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Bidvest plc - Audited results for the Year ended June 30 2002

Release Date: 15/08/2002 07:02
Code(s): BVT
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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

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