Satisfactory trading results were produced for the year to June 30 2007. Headline earnings per share rose by 20,6% while trading profit increased by 24,3%. For 16 years, compound growth in headline earnings per share has exceeded 25% per annum.

Earnings reflect good contributions from international operations, notably Australasia, backed by strong results from our South African businesses. Areas of underperformance have been addressed through the implementation of new operational structures.

Revenue grew 23,8% to R95,7 billion. Performance was driven by organic growth and operational efficiencies across all existing businesses. Our acquisition of Angliss Asia occurred late in the period and had no material eff ect on earnings. The trading margin was largely stable at 4,7%. Rand weakness had a positive eff ect on the translation of off shore earnings. The rand traded at an average of R13,95 against sterling (2006: R11,44).

Basic earnings per share growth of 12,9% was recorded in the year, impacted primarily by the impairment of the Group’s interest in Tiger Wheels Limited of R178,3 million. Tiger Wheels Limited was suspended on the JSE following the announcement that its 74%-owned subsidiary ATS was unable to gather support from its funders to continue operating.

Bidvest’s empowerment partners, the Dinatla consortium, refinanced their investment. Bidvest facilitated the process at a R350 million net cost. Eighteen million Bidvest shares were purchased from Dinatla at R79,38 a share for R1,4 billion. Third-party funding of R1,3 billion covered the balance of Dinatla’s indebtedness. The first distributions have been paid to consortium members. The benefits of Bidvest’s facilitation of the transaction is reflected in the increase in the diluted headline earnings per share of 23,2%.

Cash generation and our balance sheet remain strong, however working capital absorption and further significant investments into capital expansions utilised funds. Net debt rose to R3,7 billion, though interest cover at eight times reflects the Group’s significant borrowing capacity. Hardening interest rates in South Africa and overseas highlighted the appropriateness of Bidvest’s conservative attitude to debt. The Group’s credit rating of AA- (zaf ) was affirmed by Fitch Ratings in March 2007.

In May 2007, the Group set up a domestic medium-term note programme, enabling us in due course to raise a total of R4,5 billion in corporate debt. An initial tranche of R1,5 billion was raised subsequent to year-end. Our primary objective is funding efficiency at levels that will assist us in repricing existing term loans.

Our two most significant structural changes involved Bidfood and Bidvest Australasia. In Bidfood, a unified management structure has been adopted at Caterplus while our food ingredient supply businesses have been consolidated. Bidvest Australasia has been given a new identity (Bidvest Asia Pacific) to reflect the wider scope of geographic activities.