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Description of business |
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Incorporating |
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Operational highlights |
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Sustainability progress |
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Material sustainability issues |
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International services, trading and distribution company |
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Bidfreight, Bidserv, Bidvest Europe, Bidvest Asia Pacific, Bidfood, Bid Industrial and Commercial Products, Bidpaper Plus, Bid Auto, Corporate |
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Bidvest people manage their environment
A commendable performance in tough markets. Smart trading and instances of market share gains support results. Inflation has turned to profit advantage in the foodservices businesses. Inventory up in support of trading strategy to profit, where feasible, from escalating prices. |
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Bidvest has a diversity of drivers to profit from good times and bad with management and staff well incentivised to achieve stretch targets. Competitor weaknesses will be exploited while the business considers keenly priced acquisition opportunities. Difficult times present opportunities for a Group with an opportunistic culture. |
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Sustained job creation with staff complement increasing from 104 184 to 106 225. Improved and enhanced sustainability data collation online system available to all Bidvest businesses. Total training spend of R210 million and R35,3 million spent on corporate social investment. BEE procurement R7,8 billion. The Bidvest 2007 and 2008 greenhouse gas inventories have been compiled by an independent consultancy. Bidvest is a founding constituent of the JSE SRI Index |
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Opportunities: achieving the benefits of a unified approach to sustainability within a multi-faceted, decentralised environment; achieving more meaningful employment equity and improving Bidvest’s alignment to the objectives of preferential procurement through supplier registration; setting up more effective programmes for managing HIV/Aids in the workplace
Risks: finding and keeping world-class talent in a highly competitive environment; high HIV related absenteeism; energy crisis |
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14 359 186 |
100,0 |
34,7 |
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106 225 |
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2,0 |
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11 700 687 |
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The leading private sector freight management group in sub-Saharan Africa, consisting of several independent businesses focusing on freight services. |
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Bulk Connections, Island View Storage Bidfreight Port Operations, Rennies Distribution Services, SACD Freight, South African Bulk Terminals, Naval, Safcor Panalpina, Marine Services, Manica Africa |
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Bulk supplies
Strong contributions from SABT and Bulk Connections together with IVS, Marine and BPO drive an 18% rise in profits. Capex spent on bulk facilities paid off in recognition by customers and facilitated pricing and throughputs. Protracted TNPA lease negotiations and Transnet unreliability provided a challenging environment. |
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Organic growth is the immediate focus with tighter debtor and cash management. New ports facilities needed to accommodate higher throughputs. Fuel and power costs may place pressure on margins with subsequent customer resistance to price increases. Substantial prior capex will continue to pay off particularly in Bulk. |
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South African Bulk Terminals, Rennies Distribution Services, Bidfreight Intermodal and Bidfreight Port Operations achieve BEE level 3 rating. IVS switches from boiler fuel to gas in its bid to reduce the company’s carbon footprint. Bulk Connections have concreted 75% of all stockpile space, with water runoff channelled into settling ponds. Enviroserv Polymer Solutions and Rennies Distribution Services jointly develop the environmentally friendly Green Pallet
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Opportunities: continued investment in recruitment and training of technical skills; initiatives to transform workforce to reflect local demographics
Risks: potentially hazardous working environments; skills shortages and staff retention; increasing impact of HIV/Aids |
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440 174 |
3,1 |
362,4 |
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5 328 |
5,0 |
6,3 |
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792 283 |
6,8 |
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Offers a full range of outsourced services including cleaning, laundry, hygiene, security, interior and exterior landscaping, aviation services, industrial supplies, travel, banking and foreign exchange services, office automation, e-procurement and online travel. |
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Prestige Cleaning Services, TMS Industrial Services, Laundry Services, Steiner, Bidserv Industrial Products, Green Services, Aviation Services, Bidrisk Solutions, Global Payment Technologies, Business Solutions and Group Procurement, Office Automation, Bidtravel, Banking Services, Foreign Exchange Services, Hotel Amenities and Accessories |
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High flyer
Record levels of profitability. TMS profits up 58% and Bidair up 45%. Bidvest Bank realised a 41% rise in profits assisted by new forex products with Master Currency exceeding expectations. The exceptional 40% increase in profits in Industrial Products strengthens their competitive positioning while Konica Minolta and Océ increased their market share in a tightening economy with a 45% rise in profits. |
