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THE BIDVEST GROUP LIMITED - Audited results for the year ended June 30 2013

Release Date: 26/08/2013 07:35
Code(s): BVT     PDF:  
Wrap Text
Audited results for the year ended June 30  2013

The Bidvest Group Limited
Registration number 1946/021180/06
Share code: BVT  ISIN: ZAE000117321
(Bidvest or the Group or the Company)
Incorporated in the Republic of South Africa

Audited results for the year ended June 30  2013


Highlights
Revenue +14,9% up to R153,4 billion
Revenue grew 14,9% to R153,40 billion (2012: R133,53 billion). 
EBITDA up 8,4% to R9,8 billion.
EBITDA interest cover up to 12,8 times (11,5 times).
Normalised headline earnings up 16,2% to R4,9 billion.
Normalised HEPS +15,4% up to 1 560,6 cents
Dividends per share +15,8% up to 720,0 cents

Summarised consolidated income statement
for the year ended June 30  

  R000s                                                                                                               Percentage       
                                                                2013                              2012                    change       
  Revenue                                                153 404 532                       133 533 633                      14,9       
  Cost of revenue                                      (123 039 972)                     (106 241 730)                                 
  Gross income                                            30 364 560                        27 291 903                      11,3       
  Other income                                               800 817                           646 058                                 
  Operating expenses                                     (23 490 150)                     (20 923 733)                                 
   Sales and distribution costs                          (15 610 550)                     (13 993 709)                                 
   Administration expenses                                (5 002 728)                       (4 365 840)                                 
   Other costs                                            (2 876 872)                       (2 564 184)                                                                                                                                                                      
  Trading profit                                           7 675 227                         7 014 228                       9,4       
   Share-based payment expense                              (119 650)                         (121 524)                                 
   Profit on partial sale of investment 
    in Mumbai International                                        -                           399 100                                 
   Airport Private Limited                                                                                                        
   Acquisition costs                                         (14 181)                          (17 762)                                 
   Net capital items                                        (102 476)                         (133 743)                                 
  Operating profit                                         7 438 920                         7 140 299                       4,2       
  Net finance charges                                       (764 546)                         (784 666)                                 
   Finance income                                             76 659                            46 256                                 
   Finance charges                                          (841 205)                         (830 922)                                 
  Share of profit of associates                              161 824                            77 298                                 
   Dividends received                                         64 466                            43 733                                 
   Share of current year earnings                             97 358                            33 565                                                                                                                                   
  Profit before taxation                                   6 836 198                         6 432 931                       6,3       
  Taxation                                               (1 783 782)                       (1 695 458)                                 
  Profit for the year                                      5 052 416                         4 737 473                       6,6       
  Attributable to:                                                                                                                     
   Shareholders of the Company                             4 772 432                         4 442 902                       7,4       
   Minority shareholders                                     279 984                           294 571                                 
                                                           5 052 416                         4 737 473                       6,6       
  Shares in issue                                                                                                                      
   Total                                                     313 555                           311 952                                 
   Weighted ('000)                                           312 577                           310 324                                 
   Diluted weighted ('000)                                   314 379                           311 037                                 
  Basic earnings per share (cents)                           1 526,8                           1 431,7                       6,6       
   Diluted basic earnings per share (cents)                  1 518,0                           1 428,4                       6,3       
   Normalised basic earnings per share (cents)               1 526,8                           1 303,1                      17,2       
  Headline earnings per share (cents)                        1 560,6                           1 474,2                       5,9       
   Diluted headline earnings per share (cents)               1 551,6                           1 470,8                       5,5       
   Normalised headline earnings per share (cents)            1 560,6                           1 352,3                      15,4       
  Normal dividends per share (cents)                           720,0                             622,0                      15,8      
   Interim                                                     324,0                             280,0                           
   Final                                                       396,0                             342,0                        
  Special dividend per share (cents)                               -                              80,0                                 
 
  Headline earnings                                                                                                                                                                
  The following adjustments to profit 
   attributable to shareholders were taken 
   into account in the calculation of 
   headline earnings:        
  Profit attributable to shareholders 
  of the Company                                          4 772 432                         4 442 902                       7,4       
  Impairment of property, plant 
   and equipment; goodwill and 
   intangible assets                                        101 101                            26 470                                                                                                                                                        
   Property, plant and equipment                              3 536                            13 223                                 
   Goodwill                                                  29 328                             8 141                                 
   Intangible assets                                         98 637                             8 263                                 
   Tax relief                                               (30 400)                           (1 134)                                 
   Minority shareholders                                          -                            (2 023)                                 
  Net loss (profit) on disposal 
  of interests 
  in subsidiaries and disposal and closure 
  of businesses                                              12 779                              (968)                                                                                                                                                       
   Loss (profit) on disposal and closure                     17 749                            (2 614)                                 
   Tax charge (relief)                                       (4 970)                            1 646                                 
  Loss (profit) on disposal, impairment 
   and reversal of impairment of investments 
   in associates                                            (41 230)                           97 675                                                                                                                                                         
   Impairment of investments in associate                    75 000                            96 700                                 
   Reversal of impairment of investments 
    in associates                                           (80 000)                                -                                 
   Net loss (profit) on change in 
    shareholding in associates                              (47 988)                              975                                 
   Tax charge                                                11 758                                 -                                 
  Net loss on disposal of property, 
   plant and equipment; 
   and intangible assets                                      4 183                             8 793                                                                                                                                                                        
   Property, plant and equipment                              6 214                                43                                 
   Intangible assets                                              -                             9 012                                 
   Tax relief                                                (2 031)                           (1 525)                                 
   Minority shareholders                                          -                             1 263                                 
  Non-headline earnings items 
   included in equity accounted earnings 
   of associated companies                                   28 755                                 -                                                                                               
  Headline earnings                                       4 878 020                         4 574 872                       6,6       
  Profit on partial sale of investment in Mumbai 
   International Airport Private Limited                          -                         (399 100)                                 
  Secondary Taxation on Companies on special 
   dividend paid                                                  -                            20 781                                 
  Normalised headline earnings                            4 878 020                         4 196 553                      16,2       


