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THE BIDVEST GROUP LIMITED - Reviewed provisional results for the year ended June 30 2016

Release Date: 29/08/2016 07:05
Code(s): BVT     PDF:  
Wrap Text
Reviewed provisional results for the year ended
June 30 2016

THE BIDVEST GROUP LIMITED
(“Bidvest” or “the Group” or “the Company”) 
Incorporated in the Republic of South Africa
Registration number: 1946/021180/06 
Share code: BVT
ISIN: ZAE000117321

Reviewed provisional results for the year ended June 30  2016

3,5%
Turnover 
up to R91,8 billion 
(2015: R88,6 billion)

-21,5%*
Distribution per share 
down to 714 cents 
(2015: 909 cents)
*post unbundling

3,0%
Trading profit 
up to R5,8 billion
(2015: R5,6 billion)

3,9%
EBITDA 
up to R7,3 billion
(2015: R7,1 billion)

3,6%
Headline earnings
up to R3,5 billion
(2015: R3,4 billion)

17%
Cash generation by operations  
of 7,0 bn
(2015: R6,0 bn)
 
Salient features
• Successful unbundling and listing of Bidcorp on May 30  2016 adds significant value to shareholders
• Divisional restructuring positions the Group well for growth
• Trading profit 3% higher at R5,8 billion
• Four of the seven divisions record increases in trading profits in a difficult economic environment
• Headline earnings per share (HEPS) from continuing operations increases by 2,5% to 1 054,1 cents
• Strong balance sheet maintained
• Cash generated 17% higher on a like-for-like basis, at R7 billion
• Final dividend declared of 232 cents per share

Bidvest successfully unbundled its food service operations and separately listed Bid Corporation Limited (“Bidcorp”) on the 
JSE on May 30  2016. The unbundling transaction resulted in an accounting profit of R76,3 billion, which was distributed to
shareholders by way of a dividend in specie on May 30 2016.

The food services business has been treated as a discontinued operation and comparatives have been re-presented
accordingly, and the details thereof have been disclosed in the financial statements. The commentary in this 
announcement  will focus on Bidvest’s continuing operations. 

The successful and value enhancing unbundling has allowed Bidvest’s management team to move forward with a refocused
platform from which to pursue growth.  Bidvest will benefit from a greater visibility of its continued operations and
their potential values.

During the financial year, Bidvest restructured into seven divisions: Automotive, Commercial Products, Electrical,
Financial Services, Freight, Office & Print and Services. The Group continues to hold investments in Bidvest Namibia 
(52%) and Other Assets and Investments including Bidvest Properties, Adcock Ingram (38,4%), Comair (27,2%), Cullinan 
Holdings (19,5%), Ontime Automotive (100%) and the DH Mansfield Group (80%) in the United Kingdom, Mumbai Airport 
(6,75%) and other listed and unlisted investments. 


Condensed consolidated income statement for the year ended June 30
                                                                                                       2015                  
                                                                                     2016     Re-presented#             %
R’000                                                                            Reviewed          Reviewed        change    
Turnover                                                                       91 755 042        88 628 961           3,5    
Revenue                                                                        68 241 101        65 877 489           3,6    
Cost of revenue                                                               (48 342 240)      (46 912 138)                  
Gross income                                                                   19 898 861        18 965 351           4,9    
Operating expenses                                                            (14 602 043)      (13 732 222)          6,3    
Sales and distribution costs                                                   (9 361 693)       (8 876 349)                  
Administration expenses                                                        (3 683 769)       (3 423 438)                  
Other costs                                                                    (1 556 581)       (1 432 435)                  
Other income                                                                      299 967           189 812                  
Trading result                                                                  5 596 785         5 422 941           3,2    
Income from investments                                                           156 694           165 605                  
Trading profit                                                                  5 753 479         5 588 546           3,0    
Share-based payment expense                                                      (139 698)         (138 785)                  
Acquisition costs                                                                  (8 416)          (30 630)                  
Net capital items                                                              (1 175 240)          (55 105)                  
Operating profit                                                                4 430 125         5 364 026         (17,4)   
Net finance charges                                                              (922 114)         (811 336)         13,7    
Finance income                                                                    194 617            75 757                  
Finance charges                                                                (1 116 731)         (887 093)                  
Share of profit of associates                                                     149 983           202 435         (25,9)   
Profit before taxation                                                          3 657 994         4 755 125         (23,1)   
Taxation                                                                       (1 215 487)       (1 339 839)         (9,3)   
Profit for the year from continuing operations                                  2 442 507         3 415 286         (28,5)   
Profit after tax from discontinued operations                                  79 253 352         2 744 090                  
Profit for the year                                                            81 695 859         6 159 376                  
Attributable to:                                                                                                             
Shareholders of the Company - continuing operations                             2 285 850         3 165 796                  
Shareholders of the Company - discontinued operations                          79 215 705         2 732 610                  
Non-controlling interest - continuing operations                                  156 657           249 490                  
Non-controlling interest - discontinued operations                                 37 647            11 480                  
                                                                               81 695 859         6 159 376                  
Shares in issue                                                                                                              
Total#                                                                            332 672           328 666                  
Weighted (’000)#                                                                  330 036           326 406                  
Diluted weighted (’000)#                                                          331 210           328 220                  
Basic earnings per share (cents) - continuing operations                            692,6             969,9         (28,6)   
Diluted basic earnings per share (cents) - continuing operations                    690,2             964,5         (28,4)   
Headline earnings per share (cents) - continuing operations                       1 054,1           1 028,9           2,5    
Diluted headline earnings per share (cents) - continuing operations               1 050,4           1 023,2           2,7    
Basic earnings per share (cents) - discontinued operations                       24 002,2             837,2       2 767,0    
Diluted basic earnings per share (cents) - discontinued operations               23 917,0             832,6       2 772,6    
Dividends per share (cents)                                                         714,0             909,0         (21,5)   
Interim                                                                             482,0             426,0          13,1    
Final                                                                               232,0             483,0         (52,0)   
Dividend in specie per share (cents)                                             27 818,0                 -                 
# refer to re-presentation of comparative information in basis of presentation of condensed consolidated financial 
statements below.                                                                         

