Half-year Financial Report

Bidvest Group (UK) PLC (The)

02 March 2026

 

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The Bidvest Group (UK) PLC

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The Bidvest Group (UK) PLC

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The Bidvest Group Limited                                        

(Incorporated in the Republic of South Africa)

(Registration number 1946/021180/06)

Share code: BVT SJ

ISIN ZAE000117321

("Bidvest" or the "Company" or "guarantor")

UNAUDITED FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2025

SALIENT FEATURES

·    ZAR66.7 billion revenue, +4%

·    Trading profit to ZAR6.7 billion, +7%

·    Trading profit margin of 10.1%, + 31bps

·    ZAR6.1 billion cash generated by operations, +36%

·    Free cash two billion rand higher to ZAR3.8 billion

·    Normalised HEPS 1 065.3 ZAcents, +5.3%

·    HEPS 989.4 ZAcents, +5.1%

·    Group EPS 1 020.3 ZAcents, +0.4%

·    Group HEPS 1 038.2 ZAcents, +2.2%

·    Interim dividend of 495 ZAcents, +5.3%

Bidvest Bank and Bidvest Life continue to be reported as Discontinued Operations. Financial metrics refer to continuing operations unless specifically stated otherwise.

Executive overview

Bidvest delivered a commendable and resilient result in a very competitive operating environment.  Revenue growth, strong gross margin expansion and disciplined cost control resulted in a 6.9% increase in trading profit to ZAR6.7 billion and a trading margin uplift to 10.1%. All divisions contributed positively to profit growth. The strategy of building the largest international hygiene business is gaining traction, with the hygiene services operations now contributing 55% of Services International trading profit.

Cash flow generation was excellent with free cash almost two billion rand more than the same period last year, delivering on our stated commitment to increase free cash generation. The improved cash conversion ratio of 69.8% supported ZAR3.8 billion in free cash delivered in the six months. This was a combination of more cash generated by operations, lower net working capital investment and broadly stable capex spend. The elevated focus on cash generation is key to achieving our objective of deleveraging the balance sheet and creating economic value. 

A new USD500 million seven-year bond was raised in September 2025, enabling the Group to address upcoming debt maturities and extend tenor at tighter spreads. The debt mix was fine-tuned to optimise the risk adjusted cost of debt while maintaining an overweight variable profile to benefit from additional expected rate cuts.

Annualising capital investment in the business ran ahead of the rolling twelve-month increase in profitability, resulting in a ROFE of 37.6% (1HFY2025: 37.9%) and ROIC of 13.4% (1HFY2025: 14.4%). The pressure on returns is expected to ease in the second half due to limited M&A activity, and even stronger free cash generation. ROIC remains above the Group's weighted average cost of capital.

Continuing operations HEPS and Normalised HEPS¹, a measurement used by management to assess the underlying business performance, grew by 5.1% and 5.3%, respectively.

Group basic earnings per share (EPS) increased from 1 016.1 ZAcents to 1 020.3 ZAcents, or 0.4%, the result of 3.1% growth in continuing operations EPS and a decrease in profit after tax from discontinued operations.

The Group declared an interim dividend of 495 ZAcents per share, 5.3% higher year on year.

(1)       Normalised HEPS, which excludes acquisition costs, amortisation of acquired customer contracts and the impact of one-off taxation events, is a measurement management uses to assess the underlying business performance

Prospects

Our key priorities remain improved organic growth, stronger cash generation to drive deleveraging while simultaneously improving returns. 

Organic growth will be supported by continued demand for hygiene services, hospitality services and strong inbound travel volumes. Our testing, inspection and compliance services operations have more than doubled in size, providing a larger platform for continued growth. Improved performance is expected form our expanded automotive brand representation and used vehicle market operations. Synergies from the delisted Adcock will be explored. Delivery of large power related contracts has already gained momentum. Margin pressure from restructured and renewed contracts as well as price deflation will remain headwinds but new contract mobilisations and the annualisation of acquired businesses will boost growth.

Cash generation was superb and further improvement is expected in the seasonally stronger working capital period ahead. Free cash flow and disposal proceeds will be used to repay debt as further capital deployment will be limited. We expect to finish the financial year at a lower net debt / EBITDA.

We are focused on rebuilding the return profile of Bidvest as we recognise that ROIC has moderated in the recent years as we expanded our geographic footprint and niche services offering. As communicated, no material M&A is planned while we are deleveraging and growth capex will be concentrated in Freight. Engagement with regards to private sector participation in South African ports is progressing well, with finalisation of key contracts on the horizon. 

Our macroeconomic view is that in South Africa, there is reason for optimism. Interest rates are at their lowest in more than two decades, inflation is declining and will remain modest given the newly adopted SARB target of 3.0%. 2026 economic growth forecasts have been revised upwards, our sovereign credit was upgraded and high commodity prices are a welcome tailwind. Structurally, there is also no doubt that progress continues to be made in electricity and rail reforms while the removal of South Africa from the FATF grey list opens the door for investment flows.

Whilst economic activity is expected to remain muted in our international territories, structural demand drivers such as urbanisation and rising health and wellness awareness remain intact and supportive of growth over the medium- to long-term. Lacklustre economic demand will be countered with margin management, cost efficiency and enhanced sales strategies and capacity. Our international operations now have the requisite scale to optimise buying synergies whilst sharing innovation, technology and AI best practice to drive performance. 

Focus will remain on what we can control, operational agility, innovation and free cash generation to deliver sustainable value to all stakeholders.

Dividend declaration

In line with the Group dividend policy, the directors have declared an interim gross cash dividend of 495.0 ZAcents (396.0 ZAcents net of dividend withholding tax, where applicable) per ordinary share for the six months ended 31 December 2025 to those members registered on the record date, being Friday, 27 March 2026. The dividend has been declared from income reserves. A dividend withholding tax of 20% will be applicable to all shareholders who are not exempt.  

Share code:	BVT
ISIN:	ZAE000117321
Company registration number:	1946/021180/06
Company tax reference number:	9550162714
Gross cash dividend amount per share (ZAcents):	495.0
Net dividend amount per share (ZAcents):	396.0
Issued shares at declaration date:	340 274 346
Declaration date:	Monday, 2 March 2026
Last day to trade cum dividend:	Tuesday, 24 March 2026
First day to trade ex-dividend:	Wednesday, 25 March 2026
Record date:	Friday, 27 March 2026
Payment date:	Monday, 30 March 2026

Share certificates may not be dematerialised or rematerialised between Wednesday 25 March 2026, and Friday 27 March 2026, both days inclusive. 

Regulatory requirements

The contents of this short-form announcement are the responsibility of the Board of directors of the Group and have been prepared in compliance with the JSE Limited's Listings Requirements. These are the summarised results of the full announcement for the year and do not contain full or complete details of the financial results. Any investment decisions made by investors and/or shareholders should be based on consideration of the full announcement as a whole as the information in this announcement does not provide all the details and shareholders are encouraged to read the full announcement which is available for viewing on the Company's website (www.bidvest.co.za) and https://senspdf.jse.co.za/documents/2026/jse/isse/BVT/1HFY26.pdf  

The information in this announcement has been extracted from the Interim Condensed Consolidated Financial Report. The results have not been audited or reviewed by the Group's auditors and have been prepared under the supervision of the Chief Financial Officer, MJ Steyn, BCom CA (SA).

Date: 2 March 2026

Johannesburg

Board of Directors

For additional information, please contact:

Ilze Roux, Bidvest Executive: Corporate Affairs, [phone], [e-mail]

 

END