Performance

Revenue rose 7% to R3,7 billion (2010: R3,4 billion) while trading profit of R325,6 million (2010: R312,6 million) was up 4,2%. The target of a 9% increase in trading profit was not realised, although trading profit increased by 13% before inclusion of Kolok with prior year comparatives. A stronger recovery and revival of consumer spending did not occur as expected. In the context of challenging industry conditions, performance was satisfactory. Overall volumes were boosted by Kolok’s incorporation into the division.

ROFE increased to 37,5%. The trading margin eased higher to 37% (2010: 36,5%), reflecting continued migration into new technology areas and away from low-margin traditional print.

Technology investment and acquisition enabled the pursuit of market-share gains in the industry’s growth sectors. Product innovation and the introduction of a wider range of hardware by Kolok’s brand principals helped to drive an increase in unit sales.

Our ability to win contracts for exports to other parts of Africa became an important means of offsetting lost volumes associated with last year’s Soccer world cup. We supplied solar voter registration solutions to Liberia and Tanzania and ballot papers for elections in Uganda.

Lithotech Conversion and Distribution faced continued challenges as a result of the shift away from traditional print and rationalisation continued with 85 jobs lost.

Sustainability

Bidvest Paperplus is developing paperless solutions. The move away from paper has positive environmental implications.

We remain major users of power and water. Our driers consume a significant amount of electricity and hefty increases in power tariffs have focused our attention on energy-saving.

Improving our lighting systems represents a major opportunity to improve our energy efficiency. Savings from more efficient lighting installed in one of our Lithotech facilities equates to the power needed to run an extra multi-colour full-production printing press. As we refurbish another plant we will open parts of the roof to natural light to further reduce electricity use.

Various efficiency initiatives and greater awareness led to division-wide reductions in fuel, electricity and water consumption. In manufacturing, operations have cut power use by reducing overtime worked and adjusting shift structures for better utilisation of equipment.

One product innovation is our solar voting solution for rural areas where electricity is not always available. This portable solar-powered kit enables people to produce durable voter registration cards in rural areas at voting stations that are independent of external power sources. Given the scale of national elections, we see substantial potential for related product development.

We maintained our responsible waste disposal practices while offering our customers a wide range of recycled paper products.

The impact of these different initiatives and improved environmental awareness contributed to an overall reduction in our consumption of resources and total carbon emissions.

The Lithotech Conversion and Distribution Durban factory reduced its dependence on mains water by drilling its own borehole. Rotolabel achieved ISO 14002 accreditation thanks to its sophisticated environmental management systems and six-sigma quality measurement standards are now applied at four plants.

This year has seen a focus on staff training with spend increasing significantly, particularly with the inclusion of Kolok into the division.

Despite continued focus on safety awareness, we recorded an increase in the lost-time injury frequency rate, highlighting the need for ongoing safety training.

We focus our socio-economic development efforts on the country’s future education needs, each company adopting disadvantaged local schools and donating education materials. We encourage our companies to assist the communities where we operate by dedicating a pro rata amount of their budgets to CSI. We encourage staff to get involved in running the programmes and visit schools to present donated materials.