THE BIDVEST GROUP LIMITED - Unaudited results for the half-year ended 31 December 2017

Release Date: 26/02/2018 07:05
Code(s): BVT
 
Wrap Text
Unaudited results for the half-year ended 31 December 2017

THE BIDVEST GROUP LIMITED
Registration number: 1946/021180/06 
Share code: BVT
ISIN: ZAE000117321

Unaudited results for the half-year ended 31 December 2017

Going Beyond

Salient features
Pleasing trading profit growth up 12,0% to R3,1 billion
R1,4 billion more cash generated by operations                                                        
Headline earnings increased by 13,4% to R1,9 billion.                                
HEPS up 12,5% to 574,0 cents per share   
Interim dividend 255,0 cents per share, up 12,3%                                                  
R4,9 billion invested in net acquisitions, capex and SA infrastructure projects                                                           



Financial statistics
for the
                                                                                   Half year          Half year                       
                                                                                       ended              ended                       
                                                                                 31 December        31 December                        
                                                                                        2017               2016                       
                                                                                   Unaudited          Unaudited             Change %  
   Revenue                                                   R billion                  39,9               36,0                 10,7  
   Gross profit margin (1)                                              %                  28,1               28,0                   up  
   Operating Expense ratio (1)                                          %                  20,6               20,1                   up  
   EBITDA                                                    R billion                   4,0                3,6                 10,3  
   Trading result (excluding investment income)              R billion                   3,1                2,9                  7,3  
   Trading profit                                            R billion                   3,1                2,8                 12,0  
   Trading profit margin(1)                                          %                   7,9                7,8                   up  
   Effective tax rate                                                %                  29,1               29,0                   up  
   Basic earnings                                            R billion                   1,9                2,0                 (3,8) 
   Headline earnings                                         R billion                   1,9                1,7                 13,4  
   EPS                                                           cents                 560,6              587,4                 (4,6) 
   HEPS                                                          cents                 574,0              510,3                 12,5  
   DPS                                                           cents                 255,0              227,0                 12,3
   Rolling EBITDA interest cover                                 times                   7,6                7,5                   up  
   Net debt/rolling EBITDA                                       times                   1,1                1,1            unchanged  
   Fixed rate net debt ratio                                         %                  16,6               34,9                 down  
   Long-term portion of gross debt                                   %                  60,5               51,3                   up  
   Average funds employed                                    R billion                  29,6               28,3                  4,8  
   Average return on funds employed (ROFE)                           %                  22,8               21,4                   up  
   Cash conversion(2)                                                %                  50,9               20,7                   up  
   Weighted number of shares                                   million                 335,5              332,9                  0,8  
   (1) As % of revenue                                                                                                                  
   (2) As % of trading profit                                                                                                           
                                                                                                                           

Condensed consolidated income statement
for the
                                                               Half-year ended             Half-year ended                     Year ended
                                                                   31 December                 31 December                        30 June
                                                                          2017                        2016           %               2017
                                                                     Unaudited                   Unaudited      change            Audited
   Revenue                                                          39 908 810                  36 035 871        10,7         70 998 001
   Cost of revenue                                                 (28 691 135)                (25 955 901)       10,5        (50 342 325)
   Gross profit                                                     11 217 675                  10 079 970        11,3         20 655 676
   Operating expenses                                               (8 207 847)                 (7 252 262)       13,2        (15 131 637)
   Other income                                                        107 794                      77 350                        282 122
   Trading result                                                    3 117 622                   2 905 058         7,3          5 806 161
   Income (loss) from investments                                       24 907                    (98 247)                        210 776
   Trading profit                                                    3 142 529                   2 806 811        12,0          6 016 937
   Share-based payment expense                                         (84 082)                    (69 659)                      (143 145)
   Acquisition costs and intangible amortisation                       (61 028)                    (14 546)                       (24 230)
   Net capital items                                                    (1 949)                    229 306                      1 027 588
   Operating profit                                                  2 995 470                   2 951 912         1,5          6 877 150
   Net finance charges                                                (523 510)                   (521 289)        0,4         (1 059 560)
   Finance income                                                       67 737                      23 355                        232 069
   Finance charges                                                    (591 247)                   (544 644)                    (1 291 629)
   Share of profit of associates                                       214 352                     200 883         6,7            379 231
   Current period earnings                                             221 424                     175 224        26,4            354 966
   Net capital items                                                    (7 072)                     25 659                         24 265
                                                                                                                                         
   Profit before taxation                                            2 686 312                   2 631 506         2,1          6 196 821
   Taxation                                                           (736 093)                   (638 248)       15,3         (1 328 232)
   Profit for the period                                             1 950 219                   1 993 258                      4 868 589
   Attributable to:                                                                                                                      
   Shareholders of the Company                                       1 880 957                   1 955 364        (3,8)         4 769 940
   Non-controlling interest                                             69 262                      37 894        82,8             98 649
                                                                     1 950 219                   1 993 258        (2,2)         4 868 589
   Basic earnings per share (cents)                                      560,6                       587,4        (4,6)           1 430,3
   Diluted basic earnings per share (cents)                              557,1                       586,8        (5,1)           1 423,4
   Headline earnings per share (cents)                                   574,0                       510,3        12,5            1 108,2
   Diluted headline earnings per share (cents)                           570,5                       509,8        11,9            1 102,9
   Shares in issue                                                                                                                       
   Total (’000)                                                        336 296                     333 603                        335 094
   Weighted (’000)                                                     335 546                     332 897                        333 497
   Diluted weighted (’000)                                             337 630                     333 208                        335 098
   Dividends per share (cents)                                           255,0                       227,0        12,3              491,0
   Interim                                                               255,0                       227,0        12,3              227,0
   Final                                                                     -                           -                          264,0

