Salient features

  • Successful unbundling and listing of Bidcorp on May 30 2016 adds significant value to shareholders
  • Divisional restructuring positions the Group well for growth
  • Trading profit 3% higher at R5,8 billion
  • Four of the seven divisions record increases in trading profits in a difficult economic environment
  • Headline earnings per share (HEPS) from continuing operations increases by 2,5% to 1 054,1 cents
  • Strong balance sheet maintained
  • Cash generated 17% higher on a like-for-like basis, at R7 billion
  • Final dividend declared of 232 cents per share

Bidvest successfully unbundled its food service operations and separately listed Bid Corporation Limited (“Bidcorp”) on the JSE on May 30 2016. The unbundling transaction resulted in an accounting profit of R76,3 billion, which was distributed to shareholders by way of a dividend in specie on May 30 2016.

The food services business has been treated as a discontinued operation and comparatives have been re-presented accordingly, and the details thereof have been disclosed in the financial statements. The commentary in this announcement will focus on Bidvest’s continuing operations.

The successful and value enhancing unbundling has allowed Bidvest’s management team to move forward with a refocused platform from which to pursue growth. Bidvest will benefit from a greater visibility of its continued operations and their potential values.

During the financial year, Bidvest restructured into seven divisions: Automotive, Commercial Products, Electrical, Financial Services, Freight, Office & Print and Services. The Group continues to hold investments in Bidvest Namibia (52%) and Other Assets and Investments including Bidvest Properties, Adcock Ingram (38,4%), Comair (27,2%), Cullinan Holdings (19,5%), Ontime Automotive (100%) and the DH Mansfield Group (80%) in the United Kingdom, Mumbai Airport (6,75%) and other listed and unlisted investments.