Bidvest South Africa, which has restructured its businesses into ten focused divisions, reports that it is optimistic that the still fragile economic recovery will be maintained in 2012 and that the company will achieve both revenue and trading profit growth.

In its 2011 annual report, Bidvest Group highlights that, while a measure of economic recovery was evident in most areas during the 2011 financial year, the rate of recovery differed in the various sectors.

The group’s Electrical division reported continuing depressed volumes and margins, as the demand from contractors for cable, electrical fittings and other products remained low, owing to lower activity in the construction sector.

Product exports to Botswana and Swaziland were also disappointing, but some success was achieved in selling products in Zambia.

Further, the division notes that the e-tolling system on Gauteng’s roads and increasing fuel prices could lead to higher costs for the division.

Meanwhile, the financial services division recorded a strong 2011 financial performance, emerging as one of the largest corporate vehicle and asset leasing businesses in South Africa, as well as a leading foreign exchange spe- cialist, the group states.

The division increased the number of retail banking branches from 88 to 90.

Further, Bidvest Bank became the first South African financial institution to include the Chinese yuan as a standard offering in its range of foreign banknotes, Bidvest notes.
The division also launched a private client foreign exchange service.

Bidvest Freight
The freight division continued to face congestion at its terminals, owing to the continuing shift from rail to road transportation and limited capacity at the country’s harbours.

“Our employees did well to expedite higher volumes in this difficult working environment,” the group states in the annual report.

Bidvest points out that international demand for commodities remained strong, while air freight volumes improved and good maize harvests were achieved.

Demand for bulk commodities increased, with Bidvest Freight reporting an increase in the throughput of bulk liquids and vegetable oils.

Further, the group states that import and export volumes for automotive components and fully built vehicles increased, while wine exports were lower owing to the strength of the rand.

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