   
                                                                Half-year ended            Half-year ended                     Year ended
                                                                    31 December                31 December                        30 June
                                                                           2017                       2016           %               2017
   R’000                                                              Unaudited                  Unaudited      change            Audited
   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                 1 880 957                  1 955 364        (3,8)         4 769 940
   Impairment reversal of property, plant and                 
   equipment; goodwill and intangible assets                                  -                       (190)                        (1 403)
   Property, plant and equipment(#)                                            -                       (264)                        (1 147)
   Taxation effect                                                            -                         74                            158
   Non-controlling interest                                                   -                          -                           (414)
   Net loss disposal of interests in subsidiaries and         
   disposal and closure of businesses                                    13 500                      6 338                         50 874
   Loss on disposal and closure(#)                                       13 500                     11 782                         65 311
   Taxation effect                                                            -                     (5 444)                       (14 437)
   Net loss (profit) on disposal and remeasurement to         
   recoverable fair value of associates                                  59 687                   (220 646)                    (1 080 926)
   Remeasurement to recoverable fair value of                 
   associate(#)                                                          59 144                   (216 563)                    (1 144 633)
   Net loss (profit) on change in shareholding in             
   associates #                                                             543                     (4 083)                        82 072
   Taxation effect                                                            -                          -                        (18 365)
   Net profit on disposal of property, plant and              
   equipment and intangible assets                                      (35 200)                    (5 335)                        (7 114)
   Property, plant and equipment(#)                                     (48 551)                        57                         (8 446)
   Intangible assets(#)                                                 (22 687)                    (9 000)                        (9 371)
   Taxation effect                                                        1 539                        (18)                         2 909
   Non-controlling interest                                              34 499                      3 626                          7 794
   Gain on bargain purchase(#)                                                -                    (11 235)                       (11 374)
   Non-headline items included in equity accounted            
   earnings of associated companies                                       7 072                    (25 659)                       (24 265)
   Headline earnings                                                  1 926 016                  1 698 637        13,4          3 695 732
   (#) Items above included as capital items on condensed      
       consolidated income statement.                                                      
                                                              

Condensed consolidated statement of other comprehensive income
for the
                                                                Half-year ended           Half-year ended                      Year ended
                                                                    31 December               31 December                         30 June
                                                                           2017                      2016                            2017
   R’000                                                              Unaudited                 Unaudited                         Audited
   Profit for the period                                              1 950 219                 1 993 258                       4 868 589
   Other comprehensive expense                                          (44 807)                  (56 917)                       (126 903
   Items that may be reclassified subsequently to                                                                      
   profit or loss                                                       (44 807)                  (56 917)                       (134 297
   Foreign currency translation reserve                                                                                                  
   Exchange differences arising during the period                       (37 623)                  (46 676)                       (117 787)
   Available-for-sale financial assets                                                                                                   
   Net fair value gain (loss) on available-for-sale                                                                    
   financial assets                                                       1 118                      (130)                          2 527
   Cash flow hedges                                                                                                                      
   Fair value loss arising during the period                            (11 531)                  (14 043)                        (26 440)
   Taxation effect for the period                                         3 229                     3 932                           7 403
 Items that will not be reclassified subsequently                                                                      
 to profit or loss                                                            -                         -                           7 394
   Defined benefit obligations                                                                                                           
   Net remeasurement of defined benefit obligations                                                                    
   during the period                                                          -                         -                          10 278
   Taxation effects                                                                                                                      
   Taxation charge for the period                                             -                         -                          (2 884)
                                                                                                                                         
                                                                                                                                         
   Total comprehensive income for the period                          1 905 412                 1 936 341                       4 741 686
   Attributable to                                                                                                                       
   Shareholders of the Company                                        1 840 213                 1 903 201                       4 654 904
   Non-controlling interest                                              65 199                    33 140                          86 782
                                                                      1 905 412                 1 936 341                       4 741 686
                                                                                                                       

Condensed consolidated statement of cash flows
for the

                                                                Half-year ended          Half-year ended                      Year ended 
                                                                    31 December              31 December                         30 June 
                                                                           2017                     2016                            2017 
   R’000                                                              Unaudited                Unaudited                         Audited 
   Cash flows from operating activities                               1 139 588                  (83 799)                      2 816 458 
   Operating profit                                                   2 995 470                2 951 912                       6 877 150 
   Dividends from associates                                            103 149                   57 359                         114 494 
   Acquisition costs                                                     48 715                   14 546                          24 230 
   Depreciation and amortisation                                        883 335                  828 482                       1 641 568 
   Remeasurement to recoverable fair value                                       
   of associates                                                         59 144                 (216 563)                     (1 144 633)
   Other cash and non-cash items                                       (205 664)                  46 480                        (265 154)
   Cash generated by operations before                                           
   changes in working capital                                         3 884 149                3 682 216                       7 247 655 
   Changes in working capital                                          (631 281)              (1 873 884)                       (367 886)
   Cash generated by operations                                       3 252 868                1 808 332                       6 879 769 
   Net finance charges paid                                            (517 315)                (513 759)                     (1 030 415)
   Taxation paid                                                       (555 444)                (527 575)                     (1 373 927)
   Dividends paid by - Company                                         (884 649)                (772 306)                     (1 529 585)
   - subsidiaries                                                      (155 872)                 (78 491)                       (129 384)
   Cash effects of investment activities                             (4 913 559)              (1 367 341)                     (1 621 011)
   Net (additions) disposals to vehicle                                          
   rental fleet                                                        (427 843)                (139 179)                        107 399 
   Net additions to property, plant and equipment                    (1 033 230)                (988 037)                     (1 895 257)
   Net additions to intangible assets                                   (27 167)                 (27 564)                       (141 066)
   Net (acquisitions) disposals of subsidiaries,                                 
   businesses, associates and investments                            (3 425 319)                (212 561)                        307 913 
   Cash effects of financing activities                                 717 447                 (870 934)                        (21 223)
   Proceeds from shares issued - Company                                218 339                        -                               - 
   Disposal of treasury shares                                                -                  112 771                         274 229 
   Net borrowings raised (repaid)                                       499 108                 (983 705)                       (295 452)
                                                                                                                           
