Refocus and renewal

At many other organisations, "focus" refers to the building of a homogenous business in which activities are deliberately restricted to a single industry. "Focus" for Bidvest managers refers to intense concentration on every aspect of their operations with the aim of growing value, no matter what industry they work in. Their in-depth understanding of their business, customers, suppliers and markets helps them pursue efficiencies while exploring new opportunities.

New opportunities might occur in a related industry or in an entirely new sector. One area of focus might lead into another area of focus. This does not deter entrepreneurial managers empowered by Bidvest's decentralised philosophy. They home in on growth potential, even though it means straying from strict adherence to what was previously considered to be their home "turf".

Philosophy at work

Constant evolution is necessary to stay abreast of new opportunities, and transition was evident at several Bidvest businesses. These changes were introduced at the beginning of the new period, though preparations were under way in the second half of 2010.

One effect of change is the creation of a cluster of businesses with a financial service focus.

McCarthy Fleet Services, previously part of Bidvest Automotive, has been moved into Bidvest Bank, considerably widening the bank's base of operations. In future, asset-based finance activities will complement travel-related financial services. The bank's footprint has also grown. There are now 100 branches in the network.

At the same time, Bidvest Financial Services (housing the businesses previously branded as McCarthy Insurance Services and McCarthy Finance) has become a freestanding business and in future will widen its base by seeking new business to augment income streams from and off the dealership floor.

Parameters widen, though activities remain largely the same. Our people have considerable experience of short-term insurance, asset finance, foreign exchange and lending and deposit-taking among corporate clients. New arrangements create synergies and critical mass and consolidate our existing financial service activities.

Changes at Automotive

Change enables Bidvest Automotive to concentrate on trading performance within well-defined areas of expertise while facilitating succession planning. Bidvest Automotive chief executive Brand Pretorius plans to retire in early 2011.

Each component of today's leaner business is led by experienced managers rooted in their sectors, with Graham Damp taking responsibility for the core motor retailing operations at McCarthy Motor Group.

Foodservice realignment

Senior management responsibilities at Bidvest Foodservice have been reallocated. Bernard Berson now holds overall responsibility across all operational geographies. This creates a single reporting line and ensures knowledge- and experience-sharing across regions.

Synergies to speed innovation and reduce duplication will be aggressively pursued.

The decentralised basis of operations is unaffected. In the UK, refocus of 3663 First for Foodservices into distinct wholesale and logistics businesses made separate management teams responsible for performance in their areas of specialisation. Significant performance gains were achieved.

Changes at our foodservice, automotive and financial service businesses were only recently implemented. The main benefits will begin to accrue in the new period.

Regional review

Our regional businesses were subject to a wide range of economic influences as each geography went through a different phase of the business cycle.

Bidvest Asia Pacific returned a strong result. Asian markets appear to have shrugged off most of the effects of the international financial crisis. However, the core business in Australia found trading conditions became progressively worse as the year drew to a close. Challenges persist in New Zealand.

Bidvest Europe held up relatively well in economic conditions bedevilled by the sovereign debt crisis. The United Kingdom has exited recession, but austerity measures give rise to fears the exit could be short-lived. Our leaner UK structures are appropriate in such an uncertain environment.

In continental Europe, our Benelux businesses are under pressure as their national economies contend with the immediate aftermath of recession. In central and eastern Europe, there is little prospect of rapid recovery, but we are positioned to take advantage of further market weakness.

Trading conditions in southern Africa remained challenging. However, our recently listed Namibian business put in another strong performance and is well placed to secure further growth.

In South Africa, the slowdown in construction activity has been severe; so have spending cutbacks across the corporate and retail sectors. However, Bidvest Automotive maximised trading opportunities as vehicle sales showed signs of revival.

Brand Bidvest

A growing number of our businesses are eager to spotlight their Bidvest links and have incorporated "Bidvest" into the company name. International examples include Bidvest Australia and Bidvest New Zealand. Our foodservice logistics operation in the UK recently relaunched as Bidvest Logistics. In South Africa, Bidvest Bank has demonstrated the strength and credibility of the Bidvest name.

At operational level, the decision rests with local teams. They have the job of leveraging most value from their local markets. If leveraging the Bidvest name will help, they shouldn't hesitate to do it.