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BIDVEST GROUP LIMITED - PRESS RELEASE

Release Date: 16/02/2004 09:10
Code(s): BDEO BVT
Wrap Text

BIDVEST GROUP LIMITED - PRESS RELEASE BIDCORP PLC Bidvest Group Limited (INCORPORATED IN THE REPUBLIC OF SOUTH AFRICA) (REGISTRATION NUMBER 1946/021180/06) SHARE CODE: BVT ISIN: ZAE000050449 ("BIDVEST") MARGIN PRESSURE SQUEEZES BIDCORP PLC TOUGH trading conditions and intense pressure on margins produced an operating loss from continuing operations of GBP1.6 million for the six months to December 31 2003 for Bidcorp plc, Bidvest"s 57% owned London Stock Exchange-listed subsidiary which provides services to the automotive, shipping and property sectors. This loss compares with a profit of GBP0.6 million for the previous comparable period. Turnover from continuing operations declined 1% to GBP64.4 million. Capacity on additional sailings added to the Dartline ferry service was insufficiently taken up, and contracted rates for Volume Transport reduced significantly. A positive feature of the results was that net gearing remained constant at 27%. Hire purchase debt of GBP3.0 million was repaid during the period. Turnover from the Automotive division"s continuing operations declined 8% to GBP41.8 million, resulting in an operating loss of GBP0.9 million. (2002: break- even). Shipping and Ports reported a 14% increase in turnover to GBP20.4 million, but the heavy costs associated with establishing expanded sailing schedules resulted in an operating loss of GBP0.8 million. Sailings have since been curtailed and turnover and costs will reduce correspondingly in the next period. This division operates a fleet of six ferries under the Dartline brand, offering scheduled sailings between the Bidcorp-owned port at Dartford on the Thames and the European ports of Zeebrugge (Belgium), Vlissingen (Holland) and Dunkerque (France). Property and Outsourced Services is the smallest of the group"s three divisions, and manages and develops investment property on behalf of the group as well as third parties. The Automotive division"s main business is the volume distribution of vehicles throughout the UK and continental Europe, repatriation of vehicles from mainland Europe, vehicle refurbishment and pre-delivery inspections, specialist delivery services and niche marketing and promotional services to the automotive industry. The group also operates the UK"s largest rescue and recovery operation outside the motoring clubs, under the Ontime Rescue and Recovery brand. Its Traffic Management business provides a vehicle clamping and removal service to local borough councils. The Volume Distribution business in the UK is particularly competitive, the result of pressure from manufacturers and excess transport capacity. Though this unit reported losses for the period, a substantial investment in new fleet combined with business restructuring has created a stronger platform for operational improvement. The Automotive businesses have been rationalised from three into two operating divisions: the Specialist Transport, Vehicle Preparation, Prestige Vehicle Distribution and Promotional Support businesses have been merged with Rescue & Recovery and Traffic Management into Ontime Specialist Automotive Services. The Rescue and Recovery business, which is highly weather-dependent, attended to 100,000 call-outs during the six-month period and is performing to expectations. A reduction in promotional activities within the automotive sector had a negative impact on Specialist Transport and Prestige Vehicle Distribution. Traffic Management performed below expectations, though corrective action has been taken by management. Despite poor results from Shipping and Ports, management and staff have improved the service to customers as well as client perceptions of Dartline. New sales initiatives will be directed at balancing capacities and cargoes and extending the sales footprint to several new centres across Europe. "The focus for the rest of the financial year will be on maximising returns on our established routes," says Chief Executive Rodger Graham. The Property and Outsourced Services division showed favourable results which included the sale of a property in Kent to a developer. Lower car parking turnover at its facilities were experienced as a result of the levying of the Central London congestion charge. Chairman Brian Joffe said though the results for the period are disappointing, fixed overheads have been reduced significantly throughout the group. Emphasis is now on operating efficiencies, increased capacity utilisation and greater turnover. No dividend has been declared for the period. Issued on behalf of: The Bidvest Group Limited By: Cleardistinction Communications Bidvest Contracts: Brian Joffe (Chairman) Tel: + 27 (0) 11 772-8704
David Cleasby (Investor Relations) Tel : +27 (0) 11 772 8706 Bidcorp Contacts: Rodger Graham (Chief Executive) Tel: + 44 (0) 20 7408 0123
Consultancy Contact: Carol Dundas Tel: +27 (0) 11 444-0650 Mobile: +27 (0) 83 447-6648 Date: 16/02/2004 09:10:04 AM Supplied by www.sharenet.co.za Produced by the JSE SENS Department

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