  

Summarised consolidated statement of other comprehensive income 
for the year ended June 30  

  R000s                                                        2013                              2012       
  Profit for the year                                     5 052 416                         4 737 473       
  Other comprehensive income (expense)                                                                      
  Items that may be classified subsequently                                      
   to profit or loss                                                             
  Increase in foreign currency translation                                       
   reserve                                                1 836 112                         1 144 511       
  Increase(decrease) in fair value of 
   available-for-sale financial assets                       (9 306)                            4 047       
  Increase in fair value of cash flow hedges                 42 581                                 -       
   Fair value gains arising during the year                  58 722                                 -       
   Tax charge                                               (16 141)                                -                                                                                                                 
  Total comprehensive income for the year                 6 921 803                         5 886 031       
  Attributable to                                                                                           
   Shareholders of the Company                            6 621 460                         5 580 830       
   Minority shareholders                                    300 343                           305 201       
                                                          6 921 803                         5 886 031     
		
												  
														  
Summarised consolidated statement of cash flows 
for the year ended June 30 
 
  R000s                                                        2013                              2012       
  Cash flows from operating activities                    2 666 069                         4 577 878       
   Operating profit                                       7 438 920                         7 140 299       
   Dividends from associates                                 64 466                            43 733       
   Acquisition costs                                         14 181                            17 762       
   Depreciation and amortisation                          2 097 264                         2 001 864       
   Other non-cash items                                    (356 413)                         (459 259)       
   Cash generated by operations                                                       
    before changes in working capital                     9 258 418                         8 744 399       
   Changes in working capital                            (1 891 175)                           197 584       
   Cash generated by operations                           7 367 243                         8 941 983       
   Net finance charges paid                                (626 549)                         (668 954)       
   Taxation paid                                         (1 847 495)                       (1 632 383)       
   Dividends paid by - Company                           (2 088 982)                       (1 920 923)       
                     - subsidiaries                        (138 148)                         (141 845)       
  Cash effects of investment activities                  (3 168 357)                       (3 151 751)       
   Net additions to vehicle rental fleet                   (282 486)                         (375 303)       
   Net additions to property, plant                                                   
    and equipment                                        (2 201 338)                       (1 812 785)       
   Net additions to intangible assets                      (287 253)                         (294 549)       
   Net acquisition of subsidiaries,                                                   
    businesses, associates and                                                        
	investments                                        (397 280)                         (669 114)       
  Cash effects of financing activities                    2 459 971                           165 521       
   Proceeds from shares issued - Company                          -                            56 247       
                               - subsidiaries                30 635                            42 415       
   Net issue of treasury shares                             151 539                           182 188       
   Net borrowings raised (repaid)                         2 277 797                         (115 329)                                                                                                                                               
  Net decrease in cash and cash equivalents               1 957 683                         1 591 648       
  Net cash and cash equivalents at beginning                                          
   of the year                                            4 615 458                         2 809 043       
  Exchange rate adjustment                                  519 014                           214 767       
  Net cash and cash equivalents at end of the year        7 092 155                         4 615 458       
  Net cash and cash equivalents comprise:                                                                   
   Cash and cash equivalents                              8 452 559                         5 871 306       
   Bank overdrafts shown as short-term portion of                                     
    interest-bearing debt                                (1 360 404)                       (1 255 848)       
                                                          7 092 155                         4 615 458       



Summarised consolidated statement of financial position
as at June 30 
 
  R000s                                                         2013                              2012       
  ASSETS                                                                                                     
  Non-current assets                                      28 820 557                        24 756 540       
   Property, plant and equipment                          13 872 872                        12 445 541       
   Intangible assets                                       1 025 768                           860 957       
   Goodwill                                                8 853 973                         7 449 997       
   Deferred taxation asset                                   519 828                           413 427       
   Defined benefit pension surplus                           101 794                           100 215       
   Interest in associates                                  1 199 879                         1 089 859       
   Investments                                             2 507 906                         1 889 140       
   Banking and other advances                                738 537                           507 404       
  Current assets                                          37 857 862                        31 138 606       
   Vehicle rental fleet                                    1 363 704                         1 272 720       
   Inventories                                            11 839 302                        10 248 120       
   Short-term portion of banking                                                  
    and other advances                                       276 173                           211 215       
   Trade and other receivables                            15 926 124                        13 535 245       
   Cash and cash equivalents                               8 452 559                         5 871 306                                                                                                                          
  Total assets                                            66 678 419                        55 895 146       
  EQUITY AND LIABILITIES                                                                                     
  Capital and reserves                                    27 550 719                        22 599 453       
   Attributable to shareholders                                                   
    of the Company                                        26 373 592                        21 630 154       
   Minority shareholders                                   1 177 127                           969 299       
  Non-current liabilities                                  8 937 319                         5 498 206       
   Deferred taxion liability                                 604 586                           553 919       
   Life assurance fund                                        30 174                            31 640       
   Long-term portion of borrowings                         7 469 635                         4 039 858       
   Post-retirement obligations                               312 739                           380 669       
   Long-term portion of provisions                           371 353                           340 289       
   Long-term portion of operating                                                 
    lease liabilities                                        148 832                           151 831       
  Current liabilities                                     30 190 381                        27 797 487       
   Trade and other payables                               21 858 775                        20 001 100       
   Short-term portion of provisions                          363 136                           308 261       
   Vendors for acquisition                                   113 971                            61 325       
   Taxation                                                  299 967                           298 240       
   Short-term portion of banking                                                  
    liabilities                                            2 024 236                         1 681 679       
   Short-term portion of borrowings                        5 530 296                         5 446 882                                                                                                                         
  Total equity and liabilities                            66 678 419                        55 895 146       
  Number of shares in issue                                  313 555                           311 952       
  Net tangible asset value per                                                    
   share (cents)                                               5 260                             4 270       
  Net asset value per share (cents)                            8 411                             6 934       