 Condensed consolidated income statement for the year ended June 30 (continued) 
                                                                                                       2015                  
                                                                                     2016     Re-presented#             %
R’000                                                                            Reviewed          Reviewed        change
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                              2 285 850         3 165 796         (27,8)   
Impairment of property, plant and equipment; goodwill                                       
and intangible assets                                                             153 475             5 046                 
Property, plant and equipment                                                      34 995             6 591                 
Goodwill                                                                           52 111                 -                 
Intangible assets                                                                 102 021                 -                 
Tax relief                                                                        (35 652)           (1 545)                 
Net loss (profit) on disposal of interests in subsidiaries                                  
and disposal and closure of businesses                                            139 001           (51 895)                 
Loss (profit) on disposal and closure                                             178 176           (93 966)                 
Tax charge                                                                        (39 175)           42 071                 
Net loss on disposal,impairment and reversal of                                             
impairment of investments in associates                                           810 759           254 493                 
Impairment of investments in associate                                            760 764           305 047                 
Net loss (profit) on change in shareholding in associates                          49 995           (59 284)                 
Tax charge                                                                              -             8 730                 
Net profit on disposal of property, plant and equipment                                     
and intangible assets                                                               2 265           (47 406)                 
Property, plant and equipment                                                       5 601          (103 283)                 
Intangible assets                                                                     887                 -                 
Tax charge                                                                         (2 843)            1 044                 
Non-controlling interest                                                           (1 380)           54 833                 
Gain on a bargain purchase                                                         (9 310)                -                 
Non-headline items included in equity accounted                                             
earnings of associate companies                                                    96 961            32 217                 
Headline earnings                                                               3 479 001         3 358 251           3,6    

Condensed consolidated statement of other comprehensive income the year ended June 30
                                                                                      2016              2015           
R’000                                                                             Reviewed           Audited          
Profit for the year                                                             81 695 859         6 159 376          
Other comprehensive income                                                       4 179 952           (63 099)          
Items that may be reclassified subsequently                                                 
to profit or loss                                                                4 170 303           (96 252)          
Foreign currency translation reserve                                                                                  
Exchange differences arising during the year                                     4 170 535          (116 419)          
Available-for-sale financial assets                                                                                   
Net fair value profit (loss) on                                                             
available-for-sale financial assets                                                 (2 251)           29 456          
Cash flow hedges                                                                                                      
Net fair value loss arising during the year                                          2 257            (6 026)          
Tax relief for the year                                                               (238)           (3 263)          
Items that will not be reclassified                                                         
subsequently to profit or loss                                                       9 649            33 153          
Defined benefit obligations                                                                                           
Net remeasurment of defined benefit                                                         
obligations during the year                                                         14 796            44 096          
Taxation effects                                                                                                      
Tax relief (charge) for the year                                                    (5 147)          (10 943)          
                                                                                                                      
Total comprehensive income for the year                                         85 875 811         6 096 277          
Attributable to                                                                                                       
Shareholders of the Company                                                     85 658 403         5 814 601          
Non-controlling interest                                                           217 408           281 676          
                                                                                85 875 811         6 096 277          

Condensed consolidated statement of cash flows for the year ended June 30                                                            
                                                                                                        2015    
                                                                                      2016     Re-presented#    
R’000                                                                             Reviewed          Reviewed    
Cash flows from operating activities                                             3 148 537         6 434 014    
Operating profit                                                                 4 430 125         5 364 026    
Dividends from associates                                                          138 689            85 366    
Acquisition costs                                                                    8 416            30 630    
Depreciation and amortisation                                                    1 586 940         1 474 441    
Non-cash and other items                                                           573 022          (195 336)    
Cash generated by operations before changes in working capital                   6 737 192         6 759 127    
Changes in working capital                                                         296 577          (724 931)    
Cash generated by operations                                                     7 033 769         6 034 196    
Net finance charges paid                                                          (851 371)         (679 190)    
Taxation paid                                                                   (1 191 426)       (1 318 284)    
Dividends paid by - Company                                                     (3 149 552)       (1 767 532)    
                  - subsidiaries                                                  (128 194)         (172 864)    
Net operating cash flows from discontinued operations                            1 435 311         4 337 688    
Cash effects of investment activities                                           (5 646 310)       (6 239 094)    
Net additions to vehicle rental fleet                                              (77 995)          (87 364)    
Net additions to property, plant and equipment                                  (2 404 062)       (1 619 488)    
Net additions to intangible assets                                                (113 525)         (159 439)    
Net acquisition of subsidiaries, businesses,                                                   
associates and investments                                                        (786 872)         (837 241)    
Net investing cash flows from discontinued operations                           (2 263 856)       (3 535 562)    
Cash effects of financing activities                                             1 577 560           167 118    
Proceeds from shares issued - Company                                               82 506           104 312    
Disposal of treasury shares                                                      1 265 277           540 385    
Net borrowings raised (repaid)                                                    (941 399)          869 743    
Net financing cash flows from discontinued operations                            1 171 176        (1 347 322)    
                                                                                                                
