Industrial conglomerate Bidvest yesterday announced Brian Joffe would be stepping down after the unbundling of the Food Services unit later this year. He “will continue in South Africa as a director and in an executive role to deal with the strategic issues in acquisitions”. As far as the numbers go, Bidvest once again posted a decent set of results, in spite of the tough operating environment in South Africa. In its interims to December, turnover increased to 9.6% or R114.5bn, up from R104.4bn previously. Over the period, the group’s gross profit percentage increased to 20.5%, from 20.1%, resulting in an 11.6% increase in the group’s trading profit to R5.2bn. Earnings per share increased by 7.8% from 863.3 cents to 930.9 cents, while headline earnings per share increased by 13% to 1,001.5 cents. On 31 December 2015, the group’s net asset value stood at 12,897 cents, a 22% increase over the 10,557 cents at the end of 2014. Lastly, the board declared an interim dividend of 482 cents per share, a 13.1% increase over the 426 cent dividend declared a year ago.
Bidvest is consolidating at support. Traders should be buying between R305.50 and R306.50 with stop losses set just below the R300 horizontal support.
PROPOSED POOL AGREEMENT BETWEEN BIDVEST AND THE PUBLIC INVESTMENT CORPORATION (SOC) LIMITED (“PIC”) IN RESPECT OF 82,000,000 ADCOCK INGRAM HOLDINGS LIMITED (“ADCOCK”) ORDINARY SHARES