 |
Bidvest Corporate |
|
Provides strategic direction, financial, risk and sustainability management, marketing, investor relations, corporate communications, corporate finance, houses investments and provides executive training to the Group. Adds value by identifying opportunities and implementing Bidvest’s decentralised entrepreneurial business model. |
|
Bidvest Corporate Services; Bidvest Properties; Ontime Automotive; Bidvest Wits Football Club; Bidvest Procurement. |
|
Bidvest’s strategic property holdings contributed R207,2m in income, up 17,3%. A state-of-the-art “World of Yamaha” facility in Johannesburg opened for business. Subject to certain formalities, 50% of economic interest in Mumbai International Airport has been sold. A $13,5m investment has been made into Icelandic Water Holdings (makers of “Icelandic Glacial”) an initial stake of 14,6%. |
|
A new database tool developed and implemented towards year-end demonstrates that Bidvest is taking measurement seriously. The new tool is based on a globally recognised system with powerful customising capacity. This represents a major step towards more powerful data management, monitoring and reporting against targets. It offers a platform that will allow us to build in custom indicators for individual companies to gather more meaningful data relevant to particular industries. |
| |
|
|
|
|
|
|
|
|
|
 |
Bidvest Automotive |
|
One of South Africa’s largest motor vehicle groups offering leading motor brands through 116 dealerships, as well as vehicle auctioneering. |
|
McCarthy Motor group; Burchmore’s. |
|
A focused vehicle retailer with results driven by new vehicle demand. Margins overall remain under pressure. Anticipate an increased return on sales while realigning the cost base to the new slimmed-down division.
Revenue up 17,4% to R18,6bn. Profit up 10,7% to R255,4m. New vehicle sales up 22%. Parts and service contribution affected by stock shortages and deferral of maintenance due to rising living costs. Strike action and the Japanese natural disasters resulted in stock shortages. Costs experienced due to rationalisation of Value Centres and Call-a-Car outlets. Burchmore’s auctioneers affected by reduced repossessions and lower used-car values.
Management changes implemented with a new invigorated team in place. Additional productivity improvements identified. Stable vehicle pricing and low interest rates beneficial for customer affordability but negative for dealer margin. |
|
Systems implemented to facilitate and measure sustainability activities. Restructuring factors influenced revenue and trading profit. Training spend rises to R93,1m despite lower staff numbers and challenging trading conditions. A target to reduce electricity consumption by 10% by 2012 has been implemented. The carbon footprint exercise identified two key focus areas: reducing our impacts on climate change (by electricity reduction and water savings) and improving our waste management (implementing the concepts of reduce, reuse and recycle). |
 |
Bidvest Electrical |
|
A leading distributor of electrical products and services. |
|
Voltex; Atlas Cable Supplies; Versalec Cables; Bellco Electrical; Litecor Electrical; Keens Electrical; Waco Industries; Globe Electrical; Sanlic International; Electric Centre; Voltex Retail Supplies; Eastman Staples; Cabstrut, Voltex Lightning |
|
There was a sharp downturn in construction. The division has been right-sized for a depressed market with strict cost control in place. Anticipated construction will remain weak but business remains alert to opportunity.
Revenue up 3,1% to R4,1bn and profit down 6,2% to R181,8m. Benefits to be realised within the new structure and sharpened focus. Businesses right-sized for new lower market with debtors being tightly monitored. Proactively alert to opportunity. Will continue to engage closely with customers and suppliers. No material improvement in market conditions expected. |
|
Retrenchments were kept to a minimum. R25,0m was committed to new IT systems. Implementation across all wholesale branches helped management achieve further efficiencies. HIV training increased. Fuel prices and toll charges also create risk for a distribution company. Our multi-branch distribution model creates opportunities to manage costs by strategic stockholding at key points. Unfortunately one fatality was reported. |
 |
Bidvest Financial Services |
|
A comprehensive range of banking and insurance products and services, specialising in foreign exchange and insurance. |
|
Bidvest Bank Limited; Bidvest Financial Services; Master Currency; Rennies Foreign Exchange Botswana; Namibia Bureau de Change. |
|
Growth across all activities. Increased market penetration with strategically well-placed key sites. Revenue up 13,7% to R1,7bn and profit up 15,1% to R641,6m. Fleet Services successfully integrated with leasing fleet exceeding 11 500 vehicles. Diversification and expansion of income-producing activities boosted result. Rand strength, much reduced rand volatility and low interest rates put pressure on profitability. Customers cautious regarding spending. Increased policy volumes across all insurance lines.