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Critical mass in soft services together with market reach will again grow profits in a less favourable economic climate. Bidair to focus on return on capex while TMS well positioned to increase profits and returns. Hotel Amenities contract with a major hotel group opens up potential within Africa while further growth within the Bidtravel division is anticipated following productivity initiatives. |
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Staff numbers rise by 2% to 63 493. Total training spend rises by 145% to R86 million. All chemicals used in laundry services are biodegradable and non-carcinogenic. Site survey of laundry services commissioned for reducing usage of energy and water. Company enters into agreement to replace 50% of diesel with biodiesel |
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Opportunities: effective and improved management of HIV/Aids; employee engagement to prevent strike action; ability to build enduring business models characterised by high standards of quality, safety and reliability; opportunities to involve staff at all levels of the business in sustainability initiatives
Risks: impact of significant water, coal and electricity consumption at Laundry Services; safety and security of employees at banks and bureaux de change; impact of HIV/Aids |
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1 208 639 |
8,4 |
15,5 |
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63 493 |
59,8 |
2,2 |
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2 717 204 |
23,2 |
20,9 |
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Comprises leading foodservice product distributors in the United Kingdom, Belgium, the Netherlands and the United Arab Emirates, providing products, quality ingredients, finished products and equipment to the catering industry. |
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3663 First for Foodservice – United Kingdom, Deli XL – Belgium, Deli XL – Netherlands, Horeca Trade – United Arab Emirates |
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Thirst for foodprofits
While UK trading profit was flat, exceptional results were realised in Horeca UAE up 51%, Deli XL in Belgium up 30% and in the Netherlands up 31%. Accelerating price inflation was a feature across all markets with food and fuel inflation well above CPI. Pass through of inflation and profitable preemptive buying will flow into 2009. Barton Meat under review with alternatives being explored. |
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Balance sheet capacity to profit from inflation with margin to be preserved where possible. 3663 Genesis IT project to be rolled out fully in the next year with 3663 likely to benefit from customer and supplier consolidation to reduce costs. GDP growth in all markets decelerating while CPI increasing. The impact of the Dutch smoking ban yet to be understood. Budgets set to again grow profits in 2009. |
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3663 private label packaging now carries eco-labelling symbols. 30% of the total 3663 fleet run on biodiesel produced from customers’ and suppliers’ used cooking oil; saving of 9 600 tonnes of CO2e annually. Deli XL Netherlands warehouses fitted with heat recovery and hot gas defrosting systems, energy savings of 15%. All 3663 sites achieved ISO14001 accreditation and maintained over past five years |
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Opportunities: demand for healthier foods and locally sourced products; growing expectations for improved environmental performance; opportunity to reduce CO2 output ahead of potential legislation; opportunity to exploit the company’s sustainability leadership position in the catering industry
Risks: managing and minimising environmental impacts including resource consumption; rising costs
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1 358 498 |
9,5 |
24,0 |
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8 571 |
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3 453 888 |
29,5 |
10,7 |
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Comprises Bidvest Australia, Bidvest New Zealand, Angliss Singapore and Angliss Hong Kong and China. Bidvest leads the foodservice industry and offers a full end-to-end national distribution service. |
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Bidvest Australia, Bidvest New Zealand, Angliss Singapore, Angliss Hong Kong and China |
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Bonzer wicket
Largely organic growth in Australia producing record returns and a 3,5 times increase in profits since 2002. New Zealand performs well with independent trade sales growth exceeding national accounts growth with rising food prices helping to neutralise higher operating costs in a slackening economy. Angliss first full year contribution exceeds expectations. |
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Similar cost challenges in all markets. Small Australian acquisitions contribute to 2009; while costs pressures will impinge on margin but real growth anticipated. New Zealand strongly positioned in a diffi cult economy and growth opportunities being pursued in Macau and mainland China. |
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Developed and adopted an environmental policy for Bidvest Australia. The Bidvest national qualification programme, over eight years, has enabled 723 staff members to attain formal qualifications. Bidvest Australia offers certified Halaal and Kosher products according to a policy statement on religious, cultural and socially significant foods. Bidvest New Zealand has established an enhanced staff retirement fund which includes the children of employees |
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Opportunities: investment in training and productivity; embracing customers’ sustainability aspirations and expectations; careful management of natural resources; building responsible environmental stewardship into partnerships with suppliers
Risks: skills shortages in increasingly competitive environment; food safety and product integrity; eff ects of increasing costs of fuel on operational costs and consumer spending patterns; water shortages and restrictions; increasing governmental regulation to reduce carbon emissions
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1 860 613 |
13,0 |
57,6 |
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3 298 |
