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.
Shareholders of Bidvest Namibia are referred to the circular to Bidvest Namibia Shareholders containing details of a conditional take-over by the Bidvest Group to Bidvest Namibia Shareholders, to acquire all remaining Bidvest shares not owned by the Bidvest Group by way of a take-over scheme (‘offer’). Subsequent to the acceptance of the Delisting Resolution by the requisite majority, the offer has been declared unconditional by the Bidvest Group and has become effective, irrevocable an open for acceptance during the Acceptance Period.
Further to the cautionary announcement released on the Stock Exchange News Service (“NENS”) of the Namibian Stock Exchange (“NSX”) on 12 December 2018, the subsequent renewal of the Cautionary Announcement released on NENS on 23 January 2019 and 1 March 2019 and the announcements released on NENS on 11 April 2019 and 25 April 2019. Shareholders are hereby advised that the requisite majority of Bidvest Namibia shareholders eligible to vote, have approved the delisting. In terms of this passed resolution, the listing of all the Bidvest Namibia Shares of
Bidvest Namibia on the Main Board of the NSX be suspended and terminated with effect from 11 June 2019 or at such times and such dates as will be approved in accordance with the Bank of Namibia and by the NSX
Further to the cautionary announcement released on the Stock Exchange News Service of the Namibian Stock Exchange on 25 April 2019 relating to the circular to shareholders, supplementary information relating to the sum of the parts valuation, culminating in the fair and reasonable valuation range of N$8.95 to N$9.45 as per the E&Y Fair and Reasonable opinion included in the circular, is available on the this website.
Further to the cautionary announcement released on the Stock Exchange News Service of the Namibian Stock Exchange on 12 December 2018, the subsequent renewal of the Cautionary Announcement released on NENS on 23 January 2019 and 1 March 2019 and the announcement released on NENS on 11 April 2019. A combined circular has been issued today by Bidvest Namibia Limited and the Bidvest Group to a conditional Take-over offer in terms of sections 320 – 327 of the Companies Act….