   Net (decrease) increase in cash and                                           
   cash equivalents                                                  (3 056 524)              (2 322 074)                      1 174 224 
   Net cash and cash equivalents at the                                          
   beginning of the period                                            3 886 417                2 706 226                       2 706 226 
   Exchange rate adjustment                                             (22 695)                   8 126                           5 967 
   Net cash and cash equivalents at end                                          
   of the period                                                        807 198                  392 278                       3 886 417 
   Net cash and cash equivalents comprise:                                                                                 
   Cash and cash equivalents                                          4 710 829                3 566 407                       5 132 550 
   Bank overdrafts shown as short-term portion                                   
   of interest-bearing borrowings                                    (3 903 631)              (3 174 129)                     (1 246 133)
                                                                        807 198                  392 278                       3 886 417 


Condensed consolidated statement of financial position
as at
                                                                   31 December              31 December                        30 June    
                                                                          2017                     2016                           2017    
   R’000                                                             Unaudited                Unaudited                        Audited    
   ASSETS                                                                                                                                 
   Non-current assets                                               29 495 039               23 980 597                     25 323 700    
   Property, plant and equipment                                    10 952 087               10 247 335                     10 474 205    
   Intangible assets                                                 3 240 955                  972 036                      1 667 710    
   Goodwill                                                          4 432 465                3 527 268                      3 167 700    
   Deferred taxation assets                                            679 003                  585 094                        728 913    
   Defined benefit pension surplus                                     202 886                  180 035                        202 886    
   Interest in associates                                            5 422 643                4 687 124                      5 375 328    
   Investments                                                       3 441 503                2 827 975                      2 843 132    
   Banking and other advances                                        1 123 497                  953 730                        863 826    
   Current assets                                                   27 353 676               24 124 871                     26 067 498    
   Vehicle rental fleet                                              1 302 094                1 331 662                        992 942    
   Inventories                                                       8 948 644                8 989 473                      8 595 692    
   Short-term portion of banking and other advances                    831 335                  729 610                      1 026 974    
   Trade and other receivables                                      11 362 836                9 507 719                     10 136 307    
   Taxation                                                            197 938                        -                        183 033    
   Cash and cash equivalents                                         4 710 829                3 566 407                      5 132 550    
                                                                                                                                          
   Total assets                                                     56 848 715               48 105 468                     51 391 198    
   EQUITY AND LIABILITIES                                                                                                                 
   Capital and reserves                                             24 099 449               20 975 140                     23 044 323    
   Attributable to shareholders of the Company                      22 828 089               19 641 236                     21 697 305    
   Non-controlling interest                                          1 271 360                1 333 904                      1 347 018    
   Non-current liabilities                                          10 452 242                7 333 237                      7 165 102    
   Deferred taxation liabilities                                     1 077 226                  751 293                      1 014 705    
   Life assurance fund                                                 631 058                   23 971                        311 355    
   Long-term portion of borrowings                                   8 324 551                6 133 248                      5 408 072    
   Post-retirement obligations                                          76 266                   78 880                         77 197    
   Puttable non-controlling interest liabilities                        60 990                   50 741                         60 990    
   Long-term portion of provisions                                     176 017                  140 167                        149 907    
   Long-term portion of operating lease liabilities                    106 134                  154 937                        142 876    
   Current liabilities                                              22 297 024               19 797 091                     21 181 773    
   Trade and other payables                                         10 921 805                9 536 312                     11 033 424    
   Short-term portion of provisions                                    453 230                  401 179                        278 582    
   Vendors for acquisition                                              56 471                   52 691                         39 523    
   Taxation                                                            298 688                   78 711                        109 771    
   Amounts owed to bank depositors                                   5 132 068                3 902 707                      4 412 104    
   Short-term portion of borrowings                                  5 434 762                5 825 491                      5 308 369    
   Total equity and liabilities                                     56 848 715               48 105 468                     51 391 198    
   Net tangible asset value per share (cents)                            4 506                    4 539                          5 032    
   Net asset value per share (cents)                                     6 788                    5 888                          6 475    
                                                                                                                                          
                                                                                      
                                                          
Condensed consolidated statement of changes in equity
for the
                                                              Half-year ended           Half-year ended                     Year ended    
                                                                  31 December               31 December                        30 June    
                                                                         2017                      2016                           2017    
   R’000                                                            Unaudited                 Unaudited                        Audited    
   Shareholders' interest                                                                                                                 
   Issued share capital                                                16 830                    16 770                         16 770    
   Balance at beginning of the period                                  16 770                    16 770                         16 770    
   Shares issued during the period                                         60                         -                              -    
   Share premium arising on shares issued                             598 071                   379 792                        379 792    
   Balance at beginning of the period                                 379 792                   379 792                        379 792    
   Shares issued during the period                                    218 613                         -                              -    
   Share issue costs                                                     (334)                        -                              -    
   Foreign currency translation reserve                               253 216                   350 967                        286 628    
   Balance at beginning of the period                                 286 628                   393 429                        393 429    
   Movement during the period                                         (33 560)                  (41 922)                      (105 885)    
   Realisation of reserve on disposal of                                                                               
   subsidiaries and or associates                                         148                      (540)                          (916)    
   Hedging reserve                                                     (1 813)                    15 415                         6 489    
   Balance at beginning of the period                                   6 489                    25 526                         25 526    
   Fair value losses arising during the period                        (11 531)                  (14 043)                       (26 440)    
   Deferred tax recognised directly in reserve                          3 229                     3 932                          7 403    
   Equity-settled share-based payment reserve                         (49 459)                   50 644                        (14 787)    
   Balance at beginning of the period                                 (14 787)                   67 002                         67 002    
   Arising during the period                                           83 945                    69 346                        143 712    
   Deferred tax recognised directly in reserve                        100 056                    27 598                         81 779    
   Utilisation during the period                                     (218 673)                 (113 302)                      (307 280)    
   Retained earnings                                               21 268 092                18 245 954                     20 279 261    
   Balance at the beginning of the period                          20 279 261                17 108 032                     17 108 032    
   Attributable profit                                              1 880 957                 1 955 364                      4 769 940    
   Change in fair value of available-for-sale                                                                          
   financial assets                                                     1 118                      (130)                         2 527    
   Net remeasurement of defined benefit                                                                                
   obligations during the period                                           -                          -                          7 359    
   Transfer of reserves as a result of changes in                                                                        
   shareholding of, and other transactions with subsidiaries           (8 595)                  (94 060)                      (118 000)    
   Taxation direct in equity arising from transactions                                                                 
   with subsidiaries                                                        -                    49 054                         47 664    
   Remeasurement of put option liability                                    -                         -                         (8 676)    
   Dividends paid                                                    (884 649)                 (772 306)                    (1 529 585)    
   Treasury shares                                                    743 152                   581 694                        743 152    
   Balance at the beginning of the period                             743 152                   468 923                        468 923    
   Shares disposed of in terms of share incentive scheme                    -                   112 771                        274 229    
                                                                                                                                          
