TIDM51NI
RNS Number : 9400C
Bidvest Group (UK) PLC (The)
28 February 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")
UNAUDITED FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION FOR
THE SIX MONTHS ENDED 31 DECEMBER 2021
SALIENT FEATURES*
ZAR50 billion revenue, +13%
ZAR5 billion trading profit, +25%
ZARR7 billion cash generated by operations before ZAR3 billion
absorption in working capital
ROFE up to 40%
Group HEPS 813.8 ZAcents, +37%
Normalised HEPS 852.9 ZAcents, +31%
EPS 811.3 ZAcents, +44%
Interim dividend of 380 ZAcents, + 31%
* Continuing operations
Introduction
The Group's strong operating and financial results over this
past interim period reflect the agility of Bidvest's decentralised
leadership and team structure, the portfolio of value-adding
essential services, the financial muscle to invest in inventory and
capital projects, as well as the successful delivery of strategic
growth plans.
Trading profit grew by 24.8% to ZAR5.1 billion, with ZAR1.0
billion earned internationally. Robust cash generation by
operations of ZAR6.6 billion was delivered before absorbing ZAR2.6
billion in working capital as the seasonal trend returned. Capital
investment of ZAR1.2 billion was maintained and a ZAR0.5 billion
investment in a LPG terminal in Isando was approved.
The successful maiden issuance of an USD800 million
international bond bolstered the Group's financial capacity to
execute our international growth ambitions. The pipeline of
strategic growth opportunities continues to build.
Financial overview
All divisions reported double digit trading profit growth. This
is an excellent result considering the benign trading environment,
global supply chain constraints, increasing input price inflation
and continuing waves of the COVID-19 pandemic. The acquisitions
made by Noonan in the prior year delivered in line with
expectations.
HEPS grew by 35.3% to 813.8 ZAcents from continuing operations.
Normalised HEPS(1) , a measure used by management to assess the
underlying business performance, grew by 30.9% to 852.9 ZAcents.
Group EPS and HEPS increased by 46.2% and 37.0% to 811.3 ZAcents
and 813.8 ZAcents, respectively.
Return on Funds Employed (ROFE) improved significantly from
31.3% at 31 December 2020 to 40.4%. Return on Invested Capital
(ROIC) of 15.5%, which compares to 12.9% as at 31 December 2020, is
above the Group's weighted cost of capital.
Group NAV grew from ZAR75.14 in the prior period to ZAR81.62 as
at 31 December 2021.
(1) Normalised HEPS, which excludes acquisition costs,
amortisation of acquired customer contracts and COVID-19 costs, is
a measurement management uses to assess the underlying business
performance
Prospects
We are optimistic that demand and economic recovery is gathering
momentum. There are encouraging signs of a return to offices,
albeit from very low levels. Tender activity and building plans
passed are increasing, while customer engagement and procurement
decision making is picking up. A record maize season is expected
with strong export demand given adverse weather in other key maize
producing regions. Bulk commodity demand is expected to remain
robust. Demand for renewable and alternative energy solutions and
products is accelerating.
An optimised cost base, continuing efforts to improve
efficiencies and innovation, together with active gross margin
management will positively support future results, whilst
contending with rising inflation.
Effective, 1 April 2022, the Services division will split into
two divisions, Services SA and Services International, to better
support Bidvest's international growth strategy.
Dividend declaration
In line with the Group dividend policy, the directors have
declared an interim gross cash dividend of 380 ZAcents (304.0000
ZAcents net of dividend withholding tax, where applicable) per
ordinary share for the six months ended 31 December 2021 to those
members registered on the record date, being Friday, 25 March 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 380.0000
-------------------------
Net dividend amount per share 304.0000
-------------------------
Issued shares at declaration date 340 274 346
-------------------------
Declaration date Monday, 28 February 2022
-------------------------
Last day to trade cum dividend Tuesday, 22 March 2022
-------------------------
First day to trade ex-dividend Wednesday, 23 March 2022
-------------------------
Record date Friday, 25 March 2022
-------------------------
Payment date Monday, 28 March 2022
-------------------------
Share certificates may not be dematerialised or rematerialised
between 23 March 2022, and 25 March 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 half 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 (www.bidvest.co.za) and
https://senspdf.jse.co.za/documents/2022/jse/isse/BVT/1HFY2022.pdf
The full announcement is available for viewing on the Company's
website 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. at no charge, during normal business hours from
28 February 2022.
The information in this announcement has been extracted from the
Interim Condensed Consolidated Financial Statements. The results
have not been audited or reviewed by the Group's auditors and have
been prepared under the supervision of the Chief Financial Officer,
MJ Steyn, BCom CA (SA).
Date: 28 February 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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