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THE BIDVEST GROUP LIMITED - Audited financial results and cash dividend declaration for the year ended 30 June 2019

Release Date: 02/09/2019 07:05
Code(s): BVT     PDF:  
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Audited financial results and cash dividend declaration for the year ended 30 June 2019

("Bidvest" or "the Company")
(Incorporated in the Republic of South Africa)
Registration number: 1946/021180/06
Share code: BVT
ISIN ZAE 000117321


- Trading profit up 3.5% to R6.7 billion
- Both gross and trading profit margins improved
- Strong earnings growth in associate companies
- Headline earnings increased to R4.6 billion
- HEPS increased by 9.8% to 1 352.1 cents
- Normalised HEPS increased by 5.2%
- 23.3% ROFE and 18.4% ROIC
- Strong balance sheet maintained with conservative gearing
- R7.1 billion cash generated from operations
- R5 billion spend on acquisitions and capex
- Final dividend declared of 318 cents per share, up 5.6%
- More than 50% of individual businesses achieved Level 1 to 2 B-BBEE rating

Bidvest delivered a credible result in a market characterised by weak economic growth as well as significant business and
fiscal uncertainty and volatility. Exceptional cost and capital discipline as well as improved margins were highlights
against the volatile trading backdrop. The combined services businesses, comprising the Services, Freight and Financial
Service divisions, representing two-thirds of profit, grew trading profit by 6.4% while the profit from trading and
distribution businesses contracted slightly.

A strong focus on clients, solutions, innovation and wholesaling the right product at the appropriate price point as well
as several bolt-on acquisitions in the Services and Office and Print divisions culminated in acceptable growth. Bidvest
Corporate benefited from a strong performance in the property division as well as a fair value adjustment on MIAL.

Strong profitability gains were achieved at Adcock Ingram while Comair recognised the successful claim awarded against SAA,
which increased Bidvest's share of profits from these associate companies.

The trading profit grew by 3.5%. Services delivered a strong organic result, buoyed further by bolt-on acquisitions. Noonan
delivered an outstanding result. Freight delivered a good result on higher bulk and liquid commodity volumes handled through
South Africa's ports. Office and Print's result was excellent considering the significant challenges in this sector. The
results from the Commercial Products and Electrical results were somewhat disappointing while Automotive held its own.
Financial Services faced the headwinds of fleet contracts rolling off as well as poor insurance claim experiences and
insurance investment portfolio returns. Namibia produced poor results.

Good operational cash flow ensured that, despite acquisitions and continued investment in our businesses, the Bidvest
balance sheet remains robust (NAV +6,4% to R75.71 per share). Normalised HEPS grew 5.2% and EPS declined 1.6% due to the
contraction in the share prices of associates.

The core competencies and drivers of the Bidvest business remain firmly intact. The diverse portfolio of businesses and
extensive reach allow the Group to weather challenging times. Our basic-need services and everyday essential product ranges
enable the Group to support and add value to all its stakeholders. Innovation to disrupt ourselves, and the industries in
which we operate, remains a core focus alongside disciplined asset management and cost control.

South Africa needs real GDP growth in order to create employment and prosperity for all. This is both the public and private
sectors' responsibility. Government's ability to credibly address the precarious financial position of several SOEs,
initiation of development programmes and ongoing maintenance in key entities and facilities remains critical to kick-start
the South African economy.

Private sector needs to invest to establish and grow productive and efficient businesses and industries.

Bidvest will continue to strategically invest to generate sustainable profits for the long term, while remaining cognisant
of suitable timing for embarking on large scale investments.

Sufficient headroom exists to continue the Group's strategy of growth in its existing markets, as well as continuing to
acquire divisional bolt-on businesses, and to pursue larger, value adding opportunities locally. Internationally, we target
expansion in the chosen niche areas of Services and Commercial Products. Adcock Ingram will be consolidated from 1 August
2019. The acquisition of Eqstra is expected to close by end 2019.

Bidvest is well positioned to participate in pockets of activity and opportunities. Management, therefore, expects that
continued growth will be achieved and shareholder value created in the current financial year.

In line with the Group dividend policy, the directors have declared a final gross cash dividend of 318 cents (254.4000 cents
net of dividend withholding tax, where applicable) per ordinary share for the year ended 30 June 2019 to those members
registered on the record date, being Friday, 20 September 2019.

This brings the total dividend for the year to 600 cents per share (2018: 556 cents), an increase of 7.9%. The dividend has
been declared from income reserves. A dividend withholding tax of 20% will be applicable to all shareholders who are not

Share code: BVT
ISIN: ZAE000117321
Company registration number: 1946/021180/06
Company tax reference number: 9550162714
Gross cash dividend amount per share: 318.0
Net dividend amount per share: 254.4000
Issued shares at declaration date: 339 078 662
Declaration date: Monday, 2 September 2019
Last day to trade cum dividend: Tuesday, 17 September 2019
First day to trade ex-dividend: Wednesday, 18 September 2019
Record date: Friday, 20 September 2019
Payment date: Monday, 23 September 2019
Share certificates may not be dematerialised or rematerialised between Wednesday, 18 September 2019,
and Friday, 20 September 2019, both days inclusive.

The contents of this short-form announcement are the responsibility of the board of directors of the Group. These are the
summarised results of the full announcement for the year and do not contain full or complete details of the financial
results. Any investment decisions made by investors and/or shareholders should be based on consideration of the full
announcement as a whole and shareholders are encouraged to read the full announcement which is available for viewing on the
Company's website ( and

The full announcement is available for inspection at the registered office of Bidvest, Bidvest House, 18 Crescent Drive,
Melrose Arch, Melrose, Johannesburg, 2196, South Africa and at the offices of Bidvest's sponsors, Investec Limited, 100
Grayston Drive, Sandown, Sandton, 2196, South Africa.

Inspection of the full announcement is available to investors at no charge, during normal business hours from 2 September

The information in this announcement has been extracted from the Audited Summarised Consolidated Financial Statements, but
the short-form announcement itself has not been reviewed by the Company's auditors. The Audited Summarised Consolidated
Financial Statements have been prepared under the supervision of the Chief Financial Officer, MJ Steyn, BCom CA(SA).

The Consolidated Financial Statements for the year ended 30 June 2019 have been audited by PricewaterhouseCoopers., who
expressed an unmodified opinion. The Auditor's Report does not necessarily report on all of the information contained in
this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the
Auditor's engagement, they should obtain a copy of the Auditor's Report, together with the accompanying financial information
from the Company's registered office.

For and on behalf of the board
EK Diack LP Ralphs
2 September 2019

Sponsor: Investec

Date: 02/09/2019 07:05:00
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