                                                                   22 828 089                19 641 236                     21 697 305    
   Equity attributable to non-controlling interest                                                                                        
   Balance at beginning of the period                               1 347 018                 1 286 606                      1 286 606    
   Other comprehensive income                                          65 199                    33 140                         86 782    
   Attributable profit                                                 69 262                    37 894                         98 649    
   Movement in foreign currency translation reserve                    (4 063)                   (4 754)                       (11 902)    
   Net remeasurement of defined benefit obligations                                                                    
   during the period                                                       -                         -                              35    
   Dividends paid                                                    (155 872)                  (78 491)                      (129 384)    
   Movement in equity-settled share-based payment reserve                 137                       313                           (567)    
   Changes in shareholding                                              6 283                    (1 724)                       (14 419)    
   Transfer of reserves as a result of changes in shareholding                                                           
   of, and other transactions with subsidiaries                         8 595                    94 060                        118 000    
                                                                    1 271 360                 1 333 904                      1 347 018    
   Total equity                                                    24 099 449                20 975 140                     23 044 323    
                                                                                

Condensed segmental analysis
for the
                                                              Half-year ended        Half-year ended                       Year ended    
                                                                  31 December            31 December                          30 June    
                                                                         2017                   2016            %                2017    
   R’000                                                            Unaudited              Unaudited       change             Audited    
   REVENUE                                                                                                                               
   Bidvest South Africa                                            38 670 257             34 845 560         11,0          69 679 523    
   Automotive                                                      12 695 722             12 371 585          2,6          24 182 054    
   Commercial Products                                              4 429 244              3 735 196         18,6           8 025 202    
   Electrical                                                       2 900 602              2 733 679          6,1           5 667 087    
   Financial Services                                               1 786 523              2 003 082        (10,8)          4 009 127    
   Freight                                                          2 919 455              2 447 272         19,3           4 986 641    
   Office and Print                                                 4 939 676              5 080 027         (2,8)          9 670 916    
   Services                                                         8 999 035              6 474 719         39,0          13 138 496    
   Bidvest Namibia                                                  2 040 070              2 172 638         (6,1)          3 794 668    
   Bidvest Corporate                                                  793 973                803 347         (1,2)          1 592 071    
   Properties                                                         260 748                239 040          9,1             489 124    
   Corporate and Investments                                          533 225                564 307         (5,5)          1 102 947    
                                                                                                                                         
                                                                   41 504 300             37 821 545          9,7          75 066 262    
   Inter Group eliminations                                        (1 595 490)            (1 785 674)                      (4 068 261)   
                                                                   39 908 810             36 035 871         10,7          70 998 001    
   TRADING PROFIT                                                                                                                        
   Bidvest South Africa                                             3 158 613              2 811 730         12,3           5 632 476    
   Automotive                                                         342 748                364 496         (6,0)            663 395    
   Commercial Products                                                353 780                332 117          6,5             688 571    
   Electrical                                                         147 466                146 078          1,0             350 173    
   Financial Services                                                 318 831                301 956          5,6             625 303    
   Freight                                                            641 589                543 851         18,0           1 070 257    
   Office and Print                                                   402 717                357 470         12,7             657 692    
   Services                                                           951 482                765 762         24,3           1 577 085    
   Bidvest Namibia                                                      7 517                 23 416        (67,9)             86 470    
   Bidvest Corporate                                                 (23 601)               (28 335)        (16,7)            297 991    
   Properties                                                         233 046                207 394         12,4             428 566    
   Corporate and Investments                                        (256 647)              (235 729)          8,9           (130 575)    
                                                                                                                                         
                                                                    3 142 529              2 806 811         12,0           6 016 937    


Condensed segmental analysis continued
as at
                                                                 31 December             31 December                          30 June    
                                                                        2017                    2016            %                2017    
   R’000                                                           Unaudited               Unaudited       change             Audited    
   Operating assets                                                                                                                      
   Bidvest South Africa                                           32 179 152              28 415 218         13,2          29 122 500    
   Automotive                                                      5 896 136               5 659 114          4,2           5 339 287    
   Commercial Products                                             3 665 770               3 636 021          0,8           3 551 648    
   Electrical                                                      2 460 571               2 187 495         12,5           2 667 671    
   Financial Services                                              6 385 319               4 948 254         29,0           5 563 759    
   Freight                                                         5 261 707               4 294 514         22,5           4 645 695    
   Office and Print                                                3 467 080               3 807 043         (8,9)          3 323 661    
   Services                                                        5 042 569               3 882 777         29,9           4 030 779    
   Bidvest Namibia                                                 2 058 503               2 248 775         (8,5)          2 015 270    
   Bidvest Corporate                                              10 010 546               9 428 496          6,2          10 125 882    
   Properties                                                      2 685 696               2 355 135         14,0           2 476 202    
   Corporate and Investments                                       7 324 850               7 073 361          3,6           7 649 680    
                                                                                                                                         