Increased market penetration across insurance and life products. Yamaha Financial Services, incorporating a finance and insurance offering, being rolled out. Anticipating organic and acquisitive growth. |
|
Improved efficiency, productivity and the elimination of expense waste. Training spend increased. The bank made substantial investment in information technology during the year in the form of technical skills, infrastructure and systems. Disaster recovery was enhanced and successfully tested. Bidvest Bank is conscious of its environmental responsibilities. While the business has a fairly low direct impact, we are working towards paperless administrative systems as we develop new products in our niche markets. We recycle waste paper. |
 |
Bidvest Freight |
|
The leading private sector freight management group in sub-Saharan Africa, consisting of several independent businesses focusing on terminal operations and logistics, international clearing and freight forwarding, logistics and marine ships agency and insurance services. |
|
Bulk Connections; Island View Storage; Bidfreight Port Operations; Rennies Distribution Services; SACD Freight; South African Bulk Terminals; Naval; Safcor Panalpina; Rennies Ships Agencies; Rennie Murray; Freight Bulk; P & I Associates; Manica Africa. |
|
Strong bulk commodity activity, although low margin billings at Safcor Panalpina, elevated top line. Capex over R300m, with R200m capex programme at Bulk Connections. Continued Transnet freight rail underperformance. Budgeting for growth. Buoyant bulk activity, particularly in exports of commodities. Automotive volumes improve.
Revenue up 20,8% to R19,3bn and profit up 11,6% to R886,2m. Island View Storage higher volumes driven by new Sasol business through Richards Bay; South African Bulk Terminals had record volumes up 40% due to huge maize exports; Rennies Distribution Services profits were up on higher revenue; SACD in Durban put in strong performance; Bidfreight Port Operations showed real growth. Challenging business conditions for Manica. Commodities demand is anticipated to remain strong with ongoing investment in facilities and people. Strategically very well positioned at key sites. Expecting profit growth. |
|
Training investment rose from R23,9m to R25,9m. Emphasis on safety training although, despite efforts, three fatalities were reported. Environmental risk relating to the possibility of contamination via water run-off from our facilities is well managed via settling ponds. Rigorous processes ensure no spills into harbours and streams. Expansion of Island View facilities planned in 2012. Dust suppression a priority. BPO Stevedoring efficiencies have been achieved along with safety improvements. Bidvest Freight has a record of sustained investment in HIV/Aids awareness and training. |
 |
Bidvest Industrial |
|
Offers a full range of Yamaha products, Nissan forklifts and imports, electrical appliances, houseware products, packaging closures and catering equipment. |
|
Yamaha; Bidvest Materials handling; Afcom; Buffalo Executape; Ramfasteners; Vulcan Catering Equipment; Berzack Brothers; Bloch and Levitan. |
|
In a challenging manufacturing environment with cash generation remaining strong, Buffalo Executape performed well and Yamaha increased profits significantly off flat revenue. While manufacturing and consumer activity remain uncertain, acquisitions continue to be considered.
Revenue up 3,6% to R1,5bn and profit down 11,7% to R118,5m. Revenue increased for Berzacks – a pleasing result. Afcom turnover slightly down. Vulcan showed a decline in revenue and profits post soccer world cup and reduced exports.
Manufacturing and consumer spending have a strong bearing on the results. New focus allows the division to explore industrial acquisitions. The World of Yamaha presents exciting opportunities. |
|
Training investment rose 211,4% to R5,0m (2010: R1,6m). Thirty new jobs were created at the World of Yamaha. A state-of-the-art training centre was established for Buffalo Executape. All businesses intensified efforts to improve energy and fuel efficiency. Talent retention benefited from sturdy succession planning. Yamaha Dealer training was a focus area. |
 |
Bidvest Office |
|
A leading distributor of office products, including stationery, furniture (seating and desking) and technology (copying, digital printing and cash-handling systems). |
|
Konica Minolta South Africa; Océ; Develop; Waltons Office Products; Cecil Nurse Business Furniture; Dauphin; Ditulo; Seating; Global Payment Technologies. |
|
Technology businesses continued to perform well. Waltons stationery revenue flat but profit improved. Measures in place to optimise furniture value chain. Growth in profits anticipated.
