Divisional overviews
Electrical
Stan Green
Chief executive
contracted by 14.3%
broadly flat
management was good
as the pre-eminent electrical
distributor in South Africa
Salient features
- Considering the harsh conditions in the South African building, construction and mining industries, as well as the severe downturn that the larger construction companies are experiencing, this division performed commendably.
- Project-type businesses remained depressed as key programmes stalled, with several customers either under business rescue or experiencing significant liquidity constraints.
- Despite fierce competitive pressure, Voltex was still able to hold its own while further entrenching its position as the pre-eminent electrical distributor in South Africa.
- Voltex MV LV and Cabstrut delivered strong results, while Solid State Power, Electech and the lighting businesses had a slow year.
- There was a 100bps decline in margin, which is a function of a slightly lower gross margin and negative business mix given less project work.
- Working capital management was key focus considering the trading environment.
Strategic focusConsiderable work has been done over the last few years to reposition the products and service offerings. Numerous brands have now been consolidated into a single wholesaling distribution brand, Voltex. The specialist solutions that have been carefully selected and acquired over the years, continues to mature. Collectively, these have been able to bring an extra dimension to the abilities and comprehensive solutions which the division is now offering into the market. This strategy is continuing to be refined, enhanced and expanded to compete more effectively in this difficult market environment. The ongoing consolidation of businesses, products, premises and systems are providing numerous benefits that will ultimately add value to the vast customer base. |
TransformationConsidering the industries and sectors into which this divisions supplies, B-BBEE is an important factor to consider. In this regard, the Level 2 BEE rating is an excellent achievement. Management control improved with 62% of total placements at management levels being black, and there is an increased focus being placed on appointing additional females. Skills spend on black employees amounted to R10 million. Procurement from relevant SMMEs remains challenging specifically due to the highly specialised nature of the product and the lack of black SMMEs available to supply the volumes required. The division has scored well on Enterprise and Supplier Development as well as SED. |
OutlookBolt-on acquisitions will continue to be pursued to enhance the overall offering, particularly in solar, power factor and invertor solutions. Initiatives to improve efficiencies and consolidate the solution activities will continue to deliver benefits for the division. The very significant Waco relocation to a state-of-the-art facility will bring many additional efficiencies and strategic value to this critical business in the supply chain. While the market is expected to remain depressed, any substantial construction, infrastructural development and mining projects that might be initiated will, naturally, be highly-beneficial to the division. |
Our story
Voltex: from cable and wire, to solutions
The Voltex group as it is known today, originally comprised many electrical companies which were acquired and became part of the group.
It has become the largest electrical company in South Africa, providing a complete electrical solution
The business has grown three-fold
Bidvest Electrical, the core of which is Voltex, offers a comprehensive range of electrical and lighting products, smart metering products, energy efficient and renewable energy solutions
Tracking the history back to the late-1980s, the Electric Centre Group acquired a number of electrical distribution businesses, the most notable of which were the Keens, Litecor and Globe Electrical businesses. Electric Centre Group was subsequently acquired by Powertech.
This electrical business grouping was listed as Voltex whilst Powertech remained a strategic shareholder. In 1999, Bidvest acquired a 30% stake in the listed entity, increasing its stake to 32% in 2001.
In October 2001, Bidvest made an offer to acquire the remaining 68% of Voltex, buying out Powertech and other minorities for R218 million. During the financial year to June 2002, Voltex generated operating profit of close to R100 million and revenue of R1.5 billion out of 78 branches.
Under Bidvest ownership, Voltex initially focused on increasing its share in the electrical maintenance and wholesaling industries.
It has become the largest electrical company in South Africa, providing a complete electrical solution from start to finish for customers.
The business has grown three-fold despite the contraction of the broad infrastructure sector in South Africa.
The strategic intent to add niche businesses around the core offering has been in place for some time.
Today Bidvest Electrical, the core of which is Voltex, offers a comprehensive range of electrical and lighting products, smart metering products, energy efficient and renewable energy solutions as well as transmission and distribution products and solutions.
Bidvest Electrical is your electrical solution.
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