Bidvest on Monday reported an 8.4% growth in revenue for the year ended June 2018, to R77 billion, while trading profit was up 8.2% to R6.5 billion.<\/p>\n
Five of its seven divisions grew trading profit despite challenging economic conditions, it said.<\/p>\n
Headline earnings increased by 11.9% to R4.1 billion, while headline earnings per share (HEPS) increased by 11.1% to 1 231.6 cents.<\/p>\n
A final dividend of 301 cents per share was declared, up 14%.<\/p>\n
“Bidvest delivered a strong result in a volatile market characterised by weak economic growth and consumer spend, as well as significant business and political uncertainty. The value of a diversified portfolio and the quality of the underlying businesses continues to manifest in the performance of the South African trading operations,” it said.<\/p>\n
Bidvest Bank and the Insurance cluster reported a flat result with trading profit up by 1.0%.<\/p>\n
“Fleet contract roll-off, the termination of a major short-term rental contract and the negative new business drag from the fast growing life insurance activities were material headwinds to both revenue and trading profit. The investment portfolio performed strongly, the group said.<\/p>\n
No big public sector fleet contracts were secured during the year despite a promising pipeline as decision-making was postponed.<\/p>\n
Looking ahead, Bidvest said it expects continued growth will be achieved.<\/p>\n
“There is, however, an expectation that economic growth and a return to more robust consumer spending in the current financial year will be lacklustre until policy and political certainty emerges post the national election in 2019.<\/p>\n
“The main concern remains government’s ability to drive infrastructural spending and the ongoing maintenance at certain key\u00a0entities and facilities. It is incumbent on the State to initiate larger programmes of development to kick-start the\u00a0 South African economy.”<\/p>\n
However, it pointed to ‘pockets of activity and opportunities’ that exist across the economy.<\/p>\n
Sufficient headroom exists to advance 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.<\/p>\n
“Internationally, we target expansion in the chosen niche areas of services and commercial products,” Bidvest said.<\/p>\n