Net increase (decrease) in cash and cash equivalents                              (920 213)          362 038    
Net cash and cash equivalents at the beginning of the year                       5 818 512         5 560 585    
Exchange rate adjustment from continuing operations                                  9 686            (5 498)    
Exchange rate adjustment from discontinued operations                              814 703           (98 613)    
Cash disposed as part of Food unbundling                                        (3 016 462)                -    
Net cash and cash equivalents at end of the year                                 2 706 226         5 818 512    
Net cash and cash equivalents comprise:                                                                         
Cash and cash equivalents                                                        3 911 927         7 812 877    
Bank overdrafts shown as short-term portion                                                      
of borrowings                                                                   (1 205 701)       (1 994 365)    
                                                                                 2 706 226         5 818 512    
                                                                                                 

Condensed consolidated statement of financial position as at June 30                                                                                               
                                                                     2016              2015           
R’000                                                            Reviewed           Audited
ASSETS                                                                                                     
Non-current assets                                             21 846 083        43 094 009    
Property, plant and equipment                                   9 700 907        18 301 434    
Intangible assets                                                 929 960         2 093 480    
Goodwill                                                        2 537 036        13 567 032    
Deferred tax asset                                                618 192           877 623    
Defined benefit pension surplus                                   180 035           146 954    
Interest in associates                                          4 190 496         4 816 412    
Investments                                                     2 869 822         2 551 260    
Banking and other advances                                        819 635           739 814    
Current assets                                                 23 215 161        46 767 197    
Vehicle rental fleet                                            1 318 581         1 376 295    
Inventories                                                     7 996 103        14 843 572    
Short-term portion of banking and other advances                  878 627           547 740    
Trade and other receivables                                     9 098 345        22 186 713    
Taxation                                                           11 578                 -    
Cash and cash equivalents                                       3 911 927         7 812 877    
                                                                                               
Total assets                                                   45 061 244        89 861 206    
EQUITY AND LIABILITIES                                                                         
Capital and reserves                                           19 746 080        37 710 234    
Attributable to shareholders of the Company                    18 459 474        36 372 190    
Non-controlling interest                                        1 286 606         1 338 044    
Non-current liabilities                                         7 459 037        10 020 249    
Deferred tax liability                                            882 847         1 033 660    
Life assurance fund                                                24 761            26 733    
Long-term portion of borrowings                                 6 138 900         7 124 985    
Post-retirement obligations                                        79 128           283 920    
Puttable non-controling interest liabilities                       49 167           939 430    
Long-term portion of provisions                                   163 887           511 246    
Long-term portion of operating lease liabilities                  120 347           100 275    
Current liabilities                                            17 856 127        42 130 723    
Trade and other payables                                       11 016 386        29 546 008    
Short-term portion of provisions                                  278 830           501 611    
Vendors for acquisition                                            28 534           573 271    
Taxation                                                                -           401 850    
Amounts owed to bank depositors                                 3 689 161         2 653 861    
Short-term portion of borrowings                                2 843 216         8 454 122    
                                                                                               
Total equity and liabilities                                   45 061 244        89 861 206    
Net tangible asset value per share (cents)#                         4 507             6 302    
Net asset value per share (cents)#                                  5 549            11 067    


Condensed consolidated statement of changes in equity for the year ended June 30                                                                                               
                                                                     2016              2015           
R’000                                                            Reviewed           Audited                                                                                                              2016                          2015     
Shareholders’ interest                                                                                     
Issued share capital                                               16 770            16 758    
Balance at the beginning of the year                               16 758            16 562    
Shares issued during the year                                          12                17    
Capitalisation issue                                                    -               179    
Share premium arising on shares issued                            379 792           297 298    
Balance at the beginning of the year                              297 298           193 182    
Shares issued during the year                                      82 580           104 703    
Capitalisation issue                                                    -              (179)    
Share issue costs                                                     (86)             (408)    
Foreign currency translation reserve                              393 429         5 149 394    
Balance at the beginning of the year                            5 149 394         5 288 068    
Arising during the year                                         4 147 359          (136 987)    
Realisation of reserve on disposal and or                                   
unbundling of subsidiaries and or associates                   (8 903 324)           (1 687)    
Hedging reserve                                                    25 526            25 383    
Balance at the beginning of the year                               25 383            29 041    
Fair value gains arising during the year                            2 257            (6 026)    
Deferred tax recognised directly in reserve                          (238)            2 368    
Realisation of reserve on disposal and or                                   
unbundling of subsidiaries and or associates                       (1 876)                -    
Equity-settled share-based payment reserve                         67 002           310 416    
Balance at the beginning of the year                              310 416           359 594    
Arising during the year                                           259 226           228 177    
Deferred tax recognised directly in reserve                       146 745           106 911    
Utilisation during the year                                      (762 053)         (428 422)    
Realisation of reserve on disposal and or                                   
unbundling of subsidiaries and or associates                        3 205                 -    
Transfer to retained earnings                                     109 463            44 156    
Retained earnings                                              17 108 032        31 558 166    
Balance at the beginning of the year                           31 558 166        27 420 045    
Attributable profit                                            81 501 555         5 898 406    
Change in fair value of available-for-sale                                  
financial assets                                                   (2 244)           23 825    
Net remeasurment of defined benefit                                         
obligations during the year                                         9 721            33 015    
Transfer of reserves as a result of                                         
changes in shareholding of subsidiaries                           (45 592)           (5 437)    
Remeasurement of put option liability                                (787)                -    
Dividends paid                                                 (3 149 552)       (1 767 532)    
Dividend in specie on unbundling of subsidiaries              (92 533 240)                -    
Deferred tax direct in equity arising from                                  
dividend in specie                                               (120 532)                -    
Transfer from equity-settled share-based payment reserve         (109 463)          (44 156)    
Treasury shares                                                   468 923          (985 225)    
Balance at the beginning of the year                             (985 225)       (1 525 610)    
Shares disposed of with the unbundling of subsidiaries            420 288                 -    
Reduction in the value of treasury shares arising                           
on receipt of unbundled shares                                   (231 417)                -    
Shares disposed of in terms of share incentive scheme           1 265 277           540 385    
                                                                                               
