| Mon 18 Feb 2002, 0:00 | | Bidvest - Results For The Half Year Ended 31 Decem |
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The Bidvest Group Limited
The Bidvest Group Limited
ISIN NUMBER: ZAE000008132
share code: BVT
financial highlights
- Revenue 37%
- Operating income 31%
- Headline earnings 21%
- Headline earnings per share 19%
Results for the half year ended 31 December 2001
Income statement
Half year ended Year ended
December 31 June 30
2001 2000 Percentage 2001
R'000 Unaudited Unaudited change Audited
Revenue 19 790 404 14 486 254 36,6 29 415 011
Operating income 929 805 710 109 30,9 1 433 035
Net finance
income (expense) (8 521) 3 850 (391)
Income before
taxation 921 284 713 959 29,0 1 432 644
Taxation (235 214) (162 274) (328 084)
Income after
taxation 686 070 551 685 24,4 1 104 560
Income from
associates 13 624 11 511 33 384
Outside shareholders'
interest (60 231) (35 420) (72 587)
Headline earnings 639 463 527 776 21,2 1 065 357
Goodwill amortised (13 992) (1 744) (16 463)
Other capital items 26 - (3 015)
Income attributable
to shareholders 625 497 526 032 18,9 1 045 879
Number of shares
in issue
(weighted 000) 296 251 290 674 291 599
Headline earnings
per share (cents) 215,9 181,6 18,9 365,4
Earnings per
share (cents) 211,1 181,0 16,6 358,7
Distribution per
share* (cents) 90,0 81,0 11,1 169,2
*Includes distribution from share premium and capitalisation issues at
market value at date of the award.
Cash flow statement
Half year ended Year ended
December 31 June 30
2001 2000 2001
R'000 Unaudited Unaudited Audited
Cash flow from
operating activities 157 745 (9 687) 1 127 289
Operating income 929 805 710 109 1 433 035
Depreciation and
other non-cash items 241 726 190 283 389 707
Changes in working capital (846 198) (630 092) (264 103)
Cash generated by operations 325 333 270 300 1 558 639
Net finance income (expense) (8 521) 3 850 (391)
Taxation paid (137 613) (127 739) (269 007)
Dividends paid
- Company - (145 977) (145 977)
- subsidiaries (21 454) (10 121) (15 975)
Cash effects of
investment activities (718 340) (298 557) (493 365)
Net additions to
fixed assets (285 215) (259 606) (495 955)
Net additions to
intangible assets (10 459) - (8 509)
Net acquisition of
subsidiaries, trading
operations, associates
and investments (422 666) (38 951) 11 099
Cash effects of financing
activities 314 608 (89 256) (127 000)
Proceeds from shares issued
- Company 23 189 29 113 48 609
- subsidiaries 465 2 273 2 478
Distribution of share
premium to shareholders (159 743) - (116 981)
Net borrowings
raised (repaid) 450 697 (120 642) (61 106)
Net increase (decrease)
in cash and cash
equivalents (245 987) (397 500) 506 924
Net cash and cash
equivalents at the
beginning of the period 1 058 213 536 263 536 263
Translation adjustments on
cash and cash
equivalents included
in the movement of
non-distributable reserves 367 937 57 746 15 026
Net cash and cash
equivalents at the
end of the period 1 180 163 196 509 1 058 213
Statement of changes in shareholders' interest
Half year ended Year ended
December 31 June 30
2001 2000 2001
R'000 Unaudited Unaudited Audited
Shareholders' interest at
the beginning of the period 4 041 911 3 199 823 3 199 823
Share capital issued 148 141 309
- in terms of the share
incentive scheme 41 61 103
- capitalisation issue 107 80 206
Share premium arising on
shares issued (136 595) 29 052 (68 475)
- in terms of the share
incentive scheme 23 237 29 120 48 730
- refund of share
premium to shareholders (159 743) - (116 981)
- costs (89) (68) (224)
Movement in non-distributable
reserves 505 689 7 239 10 222
- foreign currency
translation reserve 505 689 27 239 8 723
- revaluation of
fixed assets - - 2 186
- transferred to
distributable reserves - - (687)
Movement in retained