                                                                  44 248 201              40 092 489         10,4          41 263 652    
   Inter Group eliminations                                         (660 676)               (637 826)                        (752 360)   
                                                                  43 587 525              39 454 663         10,5          40 511 292    
   Operating liabilities                                                                                                                 
   Bidvest South Africa                                           17 294 441              14 126 261         22,4          16 308 453    
   Automotive                                                      2 105 392               2 148 734         (2,0)          2 022 061    
   Commercial Products                                             1 213 379               1 230 351         (1,4)          1 250 266    
   Electrical                                                        618 511                 551 585         12,1           1 026 649    
   Financial Services                                              6 974 156               4 978 718         40,1           5 798 434    
   Freight                                                         2 441 601               2 110 093         15,7           2 556 096    
   Office and Print                                                1 287 373               1 357 895         (5,2)          1 472 161    
   Services                                                        2 654 029               1 748 885         51,8           2 182 786    
   Bidvest Namibia                                                   556 407                 492 973         12,9             448 478    
   Bidvest Corporate                                                 306 406                 256 745         19,3             400 874    
   Properties                                                         16 765                  25 209        (33,5)              8 900    
   Corporate and Investments                                         289 641                 231 536         25,1             391 974    
                                                                                                                                         
                                                                  18 157 254              14 875 979         22,1          17 157 805    
   Inter Group eliminations                                         (660 676)               (637 826)                        (752 360)   
                                                                  17 496 578              14 238 153         22,9          16 405 445    


Message to shareholders
Introduction 
Bidvest is a leading business-to-business trading, distribution and services group, operating through seven divisions:
Services, Freight, Automotive, Office and Print, Commercial Products, Financial Services and Electrical. The Group owns
52% of Bidvest Namibia and a significant Bidvest-occupied property portfolio. Bidvest continues to hold investments in
Adcock Ingram (38,5%), Comair (27,2%) and Mumbai Airport (6,75%), as well as other listed and unlisted investments. 

Highlights 
Bidvest has produced a very commendable trading result despite a pedestrian economic backdrop, subdued consumer
spending and an evolving political environment. Trading profit rose 12,0% to R3,1 billion from R2,8 billion for the 
comparable period last year. This again demonstrates the benefits of Bidvest’s robust and diverse operating units, 
which collectively serve many key sectors of the South African economy. All the South African trading operations 
apart from Automotive grew profits, while Bidvest Namibia delivered a disappointing performance. Bidvest South 
Africa’s performance was augmented by our strategically important offshore acquisition, Noonan (effective 
1 September 2017) and an additional three-month contribution from Brandcorp (effective 1 October 2016). 

The Services, Freight and Office and Print divisions were the stand-out performers over the six-month period with
increases in trading profit of 24,3%, 18,0% and 12,7%, respectively. The Services division’s organic growth in 
trading profit of 10,4%, is considered good in the current economic circumstances. Freight recorded several record 
months as bulk commodities, agricultural and liquid volumes increased markedly. 

Bidvest’s share of profits from associated companies, before capital items, increased by 26,4%.

The net result of these positive trading performances was an increase in headline earnings to R1,9 billion 
(H1 2017: R1,7 billion). Headline earnings per share (HEPS) increased by 12,5% to 574,0 cents (H1 2017: 510,3 cents). 
Organic HEPS growth was 11,9%. Basic earnings per share decreased by 4,6% to 560,6 cents (H1 2017: 587,4 cents) mainly 
due to limited share price movements in our associates compared to material share price increases in the prior period. 

Cash generated by operations increased significantly from R1,8 billion to R3,3 billion. Non-financial services had
strong cash conversion and Bidvest Bank was successful in raising deposits. The Group absorbed R0,6 billion (H1 2017: 
R1,9 billion) of working capital. 


Financial overview
Group revenue increased by 10,7% to R39,9 billion (H1 2017: R36,0 billion). Organic revenue growth was 3,3%. 
Gross profit margin was stable at 28,1% (H1 2017: 28,0%), largely due to changes in the mix and acquisitions. Some
margin pressure was evident in certain industries, particularly in consumer and construction, which affected the 
Automotive and Electrical divisions. Delayed industrial project work also negatively impacted the Services and 
Commercial Products divisions.

Operating expenses increased by 13,2%. Like-for-like expense growth was 8,5%. This increase was exacerbated by the 
the variable costs increases in Freight associated with the higher activity levels. 

Income from investments improved to R24,9 million (H1 2017: R98,2 million loss), and is predominantly attributable to
the insurance portfolio. The latter performed exceptionally well in relation to the prior year but this was somewhat
negated by a negative mark-to-market on our Mumbai Airport’s investment due to the strengthening of the Rand.

Trading profit grew by 12,0% to R3,1 billion (H1 2017: R2,8 billion), with a trading margin of 7,9% (H1 2017: 7,8%). 
Net capital items resulted from a loss on disposal and closure of Botswana operations, a profit on sale of a shipping
vessel in the Bidvest Namibia operations and a net negative adjustment to the investments in Adcock Ingram and Comair. 
Flat net finance charges of R523,5 million (H1 2017: R521,3 million), was assisted by good cash generation despite
additional borrowing to fund acquisitions. In addition, the year-on-year increase was partially offset by a 25-basis 
points reduction in the South African prime lending rate to 10,25% on 21 July 2017. 

The balance sheet remains robust with net debt only R0,7 billion higher at R9,0 billion, despite a net R3,4 billion
spent on recent acquisitions. Net debt to rolling EBITDA of 1,1 times (H1 2017: 1,1 times) and rolling EBITDA interest 
cover of 7,6 times (H1 2017: 7,5 times) are both comfortably above the Group’s conservative self-imposed targets, 
providing ample capacity for further expansion. 

Return on funds employed improved from 21,4% to 22,8% on a 4,8% higher average asset base.
Management remains committed to the disposal of non-core assets, but only at fair value. 


Prospects
Bidvest’s prediction at year end of a slight economic recovery has materialised to a degree. While consumer spending
remains tight, there are some signs of confidence emerging, specifically driven by rising commodity prices and retail
statistics that are showing signs of potential growth. The local equity markets have continued to perform well, 
despite credit rating downgrades and accounting issues impacting certain stocks. 