                                                               18 459 474        36 372 190    
Equity attributable to non-controlling interest                                                
Balance at the beginning of the year                            1 338 044         1 230 233    
Movement in foreign currency translation reserve                   23 176            20 568    
Movement in equity-settled share-based payment reserve                562               460    
Attributable profit                                               194 304           260 970    
Net remeasurment of defined benefit obligations                             
during the year                                                       (72)              138    
Dividends paid                                                   (141 302)         (188 274)    
Transactions with non-controlling interest                         (6 686)          935 197    
Transfer to puttable non-controlling interest liability           (68 944)         (926 685)    
Transfer of reserves as a result of changes in                              
shareholding of subsidiaries                                       45 592             5 437    
Non-controlling interest of unbundled subsidiaries                (98 068)                -    
                                                                1 286 606         1 338 044    
Total equity                                                   19 746 080        37 710 234    


Condensed segmental analysis for the year ended June 30
                                                                      2015                 
                                              2016           Re-presented#            %
R’000                                     Reviewed                Reviewed       change                 
TURNOVER                                                                                   
Bidvest South Africa                    90 302 458              87 390 798          3,3    
Automotive                              24 062 557              23 683 728          1,6    
Commercial Products                      5 920 546               4 168 360         42,0    
Electrical                               5 375 014               5 256 267          2,3    
Financial Services                       3 336 302               2 035 048         63,9    
Freight                                 29 110 755              29 058 663          0,2    
Office and Print                        10 076 465              10 575 028         (4,7)   
Services                                12 420 819              12 613 704         (1,5)   
Bidvest Namibia                          4 275 949               4 085 868          4,7    
Bidvest Corporate                        1 818 947               1 538 558         18,2    
Properties                                 411 938                 360 019         14,4    
Corporate and investments                1 407 009               1 178 539         19,4    
                                                                                           
                                        96 397 354              93 015 224          3,6    
Inter Group eliminations                (4 642 312)             (4 386 263)                 
                                        91 755 042              88 628 961          3,5    
TRADING PROFIT                                                                             
Bidvest South Africa                     5 306 501               5 146 464          3,1    
Automotive                                 674 709                 731 723         (7,8)   
Commercial Products                        474 764                 334 705         41,8    
Electrical                                 317 440                 305 080          4,1    
Financial Services                         582 204                 527 576         10,4    
Freight                                  1 019 816               1 059 728         (3,8)   
Office and Print                           706 295                 742 446         (4,9)   
Services                                 1 531 273               1 445 206          6,0    
Bidvest Namibia                            296 662                 400 186        (25,9)   
Bidvest Corporate                          150 316                  41 896        258,8    
Properties                                 366 583                 330 807         10,8    
Corporate and Investments                 (216 267)               (288 911)        25,1    
                                         5 753 479               5 588 546          3,0    

Message to shareholders

Highlights
The Group has delivered creditable trading results against the backdrop of challenging market conditions in the
southern African region. The Commercial Products, Financial Services, Electrical and Services divisions delivered 
improved contributions, while the Freight division’s trading profit was marginally lower than last year, largely as a 
result of declining commodity volumes due to the slow-down in the resources sector. Automotive has been negatively 
affected by the decline in vehicle sales, while Office and Print disposed of the Océ business and did not repeat a 
large export order in this financial year. Bidvest Namibia continues to be impacted by declining fish quotas.

Headline earnings per share (HEPS) for continuing operations increased by 2,5% to 1 054,1 cents (2015: 1 028,9 cents).
The mark-to-market alignment of our listed associates and investments including the R595 million impairment of Adcock
Ingram, reduced basic earnings per share (EPS) for continuing operations by 28,6% to 692,6 cents (2015: 969,9 cents). 

Financial overview
Revenue increased 3,6% to R68,2 billion (2015: R65,9 billion).

Gross profit margin increased to 29,2% (2015: 28,8%). This improvement is a consequence of portfolio mix benefits
achieved by shedding low margin revenue through the disposal of the Cash-in-Transit business in 2015 and the acquisition 
of better margin businesses such as Novel and Plumblink in 2016. Operating expenses increased by 6,3%, while the operating
expense ratio at 21,4% (2015: 20,8%) edged up slightly. 

Trading profit rose by 3,0% to R5,8 billion (2015: R5,6 billion) and the trading profit margin was stable at 8,4%. 
The main contributors to the increase were the Commercial Products, Financial Services, Electrical and Services
divisions, as well as Bidvest Properties.

Net finance charges were 13,7% higher at R922 million (2015: R811 million), with the increase largely attributable to
the various acquisitions, an increased prime interest rate, as well as finance raised to acquire additional Adcock
Ingram shares. 

Profits from associate earnings reflected a decline of 25,9% after the write off of non-headline items in associates.
Prior to these non-headline items, the share of profit from associates increased by 5%. 

Headline earnings increased by 3,6% to R3,5 billion. 

