Update on strategy

Strategic pillars

Maximise diverse portfolio

Responsible stewardship

Maintain strong financial position

Allocate capital to grow

  • Maximise diverse portfolio

    What it means

    Continuous broadening of service and product basket

    Offer cost-effective value adding solutions

       

    Progress in FY2020

    • All businesses were rightsized to ensure that operating models remain relevant and future-fit.
    • Considering the expected multi-year recovery of international travel, Bidvest divesting from its travel exposed capital intensive businesses.
    • Several proof-of-concepts relating to facilities management, drones and ALICE were implemented. Bidvest Bank launched a forex and money transfer app and Noonan an integrated smart building solution.
     
    Responsible stewardship

    What it means

    Deliver sustainable solutions

    Add value to customers

    Develop people to grow the talent pool

    Adapt our business model to unique operating environment

       

    Progress in FY2020

    • 8 515 black employees participated in various leadership, internship and apprenticeship programs.
    • R360m was invested in developing our people.
    • Plumblink launched an insurance contractor app, an ecosystem for all insurance claim parties. In response to COVID-19 health and safety protocols, McCarthy developed an app that allows employers to monitor and track compliance.
     
    Maintain strong financial position

    What it means

    Drive strong cash generation

    Focus on tight asset management

    Capacity to accommodate expansion

    Dispose of non-core assets

       

    Progress in FY2020

    • R9bn cash was generated.
    • 2.1x net debt to EBITDA, post-PHS acquisition, leaves room for expansion.
    • R4bn extra short-term liquidity was secured at the onset of the national lockdown and remains unused.
    • R4bn was raised from local banks towards repaying the PHS bridge loan.
    • Progress was made on the disposal of MIAL; Glenryck and The Mansfield Group were sold; Bidvest Car Rental and Bidair Services to be divested.
     
    Allocate capital to grow

    What it means

    Invest in relevant SA infrastructure

    Expand internationally in Services and Commercial Product niches

    Broaden product offering via acquisitions

       

    Progress in FY2020

    • R12bn acquisition of PHS, the leading hygiene service provider in the UK, Ireland and Spain.
    • Bolt-on acquisitions of New Frontiers, Future Cleaning, Mastrantonio.
    • After a 3-month delay caused by COVID-19, the Richards Bay LPG terminal was commissioned in October 2020.