Artwell Dlamini
18 November 2008
Johannesburg — BIDVEST says it plans to list its Namibian unit on the Windhoek-based bourse next year and intends to continue making strategic acquisitions despite the financial crisis.
Non executive chairman Cyril Ramaphosa said the diversified group was consolidating its Namibian businesses into Bidvest Namibia ahead of a planned listing on the Namibian Stock Exchange.
"Bidvest Namibia plans to go public in 2009," Ramaphosa said in an annual report.
"We regard the Namibian listing as a model for future developments in all African states in which we have commercial interests," he said.
Most of SA's neighbouring states were gearing up for prosperity, and political and economic reforms, he said.
Bidvest Namibia operates fishing interests and commercial assets.
CEO Brian Joffe said the company was "performing reasonably well" in spite of the economic downturn.
Joffe said high interest rates, spiraling inflation and lower consumer confidence had "only limited impact on most Bidvest operations until late in the year".
He acknowledged Bidpaper Plus and Bid Auto had underperformed.
"Both were impacted by the effects of a retail market under pressure," he said.
Improved earnings reflected good contributions from Bidserv, Bidvest Asia Pacific and South African food businesses, he said.
For the financial year to June , Bidvest's trading profit rose 17,3% and revenue increased 15,5% to R110,5bn.
Ramaphosa said Bidvest's broad range of trading and service activities had limited its direct exposure to the consumer economy.
Joffe also said the company expected trading conditions to remain challenging and "could worsen in the first half of the next financial year" and that businesses in the UK and Europe "may have to contend with some economic headwinds".
Tough business conditions in several markets create opportunities for acquisition growth. "Our balance sheet remains strong ," Joffe said.
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