| Fri 9 Nov 2001, 0:00 | | Bidvest Plc |
|
First Quarter Result for the quarter ended 30 September 2001
Bidvest plc is a 80.8% held subsidiary of The Bidvest Group Limited. Bidvest
plc is listed on the Luxembourg and Australian Stock Exchanges with a market
capitalisation of approximately GBP231 million. Bidvest plc 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.
* Turnover GBP322 million +28%
* Operating income GBP7.5 million +23%
* Headline Earnings GBP5.3 million +18%
* Headline earnings per share 2.71p +18%
Brian Joffe, Chairman of Bidvest plc, commented:
"The Bidvest plc management team continues to impress and has delivered a
very good performance despite the current difficult trading environment. In
the light of world events forecasting has become more unpredictable. Bidvest
plc remains optimistic that it should be able to deliver above average
returns."
8 November 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
Robyn Hunt
Bidvest plc
First Quarter Result for the quarter ended 30 September 2001
Financial Review
Bidvest plc is pleased to announce satisfactory results for the quarter
under review, which has been achieved against a background of subdued global
trading conditions. Turnover increased by 28% to GBP322 million, with
operating income improving by 23% to GBP7.5 million. Headline earnings were
up 18% to GBP5.3 million with earnings per share also increasing by 18% to
2.71p.
Operational Review
In the United Kingdom 3663 First for Foodservice has made a very encouraging
start to the year in challenging market conditions. All divisions have
traded in line with budget expectations, achieving improvements over the
prior year. The growth in wholesale sales reflects the impact of new
national accounts business, and excellent independent sales growth in both
Multitemp and Frozen. There has been a balanced impact on operating margins.
All growth recorded was organic.
The quarter in Australia was marked by the acquisition of John Lewis, and
the rationalisation and integration of this business into Bidvest Australia.
Substantial progress has been made, but the full benefits of the integration
will only be realised over a period of time. Bidvest Australia expects to
continue improving profitability, through organic growth, the successful
integration of John Lewis and a focus on expenditure control.
Crean Foodservice has performed well enjoying strong organic growth.
Prospects
In the light of world events forecasting has become more unpredictable.
Bidvest plc remains optimistic that it should be able to deliver above
average returns. Bidvest plc is well positioned to take advantage of
suitable international foodservice acquisition opportunities.
BIDVest plc
RESULTS FOR THE QUARTER ENDED SEPTEMBER 30 2001
Operating income +23%
Headline earnings +18%
Headline earnings per share +18%
Dividend per share +237%
CONSOLIDATED INCOME STATEMENT
GBP000's Quarter ended Quarter Year ended Change on
ended last year
30/09/2001 30/09/2001 30/06/2001
Unaudited Unaudited Audited
Turnover 321,611 251,288 1,018,405 +28%
United Kingdom 144,908 121,494 503,224 19%
- trading
- logistics 104,105 92,253 352,565 13%
Australasia 72,598 37,541 162,616 93%
Operating income 7,468 6,086 24,186 +23%
United Kingdom 5,894 5,178 19,926 14%
Australasia 1,574 908 4,260 73%
Net finance income (125) (50) 345
(expense)
Income before 7,343 6,036 24,531 +
taxation 22%
Taxation (2,029) (1,548) (6,460)
Headline earnings 5,314 4,488 18,071 +
18%
Goodwill (311) - (282)
amortisation
Income 5,003 4,488 17,789 +
attributable to 11%
shareholders
Number of shares 196,415 196,097 196,282
in issue (weighted
000)
Headline earnings
per share
British pence 2.71 2.29 9.06 18%
Australian 7.71 5.98 24.69 29%
cents
+ Translated at the rate at the end of the year
CONSOLIDATED CASH FLOW
STATEMENT
GBP000's Quarter Quarter Year ended
ended ended
September 30 September 30 June 30 2001
2001 2000
Unaudited Unaudited Audited
Cash flow from (9,099) 2,554 41,461
operating activities
Cash generated by (4,838) 6,491 49,424
operations
Net finance income (125) (50) 345
(expense)
Taxation paid (761) (1,224) (2,655)
Dividends paid (3,375) (2,663) (5,653)
Cash effects of (27,975) (7,226) (27,021)
investment activities
Fixed asset additions (3,098) (7,187) (15,971)
Proceeds on disposal of 52 56 212
fixed assets
Acquisition of (24,929) (95) (11,262)
businesses
Cash effects of 527 (926) 5,510
financing activities
Proceeds from share - 2 224
issues
Interest bearing debt 527 (928) 5,286
raised (repaid)
Cash (outflow) (36,547) (5,598) 19,950
CHANGE IN REPORTING CURRENCY
The figures presented in this report have been stated in pounds sterling.
Prior to March 31 2000 results have been presented in US dollars. The
Company considers that pounds sterling better reflect the economic results
of the Group as this is the main functional currency.
+ ADJUSTMENT TO BASIS OF ACCOUNTING
In accordance with recently amended South African Generally Accepted
Accounting Practice, the Group has now changed its accounting policy with
regard to depreciation of freehold land and buildings. The Group now
depreciates freehold land and buildings over the useful life of the
properties. Previously the properties were carried at revalued cost. The
change of accounting policy has been reflected by a prior period adjustment.