Summarised consolidated statement of changes in equity
for the year ended June 30  

   R000s                                                        2013                              2012   
  Equity attributable to shareholders                                                      
   of the Company                                                                          
  Issued share capital                                        16 387                            16 387   
   Balance at beginning of the year                          16 387                            16 367   
   Shares issued during the year                                   -                                20   
  Share premium arising on shares issued                     137 485                           137 485   
   Balance at beginning of the year                          137 485                            81 258   
   Shares issued during the year                                   -                            56 260   
   Share issue costs                                               -                              (33)   
  Foreign currency translation reserve                     3 181 802                         1 366 049   
   Balance at beginning of the year                        1 366 049                           248 830   
   Realisation of reserve on disposal                                                      
    of subsidiaries                                                -                           (16 662)   
   Arising during the year                                 1 815 753                         1 133 881   
  Hedging reserve                                             42 581                                 -   
   Balance at beginning of the year                                -                                 -   
   Fair value gains arising during                                                         
    the year                                                  58 722                                 -   
   Deferred tax recognised directly                                                        
    in reserve                                               (16 141)                                -   
  Equity-settled share-based                                                               
   payment reserve                                           255 319                           165 237   
   Balance at beginning of the year                          165 237                           391 430   
   Arising during the year                                   119 414                           121 454   
   Deferred tax recognised directly                                                        
    in reserve                                                15 859                             1 419   
   Utilisation during the year                               (45 191)                          (56 273)   
   Transfer to retained earnings                                   -                          (292 793)   
  Retained earnings                                       24 592 164                        21 948 681   
   Balance at beginning of the year                       21 948 681                        19 101 358   
   Attributable profit                                     4 772 432                         4 442 902   
   Change in fair value of                                                                 
   available-for-sale financial assets                        (9 306)                             4 047   
   Dividends paid                                         (2 088 982)                       (1 920 923)   
   Transfer of reserves as a result of                                                     
   changes in shareholding of subsidiaries                   (30 661)                            12 610   
   Transfer from other reserves                                    -                            308 687   
  Treasury shares                                         (1 852 146)                        (2 003 685)   
   Balance at beginning of the year                       (2 003 685)                        (2 185 873)   
   Shares disposed of in terms of share                                                    
    incentive scheme                                         151 539                           182 188                                                                                                                       
                                                          26 373 592                        21 630 154   
  Equity attributable to minority 
   shareholders of the Company                             
   Balance at beginning of the year                        969 299                             787 728   
   Attributable profit                                     279 984                             294 571   
   Dividends paid                                         (138 148)                           (141 845)   
   Movement in foreign currency                                                            
    translation reserve                                     20 359                              10 630   
   Movement in equity-settled                                                              
    share-based payment reserve                                236                                  69   
   Issue of shares by subsidiaries                          30 635                              42 415   
   Transactions with minorities                            (15 899)                            (11 659)   
   Transfer of reserves as a result of changes                                             
    in shareholding of subsidiaries                         30 661                             (12 610)   
                                                         1 177 127                             969 299                                                                                                          
   Total equity                                         27 550 719                          22 599 453   



Summarised segmental analysis
for the year ended June 30  

  R000s                                                                                                           Percentage   
  REVENUE                                                    2013                                 2012                change        
   Bidvest South Africa                                69 266 131                           62 672 667                  10,5   
   Automotive                                          20 704 970                           19 130 896                   8,2   
   Electrical                                           4 527 394                            4 286 092                   5,6   
   Financial Services                                   1 458 683                            1 715 660                 (15,0)  
   Freight                                             25 114 347                           20 833 921                  20,5   
   Industrial                                           1 528 760                            1 473 920                   3,7   
   Office                                               4 245 566                            4 183 978                   1,5   
   Paperplus                                           4 031 330                            3 858 146                   4,5   
   Rental and Products                                  2 208 649                            2 057 282                   7,4   
   Services                                             3 239 334                            3 086 476                   5,0   
   Travel and Aviation                                  2 207 098                            2 046 296                   7,9   
   Bidvest Foodservice                                 82 716 213                           70 300 093                  17,7   
   Asia Pacific                                        28 626 542                           23 493 350                  21,8   
   Europe                                              48 156 247                           41 114 785                  17,1   
   Southern Africa                                      5 933 424                            5 691 958                   4,2   
   Bidvest Namibia                                      3 597 158                            2 971 322                  21,1   
   Bidvest Corporate                                      973 698                              834 399                  16,7   
   Properties                                             339 034                              317 658                   6,7   
   Corporate and investments                              634 664                              516 741                  22,8                                                                                            
                                                      156 553 200                          136 778 481                  14,5   
  Inter Group eliminations                             (3 148 668)                          (3 244 848)                         
                                                      153 404 532                          133 533 633                  14,9   
  TRADING PROFIT                                                                                                                
   Bidvest South Africa                                 4 223 653                            3 822 564                  10,5   
   Automotive                                             640 956                              502 365                  27,6   
   Electrical                                             224 614                              207 554                   8,2   
   Financial Services                                     594 883                              586 743                   1,4   
   Freight                                                979 402                              922 216                   6,2   
   Industrial                                              86 030                               81 803                   5,2   
   Office                                                 324 259                              275 149                  17,8   
   Paperplus                                             281 292                              328 140                 (14,3)  
   Rental and Products                                    435 825                              383 806                  13,6   
   Services                                               276 465                              215 414                  28,3   
   Travel and Aviation                                    379 927                              319 374                  19,0   
   Bidvest Foodservice                                  2 488 149                            2 222 094                  12,0   
   Asia Pacific                                         1 211 408                            1 000 042                  21,1   
   Europe                                                 936 242                              912 729                   2,6   
   Southern Africa                                        340 499                              309 323                  10,1   
   Bidvest Namibia                                        592 223                              637 694                  (7,1)  
   Bidvest Corporate                                      371 202                              331 876                  11,8   
   Properties                                             324 015                              296 879                   9,1   
   Corporate and investments                               47 187                               34 997                  34,8                                                                                            
                                                        7 675 227                            7 014 228                   9,4   
                                                                                          