Revenue up 5,3% to R3,7bn and profit up 9,2% to R215,4m. Strong mix of technology businesses, stationery and furniture focused on industry needs. Konica Minolta remained strongly profitable with pleasing growth in revenue while Océ produced a good result. GPT’s good results driven by machine sales and service. Waltons profits improved. Contract business to be merged with Waltons. Furniture restructures and streamlining expected to result in a return to profitability. Strong positioning in tough markets. |
|
Konica Minolta ‘green leader’ in office equipment. Polymerised toners reduce environmental impact as their production relies on plant-based rather than petro-chemical inputs. Seating’s Form Chair is 95% recyclable and contains 25% recycled materials. Continued market education on eco-friendly furniture products. Divisional water usage decreased by 22%. Divisional electricity usage decreased by 16,8%. Steep rises in energy costs drove renewed focus on energy efficiency at all businesses. Higher environmental awareness and standards are regarded as opportunity rather than risk. |
 |
Bidvest Paperplus |
|
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, and provider of outsourced customer communication services. |
|
Lithotech; Blesston Printing; Silveray Manufacturing; Kolok; Ozalid; E-Mail Connection; Lufil Packaging; Rotolabel; Silveray Statmark Company; Pretoria Wholesale Stationers; Lithotech Afric Mail; Sprint Packaging. |
|
General print and packaging markets were keenly competitive, while mature and new technology offerings were ongoing. Sprint Packaging acquired. Modest but good quality earnings growth anticipated.
Revenue up 7% to R3,7bn and profit up 4,2% to R325,6m. Expenses well controlled. Further rationalisation expected in mature print market. The Sprint Packaging acquisition contributed positively. Silveray held its market share at lower margins in a weak market while Email Connection delivered strong results. Successful strategy of adapting to shifts in technology. Project-based export activities actively pursued. Food-related packaging prospects favourable. In a cost-competitive environment further progress expected. |
|
Innovative voter registration solution with solar-powered kits for on-site production of voter registration cards. We remain major users of power and water and have focused our attention on energy-saving. Managed reductions of 18,3% in water and 13% in electricity. Training spend increased by 200% to R19,9m greatly contributed by the addition of Kolok. Total carbon emissions reduction of 12,3%. Improving our lighting systems represents a major opportunity to improve our energy efficiency. More efficient lighting installed in one of our Lithotech facilities has enabled us to run an extra multi-colour full-production printing press. Natural light utilised to reduce electricity usage. |
 |
Bidvest Rental and Products |
|
Products and services designed to enhance the working environment through hygiene rental equipment, consumables, laundries, indoor plants, drinking water, water coolers and specialised clothing. |
|
Bidvest Steiner; G. Fox and Company; Clockwork Giant Clothing; First Garment Rental; Boston Launderers; Montana Laundries; Puréau Fresh Water Company; Silk by Design; Bidvest Execuflora; Hotel Amenities Suppliers; Promo Sachets; Steri Pic; Liqui-Pak. |
|
Satisfactory trading except for the hotel supply trade. Steiner Hygiene and G.Fox and Company returned exceptional results. An improved performance anticipated in Laundries. An acquisition in safety wear was incorporated.
A good year is anticipated.
Revenue up 9,7% to R1,7bn and profit increased 16,3% to R325,9m. Strong overall result at a higher level of profitability. A weaker hotel market influenced Hotel Amenities and Laundries. Steiner Hygiene produced a good result at a better margin; Puréau joint venture performing well and Execuflora results improving. Silk by Design a small contributor with good promise. G.Fox and Company produced exceptional results, assisted by improved garment manufacturing and asset management.
Ongoing progress is anticipated. G.Fox and Company acquisition with further acquisitions anticipated in the water and plant businesses. Initiatives being implemented at Laundries to improve results. |
|
Training investment rose to R4,5m (2010: R2,6m). Staff numbers rose by 10%. Laundries invested a further R6 million in heat exchangers, part of the ongoing drive to improve energy efficiency and reduce coal consumption. ABET is a major focus area. Commitment to internal development. Efforts to reduce our carbon footprint are ongoing with use of biodiesel and optimising distribution routes. Low-energy lighting is being fitted in certain warehouses. |
 |
Bidvest Services |
|
A range of outsourced services in cleaning, security and landscaping as well as specialised services to the industrial sector. |
|
Bidvest Prestige; Bidvest TMS; Bidvest Magnum; BidTrack; A.C.T.S.; Bidvest Topturf. |
|
Excellent results from Prestige benefiting from the soccer world cup and good cost control. Strong improvement from Magnum and BidTrack. TMS management relooking business model to return to profitability. TopTurf remained profitable while operations scaled back in line with reduced activity. Strong performances anticipated from cleaning and security.