income 625 245 379 975 900 032
- income attributable
to shareholders 625 497 526 032 1 045 879
- dividends and
capitalisation issues (107) (146 057) (146 183)
- secondary tax on companies (145) - (351)
- transfers from
non-distributable reserve - - 687
Shareholders' interest at
the end of the period 5 036 398 3 636 230 4 041 911
Balance sheet
December 31 June 30
2001 2000 2001
R'000 Unaudited Unaudited Audited
Assets
Non-current assets 4 176 020 3 196 207 3 567 661
Fixed assets 2 734 474 2 147 088 2 231 482
Intangible assets 525 236 58 958 353 164
Deferred taxation 195 071 147 514 178 807
Investments and advances 469 525 540 069 495 278
Banking advances 251 714 302 578 308 930
Current assets 8 279 367 5 527 760 6 230 777
Other current assets 6 285 749 4 847 264 4 916 714
Liquid funds 1 993 618 680 496 1 314 063
Total assets 12 455 387 8 723 967 9 798 438
Equity and liabilities
Capital and reserves 5 447 359 3 952 802 4 348 958
Shareholders' interest 5 036 398 3 636 230 4 041 911
Outside shareholders'
interest 410 961 316 572 307 047
Non-current liabilities 186 792 75 850 158 575
Deferred taxation 117 864 32 737 87 385
Long-term portion of
interest-bearing borrowings 36 039 22 179 29 105
Banking liabilities 32 889 20 934 42 085
Current liabilities 6 821 236 4 695 315 5 290 905
Other current
liabilities 5 426 440 4 145 904 4 965 318
Current portion of
interest-bearing
borrowings 1 394 796 549 411 325 587
Total equity and
liabilities 12 455 387 8 723 967 9 798 438
Number of shares
in issue (000) 298 778 292 442 295 821
Net tangible asset
value per share (cents) 1 510 1 223 1 247
Segmental analysis
Half year ended Year ended
December 31 June 30
2001 2000 Percentage 2001
R'000 Unaudited Unaudited change Audited
Revenue
The Services
Division 7 179 587 6 711 794 7,0 13 759 072
Bidfreight 6 231 818 5 921 626 5,2 12 131 648
Bidserv 698 736 572 716 22,0 1 162 818
Rennies Financial
Services 249 033 217 452 14,5 464 606
The Foodservice
Products Division 11 246 386 6 413 268 75,4 13 226 694
Caterplus
- local 786 025 689 346 14,0 1 360 908
- foreign 10 092 618 5 389 217 87,3 11 213 360
Combined Foods 367 743 334 705 9,9 652 426
The Commercial
Products Division 1 886 772 1 653 629 14,1 3 372 066
Bidoffice 1 569 042 1 354 301 15,9 2 798 707
Bidpac 317 730 299 328 6,1 573 359
Corporate Services
I-Fusion 74 627 91 689 (18,6) 168 244
20 387 372 14 870 380 30 526 076
Inter Group
eliminations (596 968) (384 126) 55,4 (1 111 065)
19 790 404 14 486 254 36,6 29 415 011
Operating income
The Services
Division 301 846 255 806 18,0 576 013
Bidfreight 204 108 164 932 23,8 379 712
Bidserv 57 499 49 708 15,7 107 030
Rennies Financial
Services 40,239 41 166 (2,3) 89 271
The Foodservice
Products Division 353 720 235 220 50,4 444 791
Caterplus
- local 62 105 55 014 12,9 106 446
- foreign 252 239 143 882 75,3 269 629
Combined Foods 39 376 36 324 8,4 68 716
The Commercial
Products Division 170 451 138 463 23,1 290 216
Bidoffice 128 287 98 339 30,5 217 506
Bidpac 42 164 40 124 5,1 72 710
Corporate Services 103 788 80 620 28,7 122 015
I-Fusion (5 668) (982) (477,2) (5 965)
Investment and
other income 89 434 62 949 42,1 90 303
Group properties 20 022 18 653 7,3 37 677
929 805 710 109 30,9 1 433 035
Overview
Bidvest reported strong results for the period under review, with an
increase in revenue of 37% to R20 billion (2000: R14 billion) and growth in
operating income of 31% to R930 million (2000: R710 million),and the
operating margin of 4,7% similar to that of the comparative period. Headline
earnings increased 21% to R639 million (2000: R528 million) and headline
earnings per share grew 19% to 215,9 cents (2000: 181,6 cents), despite a
higher tax rate and an increased weighted average number of shares in issue.
