The performance of the Group for the six months ended 31 December 2017 has not been satisfactory. The majority of the trading divisions experienced a decline in revenue. Although some divisions showed improved trading profits, the Group’s overall trading profit declined significantly.
Challenges in the Fishing division, operational challenges in Food and Distribution together with a slowdown in the Namibian economy all had a negative impact on the Group’s overall results. The Fishing division sold another fishing vessel in the period to align the asset base with activity levels and made a capital profit of N$48,8 million. Revenue were negatively impacted by lower hard currency prices, as well as the strengthening of the Namibian Dollar against the US Dollar. New and increased legislative levies impacted the division negatively. A three-year moratorium has been placed by the Ministry of Fisheries and Marine Resources on the pilchard fishery for the period 1 January 2018 until 31 December 2020 due to insufficient resource available.
Freight and Logistics division improved its trading profit, despite a decrease in revenue. The results were boosted mainly by the increased project activities in a southern coastal town of Namibia. Food and Distribution remains a great concern. The division continues to incur losses. New management had been put in place and are busy restructuring the businesses and processes.
Commercial and Industrial Services and Products division improved trading profit despite revenue being flat compared to the same period in the previous year. The Automotive division experienced a significant drop in both revenue and trading profit. This division was mainly affected by lower consumer spending caused by the economic recession in the country. Cash generation improved markedly and the net tangible asset value of the Group increased.
Prospects Operational challenges in all the divisions are being addressed including the implementation of
cost-savings initiatives. Structural and procedural changes in Food and Distribution should reduce operational losses in this division in the next six months.
Bidvest Namibia has rightsized the horse mackerel fishing fleet. All fishing assets are being evaluated critically.
Automotive is focusing on improving revenue streams other than the sale of new vehicles. Overall, the Group remains focused on growing its current business, optimising operational structures and processes as well as alert to potential acquisition opportunities.
No interim dividend has been declared.
Bidvest Namibia hereby announces the unwinding of the Ovanhu and Endeni empowerment shareholding structures. Agreements were reached between Bidvest Group Limited (“Bidvest Group”), the majority shareholder in Bidvest Namibia, and the shareholders of Ovanhu and Endeni. In terms of these agreements Bidvest Group will acquire the entire share capital and all claims in Ovanhu and Endeni. Read the full details in the attached PDF.
Shareholders are advised that the Company has entered into discussions, which if successfully concluded, may have a material effect on the price of the Company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in Bidvest Namibia’s securities until a final announcement is made.
Notice is hereby given that the 28th annual general meeting of members of Bidvest Namibia Limited will be held at 1 Ballot Street, Windhoek, Namibia at 1 0:00 on Tuesday, November 20 2018.
Shareholders are advised that the integrated report for the year ended June 30 2018 will be available on October 22 2018. The audited results in the integrated report are identical to the audited results published on August 31 201 8. The integrated report is available on the website
of Bidvest Namibia.