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14,0 |
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1 236 875 |
10,6 |
53,0 |
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A leading multi-range manufacturer and distributor of food products and ingredients. Bidfood operates through strategically located independent business units in southern Africa, aimed at servicing the catering, hospitality, leisure, bakery, poultry, meat and food processing industries. |
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Caterplus, Bidfood Ingredients, Speciality |
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Inflating times
Ingredients coped well with escalating food prices and raw material shortages. Chipkins Bakery Supplies increased profitability substantially with strong performances from Crown and excellent expense control. Caterplus’ net revenue rose by 17% with trading profits up 19%. Strict credit policy has reduced volumes, however trading risk substantially reduced. Speciality grew revenue by 22% and trading products by 29%. Goldcrest brand developing well. |
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Deflation and a reduction in prices a distinct possibility in Speciality after the rapid food inflation. A deliberate policy decision has been made in Caterplus to reduce volume rather than risk bad debts which may impact rebates. Bidfood is well placed in a competitive environment and fully expects to achieve another record result in 2009. |
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Steam sterilisation replaces irradiation. All new controlled atmosphere storage facilities use ammonia as refrigerant eliminating harmful CFCs. Intense driver training at Caterplus reduced accident claims by 14,6%. Caterplus has increased its training spend by 58% to R5,3 million. Chipkins Catering Supplies pilots scheme to recycle cooking oil for conversion to biodiesel |
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Opportunities: skills development of staff; maintaining the highest standards of food quality and safety; providing a safe working environment as well as training and development opportunities for staff; ongoing drive to reduce environmental impact by reducing energy and promoting recycling; BBBEE through employment equity and procurement
Risks: impact of crime on stock shrinkage; increasingly rigorous standards of food safety and product integrity |
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709 582 |
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15,7 |
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3 497 |
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417 937 |
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16,1 |
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A leading manufacturer and distributor of electrical products, appliances and services, office stationery, office furniture, packaging closures and catering equipment in southern Africa with a small presence in the United Kingdom. |
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Voltex Electrical Distribution, Berzacks, Eastman Staples, Catering Equipment, Stationery, Office Furniture, Packaging Closures |
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Levelling out
Profits at record high but rate of growth levelled out after a poor start. Voltex profits up 5% in a tougher trading environment while an improvement in the copper price enabled a slight recovery. Cash generation in the stationery and furniture businesses was particularly pleasing. The Seating business continues to increase its mix of imported component to remain competitive. Waltons profits up 16% with “back-to-school” sales showing improvement. Afcom profits up 19% with the import strategy bearing fruit. |
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Voltex is facing a challenging environment with a declining residential/commercial market, however several opportunities in infrastructure investment together with a number of energy effciency initiatives offer exciting possibilities. Office products are facing pressure in a weakening retail market. Vulcan will capitalise on new products and modernised facilities. Modest overall growth expected in the short term. |
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40 candidates received advanced training in Voltex’s management development programme. Voltex donates 3 000 lapdesks to three schools, one in Gauteng and two in KwaZulu-Natal. Voltex offers inverter technology solutions to reduce peak electricity demands. Voltex’s patented mine light received the Eskom award for the most innovative new product in the field of electrical supplies and energy efficiency. Voltex offers demandside management solutions to reduce peak electricity demands. Waltons implemented an ERP system. Seating saves 3 000 trees annually with its composite alternative to wood veneer. CN business, Waltons and Voltex offer leadership development programmes
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Opportunities: capitalise on the electricity shortage in South Africa
Risks: skills shortages; escalating fuel prices; competition from cheap Chinese imports; instability of currency, interest rates and commodity prices |
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2 162 923 |
15,1 |
13,7 |
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984 857 |
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A leading manufacturer, supplier and distributor of commercial office products, printer products, services and stationery and packaging products, through a wide network of outlets in southern Africa. |
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Printing and Related, Stationery Distribution, Alternative Products, Packaging and Label Products |
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You win some, you lose some
Business remains a solid cash generator although results broadly flat due to the absence of profitable export business for Lithotech. Email Connection had an excellent year while laser and mail continue to offer profitable opportunities. Croxley rebranding has been completed and market acceptance is growing. |
