Bidvest Namibia reports mixed financial results

Posted: 3 Mar 2019

Bidvest Namibia’s performance for the six months ended 31 December 2018 has shown mixed results from continuing operations despite a pleasing overall 3% increase in revenue and 50% increase in trading profit. All the divisions have experienced pressure on revenue due to the recession in Namibia.

The Automotive division, in particular, faces extremely tough times as reflected in the 9% decline in industry vehicle sales nationally. Efforts continue to reduce the dependence on the new-vehicle segment in this division. However, the used-vehicle sales and other after sales services were not able to make up for the overall negative performance.

Freight and Logistics revenues and trading profit improved on the back of certain Oil and Gas project activities. Food and Distribution revenue including Glenryck was flat and has generated further operating losses in the period. Glenryck performed poorly due to sourcing challenges and
T&C posted further losses albeit lower than in the past period. Cost savings and overall business rationalisation projects at T&C are showing some traction but slower than anticipated. The economic climate affected all entities in the Commercial and Industrial Services and Products division negatively. Despite this Rennies Travel, Minolco, Steiner and Waltons delivered an improved performance. Voltex continued to generate losses despite actions taken to turn the business around.

The effective tax rate is high due to losses incurred in certain statutory entities, for which no deferred tax assets were raised. Bidvest’s strategic decision to exit the fishing industry continued with the conclusion of the negotiation of a deal to dispose of its Angolan operations. A part payment of N$50 million has been received, and the finalisation of the transaction is dependent upon receiving the balance of the amount due. Bidvest is actively seeking the disposal of the Mozambican business, which has increased in value since year-end. These assets are reflected under assets held for sale. All proceeds due in respect of the disposal to Tunacor have been received (N$378 million) and are included in cash and cash equivalents of N$535 million.

The balance sheet remains strong with the Group in a net cash position at interim end. Cash generated from operations improved strongly, mainly due to a N$387 million release of working capital.

Presently there is no indication that the prevailing economic climate will improve in the short term. The operational challenges in all divisions are receiving attention with loss-making operations under continued spotlight. Further structural and procedural changes in Food and Distribution should reduce operational losses in the next six months. Overall, the Group remains alert to possible acquisitions.
However, the emphasis is on improving efficiencies within current operational structures and processes. The Group remains optimistic that profitability will regain momentum in the near future despite the recessionary
economic climate.

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. An interim cash dividend of 5 cents per share has been declared to members recorded in the register of the Company at the close of business on Friday, 29 March 2019. Shareholders are advised that the last day to trade “cum” the distribution will be Friday, 22 March 2019. The shares will trade “ex” the distribution as from Monday, 25 March 2019 and the record date will be Friday, 29 March 2019. Payment will be made on Friday, 5 April 2019.

Notice Board

Sens Timing of implemention of Bidvest Group Offer

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.

Sens Results of General Meeting: Declaration of withdrawl

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

Sens E&Y – Fair and Reasonable Opinion Supplementary Information

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.

Sens Circular Notice to Shareholders

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….

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