Revenue up 2,2% to R2,9bn and profit increased 2,4% to R187,6m. Excellent results from Prestige and Magnum counteracted by a loss at TMS and a reduction in profits at TopTurf. Market share gains for the security businesses and expenses well controlled. Anticipated TMS will return to profitability. TopTurf well placed although market smaller. |
|
Recycling initiatives, waste removal and responsible disposal are also monitored. The quantity of paper recycled increased by 347,1% to 21 201kg (2010: 4 741kg), and the number of batteries recycled increased by 243,7% to 220 batteries (2010: 64 batteries). Social investment and enterprise development programmes, expenditure of R1,1m. Safety is a material issue as there were five fatalities in 2011. Multiple awards were received from clients in addition to accreditation by the Green Building Council. |
| |
Bidvest Travel and Aviation |
|
Provides travel-management services, aviation services, airport lounge access and car rental through its extensive locations and distribution channels. |
|
BCD Travel; Carlson Wagonlit Travel; Harvey World Travel; HRG Rennies Travel; mymarket.com; Travelwise Botswana; Travel Connections; World Travel; BidAir Cargo; BidAir Services; Bidvest Premier Lounges; Budget Chauffeur Drive; Budget Coach Charters; Budget Door2Door; Budget Rent a Car; Budget Van Rental. |
|
A strong result for all the businesses. Reduced cost base at Travel. Car rental benefited from better utilisation, pricing and procurement. Aviation result doubled on cost-saving initiatives. Revenue up 8,1% to R1,9bn and profits up 32,3% to R274,2m. Disciplined trading (particularly at Budget) and a focus on leveraging good market position. Volumes up for Bidtravel with strong growth driven by new technology, achievement of targets and improved deals from preferred airlines. Bidair produced a significantly improved result through management focus on costs, restricting at the ramp handling business and improved pricing. Plans to build on the gains of the past year. |
|
Tight regulatory environment proves challenging in terms of improving environmental performance. Focus on training yielded excellent results with division applying for the IATA safety audit for ground operations accreditation (ISAGO). Continued utilisation of world-class technology in travel solutions. |
| |
|
|
|
|
|
|
|
|
|
 |
Asia Pacific |
|
Comprises Bidvest Australia, Bidvest New Zealand, Angliss Singapore and Angliss Greater China. Leads the foodservice industry and offers a full
end-to-end national distribution service. |
|
Bidvest Australia; Bidvest New Zealand; Angliss Singapore; Angliss Greater China. |
|
All territories recorded strong and real growth although the natural disasters in Australia and New Zealand presented challenges. Australia reported market share gains; New Zealand had a record result; Greater China demonstrated increased momentum and presence, while Singapore adopted a cautious strategy. Entry into Chile an exciting springboard into South America.
Revenue up 11,5% to R19,6bn and profit up 14,2% to R833,1m. A positive contribution from all businesses. Floods in Australia and earthquakes in New Zealand had minimal effect on results and customers supplied in spite of challenges. Continued strong progress in Greater China and Singapore.
Bidvest Procurement Company in China offers exciting potential. Bidvest Australia continues to outperform the local market with New Zealand exploring complementary activities. |
|
Training investment rose to R2,3m. Food and foodservices are highly regulated. As a well-capitalised and well-resourced business we try to anticipate regulatory and quality requirements. Our high level of certification has become a source of competitive advantage. Cooperation between teams and willingness to put in extra effort to help others enabled the Christchurch New Zealand business to recover at a surprisingly rapid rate. People development and talent retention are strategic imperatives. |
| |
Europe |
|
Comprises market-leading foodservice product distributors in the United Kingdom, Belgium, the Netherlands, Czech Republic, Slovakia, Poland, Saudi Arabia and the United Arab Emirates, sources and processes highly regarded own brands and provides products, quality ingredients, finished products, equipment and logistics to the catering and hospitality industry. |
|
3663 Wholesale; Bidvest Logistics; Seafood Holdings; Deli XL Belgium; Deli XL Netherlands; Nowaco; Farutex; Horeca Trade; Al Diyafa. |
|
Challenging environment with sluggish economies. Back to basics for 3663 in the UK. The Netherlands and Belgium produced a steady result. Adverse weather conditions affected results from Czech Republic and Slovakia; a solid year from Poland, while the UAE and Saudi delivered a respectable profit. Anticipating an improved result. 3663 Wholesale has rebranded the business and has renewed enthusiasm; new investments in Poland. Egypt and Baltic acquisitions planned.