Bidvest plc reported good results, in hard currency, with growth in Rand
terms of 75%, contributing 27% to Group operating income.
The Group's other operations achieved organic growth of approximately 20%.
Prospects
The primary objective of Bidvest's management team is to maximise margins
and the return on funds employed. Management believe that the reported
returns can be further enhanced.
The devaluation of the Rand has created significant export opportunities,
which management are fully committed to exploit.
The Group has a strong balance sheet both locally and abroad, and is well
placed to take advantage of acquisition opportunities that may arise in
South Africa, the United Kingdom, Europe, Australasia and the United States
of America.
In the period ahead, the acquisitions of a London-listed freight company,
Bidcorp plc (formerly Jacobs Holdings plc), Voltex Holdings Limited and
Paragon Business Communications Limited should further enhance the Group's
earnings.
Bidvest remains committed to its strategic focus as an acquisitive growth
company. This can only be achieved through a combination of good management,
critical mass and cash generative businesses.
The Group is confident that the results for the year will reflect an above
average earnings growth.
Accounting policies
The results for the half year have been prepared in accordance with South
African statements of Generally Accepted Accounting Practice. The accounting
policies used are consistent with those used in the comparable period and
the financial statements for the year ended June 30 2001.
Dividend declaration and distribution out of share premium
Notice is hereby given that an interim cash dividend of 63,0 cents per share
and a distribution out of share premium of 27,0 cents, in lieu of a
dividend, (collectively the "distribution"), has been awarded to members
registered in the books of the Company at the close of business on Friday,
March 8 2002. The total value awarded to shareholders amounts to 90,0 (2000
- 81,0) cents per share.
Shareholders are advised that the last day to trade "CUM" the distribution
will be Friday, March 1 2002. The shares will trade "EX" distibution as
from Monday, March 4 2002 and the record date will be Friday, March 8 2002.
No rematerialisation or dematerialisation orders of the Company will be
processed during the period Monday, February 25 2002 and Friday, March 8
2002, both days inclusive. Cheques will be posted or funds electronically
transferred on or about Monday, March 11 2002.
After the distribution, the Company will be able to pay its debts as they
become due in the ordinary course of business, and its consolidated assets,
fairly valued, will exceed its consolidated liabilities.
In terms of article 56A of the Company's articles of association, dividends
amounting to R10 or less will be aggregated and donated to the Bidvest
Chairman's Fund Trust, for distribution to charitable institutions.
For and on behalf of the board
B Joffe M Chipkin
Executive Chairman Deputy Chairman
Johannesburg
February 18 2002
Directors: B Joffe (Executive Chairman), M Chipkin (Deputy Chairman), AJ
Behrmann
IA Berman*, LG Boyle, LI Chimes, BR Chipkin*, E Ellerine*, RW Graham, AM
Griffith, CH Kretzmann, S Koseff*, D Masson*, LK Matisonn*, SP Ngwenya*, P
Nyman, JL Pamensky*, LP Ralphs, TH Reitman* (British), FEA Robarts, DK
Rosevear, AC Salomon (Alternate HL Greenstein) CE Singer, PC Steyn, F Titi*,
R Wainer, CE Watt, PD Womersley. *Non-executive
company secretary: MA David
Transfer secretaries: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg, 2001. PO Box 1053, Johannesburg, 2000.
Registered office: Milner Place, Sunnyside Office Park, 4 Carse O'Gowrie
Road, Parktown, 2193. PO Box 87274, Houghton, 2041.
Registration number: 1946/021180/06
URL: www.bidvest.com
