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Bidvest plc - Audited results for the Year ended June 30 2002
Bidvest plc is the 80,8% held international foodservice subsidiary of
The Bidvest Group Limited, and is listed on the Luxembourg and
Australian Stock Exchanges. Bidvest plc is made up of 3663 First for
Foodservice in the United Kingdom, Bidvest First for Foodservice in
Australia and Crean Foodservice in New Zealand.
Revenue GBP1.3 billion +27%
Operating income GBP31.7 million +31%
Headline earnings GBP23.0 million +27%
Headline earnings per share 11.7 p +27%
Total dividend for the year 3.6 p +11%
3663 First for Foodservice
Revenue grew by 17% and operating income increased by 25%
Greater operating efficiencies and better capacity utilisation
Improved performance from all operating divisions
3663 First for Foodservice initially the exclusive foodservice user of
mymarket.com site in the UK
Bidvest First for Foodservice in Australia
Revenue increased by 80% with operating income up 57%
Integration of the John Lewis Foodservice business and consolidation as
the leading foodservice distributor
Implementation of "FindFoodFast" online trading
Crean Foodservice
Operating income up 64% during a period of consolidation
Infrastructure upgraded across the business
mymarket.com launched in the UK tailored to the foodservice industry
Brian Joffe, Chairman, commented:
"Bidvest plc had a super year, with strong all round performances across
the group, despite flat market conditions. 3663 First for Foodservice
achieved greater operating efficiencies and better capacity utilisation.
The results also reflect organic growth and a positive contribution from
the acquisition of John Lewis Foodservice in Australia.
The referral in the UK by the Office of Fair Trading to the Competition
Commission of the proposed merger of Bidvest plc with Brake Bros plc was
a disappointment.
Bidvest plc with a strong and financially stable base, will continue to
grow both organically and by acquisition, consolidating its position as
a market leader to become a truly international player."
August 15 2002
Enquiries:
Bidvest plc Tel: + 27 (0) 11 772 8700
Brian Joffe, Chairman
Jack Hochfeld, Investor Relations
David Cleasby, Investor Relations
College Hill Johannesburg Tel: + 27 (0) 11 447 3030
Nick Elwes
Robyn Hunt
Bidvest plc
Audited results for the Year ended
June 30 2002
Introduction
Bidvest plc produced a particularly strong set of results despite flat
market conditions. Medium term market dynamics continue to reflect the
rising affluence and lifestyle changes of a growing population, as well
as dual income and single income households, with an increasing need for
quality meals at affordable prices.
Financial Overview
Revenue increased 27% to GBP1.3 billion (2001: GBP1.0 billion).
Operating income increased by 31% to GBP31.7 million (2001: GBP24.2
million) and headline earnings per share rose by 27% to 11.7 pence per
share (2001: 9.2 pence per share). Cash generated by operations
amounted to GBP58.5 million (2001: GBP49.4 million). These strong
results reflect the efforts of management, improvements in the operating
efficiencies of the underlying businesses, better capacity utilisation
and the integration of the John Lewis Foodservice business in Australia.
A final dividend of 1.80 pence per share, which for shareholders on the
Australian register will be 5.00 Australian cents per share, has been
declared to shareholders registered in the books of the Company at the
close of business on September 6 2002, making a total distribution to
shareholders of 3.60 pence per share (2001: 3.24 pence per share).
Dividend cheques will be posted on or about September 17 2002.
Operational Review
Bidvest United Kingdom - 3663 First for Foodservice
3663 First for Foodservice had an extremely successful year, with
revenue up 17% and operating income up 25% in a market generally
regarded as flat.
The most significant gain was recorded by Multi - Temperature, the
largest division, with good growth from the Frozen Products division.
These trading units achieved sales growth in both the Independent and
National customer sectors. Further buying improvements offset pressure
on costs leading to increased operating margins.
The performance of the Logistics division continues to improve. Central
Distribution achieved efficiencies in costs which, combined with new
accounts brought on stream in the latter part of year, enhanced
profitability.
The MoD division recorded further profit growth, partly due to the
increased overseas activities in Afghanistan and Oman.
Springbourne, 3663 First for Foodservice`s own brand of mineral water,
was launched in January and has been very well received by the market.
In May, Bidvest plc successfully launched mymarket.com, an e-commerce
marketplace tailored specifically to the UK catering and hospitality
industry. This platform is currently being used exclusively by 3663
First for Foodservice and a number of their customers have begun trading
through the site.
Funds employed have been well managed leading to strong cash flows and
an increase in return on funds employed.
Bidvest Australasia
Bidvest First for Foodservice in Australia
Bidvest First for Foodservice experienced a year of consolidation
following the integration of the John Lewis Foodservice business which
led to the rationalisation of the John Lewis Foodservice head office and
a number of branches. The low margin corporate business contracts,
which were inherited through the John Lewis acquisition, have been
evaluated and steps have been taken to ensure satisfactory returns are
achieved. Some margin improvement in this segment of the business has
already been realised. Bidvest First for Foodservice has continued with
the gradual co-branding of the businesses.
Bidvest First for Foodservice launched an e-commerce platform,
"FindFoodFast", enabling customers to trade online. This platform is
fully integrated with the company`s back office systems and has proved
to be very successful since its inception in April.
Bidvest First for Foodservice continues to consolidate its position as
the market leading foodservice provider in the territory.
Bidvest New Zealand - Crean Foodservice
Crean Foodservice produced an excellent performance with a 64% increase
in operating income, in what was a year of consolidation following the
four acquisitions in the previous year. All business units improved
their profitability.
Crean Foodservice`s business units are now operating off a common
computer platform with standardised reporting, providing greater control
whilst giving each of the business units more independence. Crean
Foodservice built two new, state of the art, distribution centres at
Auckland and Hamilton. In May Crean Foodservice acquired a foodservice
business in Auckland.
Brake Bros plc
Bidvest plc incurred non-recurring costs, net of tax, of GBP1.1 million
in relation to the unsuccessful merger with Brake Bros plc.
Prospects
Bidvest plc has a strong, leading market position with an excellent
management team, and a sound financial base. Bidvest plc is committed to
service its customer base through investment in modern infrastructure
and improvements in operational efficiencies. Bidvest plc remains
committed to controlled organic growth and further foodservice
acquisitions.
Brian Joffe
Chairman
August 15 2002
Date: 15/08/2002 07:01:00 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department