as acquisitive growth. The Group remains optimistic that it will continue to deliver above average returns. Brian Joffe, Chairman, continued: "The results are a testament to the high quality and performance of management. We have established and consolidated a national base in the United Kingdom, Australia and New Zealand and intend pursuing acquisitions in other geographical markets.

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