The Bidvest Group remains committed to, and has advanced, its various infrastructural development projects,
specifically in multi-purpose and liquid gas storage. 

Bidvest is encouraged by recent political changes in South Africa and believes that the country is on the cusp of a
much-needed confidence boost. Most divisions within Bidvest are ideally positioned to take advantage of a revival in
economic growth and investment. 

Government overspending, substantially reduced infrastructural and other investments as well as corruption has led to
South Africa experiencing significant economic damage, which will take many years to remedy. It is expected that any
real benefits will take some time to fully flow through into the broader economy. 

The Group reaffirms its commitment to ethical business practices, job creation and economic growth through expansion
of its operations.

Rand strength will result in further pricing pressure in our trading businesses in the coming months, but ultimately 
a stronger currency will be beneficial to the South African economy as a whole. 

The Noonan acquisition is delivering as expected and it is already providing the anticipated platform for potential
acquisitions, specifically in Europe. Possibilities, mainly bolt-on acquisitions, are being assessed that could add 
value to the existing portfolio. Local acquisitions will always remain a feature for Bidvest and the Group continues to
actively explore selective opportunities within the existing divisions. 

Recent developments in the South African market have again raised the spotlight on corporate management practices. At
Bidvest, governance is in our DNA, it is the way we do business and our accounting and governance practices have been
developed with long-term sustainable value creation in mind. Our structures are well-established and effective. We are
acutely aware of our responsibilities toward all stakeholders. Each of our divisions have quarterly audit committee
meetings, chaired by an independent chairman, risk-, social & ethics meetings as well as an operational board meeting. 
Senior internal audit and external audit representatives attend these. Feedback from these meetings is tabled and 
discussed at the relevant Bidvest Group committee meetings. 

The Group’s financial position is strong and a robust balance sheet with adequate headroom is ideally positioned to
support our growth ambitions.


Divisional review
Services 
The Services division’s trading profit rose by 24,3% to R951,5 million. The South African businesses delivered an
increase of 10,4% in trading profit. Noonan performed in line with our expectations. Generally, all businesses within 
this division performed well except for TMS and the Travel cluster. The annuity-income businesses performed well, 
securing some volume growth. Contracts out to tender are very price sensitive. Margin pressure in guarding was more 
than offset by niche services. BidAir performed well. Remedial action is ongoing in TMS and Travel is revamping its 
systems. Cash generation was particularly pleasing in these six months. 

Keen contract pricing, margin management as well as the broadening of the services basket will remain focus areas for
the division. The contract pipeline in both South Africa and Noonan are actively managed. 

Freight
The Freight division’s trading profit of R641,6 million increased by 18,0% on the prior period. Higher bulk
commodities, agricultural and liquid volumes drove increased activity levels. Bulk Connections experienced capacity 
constraints caused by a storm and ship collision damage to the berth. The benefits of the division’s capital spend, 
specifically in Bidvest Tank Terminals, commenced. 

Global demand for commodities is expected to remain healthy, supporting export volumes. The maize market is globally
in over supply, keeping prices relatively low. The stronger Rand is also limiting export pricing for local farmers and
volatile weather patterns make forecasting of the crop challenging. With surplus product available, any export movement
will be opportunistically price-driven. The wheat crop has been poor in South Africa, resulting in an increased need to
import. Rice imports have been very healthy and should continue. R240 million was spent on multi-purpose tanks in 
Richards Bay. These are currently being commissioned.

Office and Print 
This division delivered an excellent result, the fruits of initiatives to simplify the business and improve
efficiencies. Stock management was excellent which assisted the improvement in returns. While overall revenue was 
slightly  down, this was mainly in the office products sector, due to the non-recurrence of project-based voter 
registration business, and lower print cartridge volumes. The division’s strategy of actively managing margin 
delivered a 1,9% gain in gross profit margin. Operating expenses were exceptionally well controlled. Trading profit 
was 12,7% higher at R402,7 million. The Technology division benefited from improved margins at Konica Minolta which 
was assisted by a significant contract with the eThekwini municipality. Furniture delivered an outstanding result and 
Cecil Nurse ended the period with a good order book. Lithotech increased profits in challenging trading conditions. 
Packaging felt the impact of pricing pressure in the fast food market. The national contract for the monitoring of 
limited pay-out machines, held by Zonke since 2003, was handed over to a new operator in December. This will have an 
impact on the second half results. Remedial work underway in certain businesses is showing benefits.

Commercial Products 
The Commercial Products division produced a good result with 11 out of the 17 companies reporting improved
profitability. The division’s trading profit increased by 6,5% to R353,8 million. The organic performance was 
negatively impacted by limited consumer spend and margin pressure. Berzacks, Bidvest Materials Handling, 
Plumblink and Academy Brushware all achieved double digit trading profit growth. Delayed industrial projects and 
margin pressure contributed to a disappointing Brandcorp performance in Q2. Structural changes to the business will 
be beneficial. 

Some signs pointing to higher activity and demand are evident. Product and margin management 
will remain key focus areas. The strengthening Rand is expected to result in pricing pressure in the near-term. 

Automotive 
This division experienced a disappointing first six-month period with a trading profit of R342,7 million, down 6,0%.
New vehicle sales increased by 7,7% compared to last year, increasing McCarthy’s share of the new vehicle market
slightly. Motor retail activities were a tale of two segments. The volume brand dealerships performed well while the 
luxury brand dealerships struggled with a further decline in volumes and significant margin pressure. Benefits from 
the rationalisation of our footprint are also taking a bit longer than expected to materialise. Used car sales 
continue to perform reasonably well in terms of contribution. Bidvest Car Rental results were disappointing. 

Expenses and the asset base across the division are receiving management attention. NAAMSA is expecting a modest
increase in new vehicle sales in 2018. Bidvest Automotive has good exposure to recently launched volume brand 
products. 