Message to shareholders
Commentary
The Group delivered solid trading results for the year ended June 30 2013, achieved 
against a backdrop of challenging trading environments in many geographies in which 
we operate. The Bidvest team are to be complemented on a job well done.

Normalised headline earnings per share has increased by a commendable 15,4% to 
1 560,6 cents per share.

Bidvest South Africa delivered pleasing results against  a backdorp of competive markets
and subdued economic activity. Bidvest Asia Pacific continues to deliver robust results.
Bidvest Europe's results reflect resilient performances from most operations. Bidvest Namibia
recorded a small decline in trading profit as a result of the uncertain market conditions
in the fishing operations.

Bidvest is an international service, trading and distribution business which derives
38,8% of its trading profit from outside South Africa. Accordingly, currency volatility has
an impact on reported Rand results. The average Rand exchange rate weakened against major
currencies in which the Group operates, in particular against the Australian Dollar and
Sterling. A marked weakness occurred in the last quarter, the full effects of which are
likely to be evident in 2014.

Financial overview
Revenue grew 14,9% to R153,4 billion (2012: R133,5 billion). The major growth occurred
in Bidvest Europe (R7,0 billion) and Bidvest Asia Pacific (R5,1 billion) which reflects
some organic and acquisitive growth as well as assistance from currency effects on
translation.

Gross margin declined slightly largely due to business mix however margin pressure is
evident in certain businesses. Growth in operating expenses of 12,3% was distorted by the
currency effects on translation of the foreign operations and the impact of acquisitions.
Generally costs were well controlled across the Group.

The Group grew trading profit by 9,4% to R7,7 billion (2012: R7,0 billion). Trading
margin declined slightly to 5,0% (2012: 5,3%), impacted by the relative increased 
contribution from lower margin businesses such as automotive retailing and the marked 
decline in trading profit in a few foreign operations.

Net finance charges declined by R20,1 million to R764,6 million, indicative of the lower
interest rate environment which was offset to some degree by the increased investment in
working capital.

Associate earnings from Group investments showed a healthy increase, buoyed by the full
year contribution from the 34,8% equity accounted interest in Mvelaserve Limited and the
much improved performance of Comair Limited.

The Groups financial position remains strong and the Group remains well-capitalised.
Net debt has increased to R4,5 billion (2012: R3,6 billion) driven principally by the
absorption of working capital. Normalised interest cover has increased to 10,0 times 
(2012: 8,9 times). Bidvests attitude to gearing remains prudent whilst retaining 
adequate borrowing capacity.

Cash generated by operations before working capital changes increased 5,9% to R9,3 billion 
(2012: R8,7 billion). The Group absorbed R1,9 billion of working capital reflecting
growth and strategic stocking in a number of businesses. Inventories remain well controlled
and appropriately valued. Credit extension remains a critical focus area of management
across the Group. Accounts receivable have increased in line with revenue growth across the
businesses.
Fitch Ratings upgraded the Groups national long-term rating to AA(zaf) from
AA-(zaf) following the sovereign downgrade. Moodys continue to rate the Group at A1.za 
with a stable outlook.


Acquisitions
In June 2013, the Competition Commission approved the takeover of Home of Living Brands
Holdings Limited (HLB) formerly Amalgamated Appliances Holdings Limited. HLB delisted from
the JSE on July 2 2013. The R532,0 million transaction will be funded out of Bidvests
internal resources. Save for accounting for the Groups share of associate earnings in 2013,
the full benefit of the acquisition will be in 2014. A number of smaller acquisitions
were also made in the year. 

Prospects
Economic confidence in many of the geographies within which we operate our global
business is fragile and investors have become risk averse to emerging markets. Our 
management teams the world over are being encouraged to remain focussed on delivering above 
average returns for all stakeholders despite the impact of these environmental factors. 

In South Africa, our operations remain positive, mindful of the fact that innovation and
continued diversification are key drivers for growth. Weakness in the Rand and the likely
spike in inflation are expected to present some cost pressures, but these pressures also
give rise to trading opportunities. Our divisional teams continue to seek out acquisitive
opportunities to complement our existing product and services offering while rigorously
pursuing real organic growth within our existing footprint.

Bidvest continues to use it's South African businesses as a base to harness product
related opportunities into Africa. Further progress in expanding our African footprint 
is expected into 2014.

In the Asia Pacific region, the focus is directed to delivering innovative value adding
solutions for customers across all product categories to achieve real organic growth in
the core wholesale model. Further consolidation opportunities exist which are being
aggressively pursued. In Europe, despite the low growth environment, further opportunities 
to add new product ranges and expand local footprints both via organic and acquisition growth
remain a focus area across all businesses. Management is committed to rectifying those areas
of under­performance.

