Bidserv

 

Highlights

  Trading profit up 11,4% to R933,9 million while revenue rises by 13,1% to R7,3 billion   
  Annuity model confirms its resilience in a challenging year  
  Technology innovation pays off in travel business and at Global Payment Technologies  
  Full-year effect of the ground handling ‘super licence’ boosts aviation services   
  Innovation and branch expansion drive Bidvest Bank success     
  Konica Minolta takes number one spot in office automation sector     
  Guarding operation stages strong recovery  

 

    Lindsay Ralphs, chief executive
 

  Financial indicators
(for the year ended June 30) 		 2009  
R'm  		 2008  
R'm  		 %  
change  
  Revenue   7 267,9   6 424,5   13,1  
  Trading profit   933,9   838,7   11,4  
  Operating profit   932,9   836,2   11,6  
  Operating assets   3 158,5   3 061,7   3,2  
  Operating liabilities   1 906,4   1 853,0   2,9  
  Depreciation   261,4   219,6   19,0  
  Amortisation and impairments of intangible assets   29,7   34,1   (12,9) 
  Goodwill and intangible assets   371,8   374,9   (0,8) 
         
         
  Sustainable development indicator overview   2009   2008   2007  
  Employees   61 247   63 493   62 139  
  Total training spend (R’000)  52 699   67 604   35 960  
  Training spend per employee (R)  878   1 065   579  
  Employees attending HIV/Aids training (%)  22,4   26,7   14,6  
  Lost time injury frequency rate   3,9   6,7   21,6  
  Work-related fatalities (number)  7   1   2  
  BEE procurement (R’000)  1 008 526   639 059   194 921  
  CSI spend (R’000)  9 487   11 970   9 129  
  Enterprise development spend (R’000) 18 590   8 960   *  
  Total water usage (litres ’000) 501 567   748 294   690 177  
  Total electricity usage (kWh ’000) 31 662   38 986   44 941  
  Petrol (litres)  8 143 985   6 461 372   5 503 226  
  Diesel (litres)  6 086 445   5 672 730   4 408 612  
  Total carbon emissions (tonnes)  104 090   109 216   *  
  Carbon emissions per employee (tonnes)  1,7   1,7   *  
*Information not collated, not relevant or not entirely reliable
The prior year numbers include subsidiaries that are now part of Bidvest Namibia. The numbers have not been restated as the impact is not significant


Strategic positioning

Bidserv has the resources, expertise, national reach and local availability to assist businesses of any size in various industries across a wide range of services.

Sustainable development

Bidserv is positioning its services to anticipate growing demand for greener products and services while benefiting from energy, water and other efficiencies.

Sustainability awareness is growing among employees as managers drive various initiatives and companies share smart solutions and learnings.

An executive unit focused on empowerment improvements helped to drive up BEE scores and take employment equity figures above the Group average.

Bidserv invests heavily in training, equipment and procedures to minimise the risk of operating in hazardous environments. Our lost time injury frequency rate is improving. In some regions we have over a million injury-free work hours.

Environmental accomplishments include reduced water, chemical and coal usage, conversion from PVC to PET in many products and adoption of the “reduce, recycle and reuse” principle. Major investments at our laundry services drive improved turn-around times for customers, increased energy efficiency and lower running costs.

A product range at Steiner Environmental Solutions is rated 70% green. Konica Minolta will plant 4 100 trees before calendar year-end in an effort to offset carbon emissions. Additional sustainability information is available on the Bidvest website.

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Performance

Strong first-half performance could not be maintained, but results for the full year were nevertheless reasonable. Trading profit rose 11,4% to R933,9 million (2008: R838,7 million) while revenue increased by 13,1% to R7,3 billion (2008: R6,4 billion). Businesses remained cash-generative following continued tight asset management and a major effort to reduce costs. Retrenchment and closure costs are reflected in the current period.

Benchmarks

Every unit works to a business plan and to benchmarks appropriate to each industry or specialisation. Performance criteria vary, but the key yardsticks in all businesses are operating profit, asset management, cash flows and return on funds employed. Twelve-month budgets are developed and measurement is against prior year.

As new strategic challenges emerge, greater emphasis may be placed on specific areas for improvement. Businesses are expected to respond quickly to new priorities without waiting for a one-year plan to run its course. In the second half, expense management and cost reductions became target areas and many teams responded promptly to fast-changing conditions.

First-half targets were largely achieved. Performance against budget in the second half fell below expectation as a result of a rapidly worsening economy.