Electrical 
The Electrical division has delivered another year of increased trading profit, which is up 1,0% to R147,5 million.
Considering the challenging conditions in the building and construction industry and the severe challenges that the 
larger construction companies are experiencing, these results are admirable. The aforementioned industry remains in
particularly dire straits and Government and State Owned Enterprises’ infrastructure spending remains poor. The 
division’s focus on increasing value-added products and solutions in its business mix continues to yield benefits. 
Changed competitive dynamics in the cable industry and volatile product pricing were well managed. 
The industry outlook remains uncertain with financial strain evident at some customers. Price, working capital and
expense management will remain key focus areas. 

Financial Services
The Financial Services division delivered 5,6% trading profit growth. Revenue declined mainly due to the termination
of a major short-term rental contract. Despite some new contract wins, the expected big fleet contract tenders have 
been delayed. Leased assets and fleet finance advances grew off the prior year base. Net interest income and gross 
written premiums increased as the business base continues to widen. FMI grew strongly and the build-up of the embedded 
value caused a drag on profitability, as was expected. The insurance investment portfolio performed strongly, yielding 
R61,3 million more compared to the prior year. 

Management will focus on driving Business Banking and acquiring services while further niche insurance product
development will also be pursued. 

Other investments
Bidvest Namibia (52% share)
Bidvest Namibia’s trading profit of R7,5 million was 67,9% lower than the prior period. The Namibian economy, as well
as the fishing industry and operational challenges continued to weigh on results. The former is not expected to improve
in the immediate future. A capital profit of R48,6 million was made on the sale of a fishing vessel. Bidvest Namibia
continues to trade under a cautionary announcement relating to the sale of its fishing interests.

Bidvest Corporate 
Bidvest Properties performed well with a 12,4% increase in trading profit to R233,0 million. The stronger Rand
resulted in a negative mark-to-market adjustment on the Mumbai International Airport investment. The United Kingdom 
businesses of Mansfield and Ontime both showed improvements over the prior year.

Directorate
As announced in November 2017, Peter Meijer, CFO, will be retiring on 28 February 2018. The board has approved the
appointment of Mark Steyn to this position, effective 1 March 2018. Prior to this appointment Mark was the financial 
director of Bidvest Freight and has 20 years' service with the Group.

Bongi Masinga resigned as a member of the Group audit committee and was appointed as a member of the Group risk and
Group social and ethics committees.

Ilze Roux was appointed Company secretary following the resignation of Craig Brighten.

For and on behalf of the board

CWL Phalatse             LP Ralphs
Chairman                 Chief executive

Johannesburg


Dividend declaration
In line with the Group dividend policy, the directors have declared an interim gross cash dividend of 255 cents
(204,0000 cents net of dividend withholding tax, where applicable) per ordinary share for the six months ended 
31 December 2017 to those members registered on the record date, being Friday, 16 March 2018.

The dividend has been declared from income reserves. A dividend withholding tax of 20% 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      255 cents                    
 Net dividend amount per share             204,0000 cents              
 Issued shares at declaration date         336 605 775                   
 Declaration date                          Monday, 26 February 2018      
 Last day to trade cum dividend            Tuesday, 13 March 2018        
 First day to trade ex dividend            Wednesday, 14 March 2018      
 Record date                               Friday, 16 March 2018         
 Payment date                              Monday, 19 March 2018         


Share certificates may not be dematerialised or rematerialised between Wednesday, 14 March 2018 and Friday, 16 March
2018, both days inclusive.

For and on behalf of the board

Ilze Roux
Company Secretary


Basis of presentation of condensed consolidated financial statements
The interim condensed consolidated financial statements have been prepared in accordance with and containing
information required by IAS 34 Interim Financial Reporting as well as the SAICA Financial Reporting Guides as issued by 
the Accounting Practices Committee and Financial Reporting Pronouncements as issued by Financial Reporting Standards Council 
and the Companies Act of South Africa and the JSE Listings Requirements. 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 30 June 2017.

In preparing these interim condensed consolidated financial statements, management make 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 30 June 2017.


Significant accounting policies
The accounting policies applied in these interim condensed consolidated financial statements are the same as those
applied in the Group’s consolidated financial statements as at and for the year ended 30 June 2017.


Net acquisition of businesses, subsidiaries, associates and investments
During the period the Group acquired 100% of the share capital of the Noonan Services Group of companies (Noonan) with
effect from 1 September 2017. Noonan, which is based and operates throughout the Republic of Ireland and in the United
Kingdom, has a clear leadership position and a 40 year track record of delivering high-quality integrated facility
management services and solutions. Its services include soft, technical and ancillary services and range from cleaning 
and security to building services and facilities management. The board believes that Noonan’s business model and 
geographic presence will be complementary to Bidvest’s Service division. The purchase price was funded by way of a three 
year euro denominated offshore credit facility at an attractive variable interest rate.


Effective 1 October 2017 the Group acquired 100% of the share capital of Ultimate Security Services (USS). USS, a
building security company operating primarily in London (United Kingdom), provides building security risk management
solutions, “front of house” security management, reception services and mail-room handling services to more than 240 of
London’s most prestigious and iconic locations. USS was founded in 1999 and currently has a staff complement of 2 100
experienced security officers. The acquisition enhances the service offerings provided by Noonan. The purchase price was 
funded by way of the euro denominated offshore credit facility arranged to fund the acquisition of Noonan.

The Group also made a number of less significant acquisitions and disposals during the year. These acquisitions were
funded from existing cash resources.
The final accounting for all the acquisitions had not been completed at the time that these condensed consolidated
interim financial statements were issued, in each case the final accounting will be completed within 12 months of the
acquisition date, as allowed by the applicable accounting standard. The following table summarises the provisional amounts 
of assets acquired and liabilities assumed which have been included in these results from the respective dates.