Cash generated by operations at R7,0 billion was, on a like-for-like basis, 17% higher than the R6,0 billion generated
in the prior year. The Group released R296 million of working capital in 2016 compared to an absorption of R725 million
in 2015. This reflects an excellent working capital management result. 

Net debt decreased from R7,8 billion to R5,0 billion in the main as a consequence of the unbundling. 

Bidvest remains well capitalised in line with its conservative approach to gearing, with EBITDA interest cover at 
8,0 times (2015: 8,7 times). This is comfortably above the Group’s conservative self-imposed target, providing ample
capacity for further expansion.

Acquisitions
In the first half of the year, Plumblink was acquired in South Africa; and Novel Ford in Namibia. In the second half
of the year, Bidvest Insurance acquired Glassock & Associates. 

After year-end, Bidvest announced the acquisition of 100% of Brandcorp, which will enable Bidvest to add various niche
industrial and consumer products into its portfolio of existing services and offerings. The acquisition is very close
to finalisation pending final Competition Tribunal approval. The Brandcorp portfolio will form part of the Bidvest’s
Commercial Products division.

At divisional level, we have continued to make a variety of bolt-on acquisitions such as Bidvest Insurance’s purchase
of FMI, a life insurance underwriting manager.

Prospects
Bidvest’s internal divisional restructuring and the unbundling of the food services unit, has positioned the Group
well for its next growth phase. Bidvest’s management teams, which are unchanged following the restructuring initiatives,
remain focused on moving their respective divisions further up the value curve. 
The Group’s financial position remains sound, cash generation is strong and it retains adequate headroom to
accommodate expansion opportunities. At  corporate and operational level, management is assessing and implementing
plans for real growth and pursuing selective local and international opportunities to complement the existing product and
service offering. Our Other Assets and Investments will also be very closely scrutinised and decisions will be taken on 
the best way forward for these assets. 

As one of South Africa’s largest employers and a significant investor in the local economy, Bidvest shares the concerns that 
have been raised by business leadership relating to the ongoing disruption of some of our country’s most important economic 
institutions. We appeal for a rapid resolution of this current state of affairs.

Divisional review
Services 
This is a large and diverse division operating in numerous areas of service. The business has operated well and
remains resilient to the volatility of economic cycles recording an increase in operating profit of 6,0%. The Cash-In-Transit
business that was sold in 2015 has been included in the prior-year results for seven months. Excellent results were
posted by BidAir, Security, Cleaning and Bidtrack.

Freight
Global freight trade remained depressed, and as a consequence, volumes declined. This division’s focus in 2016 has
therefore been on innovation and flexibility in an effort to contain costs and enhance efficiencies. The 3,8% decline in
trading profit is considered satisfactory given the significant decline in the movement of commodities - particularly
minerals - out of the country. Grain imports assisted marginally in the last quarter. The continued import of grain will be
positive for this division in the new financial year. 

Office and Print 
Growth and spending within corporate South Africa remains constrained, which culminated in a 4,9% decline in trading
profit for the year, after the delivery of pleasing results for the first half. The second half performance in the prior
year included a significant once-off profit of an export contract and the inclusion of Océ, which was subsequently sold.
Excellent results were reported in Konica Minolta, Silveray, Cecil Nurse, Kolok, and a number of the Paper and Print
businesses, reflecting a double digit increase.

Automotive 
The Motor Retail and Car Rental divisions performed in line with a depressed motor retail market. The market was
impacted by a general decline in demand, particularly in the luxury vehicle sector, as well as high vehicle inflation and
severe margin pressure in new vehicles. The net result was a 7,8% decline in trading profit. The second-hand vehicle market
is beginning to show more activity. This division includes a number of brands that have performed poorly and which the
Group is in the process of exiting. 

Financial Services
Bidvest Bank and the Insurance division performed well. Bidvest Bank improved trading profit by 30%, and the insurance
company performed satisfactorily, but was impacted by the decline in the mark-to-market profits of its equity
portfolio. This division posted an overall increased trading profit of 10,4%. 

Commercial Products 
The division produced outstanding results across the board. Of the 10 business units in the division, eight achieved
strong double-digit increases in profit and, together with the Plumblink acquisition which exceeded management’s
expectation, delivered a 41,8% increase in trading profit. At the end of the financial year, Bidvest announced its intention 
to acquire 100% of Brandcorp, which is now in the final stages of Competition Tribunal approval. Cash generation was
strong, considering that volumes are under pressure as a result of the continued subdued market conditions. 

Electrical 
The division faced difficult trading conditions in its core industries - construction, mining and Government
infrastructure spend. The increase in turnover of 2,3% improved margin, and an increase in trading profit of 4,1% is 
commendable. Management has been successful in diversifying its income streams into renewable energy (solar geysers) 
and retrofitting low power consumption lighting (LED technology), which has benefited the profit performance in the 
current year. 

Bidvest Namibia (52% share)
Macro-economic factors contributed to a disappointing overall performance, with the trading profit declining 25,9%, as
fishing quotas were once again reduced. The size of the vessel fleet is being reduced and cost-reduction programmes
have been put in place. The Commercial Products, Freight and Distribution businesses continue to suffer from the weak
economy, while the recently acquired Novel Motors has performed in line with management expectations. All other businesses 
in this division showed a double-digit increase in performance. 

Bidvest Corporate and Investments
Bidvest Properties performed well and continues to be of key strategic importance to the Group. Ontime Automotive and
the DH Mansfield Group, both in the UK, remained loss making and will be addressed in the 2017 financial year. 