Bidvest Namibia will continue to pursue strategic growth across both the commercial and
fishing businesses. 

Management focus remains on product and service innovation to assist in growing revenue
on a sustainable basis, ongoing cost control, which combined with good working capital
management, will assist in generating acceptable returns on funds employed. Further effort 
is being directed at those operations where performance is below our own expectations. Our
financial position remains strong and the Group has ample capacity to fund both organic and
acquisitive growth. We continue to see opportunities to expand our product and service
offering, which bodes well for the Group going forward.


Divisional review
Bidvest South Africa
The division achieved real revenue and trading profit growth in challenging market
conditions. Revenue increased 10,5% to R69,3 billion (2012: R62,7 billion). Trading profits
increased by 10,5% to R4,2 billion with good growth contributions from Bidvest Automotive
(27,6%) and Bidvest Services (28,3%).

Automotive
Excellent results were achieved with trading profit up 27,6% at R641,0 million (2012:
R502,4 million) on an 8,2% revenue increase to R20,7 billion (2012: R19,1 billion). Return
on sales rose to a healthy 3,1% from 2,6% in 2012. Overall the new vehicle market showed
continued growth, up 7,2% to 644 191 units from 600 689. Strong performances were put in by
VW, Audi, Land  Rover, Nissan, Renault and UD Trucks. Multi Franchise Division performance 
was below expectations. Reorganisation continued and the business exited the non-performing 
Peugeot, Citroen and Volvo franchises. Toyota continued to make steady progress. Burchmores 
was streamlined into a pure auctioneering business. McCarthy Auto Repair Centres gained 
traction as a multi-brand repairer. Innovation continued across the division and McCarthy 
launched a mobile app, a pre-owned dealer network and a new customer loyalty programme. 
Migration to the Autoline dealer management system was two-thirds complete by year-end.

Electrical
Pleasing results were achieved despite a sluggish construction industry. Revenue rose
5,6% to R4,5 billion (2012: R4,3 billion). Trading profit moved 8,2% higher to R224,6
million (2012: R207,6 million). The Gauteng East and West regions were consolidated and Atlas
Cables and Voltex Lighting relocated to new premises. Voltex Lighting had a better year and
Versalec Cables put in a strong performance, particularly in the last quarter. Collections
and debtors management remained focus areas and stock management efficiencies were
achieved. Fleet upgrades are planned and Voltex is in process of opening a Soweto branch.

Financial Services
Financial Services delivered a 1,4% increase in trading profit to R594,9 million.
Bidvest Bank remained strongly cash generative in trading conditions impacted by lower
inbound and outbound travel, currency volatility and consumer down trading. Overall lending
turnover dropped as the run off of a major FML contract exceeded new replacement
business. Cash on hand rose 31% and deposits were up 19%. Advances (excluding leasing) grew 
by 32%. At 2,4 times (2012: 2,5 times), financial leverage remained low. Credit quality 
remained good and impairments were well managed. The asset base grew to R4,6 billion 
(2012: R4,2 billion). 

Bidvest Insurance delivered a pleasing result 
driven by strong investment returns. Profit before tax increased 29,5%. Like for like
gross written premiums increased due to new business undertaken and penetration levels
across all categories improved, notably in the last quarter. Expenses were well controlled,
declining 2% over 2012. Extension of the short term licence will enable product development
outside of current channels. Suitable expansion opportunities are currently under
consideration, which may include acquisitions.

Freight
Revenue was up 20,5% at R25,1 billion (2012: R20,8 billion), with trading profit 6,2%
higher at R979,4 million (2012: R922,2 million). Expenses were well managed but rose 4,7%,
reflecting some one off reorganisation costs and increased property costs.
Bulk Connections had a very strong year, boosted by higher manganese volumes. The major
terminal upgrade was completed enabling the business to handle 3,9 million tons, up 18,2%.
Manica, the African general freight business, achieved a pleasing turnaround. Despite a
big dip in wheat volumes, SABT put in a strong showing with maize volumes up 9%. SACD
controlled expenses well and achieved good overall results despite lower import and export
container volumes as well as the completion of a major contract. Naval (Mozambique) performed
well in the face of disrupted rail services and some pricing pressure. Bidvest Panalpina
Logistics performance was solid, with strong contributions from Transport and Warehousing.
Exposure to the automotive market reduced margins. IVS was impacted by lower petroleum
volumes and several once-off costs. BPO experience lower volumes of steel and soya beans
through Durban however cement imports gained momentum and fertiliser volumes rose. Marine
Insurance achieved pleasing profit growth.

Industrial
Trading profit increased 5,2% to R86,0 million (2012: R81,8 million). Results improved
in the last quarter as management turnaround plans started to materialise. At R1,5 billion
revenue was up 3,7%. Despite rising costs, the 3,3% increase in operating expenses was
kept well below prevailing inflation. Materials Handling had a successful year. Inventory
levels and trading margins were well managed. Buffalo Tapes put in a satisfactory performance
and introduced a night shift to accommodate higher demand. Afcom results were
disappointing, but rebounded in the fourth quarter. Berzacks were unable to pass on rising 
costs in a tough market. Vulcans bakery equipment division picked up momentum. Demand for 
leisure products remained subdued, though improvement was evident by year-end at Yamaha.

Office
The division delivered pleasing results on the back of good performances by Waltons,
Cecil Nurse and Dauphin. Revenue grew 1,5% to R4,3 billion (2012: R4,2 billion) while trading
profit rose 17,8% to R324,3 million (2012: R275,2 million). Expenses were well
controlled. Konica Minolta did well to protect its margins in a competitive market but Océ 
and GPT were below expectation. The furniture factories showed significant improvement, 
especially the Cape Town desk factory.

