TIDM51NI
RNS Number : 1821Y
Bidvest Group (UK) PLC (The)
05 September 2022
Tickers: 52AX, 51NI
The Bidvest Group (UK) PLC
3.625% SNR NTS 23/09/26
The Bidvest Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/021180/06)
Share code: BVT SJ
ISIN ZAE000117321
("Bidvest" or the "Company" or "guarantor")
AUDITED FINANCIAL RESULTS AND CASH DIVID DECLARATION FOR THE
FINANCIAL YEARED 30 JUNE 2022
SALIENT FEATURES*
R99.9 billion revenue, +13%
R9.7 billion trading profit, +23%
R11.5 billion cash generated by operations
ROFE up to 37.6%
Group HEPS 1 442.0 ZAcents, +22%
Normalised HEPS 1 601.5 ZAcents, +24%
EPS 1 492.2 ZAcents, +32%
Total dividend of 744 ZAcents, + 24%
* Continuing operations
Introduction
This year's exceptional operating and financial results were
delivered despite several domestic and global crises and rapid
changes in demand.
The ZAR9.7 billion reported trading profit is similar to the
profits pre the 2016 unbundling of the foodservice businesses. Cash
flows from operating activities, excluding dividends and on a
comparable basis, are almost ZAR0.5 billion higher. This is a
remarkable achievement in a mere six years.
For the first time, the Commercial Products division generated
trading profit of more than ZAR1.0 billion, another milestone. Four
of the seven Bidvest divisions now generate profitability in excess
of a billion rand each.
Bidvest has also made further progress with its international
growth ambitions, adding incremental value to stakeholders through
scale in existing territories and expanding its facilities
management footprint, post year end, into Australia for the first
time.
Investment in the Freight division to increase capacity in
terminals remains a focus with the Bidvest board approving two
projects, an inland LPG terminal and multi-purpose tanks in
Richards Bay, at a combined value of ZAR1 billion. Investment made
to increase capacity in factories and back-offices, as well as
inventory, has and will continue to yield good results. The
considerable strength of Bidvest's balance sheet remains a key
enabler.
Simultaneously, good progress has been made to reduce the
Group's environmental footprint, improve social and economic
well-being of business and communities, and offer customers more
innovative and sustainable products and services.
Financial overview
Excellent trading profit growth was delivered by six out of the
seven divisions, off a base that had already rebounded strongly
after the worst of the pandemic. Importantly, the performance was
emulated in operational cash generation. The successful inaugural
international bond issuance diversified and extended the capital
structure, enhancing the continued pursuance of Bidvest's growth
strategy.
HEPS from continuing operations grew by 21.9% to 1 442.0
ZAcents. Normalised HEPS(1) , a measurement used by management to
assess the underlying business performance, grew by 24.0% to 1
601.6 ZAcents. Basic EPS for the Group improved from 1 131.3
ZAcents to 1 492.2 ZAcents mainly due to the strong operational
performance and the net capital profit on disposal and closures
compared to losses and impairments in the prior period.
Return on Funds Employed (ROFE) improved significantly from
31.6% a year ago to 37.6%. Return on Invested Capital of 17.1%,
which compares to 14.1% as at 30 June 2021, remained well above the
Group's weighted cost of capital.
The total dividend for the financial year amounts to 744 ZAcents
per share, up 24.0%, after declaring a final dividend of 364
ZAcents.
Group NAV grew from ZAR75.14 in the prior period to ZAR83.46 as
at 30 June 2022.
(1) Normalised HEPS, which excludes acquisition costs,
amortisation of acquired customer contracts, deferred tax change
and COVID-19 costs, is a measurement management uses to assess the
underlying business performance
Prospects
The agility and diversity of the Group has presented
opportunities for continued operating efficiency and growth.
South Africa's mining and agricultural sectors remain robust,
whilst ongoing private sector investment and renewable energy
projects are contributing positively to demand. Local manufacturing
and production capacity has normalised, showing increased
activity.
Demand in the tourism and hospitality related areas has been
increasing, with the Group's platforms all geared for this upswing.
Basic product and service demand from improved corporate office
occupancy continues to rise, albeit on a price sensitive basis. The
Group's range of products offered, and its ability to customise
services and entrench value-added offerings, will stand it in good
stead. Throughout the Group, the ability to innovate service and
product offerings, with a strong sustainability undertone, is
entrenching business partnerships and adding real value to
customers.
Whilst the Financial Services division delivered a poor result,
recovery of this division represents material uplift for the Group
in the coming year. Strategies for the 2023 financial year have
been set and we expect digital migration, optimised credit
processes, fully resourced sales teams and entry into new niche
markets to significantly improve the division's results in the
coming year.
Entering the facilities management and general cleaning markets
in Australia will deliver new profit streams for the coming
financial year. The Group's intention remains focused on pursuing
acquisitive growth opportunities internationally in its selected
niches and operating regions.
Whilst we acknowledge the precarious global macro-economic
backdrop, rampant inflation and intensifying energy crises, we
remain confident that our strategic alignment over recent years,
the close management of operating costs, prudent cash conversion
and capital allocation, as well as an absolute focus on customer
growth, care and retention, will yield good operating and financial
results over the long-term .
Dividend declaration
In line with the Group dividend policy, the directors have
declared a final gross cash dividend of 364 ZAcents (291.2000
ZAcents net of dividend withholding tax, where applicable) per
ordinary share for the financial year ended 30 June 2022 to those
members registered on the record date, being Friday, 30 September
2022. The dividend has been declared from income reserves. A
dividend withholding tax of 20% will be applicable to all
shareholders who are not exempt.
Share code BVT SJ
ISIN ZAE000117321
-----------------------------
Company registration number 1946/021180/06
-----------------------------
Company tax reference number 9550162714
-----------------------------
Gross cash dividend amount per
share 364.0000
-----------------------------
Net dividend amount per share 291.2000
-----------------------------
Issued shares at declaration date 340 274 346
-----------------------------
Declaration date Monday, 5 September 2022
-----------------------------
Last day to trade cum dividend Tuesday, 27 September 2022
-----------------------------
First day to trade ex-dividend Wednesday, 28 September 2022
-----------------------------
Record date Friday, 30 September 2022
-----------------------------
Payment date Monday, 3 October 2022
-----------------------------
Share certificates may not be dematerialised or rematerialised
between Wednesday 28 September 2022, and Friday 30 September 2022,
both days inclusive.
Regulatory requirements
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 financial
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 investors and/or shareholders are
encouraged to read the full announcement which is available for
viewing on the Company's website (www.bidvest.co.za) and
https://senspdf.jse.co.za/documents/2022/jse/isse/BVT/FY22result.pdf
The Company's independent auditor, PwC Inc., has audited the
consolidated annual financial statements of The Bidvest Group and
has expressed an unmodified audit opinion thereon. The auditor's
report with Key Audit Matters together with the accompanying annual
financial statements and full announcement are available for
viewing on the Company's website (www.bidvest.co.za) and 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, during
normal business hours from 5 September 2022.
The information in this announcement has been extracted from the
audited summarised consolidated financial statements have been
prepared under the supervision of the Chief Financial Officer, MJ
Steyn, BCom CA (SA).
Date: 5 September 2022
Johannesburg
Board of Directors
For additional information, please contact:
Ilze Roux, Bidvest Executive: Corporate Affairs, +27 11 772
8745, ilze.roux@bidvest.co.za
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END
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(END) Dow Jones Newswires
September 05, 2022 02:00 ET (06:00 GMT)
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