| Tue 14 Aug 2001, 0:00 | | Bidvest Plc - Press Release |
|
Results for the Year ended June 30 2001
Bidvest plc is a 78,4% held subsidiary of The Bidvest Group Limited. Bidvest
plc is listed on the Luxembourg and Australian Stock Exchanges with a market
capitalisation of approximately GBP213 million. Bidvest plc currently
comprises 3663 First for Foodservice (United Kingdom), Bidvest Australia and
Crean Foodservice (New Zealand). Bidvest plc's strategy to create
shareholder value is to become an integrated, international foodservice
distributor, supplying value added products and services to the foodservice,
hospitality and leisure markets worldwide.
* Attributable income GBP18.1m +37%
* Operating income GBP24.5m +29%
* Headline earnings per share 9.36p +17%
* Dividend 3.24p +17%
* Improved returns in all operations despite testing trading conditions
* Strong performance from 3663 with improved margins across all divisions
* Benefits of repositioning 3663 have already been felt, and are expected to
continue.
* Australian acquisitions strengthen position as leading national
foodservice distributor and positioned Bidvest Australia as the Australian
foodservice market's supplier of choice
* Bidvest Australia's organic growth 10% in a market that grew 3-4%
* Increased market share by Crean Foodservice, as a result of strong organic
and acquisitive growth providing national coverage and a broadline product
range
Brian Joffe, Chairman, commented:
"Bidvest plc has reached the level required to enter the next acquisitive
phase that will position the Group as a truly international foodservice
distributor and is actively pursuing an exciting acquisition strategy.
Bidvest plc's operations delivered improved returns, despite stagnant market
growth and the results are a credit to our talented management and staff."
August 14 2001
Enquiries:
Bidvest plc
Brian Joffe, Chairman Tel: + 27 (0) 11 481 4129
Jack Hochfeld, Group Corporate Finance Tel: + 27 (0) 11 481 4103
College Hill Johannesburg Tel: + 27 (0) 11 447 3030
Nick Elwes
Linda Baker
Bidvest plc
("the Group")
Results for year ended
June 30 2001
Bidvest plc reported strong results for the twelve months ended 30 June
2001. Bidvest Chairman Brian Joffe commented: "This has been a good period
for Bidvest plc with solid results in a tough environment. Earnings growth
was further enriched by a strong operational performance including the
acquisition of several companies in the period, all of which will positively
impact on the Group."
Operating income increased by 29% to GBP24.5m and attributable income to
shareholders increased by 37% to GBP18.1m. The operating performance would
have been stronger than the 17% increase in headline earnings per share, had
it not been for the distortion on share weighting arising out of the large
issue of shares following the September 1999 rights issue.
Bidvest plc's management focused on operational improvements resulting in
improved margins, and the bedding down of new acquisitions. A dividend of
1.80 pence per share (1.44p per share - 2000), equating to US2.57 cents and
AU 5.00 cents has been declared.
Bidvest plc's acquisitive growth provides better economies of scale, access
to international skills and expertise and improved buying power. The Group
remains ready to seize synergistic acquisition opportunities as they present
themselves. Accordingly, expansion into Europe and the USA are now seen as
desirable strategies for Bidvest plc.
Bidvest plc developed its key value drivers of service, product diversity,
distribution, technology and intellectual capital. The advantages of being
an international company are now positively impacting the business. Brian
Joffe said, "the free flow of ideas and expertise across geographic
boundaries ensures the application of best international practices
throughout the Group."
3663 First for Foodservice ("3663") improved margins across all its
divisions in the period under review. By divisionalising the business in the
prior reporting period, problems in the Frozen division were identified and
are being rectified.
The much-publicised foot and mouth disease had little effect on the overall
trading result. As a true national distributor the business experienced
significant trading downturn in some badly affected areas, but this was
adequately compensated by additional sales in holiday resorts and theme
parks.
Brian Joffe commenting on 3663 said, " the benefits derived out of
repositioning 3663 will continue and the results for the forthcoming year
should reflect further improvement."
The results of Bidvest plc Australasia must be analysed against an
approximate 6% devaluation in the annualised average exchange rate of the
Australian dollar against sterling.
Bidvest Australia performed well growing organically by 10%, in a market
that only grew by 3-4%. In June of this year the Australian business
acquired, John Lewis Foodservice, with its twelve branches throughout
Australia for GBP11.2 million (A$ 31 million) excluding receivables. Brian
Joffe commented that: "the acquisition greatly enhances Bidvest Australia's
position as the leading national foodservice distributor and will lead to
substantial overhead savings, enhanced buying power and deeper market
penetration. There is no doubt that this has positioned Bidvest Australia
as the Australian foodservice market's supplier of choice."
Bidvest Australia acquired Citifoods in Melbourne and Garozzo Agencies in
Cairns and disposed of its non-core business, Peter's Fish Market, at Sydney
Fish Market. None of these transactions have had any material effect on the
results.
The bulk of the national distribution structure is now in place and Bidvest
Australia, which is well positioned to benefit from the predicted upswing in
the Australian economy, offers one of the most comprehensive ranges of
products and services in the Australian foodservice industry.
Bidvest New Zealand gained national coverage through the acquisitions of
Rotorua Juice in Rotorua, Speciality Seafoods and Cool Foods in Wellington
and Mainstream Foods on the South Island.
Joffe said, "Crean Foodservice substantially increased its market share in
the review period as a result of both strong organic and acquisitive growth.
As a management team we are anticipating that the upcoming financial year
will improve on the results of the current year as the full effect of the
acquisitions filter through."
The acquisitions during the review period have positioned the Australian and
New Zealand operations as market leaders and 3663 has consolidated its
position as one of the top two players in the United Kingdom. Bidvest plc is
ready for further geographic expansion and the European and US market will
be the focus of the acquisition strategy in the next financial year, whilst
maintaining concentration on our existing markets.
In time it is envisaged that Bidvest Group Limited's South African
foodservice operations will, subject to South African Exchange Control
approval, be included in the Bidvest plc structure and the enlarged plc
Group will seek a listing on a major international stock exchange.
Said Brian Joffe, "I am pleased with progress made in the year under review,
but perhaps more importantly, I am confident that further operational
benefits will be realised in the medium term."
