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| Highlights |
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Two substantial acquisitions were completed – Angliss and Viamax – though the Viamax transaction will be effective in September 2007 |
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For 18 years, annual compound growth in headline earnings per share has exceeded 25% |
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Cash flows generated by operations remain strong at R4,2 billion |
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Wealth creation of R17,0 billion (R14,1 billion) was registered |
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Income attributable to shareholders rose 13,0% to R2,7 billion (R2,4 billion) |
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Basic earnings per share growth of 12,9% to 899,4 cents |
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The stance on debt remains conservative, creating capacity for further acquisitions and continued infrastructure investment |
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| Introduction |
Our trading results were solid, reflecting good contributions from our Australasian operations backed by strong results from our South African businesses, particularly Bid Industrial and Commercial Products.
Interest paid on borrowings increased significantly, impacted by the full effect of the 250 basis point increase, increased working capital and capital expenditure to fund growth combined with weaker asset management.
Two significant acquisitions were concluded: the purchase of Angliss, a leading Asian foodservice business, and the purchase in South Africa of the Transnet-owned Viamax fleet management and leasing business. The Angliss transaction had no material affect on overall results in 2007. Organic growth and ongoing efficiency gains drove Bidvest’s performance, resulting in trading profit of R4,5 billion and revenue growth of 23,8% to R95,7 billion.
Headline earnings per share were pleasing at 970,0 cents (2006: 804,6 cents). Basic earnings per share growth of 12,9% to 899,4 cents was impacted by the impairment of the Group’s investment in Tiger Wheels Limited of R178,3 million. Tiger Wheels Limited was suspended on the JSE, SA following the announcement that its 74%-owned subsidiary, ATS, was unable to gather support from its funders to continue operating. |
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