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Lithotech will continue to generate cash and provide necessary expansion funds for e-products while laser and mail will continue to enjoy new contract wins. Planned expansion of labels and packaging range. Stationery expected to yield higher returns following expansion of Silveray/Statmark. Proactively seeking print opportunities for the Confederations Cup and the FIFA 2010 World Cup. Intensified eff orts to secure more export business. |
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Lithotech launches a learnership academy. Increased training investment. Employees received training in responsible financial management. Procurement from black suppliers rose to R250 million. Lufil in second year of recycling waste water from washing ink and glue trays |
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Opportunities: development of electronic communication products and services that add business value; developing a highly skilled and motivated team that matches the ongoing investment in leading edge technology; focused on raising reliability for all areas of production
Risks: skills shortages, particularly for technical roles; injury risks; increasing fuel prices through the distribution chain; declining dependability of public utilities |
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One of South Africa’s largest motor vehicle retailing and service groups. Bid Auto offers leading motor brands through over 130 dealerships and service outlets, backed by financial and fleet services, a loyalty programme and the country’s leading online retailer of new and pre-owned vehicles. |
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McCarthy Motor Holdings, Import and Distribution, Financial Services, Car and Van Rental, Support Services |
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Diversification dividend
Strategy to diversify away from car retailing supported results while R300 million in capex, staff retention and a training focus underscored intention of remaining a leading and substantial player in the market. Full year contribution from Viamax. However total vehicle sales down 3%, used vehicle sales up 10% and new unit sales down 12%. NCA and higher finance charges resulted in substantial weakening of the market anticipated to worsen into 2009. |
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Affordable, fuel-effcient and quality used vehicles a focus area while fleet solutions contribution anticipated a growth area. Parts and service revenues a partial compensation for lower volumes. Opening of new dealerships to continue with franchise potential for Chinese brands. Crime a costly concern. Automotive division will hold profits at 2008 levels in 2009. |
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Bid Auto responding to the Consumer Protection Bill. McCarthy achieved 89% customer satisfaction in measuring alignment between values and behaviour. Artisan academies registers new courses. Four black dealer principals appointed. All executive directors act as mentors for emerging black talent. 27 mechanics from Orange Farm (informal settlement) being trained to obtain full qualifications. 370 learners completed national qualifications across the eight learnerships |
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Opportunities: maintaining the long-term strategy of building excellence throughout the workforce, positioning the business for changing market conditions and a sustainable growth path; growth in value segment of the vehicle market
Risks: cost implications of legislative compliance on business turnover; difficulty in sourcing and retaining senior black people; impact of crime on dealerships and car rental; deteriorating road infrastructure; stricter emissions standards and climate change-related regulations likely to depress sales of certain vehicle categories |
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The Group’s corporate office, based in Melrose Arch, Johannesburg, provides strategic direction and services to the Group, houses investments, adding value through identifying opportunities and implementing Bidvest’s decentralised and entrepreneurial business model. |
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Bid Corporate Services, Bid Property Holdings, Bidvest Namibia, Ontime Automotive, Bidcorp |
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Bricks and mortar
New property developments for a number of businesses. Namibian assets anticipated to be listed as Bidvest Namibia. Ontime Automotive impacted by restructuring, fuel price increase and termination of loss-making volume distribution contracts. Parking solutions secured major tender with Prestige Vehicle Distribution trading better than budgeted. Anticipated Ontime will sharply reverse losses in 2009. FIFA 2010 World Cup commercialisation plans in place with a minority interest acquired in MATCH Hospitality AG, a FIFA-appointed hospitality services business. |
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Difficult times offer growth possibilities for a group with an opportunistic culture. Poised for appropriately priced acquisitions. Bidvest has a diversity of drivers to profit from good and bad economic times and will not disappoint in 2009 |
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Bidvest Academy completes its seventh year with nearly 450 leaders trained. Graduate academy concludes programme in September 2008 – presentation of green business opportunities. Online sustainability data collection tool improves significantly. Responsible mid-water trawling by Namsov ensures minimal by-catch of just 2,5 percent, near the lowest worldwide. The Namsov Community Trust, a 10% shareholder in Namsov, invests R3,5 million in development and relief projects |
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Opportunities: ensuring meaningful awareness in social and environmental issues Group-wide; achieving coherence around sustainable business issues in a decentralised environment
Risks: skills shortages and capacity limitations; Ontime Automotive facing increasing pressure to reduce vehicle-related emissions; fishing resources affected by poor resource management |
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2 397 514 |
16,7 |
6,2 |
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2 600 |
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635 290 |
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10,9 |
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