Paperplus
Trading profit fell 14,3% to R281,3 million (2012: R328,1 million) while revenue rose
4,5% to R4,0 billion (2012: R3,9 billion). Expenses rose 3,4% and gross margin declined by
1,9%. General print contraction continued necessitating further rationalisation. Lithotech
exports put in a strong final quarter performance benefitting from project work.
Lithotech Afric Mail and Email Connection were combined into a new sub-division, Bidvest Data 
to offer customers a multi-channel service. Packaging and labels were separated into distinct
sub-divisions to enable greater management focus. Lufil had a good year. Masterpack, a
folding carton producer, was acquired and will give critical mass to Sprint Manufacturing.
Labels disappointed, impacted by retail market contraction. Silveray Stationery Companys
sales and trading margins declined. Kolok performed strongly as management traded
aggressively in a competitive market.

Rental and Products
A pleasing performance took revenue 7,4% higher to R2,2 billion (2012: R2,1 billion)
while trading profit rose 13,6% to R435,8 million (2012: R383,8 million). Bidvest Steiner
performed strongly and debtors management showed a pleasing improvement. Laundries achieved
a good turnaround delivering much improved returns. G Fox recorded excellent results, in
particular the Swaziland factory. The African expansion is well underway. Pureau performed
well but margins are under pressure. Customers cut back on office plant contracts in
Excuflora. Corrective action at Hotel Amenities positions it for improvement in 2014. RMI
management was strengthened and Masterguard achieved good growth.
Services
The division made a strong recovery as all businesses delivered improved results.
Revenue rose 5,0% to R3,3 billion (2012: R3,1 billion). Trading profit increased by 
28,3% to R276,5 million (2012: R215,4 million). Expenses were well managed across the 
division.
Performance was underpinned by a successful turnaround at TMS and at Top Turf. Under-recovery 
of cost increases in a price-sensitive market impacted Prestige. At Magnum, the technology
division faced challenges, but Bidtrack put in another strong performance. 

Travel and Aviation
A strong overall performance drove trading profit up 19,0% to R379,9 million 
(2012: R319,8 million) off a 7,9% increase in revenue of R2,2 billion 
(2012: R2,1 billion). BidTravel results were above expectation despite a drop in
volumes. Total transaction values reached record levels. BidAir Group also performed 
strongly, but the ramp operations faced continued challenges. Bidvest Lounges opened its 
ORTIA Sky Lounge and grew passenger numbers. BidAir Cargo started an overnight service in 
South Africa, and also benefitted from a new major contract.
Budget Car and Van Rental grew rental days off a high base, delivering a pleasing trading
result.

Bidvest Foodservice
Overall performance was pleasing. Trading profit rose by 12,0% to R2,5 billion 
(2012: R2,2 billion). Asia Pacific maintained its growth trajectory, Europe was flat in 
the face of economic headwinds and Southern Africa bounced back.

Asia Pacific
Bidvest Asia Pacific achieved revenue growth of 21,8% to R28,6 billion (2012: R23,5 billion) 
as a result of organic and acquisition growth, as well as assistance from the Rand weakness
on translation. Trading profits increased by 21,1% from R1,0 billion in the previous year
to R1,2 billion in 2013.

Bidvest Australia achieved pleasing sales and trading profit growth, reflecting the
first full-year contribution of Foodlink (Logistics Perth). Results were creditable in the
context of a slowing mining resource boom, rising unemployment and zero food inflation.
Foodservice, Logistics and Fresh showed good growth. Volumes dipped at the Hospitality 
division due to a strategic restructure. Expenses were well controlled. Most Foodservice 
branches achieved positive results however margin squeeze did necessitate exits on certain
unprofitable national contracts. Fresh achieved a pleasing profit turnaround, highlighting
potential for promising growth in fruit and vegetable distribution. Acquisition 
opportunities continued to be explored. Logistics is pursuing new contracts.

Bidvest New Zealand once again grew both revenue and trading profit. Performance was
underpinned by strong fresh produce growth and development of the meat and produce 
processing business. Two new foodservice distribution centres were completed and new 
premises were acquired to house the processing business. Foodservice continued to perform 
despite challenging conditions. Logistics was boosted by improvements in the Christchurch 
operations and a small niche retail business, Reduced To Clear, was acquired in February.

Angliss Greater China achieved satisfactory revenue and trading profit growth. Angliss
Shenzhen, Guangzhou and Beijing put in a strong sales performance as exposure to the
mainland continues to grow. New hotel and restaurant openings were positive for 
PastryGlobal.
Angliss Macau was much improved, increasing its product range into seafood. Jetstar
(Tsukiji), a newly launched Japanese food provider, continues to exceed expectations.
Angliss Singapore had an expected poor year as it transitions from a commodity trading 
business to a fully-fledged foodservice distributor. This necessitated a strategy of 
reducing reliance on redistributors and focusing on direct sales to end customers in 
foodservice and casual dining markets. Despite the benefits of improving gross margins, 
increased costs to serve customers diluted returns in this rebuilding phase. 

Deli Meals (Chile) achieved its first operating profit in the final quarter. Warehouse
expansion is underway. Acquisition possibilities are being explored in the region.
Bidvest Procurement Company made good progress, and is a source of competitive
procurement advantage to the total foodservice business.

Europe
Resilient performances from most operations in Europe, bolstered by acquisition growth
and Rand translation benefits, have delivered a 17,1% increase in revenue to R48,2 billion
(2012: R41,1 billion). Trading profit increased 2,6% to R936,2 million (2012: R912,7
million).

