Bidcorp released steady results on the back of stronger UK and European operations

Bidcorp listed on the JSE on 30 May 2016 and released their final results 30 June 2016. Bidcorp is an international broad-line foodservice group, spun off from Bidvest (JSE:BVT). The food services business has operations in five continents. 

Travis article 3

Bidcorp listed on the JSE on 30 May 2016. The original South African business only contributes about 5% to revenue and less than 9% to operating profit. Exchange rate volatility will continue to impact the results, however management will continue to focus on managing businesses in local currency.

Financial highlights:

Revenue                                   

R140,5 billion               

+20.8%   (2015: R116,3 billion)             

HEPS                                

1 080cps               

+32.5%  (2015 815,2 cps)    

Trading profit                          

R5,2 billion                           

+26.1% (2015: R4,1 billion)  

Revenue grew 20.8% to R140,5 billion (2015: R116,3 billion). Major contributors to the increases were the UK and European operations, reflecting organic growth and assistance from currency effects on translation. Revenue growth was dampened by the deliberate and planned exit of large contract business in various geographies. Acquisition costs of R8,9 million (2015: R43,6 million) reflect minimal acquisition activity as compared to the prior year. Smaller acquisitions include MPD (Czech - R162,0 million) and Caterfood and Cimandis (UK Foodservice - R464,0 million). Disposals include Patleys (Food Africa - R171,3 million) and groups minority share in the associate VCN (Netherlands - R51,6 million).

Management remains alert to opportunities and are confident of delivering further growth in the year ahead across all segments of the market; organically through a focus on the independent trade and appropriate business mix, supplemented by investment in fit-for-purpose infrastructure; through bolt-on acquisitions in territory to expand geographic reach and product range extension; and via larger acquisitions to enter new markets.

Dividend declaration

Group declared a final gross cash dividend of 241,0 cents per share:

Last day to trade cum dividend:   Tuesday, September 13 2016     

First day to trade ex-dividend:  Wednesday, September 14 2016

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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