Revenue down 2,2% to R34,7bn and profits down 6,2% to R842,5m. Acquisition of Seafood Holdings settled in well. Slightly improved results in Deli XL Netherlands. Deli XL Belgium experiencing margin pressure. Horeca produced a record profit. Flat sales at Nowaco while Farutex has strategy in place to increase its margin.
3663 Wholesale has measures in place to secure quality business. The Netherlands and Belgium anticipate competitive trading particularly in institutional areas. Foodservice in Europe has the right fundamentals in place and remains a good business. |
|
Electricity generated from renewable resources continued to gain momentum. Market risk remains a critical issue for our businesses. 3663 saved 13m litres of rainwater through harvesting and recycling. Collected two million litres of waste oil for conversion into biodiesel for trucks. Cut CO2 emissions by 16% in four years and recently achieved the Carbon Trust Standard. Seafood Holdings is differentiated by quality service. External awards include a BRC 5A grading and MSC certification for sustainability management and recognition from Soil Conservation for organic management and from the Manchester United ‘In Safe Hands’ supplier audit. |
 |
Southern Africa |
|
A leading multi-range manufacturer and distributor of food products and ingredients. Bidvest operates through strategically located independent business units, aimed at servicing the catering, hospitality, leisure, bakery, poultry, meat and food processing industries. |
|
Bidvest Foodservice SA; Bidfood Ingredients; Patleys. |
|
Businesses aligned with international model and reinvestment in infrastructure and logistics. Challenges include competitive market for shelf space, deflation and negative food inflation versus input cost inflation. Foodservice being repositioned for more competitive times with foodsafety a strategic focus.
Revenue up 0,7% to R5,4bn and profits down 15% to R356,1m. Rebranding and restructuring bring renewed vigour to the businesses. A small acquisition for Bidvest Foodservice South Africa; selective portfolio rationalisation in Speciality and continued focus on growth in own-brand and a strong market presence through high-quality products and brand extensions for the Ingredients business. |
|
Divisional CSI increased 84%. Training spend overall rose to R9,9m. Employees attending HIV training increased by 41%. Environmental and climatic factors took on particular importance as drought, floods and natural disasters in several parts of the world had knock-on effects on food production. Food safety is a critical area for us. Risks are managed by sustained investment in modern systems and equipment. |
| |
|
|
|
|
|
|
|
|
|
 |
Bidvest Namibia |
|
Bidvest Namibia is the holding company for Bidvest’s interests in Namibia, which include fishing and similar commercial businesses to those of Bidvest in South Africa. |
|
Namsov; Twafika; Tetelestai Mariculture; Namibian Sea Products; Pesca Fresca; HRG Rennies Travel; Budget Rent a Car; Minolco; Blue Marine; Voltex; Waltons; Cecil Nurse; Kolok; Manica. |
|
A healthy marine resource with fishing conditions remaining very favourable. BidCom underperformed in a competitive market. Continued investment in training and managerial capacity while remaining alert to acquisitive opportunities. Net revenue, after disbursements, increased by 19,3% to R2,1bn with trading profit increasing 46,8% to R540,2m. Fishing contributed 87% of trading profit. BidCom underperformance continues to be addressed. Total allowable catch (a function of biomass and sustainability) and currency are key variables. Fish is a desirable protein in good demand and Bidvest Namibia is well positioned to benefit. |
|
Bean canning concept supports rural women’s progress into small-scale commercial farming. Fish exports remained buoyant, a function of sustained recovery by fish stocks and strong demand for horse-mackerel. Training investment rose from R2,2m to R2,9m. Leadership and management training are focus areas. At year-end, work was nearing completion on a R2m training centre at Walvis Bay for use by both BidCom and BidFish. |