3663 Wholesale delivered a resilient performance with an increased trading profit on
higher sales volumes. Gains were achieved despite challenging trading conditions and wet
spring weather. Margins were well managed. The recently acquired South Lincs business 
traded in line with expectations. Infrastructure expansion to meet customers expectations 
is on track. Bidvest Logistics exceeded sales and profit targets and achieved a new volume 
record, moving 57,8 million cases. An annualised hours contract was signed with drivers 
at all sites enabling the business to match demand and service levels. Bidvest Fresh 
(incorporating Seafood Holdings and the newly acquired fresh produce business, Oliver Kay) 
grew sales and trading profit thanks to rising salmon prices and a dedicated focus on 
customer requirements, and presents exciting growth prospects.

Deli XL Netherlands faced continued margin pressure in a competitive environment which
was especially evident in the institutional market. Revenue dropped  slightly and costs
were impacted by the restructuring of operations and inefficiencies incurred during the 
ERP implementation.

Deli XL Belgium achieved revenue growth and trading profit improved as the Langens and
Makady acquisitions helped drive sales higher in the hotel, restaurant and catering
channel.

At Bidvest Czech Republic and Slovakia both revenue and trading profit remained flat.
Bad weather and floods affected sales. Foodservice continued to show steady growth as
exposure to retail is impacted by margin pressure. Expenses were extremely well 
controlled.

Sales were flat at Farutex Poland and trading profit growth was below expectation in a
challenging business climate. Key infrastructure developments were completed. Working
capital and debtors management were focus areas.

Bidvest Baltics grew sales and reduced trading losses. The chilled and ambient ranges
were expanded, growing the product offering from the original base in frozen foods and
extending into the horeca segment.

Bidvest Middle East achieved strategic expansion into Turkey with the acquisition of a
majority stake in Aktaes, a medium-size distribution business in May. UAE operations
launched a retail business and opened an new depot in Abu Dhabi. The Al Diyafa business 
in Saudi Arabia performed strongly.

Southern Africa
Revenue rose 4,2%, driven by growth at Bidvest Foodservice (BFS) in the industrial
catering channel while Crown did well in the independent butchery and supermarket 
channels. Bidvest Bakery Solutions (BBS) excelled off a low base in the industrial 
bakery market and Bidvest Food Exports gained new business in Nigeria. Trading profit 
increased by 10,1% to R340,5 million (2012: R309,3 million). Pressure on the disposable 
income of consumers impacted all businesses.

Patleys sales dipped following product range rationalisations to remove low margin
lines from its basket of brands. BFS did well to maintain its margins in highly competitive
trading conditions and in the face of Rand depreciation. Expenses were well managed as a
result of multi-temp mergers in BFS and the integration of the NCP Yeast business into BBS
and Patleys. The NCP Durban plant was closed. Crowns new Innovation, Design and Technology
Centre was successfully launched, and investment into infrastructure continued. 

The South African business thrived under new leadership and direction.

Namibia
Bidvest Namibia recorded weaker results as challenges at the fishing and distribution
businesses impacted profitability. Revenue rose to R3,6 billion (2012: R3,0 billion).
Trading profit, however, fell by 7,1% to R592,2 million (2012: R637,7 million). Fishing
performance was impacted by lower direct quota allocations, higher quota purchase costs,
competition from new international operators and a poor result at the Angolan operation, 
Pesca Fresca Limitada. Exchange rate weakness versus the US dollar was beneficial. The 
UFE canning factory returned to profit. Expansion into the white fish market is being 
considered. Results at the commercial businesses were below expectation, except for 
Waltons, which successfully implemented a turnaround strategy. Rennies Travel, Minolco 
and Waltons plan to increase their northern Namibia footprint.

Corporate
Bidvest Properties continued with its strategy of developing in-house properties for 
Group requirements. Losses continued at Ontime Automotive, the  UK parking and vehicle 
services business. Early in the new period Ontime Automotive bulked up its rescue and 
recovery operations by completing the £5 million acquisition of the Midlands-based 
Mansfield Group. 

Directorate
Fred Barnes, Lionel Jacobs, Joseph Pamensky and Alan Salomon did not offer themselves
for re-election as directors of Bidvest at the AGM held on November 26  2012. Peter Nyman
retired from the board and Muriel Dube and Rachel Kunene resigned from the board with effect
from November 26  2012. The board expresses their thanks to the aforementioned directors
for their dedication, advice and guidance provided to the board over the past number of years 
and wishes them well in the future.

Change of Chairperson
Cyril Ramaphosa notified the board in March 2013 that he would retire from the position
of Chairman of Bidvest however would remain on the board until early September. The board
extends it sincere thanks and gratitude to Mr Ramaphosa for his leadership over the past
nine years.

Lorato Phalatse, an independent non-executive director was appointed to succeed Cyril
Ramaphosa as the new Chairperson.
CWL Phalatse            B Joffe
Chairperson            Chief Executive

Dividend declaration
The directors have declared a final gross cash dividend of 396,0 cents (336,6 cents net of
dividend withholding tax, where applicable) per ordinary share for the year ended June 30 
2013 to those members registered on the record date.
The dividend has been declared from income reserves and no Secondary Tax on Companies
credits have been used. A dividend withholding tax of 15% will be applicable to all
shareholders who are not exempt.
Share code                              BVT
ISIN                                    ZAE000117321
Company registration number             1946/021180/06
Company tax reference number            9550162714
Gross cash dividend per share           396,0 cents
Net dividend amount per share           336,6 cents
Issued shares as at declaration date    327 734 929
Declaration date                        Monday, August 26  2013
Last day to trade cum dividend          Friday, September 13 2013
Trading ex-distribution commences       Monday, September 16  2013
Record date                             Friday, September 20  2013
Payment date                            Monday, September 23  2013
Share certificates may not be dematerialised or rematerialised between Monday, 
September 16  2013 and Friday, September 20  2013, both dates inclusive.
For and on behalf of the board.
CA Brighten
Company secretary
Johannesburg
August 26  2013

Basis of presentation of financial statements
for the year ended June 30  2013
These summarised preliminary financial statements have been prepared in accordance with the framework concepts and 
the measurement and recognition requirements of International Financial Reporting Standards (IFRS) and the SAICA 
Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements 
as issued by Financial Reporting Standards Council, and include disclosure as required by IAS 34: Interim Financial 
Reporting and the Companies Act of South Africa.