Directorate
There were various changes to the board during the year. These included: 
• Mr Alfred de Costa retired on November 23  2015
• Mrs Flora Nolwandle Mantashe resigned on September 23  2015
• Mr Donald Masson passed away on March 20  2016
• Mr Paul Baloyi resigned from the board on August 5  2016
• As a consequence of the unbundling, on May 16  2016:
  - Mr Brian Joffe retired as chief executive of Bidvest. Mr Joffe continues to serve on the board as a 
    non-executive director 
  - Mr Lindsay Ralphs was appointed as chief executive of Bidvest
  - Mr Bernard Berson resigned as executive director
  - Mr David Cleasby resigned as executive director
  - Mr Peter Meijer was appointed as an executive director and group financial director.

The board and management of Bidvest wish to thank these board members for their valued contribution over the 
past few years.

We pay tribute to Mr Brian Joffe who now has the distinction of having created two exceptional groups in one
generation. We are intent on striving to perpetuate the business heritage that he has built.

For and on behalf of the board

CWL Phalatse         L Ralphs
Chairman             Chief executive

Johannesburg
August 29  2016

Dividend declaration
In line with the Group dividend policy, the directors have declared a final gross cash dividend of 232 cents 
(197,2000 cents net of dividend withholding tax, where applicable) per ordinary share for the year ended 
June 30  2016 to those members registered on the record date, being Friday, September 23  2016. This brings 
the total dividend for the year to 714 cents per share (2015: 909 cents). The full dividend for the year 
needs to be viewed in the context of the interim dividend of 482 cents which was paid as part of the larger 
Group, prior to unbundling.

The dividend has been declared from income reserves. 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 amount per share      232                                
Net dividend amount per share             197,2000                           
Issued shares at declaration date         335 404 212                        
Declaration date                          Monday, August 29  2016         
Last day to trade cum dividend            Tuesday, September 20  2016      
First day to trade ex dividend            Wednesday, September 21  2016      
Record date                               Friday, September 23  2016      
Payment date                              Monday, September 26  2016      


Share certificates may not be dematerialised or rematerialised between Wednesday, September 21  2016, and 
Friday, September 23  2016, both days inclusive.

For and on behalf of the board

CA Brighten
Company secretary
Johannesburg
August 29  2016

Basis of presentation of condensed consolidated financial statements
These condensed consolidated 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. They do not include all the information required for a complete set of International
Financial Reporting Standards (IFRS) financial statements. However, selected explanatory notes are included to explain 
events and transactions that are significant to an understanding to the changes in the Group’s financial position and
performance since the last annual consolidated financial statements as at and for the year ended June 30  2015.

In preparing these condensed consolidated financial statements, management makes judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets and liabilities, income and
expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group’s accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the 
year ended June 30  2015.

Significant accounting policies
The accounting policies applied in these summarised preliminary financial statements are the same as those applied in
the Group’s consolidated financial statements as at and for the year ended June 30  2015. 

#Re-presentation of comparative information
Following the unbundling and separate listing of the Group’s foodservices businesses as Bid Corporation Limited, the
Group’s condensed consolidated income statement, condensed consolidated statement of cash flows and condensed segmental
analysis have been re-presented to take account of the effects of the application of IFRS 5 Non-current assets held for
sale and discontinued operations. The Group’s condensed consolidated statement of other comprehensive income, condensed
consolidated statement of financial position and condensed consolidated statement of changes in equity are not required
to be re-presented.

Included in the net assets unbundled were 3 614 487 Bidvest shares (treasury shares) held by Bid Corporation Limited.
These shares have been treated as shares issued without a corresponding change in resources, in terms of IAS 33
Earnings per share, and the current and comparative total, weighted average and diluted weighted average number of shares 
in issue have been restated to include these shares for the basic, diluted basic, headline and diluted headline earnings per
share calculations; and the net asset and net tangible assets values per share calculations.

In addition, during the year certain operations were reclassified between segments. The comparative year’s segmental
information has been re-presented to reflect these insignificant changes.

Discontinued operations
On May 16 2016 the shareholders approved the unbundling and separate listing (unbundling) of the Group’s foodservices
businesses as Bid Corporation Limited (Bidcorp) via a distribution in specie. This unbundling was undertaken in order to
implement a strategic decision to restructure the business operations and management focus of the Group and to provide
shareholders with the opportunity to participate directly in the Group’s foodservices operations.
The fair value of Bidcorp was determined with reference to the volume weighted average price of Bidcorp’s trading on
the JSE over the first ten days of trading, being 27 818 cents per share.

The contribution of discontinued (Bidcorp) operations included in the Group’s results until the loss of control is detailed below:                                                             
                                                                                                                                                          