                                                                                                   Ultimate                                    
                                                                                     Noonan        Security                                    
   R’000                                                                           Services        Services          Other            Total    
   Property, plant and equipment                                                    110 555           9 241       (11 435)          108 361    
   Deferred taxation                                                              (185 673)               -       (30 701)        (216 374)    
   Interest in associates                                                                 -               -         13 710           13 710    
   Investments and advances                                                               -               -        272 227          272 227    
   Inventories                                                                        2 134               -         39 395           41 529    
   Trade and other receivables                                                      846 484         250 308         75 689        1 172 481    
   Cash and cash equivalents                                                        103 151           4 489         35 518          143 158    
   Borrowings                                                                      (33 537)               -         16 228         (17 309)    
   Trade and other payables and provisions                                        (657 811)       (241 086)       (59 296)        (958 193)    
   Taxation                                                                           1 971               -          (967)            1 004    
   Intangible assets                                                              1 573 116               -          3 493        1 576 609    
                                                                                  1 760 390          22 952        353 861        2 137 203    
   Non-controlling interest                                                               -               -        (6 283)          (6 283)    
   Realisation of foreign currency translation reserve                                    -               -          (148)            (148)    
   Goodwill*                                                                        890 478         368 172        133 585        1 392 235    
   Net assets acquired                                                            2 650 868         391 124        481 015        3 523 007    
   Settled as follows:                                                                                                                         
   Cash and cash equivalents acquired                                                                                             (143 158)    
   Acquisition costs                                                                                                                 48 715    
   Net loss on disposal of operations                                                                                                14 043    
   Net change in vendors for acquisition                                                                                           (17 288)    
   Net acquisition of businesses, subsidiaries, associates and investments                                                        3 425 319    
    * The significant contributor to goodwill is the “in place” workforce.                                                                     


The acquisition of Noonan contributed R1 741 million to revenue and R97 million to operating profit. Had the Noonan
acquisition taken place 1 July 2017 the contribution to revenue would have been R2 610 million and R142 million to
operating profit. The acquisition of USS contributed R377 million to revenue and R12 million to operating profit. Had the USS
acquisition taken place 1 July 2017 the contribution to revenue would have been R741 million and R19 million to operating
profit.

Significant commitments
Bidvest Freight has commenced the development of an LPG tank farm in the port of Richards Bay, to date R64 million has
been spent with an additional R873 million committed to the project, the estimated completion date is July 2020.
Bidvest Properties and Bidvest Bank are parties to the development of a property in the Sandton CBD and have a combined
commitment of R250 million. Bidvest Properties has committed R138 million to build a fit-for-purpose warehouse for Bidvest
Panalpina Logistics in Mobeni, KwaZulu-Natal.


Fair value of financial instruments
The Group’s investments of R3 442 million (H1 2017: R2 828 million) include R34 million (H1 2017: R84 million)
recorded at cost, R2 455 million (H1 2017: R1 908 million) recorded and measured at fair values using quoted prices (level 1)
and R953 million (H1 2017: R835 million) recorded and measured at fair value using factors not based on observable data
(level 3). Fair value losses on level 3 investments recognised in the income statement total R43 million (H1 2017: R26
million).

Analysis of investments at a fair value not determined by observable market data

                                                                Half-year ended      Half-year ended      Year ended    
                                                                    31 December          31 December         30 June    
                                                                           2017                 2016            2017    
   R’000                                                              Unaudited            Unaudited         Audited    
 Balance at the beginning of period                                     995 961              935 017         935 017    
 On acquisition of business                                                   -                    -          39 087    
 On disposal of business                                                      -                    -          (6 087)    
 Purchases, loan advances or transfers 
 from other categories                                                        -                    -           5 700    
 Fair value adjustment arising during 
 the year recognised in the income statement                            (43 151)             (26 011)         95 326    
 Proceeds on disposal, repayment of loans or 
 transfers to other categories                                                -              (72 679)        (72 679)    
 Exchange rate adjustments                                                   14                 (987)           (403)    
                                                                        952 824              835 340         995 961    

The Group’s effective beneficial interest in the Indian based Mumbai International Airport Private Limited (MIAL) is
included in unlisted investments held-for-trade, where the fair value is not based on observable market data (level 3).
The carrying value of this investment at 31 December 2017, based on the directors’ valuation of 30 June 2017, is R892
million (US$72 million) (H1 2017: R827 million (US$60 million). The valuation used the actual operating results for MIAL
based on the most recent financial statements and a median multiple for its peer group which is in a range of 11,6 to 
12,5 times EBITDA. A 1% change in the multiple or EBITDA used results in US$1,6 million change in the value. 
Consideration was also given to an independent expert valuation as well as the Group’s prior disposal of the identical 
sized interest in the 2012 financial year after adjusting for a control premium achieved in that transaction. 
MIAL is a foreign-based asset and the ruling year end exchange rate, US$1 = R12,38 (H1 2017: US$1 = R13,78), is a
further factor that affects the carrying value. The valuation is considered a level 3 type valuation in accordance with 
IFRS 13 Fair Value Measurement.

The carrying values of all financial assets and liabilities approximate their fair values, with the exception of
borrowings of R13 767 million whose carrying value is R13 760 million.


Subsequent event
The directors are not aware of any other matters or circumstances arising after the reporting period up to the date of
this report not otherwise dealt with in this report that requires an adjustment to the financial results at reporting
date.


Unaudited results
These results have not been audited or reviewed by the Group’s auditors. The interim condensed consolidated financial
statements have been prepared under the supervision of the Group financial director, HP Meijer (BCompt, MBL), and were
approved by the board of directors on 26 February 2018.


Administration
The Bidvest Group Limited
(“Bidvest” or “the Company” or “the Group”) 
Incorporated in the Republic of South Africa

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

Company secretary
Ilze Roux 

Transfer secretaries
Computershare Investor Services Proprietary Limited 

Registration number 2004/003647/07 
Rosebank Towers, 15 Biermann Ave, Rosebank, Johannesburg, 2196, South Africa
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

Registration number: 1946/021180/06 
Share code: BVT
ISIN: ZAE000117321

Further information regarding our Group can be found on the Bidvest website: 

www.bidvest.com

26 February 2018
Date: 26/02/2018 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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