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.
The shareholders of Bidvest Namibia are informed that on 10 April 2019, Bidvest Namibia received a Binding Conditional Offer (“”Offer”) from Bidvest Group, the majority shareholder of Bidvest Namibia, to acquire all of the shares held by the minority shareholders in Bidvest Namibia (“Bidvest Namibia Shareholders”) at 10.50 per share, which Offer will be subject to inter alia the successful passing of the De-listing Resolution as set out in the conditions, together with the take-over statement and Offer amounts to a takeover scheme.
Shareholders of Bidvest Namibia are informed that Bidvest Namibia has received a intended binding offer from Bidvest Group, the majority shareholder of Bidvest Namibia, in terms of which Bidvest Group intends to make an offer to acquire all of the outstanding ordinary shares in Bidvest Namibia not currently held by Bidvest Group, by way of a take-over scheme. The amount offered in terms of the Intended Conditional Offer is a cash only consideration of N$10.50 per Offer Share, subject to the successful passing of the De-listing Resolution as set out in paragraph 2 below.
Investors are referred to the NENS announcement released on August 31, 2018 relating to the finalization announcement of the sale by Bidvest Namibia of the entire issued capital of Bidvest Fisheries Holdings to Tuncar Fisheries. The results of Bidfish have been presented as discontinued.
Further to the cautionary announcement dated December 12, 2018, 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 continue to exercise caution when dealing in Bidvest Namibia´s securities until a final announcement is made.