Bidvest’s promising returns

Bidvest Namibia, the NSX listed fishing and commercial services group, has announced a strong performance for the half year to December 30, 2011. Trading profit was up 43,5% over the corresponding period to N$316,4 million (2010: N$220,6 million). Revenue also increased by 35,4% to N$1,146 billion (2010: N$846,2 million). An interim dividend of 23 cents per share was declared.

Chief Executive Officer Sebby Kankondi said that the, “results are pleasing and were driven mainly by high catch rates at our flagship horse mackerel fishing business, supported by strong African demand and firm market prices.

“A weaker Namibian dollar was also beneficial. All businesses within our fishing division achieved profits at operating level and it was encouraging to see a significant contribution from Pesca Fresca, our Angolan joint-venture.

“We commend the Ministry of Fisheries and Marine Resources for increasing the TAC (Total Allowable Catch), and welcome the new participants in the industry. Competing fishing grounds in Mauritania and the South Pacific are in decline, suggesting that international competitors will give growing attention to the well-managed resource off our coast,” he said.

Group results include the first contribution of newly acquired Taeuber & Corssen (T&C), the Namibia-wide distributor of consumer goods and local representative of numerous international brands. Bidvest Namibia bought 100% of the issued shares in T&C in a transaction announced at the end of September. The Group funded the N$188,7 million transaction through N$146,2 million in cash and the issuing of 5 million new ordinary shares.

“The benefits of the acquisition are coming on stream, but the full effects will not be evident until the second half and into 2012-13. The Bidvest Namibia balance sheet remains strong, our businesses are strongly cash generative and we remain alert for further acquisition opportunities,” he said.

The commercial division reported an encouraging turnaround, though Kankondi said the Caterplus foodservice operation and the Manica freight services business faced continuing pressure in highly competitive trading conditions.