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.
Pursuant to the cautionary announcements by Bidvest Namibia published on NENS dated November 8 2017, December 20 2017, January 31 2018, March 14 2018, April 25 2018 and June 6 2018, shareholders are advised that Bidvest Namibia, through its wholly owned subsidiary Bidvest Namibia Property Holdings (Proprietary) Ltd (“Bidvest Namibia Property”) has acquired the remaining issued share capital of Namsov Industrial Properties (Proprietary) Ltd (“NIP) and United Fishing Enterprises (Proprietary) Ltd (“UFE”), as at the effective date, subject to the terms and conditions as set out herein (“the transaction”).
More information in the attached PDF.
Pursuant to the cautionary announcements by Bidvest Namibia published on NENS dated November 8 2017, December 20 2017, January 31 2018, March 14 2018, April 25 2018 and June 6 2018, and the voluntary announcement published on NENS dated 1 2 July 2018 relating to the acquisition by Bidvest Namibia Property Holdings (Proprietary) Ltd (a wholly owned subsidiary of Bidvest Namibia), shareholders are advised that Bidvest Namibia has disposed of the entire issued share capital of Bidvest Namibia Fisheries Holdings (Proprietary) Limited (“Bidfish”) and/or any of the company’s subsidiaries as at the effective date to Tunacor Fisheries Limited (“Tunacor”) (“the transaction”), subject to the terms and conditions as set out herein.
More details in the attached PDF.
Further to the cautionary announcements dated November 8 2017, December 20 2017, January 31 2018, March 14 2018 and April 25 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 the Company’s securities until further announcements are made.
The Board of Bidvest Namibia hereby announces the appointment of Mr. Mark Steyn to the Board of Directors effective May 23, 2018.