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Bidvest plc
Press release - for the results for the Half Year ended December 31, 2002
Bidvest plc, an 80,8% held subsidiary of The Bidvest Group Limited, is listed on
the Luxembourg and Australian Stock Exchanges, and comprises 3663 First for
Foodservice (United Kingdom), Bidvest First for Foodservice (Australia) and
Crean First for Foodservice (New Zealand)
- Revenue up by 7% to GBP689.4m (2001: GBP646.3m)
- Operating income up by 23% to GBP19.8m (2001: GBP16.2m)
- Headline earnings up by 21% to GBP14.1m (2001: GBP11.6m)
- Headline earnings
per share up by 21% to 7.15 p (2001: 5.90p)
- Dividend per share up by 22% to 2.20 p (2001: 1.80p)
- Continued growth in revenues and operating income
- Increased operating margins
- Strong results in difficult markets
- Market leading positions in the United Kingdom, Australia and New Zealand
3663 FIRST FOR FOODSERVICE
- Operating income increased by 22% on a 7% increase in revenues
- All operating divisions contributed to continued growth in both revenue and
operating income
- Operating margins continue to improve
- New business won in latter part of prior year contributed strongly to growth
- Multi-Temperature and Frozen divisions continue to win market share
- Central Distribution benefited from new higher margin contracts and expansion
of services to the market
- Trading on mymarket.com has commenced, with several national customers in
final stages of roll-out and training
BIDVEST FIRST FOR FOODSERVICE AUSTRALIA
- Operating income increased by 22% on a modest 4% increase in revenues
- Revenues impacted by continuing program of exiting unprofitable business
- Strong earnings growth in the second quarter, trend expected to continue
- John Lewis Foodservice business, acquired in June 2001, fully integrated, with
branches reflecting improvements in operating methodologies and efficiencies
- Acquired a small distributor in Western Australia extending national coverage
- Capital expenditure adding operational capacity
- Internet ordering and customer relationship site (FindFoodFast) continues to
grow
CREAN FIRST FOR FOODSERVICE
- Operating income increased by 43% on a 17% increase in revenues
- New distribution facilities supporting strong sales growth
- Expense control and productivity gains improved operating margin
- Only national distributor in New Zealand
Brian Joffe, Executive Chairman, commented:
"Bidvest plc has a leading market position in the United Kingdom, Australia and
New Zealand, with excellent management teams. Bidvest plc produced super results
in a very difficult trading environment. I remain optimistic about Bidvest
plc`s prospects."
Fred Barnes, Chief Executive 3663 First for Foodservice, commented:
"Although the market became more difficult during the period, it is extremely
encouraging that each of the operating divisions contributed to the revenue and
operating income improvements. New business gained in the latter part of last
year contributed strongly to 3663`s growth."
Bernard Berson, Managing Director Bidvest Australasia, commented:
"Bidvest Australia and Crean Foodservice have continued to enhance their
positions as the leading foodservice distributors in Australasia, particularly
in respect of innovation and development, satisfying increased customer
requirements for range expansion and IT initiatives."
February 18 2003
Enquiries:
Bidvest plc
Brian Joffe, Executive Chairman Tel: +27 (11) 772 8700
Fred Barnes, Chief Executive
3663 First for Foodservice Tel: +44 (1494) 555 951
Bernard Berson, Managing Director
Bidvest Australasia Tel: +61 (2) 9571 8666
The Bidvest Group Limited
Jack Hochfeld, Investor Relations Tel: +27 (11) 772 8705
David Cleasby, Investor Relations Tel: +27 (11) 772 8706
College Hill South Africa Tel: + 27 (11) 447 3030
Robyn Hunt
Johannes van Niekerk
BIDVest plc
INTERIM RESULTS FOR THE SIX MONTHS ENDED DECEMBER 31 2002
HIGHLIGHTS
Operating income 23%
Headline earnings 21%
Headline earnings per share 21%
Dividend per share 22%
CONSOLIDATED INCOME STATEMENT
Year
Half year ended ended
December 31 June 30 Change
2002 2001 2002 on last
GBP000`s Reviewed Reviewed Audited year
Revenue 689,369 646,314 1,288,647 +7%
United Kingdom
- trading 321,850 296,325 598,425 +9%
- logistics 215,205 204,026 402,498 +5%
Australasia 152,314 145,963 287,724 +4%
Operating income 19,807 16,153 31,690 +23%
United Kingdom 15,246 12,475 24,957 +22%
Australasia 4,561 3,678 6,733 +24%
Net finance charges (287) (482) (733)
Income before
taxation 19,520 15,671 30,957 +25%
Taxation (5,463) (4,084) (7,919)
Headline earnings 14,057 11,587 23,038 +21%
Abnormal item - - (1,103)
Goodwill amortisation (637) (618) (1,158)
Income attributable
to shareholders 13,420 10,969 20,777 +22%
Number of shares
in issue
(weighted 000) 196,551 196,429 196,447
Headline earnings
per share
British pence 7.15 5.90 11.73 +21%
Australian cents 20.33 16.71 32.45 +22%
Dividend per share
British pence 2.20 1.80 3.60 +22%
Australian cents 6.00 4.92 9.92 +22%
CONSOLIDATED CASH FLOW STATEMENT
Year
Half year ended ended
December 31 June 30
2002 2001 2002
GBP000`s Reviewed Reviewed Audited
Cash flow from
operating activities 12,156 17,936 43,988
Cash generated by operations 18,918 24,088 58,489
Net finance charges (287) (482) (733)
Taxation paid (2,958) (2,256) (6,811)
