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Release Date: 20/02/2020 15:10
Code(s): BVT     PDF:  
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Trading Statement

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


In accordance with Section 3.4(b) (i) of the JSE Listings Requirements, listed companies are required to publish
a trading statement as soon as they become reasonably certain that the financial results for the period to be
reported will differ by at least 20% from those of the previous corresponding period.
The remeasurement of associates’ fair value based on Adcock Ingram and Comair share prices, which is of a
capital nature, contracted since 30 June 2019 compared to material increases in the prior period. This
negatively impacted attributable income. Adcock Ingram was revalued as at 31 July 2019, subsequent to which
it became a subsidiary. Comair was marked-to-market as at 31 December 2019.
As a result, basic earnings per share (EPS) for the six months to 31 December 2019 is expected to be between
23% and 28% lower, translating into EPS of between 475 cents and 502 cents, when compared to the previous
interim period (1HFY19: 660.0 cents).
During the six months to December 2019, Bidvest’s domestic operations held their own in a tough trading
environment characterised by low business confidence and constrained consumer demand culminating in
lower volumes. Offshore service businesses performed well. Operational cash generation has been good and
the balance sheet remains strong. The impact of accounting for Adcock Ingram as an associate for one month
and consolidating it from 1 August 2019, was neutral on headline earnings.
The adoption of IFRS16 had a modest positive impact on the trading profit, however, the resulting higher
interest charge had a net adverse impact of 4% on attributable income and headline earnings, in line with our
expectations and guidance in the 30 June 2019 Annual Financial Statements.
As per the trading statement issued on 19 February 2020, Comair expects to report a loss for the six months to
December 2019, the result of increased operational costs and the impairment of the full outstanding SAA
settlement. This once-off impairment negatively impacted Bidvest’s headline earnings by 6%. As Bidvest
excluded its share of the unpaid portion of Comair’s SAA claim in normalised headline earnings as at 30 June
2019, this does not impact Bidvest’s normalised headline earnings during the current reporting period.

Shareholders are advised that:
•     Excluding the impact of IFRS16, normalised headline earnings per share(1) (HEPS) is expected to be 1% higher
      to 1% lower compared to the prior period (1HFY19: 635.7 cents).
•     The normalised HEPS for the six months to 31 December 2019 is expected to be 2% to 5% lower than the
      prior interim period, translating into normalised HEPS of between 604 cents and 636 cents.
•     The HEPS for the six months to 31 December 2019, which includes the SAA impairment, is expected to be
      between 6% and 11% lower than the prior interim period (1HFY19: 629.1 cents), translating into HEPS of
      between 560 cents and 591 cents.

The financial information on which this trading statement is based has not been reviewed and reported on by
the Group’s auditors. The Group expects its interim results to 31 December 2019 to be released on SENS on or
about the 2nd of March 2020.

(1)  Normalised HEPS, which excludes acquisition costs, amortisation of acquired customer contracts and includes
     an adjustment for Bidvest’s share of Comair’s SAA impairment, is a measurement management uses to assess
     the underlying business performance

Date: 20 February 2020

Sponsor: Investec Bank Limited

Date: 20-02-2020 03:10:00
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