The impact on the period has been a depreciation expense of GBP80,000 (2000:
GBP78,000). The adjustment made to the balance sheet previously reported as
at June 30 2001, is to decrease fixed assets by GBP421,000, increase
goodwill written off to reserves by GBP28,000, increase the revaluation
reserve by GBP211,000, increase exchange reserves by GBP24,000 and decrease
retained profits by GBP628,000
BIDVest plc
CONSOLIDATED
BALANCE SHEET
GBP000's September 30 September June 30
2001 30 2000 2001
Unaudited Unaudited Audited
ASSETS
Non current 92,648 67,501 94,630
assets
Fixed assets 71,725 67,064 73,285
Intangible assets 20,366 114 20,676
Investments and 557 323 669
net deferred tax
CURRENT ASSETS
Current assets 216,882 181,634 226,040
Current 194,390 147,668 167,758
assets
Liquid 22,492 33,966 58,282
funds
Total assets 309,530 249,135 320,670
EQUITY AND
LIABILITIES
Capital and
reserves
Equity 92,124 79,958 91,086
Current 217,406 169,177 229,584
liabilities
Liabilities 189,071 147,584 201,777
Interest 28,335 21,593 27,807
bearing debt
Total equity and 309,530 249,135 320,670
liabilities
Number of shares 196,415 196,099 196,415
in issue (000)
Net asset value
per share
British pence 46.90 40.77 46.37
Australian 139.68 111.32 128.35
cents
STATEMENT OF CHANGES IN SHAREHOLDERS' INTEREST
GBP000's
Quarter Quarter Year ended
ended ended
September 30 September June 30
2001 30 2000 2001
Unaudited Unaudited Audited
Shareholders' 91,086 80,477 80,477
interest at the
beginning of the
period
Share capital - - 9
issued for cash
- share option - - 9
plan
Share premium - 2 215
- share option - 2 215
plan
Non-distributable (468) (1,630) (1,036)
reserves
Distributable 1,506 1,109 11,421
reserve
- income for 5,003 4,488 17,789
period
- prior year - (326) (326)
adjustment -
depreciation of
buildings
- dividend (3,497) (2,824) (5,652)
- goodwill - (229) (390)
written off
Shareholders' 92,124 79,958 91,086
interest at the
end of the period
BIDVest plc
COMMENT
Bidvest plc is pleased to announce satisfactory results for the first
quarter. Operating profit increased by 23% to GBP 7.5 million and headline
eanrnings increased by 18% to GBP 5.3 million. This result has been
achieved despite the background of subdued global trading conditions.
Earnings per share have increased by 18% over last year
United Kingdom
3663 First For Foodservice has had an encouraging quarter against the
backdrop of challenging market conditions. Turnover growth largely reflects
the new national business won, but there have been strong independent sales
gains too, leading to a balanced impact on operating margins.
OPERATIONS
Bidvest plc is an investment holding company listed on the Luxembourg and
Australian stock exchanges. The strategy of the Group is to be invested in
distribution, trading and service businesses supplying the foodservice,
hospitality and leisure markets. Bidvest plc comprises 3663 First for
Foodservice (United Kingdom), Bidvest Australia (Australia) and Crean
Foodservice (New Zealand).
United Kingdom
The result for the first quarter of the year represents a creditable
achievement given the slightly weakened market conditions experienced in the
period. Last year's results also included an additional week's trading, due
to the way the June 30 1999 year end fell. The trading division continued
to focus on cost control in order to further increase operating margins.
The investment in the new dedicated frozen products' sales force is
beginning to produce some encouraging results in the independent customer
sector, whilst the impact on national accounts sales will take a little
longer. Turnover in the logistics division shows a substantial fall in the
current quarter due to the move to contracts based on dedicated resource
allocation in the third quarter of the last financial year. Although this
change had an adverse effect on this quarter's results compared to last
year, management are confident that it will have a positive impact on
profits.
Australasia
Bidvest Australia enjoyed good organic growth in the period. Substantial
progress was made integrating and amalgamating the John Lewis Foodservice
business, acquired in June 2001. However, the full benefits of the
acquisition still have to be realised. Our New Zealand business has enjoyed
strong organic growth as we obtain the benefits of our national expansion in
the prior year. In appreciating the results of Bidvest Australasia,
cognisance should be taken of the approximate 9% devaluation of the
Australian dollar average exchange rate against sterling.
Depreciation
South African Generally Accepted Accounting Practice has now changed to
accord with International Accounting Standards with regard to depreciation
of freehold land and buildings. Consequently the Group now depreciates
freehold buildings over the useful life of the properties. The prior year
figures have been restated to reflect this change.
PROSPECTS
In light of world events, forecasting has become more unpredictable. The
Group remains optimistic that it should be able to continue to deliver above
average returns.
DIVIDENDS
A dividend of 2.16 US cents which, for shareholders on the Australian
register will be 3.69 AU cents per share, has been declared to shareholders
registered in the books of the Company at the close of business on September
8 2000. Dividend cheques will be posted on or about September 15 2000.
For and on behalf of the board
B.Joffe P.J.Wentzel
Chairman Director
November 8 2001
DIRECTORS: B Joffe (Chairman) F J Barnes B L Berson K H Bielby
M Chipkin E M Cowley* A Fisher C H Kretzmann P Nyman* J L
Pamensky* T H Reitman* D K Rosevear* A Selley P J Wentzel*
*Non-executive
TRANSFER SECRETARIES:
Bid Corporate Services (IOM) Limited, Murdoch Chambers, Douglas Head Road
Douglas, Isle of Man, IM1 5AS Computershare Limited, Level 3, 60 Carrington
Street, Sydney, NSW 1115 Australia
ADMINISTRATION AND REGISTERED OFFICE:
Murdoch Chambers, Douglas Head Road, South Quay Douglas, Isle of Man, IM1
5AS
REGISTRATION NUMBER: 92157C
URL: www.bidvest.com / homeplc.htm