R’000                                                                        2016                   2015    
Income statement - discontinued operations                                                                  
Turnover                                                              127 857 294            116 310 181    
Revenue                                                               127 857 294            116 310 181    
Cost of revenue                                                      (101 476 483)           (92 677 768)    
Gross income                                                           26 380 811             23 632 413    
Operating expenses                                                    (22 358 944)           (19 721 546)    
Sales and distribution expenses                                       (16 281 954)           (14 253 289)    
Administration expenses                                                (3 985 391)            (3 359 646)    
Other expenses                                                         (2 091 599)            (2 108 611)    
Other income                                                              181 401                192 211    
Trading result                                                          4 203 268              4 103 078    
Income (loss) from investments                                             23 352                (18 769)    
Trading profit                                                          4 226 620              4 084 309    
Share-based payment expense                                               (96 845)               (89 852)    
Acquisition costs                                                          (7 555)               (43 611)    
Net capital items                                                          25 531                 22 531    
Operating profit                                                        4 147 751              3 973 377    
Net finance charges                                                      (281 169)              (308 722)    
Finance income                                                             45 779                 37 161    
Finance charges                                                          (326 948)              (345 883)    
Share of profit of associates                                              22 580                 15 634    
Profit before taxation                                                  3 889 162              3 680 289    
Taxation                                                                 (913 755)              (936 199)    
Profit for the year from discontinued operations                        2 975 407              2 744 090    
Net profit on unbundling                                               76 277 945                      -    
Profit after taxation                                                  79 253 352              2 744 090    
Attributable to                                                                                             
Shareholders of the Company                                            79 215 705              2 732 610    
Non-controlling interest                                                   37 647                 11 480    
                                                                       79 253 352              2 744 090    
Cash flows from discontinued operations                                                                     
Net operating cash flows from discontinued operations                   1 435 311              4 337 688    
Net investing cash flows from discontinued operations                  (2 263 856)            (3 535 562)    
Net financing cash flows from discontinued operations                   1 171 176             (1 347 322)    
Net increase (decrease) in cash and cash equivalents                               
from discontinued operations                                              342 631               (545 196)    
Effects of exchange rate fluctuations on cash and                                  
cash equivalents from discontinued operations                             814 703                (98 614)    
Cash disposed as part of Food unbundling                               (3 016 462)                     -    
Net increase (decrease) in cash and cash                                           
equivalents from discontinued operations                               (1 859 128)              (643 810)    
                                                                                                                                           
Basis of presentation of condensed consolidated financial statements continued
                                                                                                      
R’000                                                                 2016          
Net profit on unbundling Bidcorp                                                     
Net fair value of assets unbundled                             (26 008 009)          
Property, plant and equipment                                  (11 750 945)          
Intangible assets                                               (1 363 482)          
Goodwill                                                       (14 251 736)          
Deferred taxation assets                                          (180 945)          
Interest in associates                                            (128 680)          
Investments                                                       (379 625)          
Inventories                                                     (9 044 363)          
Trade and other receivables                                    (17 462 210)          
Cash and cash equivalents                                       (3 016 462)          
Treasury shares                                                   (420 288)          
Borrowings                                                       7 891 652          
Post-retirement obligations                                         11 688          
Puttable non-controlling interest liabilities                    1 253 373          
Long-term portion of provisions                                    831 997          
Long-term portion of operating lease liabilities                    13 755          
Trade and other payables                                        20 955 904          
Taxation                                                           481 798          
Vendors for acquisition                                            550 560          
Non-controlling interest                                            98 068          
Group’s portion of net assets unbundled                        (25 909 941)          
Reserves realised on unbundling                                  8 920 305          
Foreign currency translation reserve                             8 921 634          
Hedging reserve                                                      1 876          
Equity-settled share-based payment reserve                          (3 205)          
                                                                                     
                                                               (16 989 636)          
Fair value of the foodservices businesses unbundled             93 302 744          
Profit on unbundling                                            76 313 108          
Transaction costs                                                  (41 672)          
Accelerated vesting of conditional share plan                      (23 245)          
Other transaction costs                                            (18 427)          
                                                                                     
Profit on unbundling before taxation                            76 271 436          
Tax relief                                                           6 509          
Net profit on unbundling                                        76 277 945            

Net acquisition of businesses, subsidiaries, associates and investments 
The Group acquired 100% of the share capital of Plumblink SA Proprietary Limited (Plumblink) with effect from 
July 1  2015. Plumblink is a specialist plumbing and bathroom merchant currently operating from 61 branches strategically
situated throughout South Africa. The acquisition forms part of the Bidvest Commercial Products segment and will enable 
the Group to expand its range of complementary products and services provided by Bidvest Commercial Products and, as a
consequence, broaden the Group’s base in the market place.

A 100% shareholding in International Capital Investments Proprietary Limited trading as Novel Motor Company and Lenkow
Proprietary Limited (Novel) was acquired by the Group with effect July 31  2015. The acquisition forms part of the
Bidvest Namibia segment and is in line with this segment’s strategy to diversify its business portfolio. Novel Motor 
Company is a well-known vehicle dealership in Namibia.

A further 2,5 million Adcock Ingram Holdings Limited (Adcock) ordinary shares were acquired from Adcock’s black
economic empowerment (BEE) partners, Blue Falcon Trading 69 Proprietary Limited and the Mpho ea Bophelo Trust for a cash
consideration of R52,00 per Adcock ordinary share in July 2015.

At the end of July 2015 the Group supported the new Adcock BEE scheme (Scheme) and sold 15% of its Adcock shareholding
to Ad-izinyosi, a new broad-based empowerment entity, for a minimum price of R52,00 and a maximum price of R72,00 per
Adcock ordinary share, to be settled on the fourth anniversary of the date that the Scheme became operative.

In addition to these transactions, the Group acquired a further 1,2 million shares, on the market, at an average price
of R41,08 per share. Following these transactions the Group holds 38,4% of the net ordinary shares in issue in Adcock,
but account for 45,0% of its results as a consequence of treating the sale of 15% of its holding in terms of the new
Adcock BEE Scheme to Ad-izinyosi, as a deferred sale.  

The Group also made a number of less significant acquisitions and disposals during the year. Certain of these
acquisitions resulted in insignificant bargain purchase gains.

The acquisitions were funded from its existing cash resources.

The following table summarises the fair value of net assets acquired and liabilities assumed which have been included
in these results from the respective acquisition and disposal dates.