The financial statements have been prepared using accounting policies that comply with IFRS and which are 
consistent with those applied in the preparation of the financial statements for the year ended June 30  2012, with 
the exception of the adoption of the amendments to IAS 1 which requires the Group to present items in the
statement of other comprehensive income based on whether they may be reclassified to profit or loss in the future.
During the year, certain operations were reclassified between segments. The comparative years segmental information 
has been re-presented to reflect these insignificant changes.


Audit report
The auditors, Deloitte & Touche, have issued their opinion on the Groups financial statements for the year ended 
June 30  2013. The audit was conducted in accordance with International Standards on Auditing. They have issued an 
unmodified opinion. A copy of the auditors report together with a copy of the audited financial statements are 
available for inspection at the Companys registered office.  These summarised preliminary financial statements 
have been derived from the Groups financial statements and are consistent in all material respects with the Groups 
financial statements. These summarised preliminary financial statements have been audited by the Companys auditors 
who have issued an unmodified opinion. The auditors report does not necessarily report on all of the information 
contained in this announcement. Any reference to future financial information included in this announcement has not 
been reviewed or reported on by the auditors. Shareholders are advised, that in order to obtain a full understanding 
of the nature of the auditors engagement they should obtain a copy of that report together with the accompanying 
financial information from the Companys registered office.

Subsequent event
Other than the acquisition of HLB no significant events have occurred subsequent to the year end and the date of 
this report. 

Preparer of the financial statements 
These summarised preliminary financial statements and the Groups financial statements have been prepared under the 
supervision of the Group financial manager, NEJ Goodwin CA(SA).

Exchange rates 
The following exchange rates were used in the conversion of foreign interests and foreign transactions during the 
periods:


                                   2013                       2012       
  Rand/Sterling                                                               
   Closing rate                   15,05                      12,94       
   Average rate                   13,87                      12,34       
  Rand/Euro                                                                   
   Closing rate                   13,13                      10,46       
   Average rate                   11,46                      10,41       
  Rand/Australian Dollar                                                      
   Closing rate                    9,05                       8,42       
   Average rate                    9,08                       8,03       


Supplementary pro formas information regarding the currency effects of the translation of foreign operations on the Group
The pro forma financial information has been compiled for illustrative purposes only and is the responsibility of the 
board. Due to the nature of this information, it may not fairly present the Groups financial position, changes in 
equity and results of operations or cash flows. An unmodified reasonable assurance report has been issued by the 
Companys auditors, Deloitte & Touche, in terms of ISAE 3420: Assurance Engagements to Report on the Compilation 
of Pro Forma Information in a Prospectus, and is available for inspection at the Companys registered office. The 
pro forma information has been compiled in terms of the JSE Listings Requirements and the Revised Guide on Pro Forma 
Information by SAICA.
The average Rand exchange rate weakened against the major currencies in which the Groups foreign operations trade, 
namely Sterling (12,34 in 2012 to 13,87 in 2013), the Euro (10,41 in 2012 to 11,46 in 2013) and the Australian Dollar 
(8,03 in 2012 to 9,08 in 2013). The illustrative information, detailed below, has been prepared on the basis of applying 
the 2012 average Rand exchange rates to the 2013 foreign subsidiary income statements and recalculating the reported 
income of the Group for the year.
                                                                                           Illustrative 2013 at 2012                     
                                               For the year ended June 30                     average exchange rates                     
                                             Actual    Percentage         Actual           Recalculated    Percentage       
                                               2013        change           2012                   2013        change       
  Revenue (Rm)                            153 404,5          14,9      133 533,6              145 176,4           8,7       
  Trading profit (Rm)                       7 675,2           9,4        7 014,2                7 447,0           6,2       
  Normalised headline earnings (Rm)         4 878,0          16,2        4 196,6                4 727,6          12,7       
  HEPS (cps)                                1 560,6           5,9        1 474,2                1 512,5           2,6       
  Normalised HEPS (cps)                     1 560,6          15,4        1 352,3                1 512,5          11,8       


  
Administration

Directors
Chairman: CWL Phalatse
Independent non-executive: PC Baloyi, DDB Band, AA Da Costa (alternate LJ Mokoena), EK Diack, S Koseff, AK Maditsi, D Masson, 
NG Payne, T Slabbert, Adv FDP Tlakula 
Executive: B Joffe (Chief executive), BL Berson*, DE Cleasby, AW Dawe, LP Ralphs
(*Australian)

Company Secretary
CA Brighten

Transfer secretaries
Computershare Investor Services (Pty) Limited
Registration number 2004/003647/07
70 Marshall Street, Johannesburg, 2001
PO Box 61051, Marshalltown, 2107, South Africa
Telephone            +27 (11) 370 5000
Telefax              +27 (11) 688 7717

Sponsor
Investec Securities Limited
100 Grayston Drive, Sandown
Sandton, South Africa, 2196


Registered office
Bidvest House, 18 Crescent Drive, Melrose Arch, Melrose
Johannesburg 2196, South Africa
PO Box 87274, Houghton, Johannesburg 2041, South Africa

Further information regarding our Group can be found on the Bidvest website www.bidvest.com
Date: 26/08/2013 07:35:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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