Dividends paid (3,517) (3,414) (6,957)
Cash effects of
investment activities (10,214) (30,272) (40,458)
Fixed asset additions (8,869) (5,498) (15,990)
Proceeds on disposal
of fixed assets 143 155 461
Acquisition of businesses (1,488) (24,929) (24,929)
Cash effects of
financing activities 1,321 2,624 4,790
Proceeds from share issues 389 32 36
Interest-bearing debt raised 932 2,592 4,754
Cash inflow (outflow) 3,263 (9,712) 8,320
CONSOLIDATED BALANCE SHEET
December 31 June 30
2002 2001 2002
GBP000`s Reviewed Reviewed Audited
ASSETS
Non-current assets 94,742 90,847 94,082
Fixed assets and investments 76,727 71,269 74,708
Intangible assets 18,015 19,578 19,374
Current assets 249,732 206,984 235,813
Inventories and receivables 181,046 158,301 169,323
Liquid funds 68,686 48,683 66,490
Total assets 344,474 297,831 329,895
EQUITY AND LIABILITIES
Shareholders` interest 114,296 98,277 105,232
Current liabilities 230,178 199,554 224,663
Liabilities 197,579 169,744 191,218
Net deferred tax 714 (590) 884
Interest-bearing debt 31,885 30,400 32,561
Total equity and liabilities 344,474 297,831 329,895
Number of shares
in issue (000) 197,037 196,461 196,467
Net asset value per share
British pence 58.01 50.02 53.56
Australian cents 165.84 142.18 145.44
STATEMENT OF CHANGES IN SHAREHOLDERS` INTEREST
Year
Half year ended ended
December 31 June 30
2002 2001 2002
GBP000`s Reviewed Reviewed Audited
Shareholders` interest
at the beginning of
the period 105,232 91,086 91,086
Share capital issued
for cash - options 14 1 1
Share premium - options 376 31 35
Non-distributable
reserves - exchange
fluctuations (1,724) (313) 650
Distributable reserve 10,398 7,472 13,460
- income for period 13,420 10,969 20,777
- dividends declared (3,536) (3,497) (7,045)
- goodwill exchange
fluctuations 514 - (272)
Shareholders` interest at
the end of the period 114,296 98,277 105,232
COMMENT
Bidvest plc reports pleasing results for the six months to December 31, 2002 in
the face of tightening market conditions.
Operating income increased by 23% to GBP19.8 million (2001: GBP16.2 million) and
headline earnings per share increased by 21% to 7.15 pence per share (2001: 5.90
pence per share).
United Kingdom
3663 First For Foodservice`s performance was supported by the successful
implementation of contracts won in the previous year. 3663 First for Foodservice
showed good revenue growth relative to a difficult market.
The largest division, Multi-Temperature, continued to generate healthy profits,
whilst the Frozen division capitalised on previous revenue growth to record a
positive result. Further operational and buying improvements offset pressures on
overhead costs, leading to increased operating margins.
The Logistics division again improved its performance. Central Distribution
achieved efficiencies in costs, which, combined with new accounts, brought on
stream in the latter part of the previous financial year, enhanced
profitability.
Australasia
Bidvest First for Foodservice in Australia continues to derive the anticipated
synergistic benefits from the John Lewis Foodservice acquisition made in June
2001, which has now been fully integrated and rationalised. The increased
profitability was achieved on a modest increase in revenue, reflecting both the
division`s expense control and focus on exiting or renegotiating unprofitable
business. In October 2002, a small distributor was acquired in Perth, Western
Australia, extending Bidvest First for Foodservice`s national coverage.
Crean First for Foodservice in New Zealand has continued its strong organic
growth, delivering a 43% increase in operating profit.
PROSPECTS
Bidvest plc intends to consolidate its position internationally in the
foodservice, hospitality and leisure markets, through organic as well as
acquisitive growth. Bidvest plc remains optimistic that it will continue to
deliver above- average returns. Infrastructural investments and ongoing
improvements in operational efficiencies will ensure that Bidvest plc continues
to provide excellent service to its customers.
INDEPENDENT REVIEW
The results are unaudited and do not constitute statutory accounts, but have
been reviewed by KPMG, where indicated, and their report is available for
inspection at the Company`s office.
DIVIDEND
A dividend of 2.20 pence per share, which for shareholders on the Australian
register will be 6.00 AUD cents per share, has been declared to shareholders
registered in the books of the Company at the close of business on March 7,
2003. Dividend cheques will be posted on or about March 14, 2003.
For and on behalf of the board
B Joffe PJ Wentzel
Chairman Director
February 17, 2003
Directors: B Joffe (Chairman), FJ Barnes, BL Berson, KH Bielby, M Chipkin, EM
Cowley*, A Fisher, CH Kretzmann, P Nyman*, JL Pamensky*, TH Reitman*
DK Rosevear*, A Selley, PJ Wentzel*
*Non-executive
Registration number: 92157C
Transfer secretaries: Bid Corporate Services (IOM) Limited, Murdoch Chambers,
Douglas Head Road, South Quay, Douglas, Isle of Man, IM1 5AS
Computershare Limited, Level 3, 60 Carrington Street, Sydney, NSW 1115,
Australia
Administration AND REGISTERED officE: Murdoch Chambers, Douglas Head Road, South
Quay, Douglas, Isle of Man, IM1 5AS
URL: www.bidvest.com/homeplc.htm
Date: 18/02/2003 07:01:00 AM Supplied by www.sharenet.co.za
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