Basis of presentation of condensed consolidated financial statements continued
                                                                                                                                                          
                                                                                      Other                                             Net    
R’000                                      Adcock     Plumblink        Novel    Acquisitions         Total      Disposals      Acquisitions    
Property, plant and equipment                            16 140       72 107          28 689       116 936        (61 143)           55 793    
Deferred taxation                                       (20 685)      (2 679)             (2)      (23 366)        41 560            18 194    
Interest in associates                    183 490             -            -          57 562       241 052        (60 737)          180 315    
Investments and advances                                      -           36         626 586       626 622       (645 077)          (18 455)    
Inventories                                             109 198      152 862           2 590       264 650        (28 896)          235 754    
Trade and other receivables                             175 274       39 448          14 449       229 171       (144 325)           84 846    
Cash and cash equivalents                               (24 392)      22 991          18 885        17 484        (25 997)           (8 513)    
Borrowings                                             (147 394)    (153 483)          8 653      (292 224)        13 152          (279 072)    
Trade and other payables and             
provisions                                             (212 982)     (23 415)        (36 191)     (272 588)        11 917          (260 671)    
Taxation                                                 (3 680)      (1 360)            639        (4 401)            35            (4 366)    
Intangible assets                                       132 306          214               -       132 520         (1 768)          130 752    
                                          183 490        23 785      106 721         721 860     1 035 856       (901 279)          134 577    
Non-controlling interest                                                                            84 943              -            84 943    
Gain on bargain purchase price                                                                      (9 310)             -            (9 310)   
Goodwill                                                                                           423 090              -           423 090    
Net assets acquired                                                                              1 534 579       (901 279)          633 300    
Settled as follows:                                                                                                                            
Cash and cash equivalents acquired/      
disposed of                                                                                        (17 484)        25 997             8 513    
Acquisition costs                                                                                    8 416                            8 416    
Realisation of foreign currency          
translation reserve                                                                                      -        (18 310)          (18 310)    
Net loss on disposal of operations                                                                                188 997           188 997    
Net change in vendors for acquisition                                                              (34 044)                         (34 044)    
Net acquisition of businesses,           
subsidiaries, associates and investments                                                         1 491 467       (704 595)          786 872    

The Group funded these acquisitions from existing banking resources.                                                                                                                                                                    
The acquisition of Plumblink contributed R1 528 million to revenue and R86 million to operating profit. Similarly, the Novel acquisition 
contributed R778 million to revenue and R45 million to operating profit and would have contributed R855 million to revenue and R51 million 
to operating profit, had the acquisition been effective July 1  2015.                                                                                                                                                                   

Subsequent events
The Group has entered into a binding agreement to acquire 100% of the shares of and equity loan claims against
Brandcorp Holdings Proprietary Limited (Brandcorp). Brandcorp is a holding company of businesses involved in the distribution
and reselling of a wide range of niche, high-quality industrial and consumer products in southern Africa. Brandcorp owns
well-known brands across its individual businesses, as well as distribution rights (exclusive and otherwise) for leading
local and international brands. The board considers the Brandcorp acquisition to present an attractive investment
opportunity which is aligned with Bidvest’s proven strategy of expanding its business operations through value accretive
acquisitions. Brandcorp will form a part of Bidvest’s Commercial Products division and it is expected that the Group will
complement Brandcorp’s offering, and opportunities exist for the Group and Brandcorp to leverage off each other’s client
base, expertise, resources and network to significantly grow revenue and earnings. The Brandcorp acquisition is still
subject to regulatory and other conditions typical for a transaction of this nature.

Fair value of financial instruments
The Group’s investments of R2 870 million (2015: R2 551 million) include R89 million (2015: R431 million) recorded at
cost, R1 846 million (2015: R1 273 million) recorded and measured at fair value using quoted prices (level 1) and 
R935 million (2015: R847 million) recorded and measured at fair value using factors not based on observable data (level 3).
Level 3 investments are valued using discounted cash flows with a discount rate of 15,3% (2015: 15,3%). Fair value gains
recognised in the income statement total R94 million (2015: R118 million) and other reductions of R7 million relate to
net sales and net foreign exchange gains of R2 million recognised in the currency translation reserve.

The carrying values all financial assets and liabilities approximate their fair values, with the exception of
borrowings of R8 965 million whose carrying value is R8 982 million.

Independent review
The directors of the Company take full responsibility for the preparation of the condensed consolidated financial
statements.

These condensed consolidated financial statements for the year ended June 30  2016 have been reviewed by Deloitte &
Touche, our independent auditors, who have expressed an unmodified review conclusion. The external auditors have performed
their review in accordance with International Standards on Review Engagements (ISRE) 2410. A copy of the auditor’s
review report is available for inspection at the Company’s registered office.

Preparer of the financial statements
These provisional condensed consolidated financial statements have been prepared under the supervision of HP Meijer
(B. Compt. MBL), Group Financial Director, and were approved by the board of directors on August 26  2016.


Administration

Directors
Independent non-executive chairman: CWL Phalatse
Independent non-executive directors: DDB Band, EK Diack, AK Maditsi, S Masinga, NG Payne, T Slabbert
Non-executive director: B Joffe Executive directors: LP Ralphs (Chief executive), AW Dawe, NT Madisa, 
GC McMahon, HP Meijer* (Group financial director)
(*Netherlands)

Company secretary
CA Brighten 

Transfer secretaries
Computershare Investor Services Proprietary 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 Bank 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
Telephone: +27 (11) 772 8700 Email: info@bidvest.co.za

Further information regarding our Group can be found on the Bidvest website: 
www.bidvest.com
Date: 29/08/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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