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Chairman’s statement
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Continued profit ensures continued
Bidvest has again maintained its record for consistent growth. In every market served by our Group, economic growth was low or fell below initial expectations. In some cases, outright recession set in, yet the decentralised, locally empowered Bidvest model proved resilient. This is good news for all stakeholders as continued profit ensures continued employment as well as a continued flow of dividends. At the same time, well capitalised businesses can continue to contribute to local communities while investing in their future sustainability. The future was a key focus of all our operations. In all our businesses innovation is constant. Continued efficiencies are assisted by recycling and the reduction of environmental impacts. We equip our people with new skills, we support enterprise development and we foster the increased participation of the black majority in the economic life of Bidvest’s home base here in South Africa. We continually strengthen the structures that will assure robust governance and promote the work of transformation. To this end, the board recently set up a Group social and ethics committee, a body designed to ensure Bidvest maintains and strengthens its reputation as a fair, honest and transparent company that behaves with a sense of responsibility and a promise of fairness to all stakeholders. |
The year was also notable for independent verification that black ownership of our Group stands at 25,8% even after a share repurchase arrangement that enabled the Dinatla empowerment consortium to realise value of more than R2 billion. Unlocking value for black shareholders while maintaining strong black ownership credentials is a significant achievement and testimony to the sturdy empowerment structure that Bidvest has established over the years. Another long-term achievement is the Group’s record as a company that consistently enhances shareholder value and maintains a solid dividend flow. In 2012, our headline earnings per share (HEPS) increased by 27,4% to 1 474,2 cents per share and the board approved a final cash dividend of 342,0 cents per share. For this commendable performance I thank the people of Bidvest, at all levels in every industry and all national markets. I also extend my appreciation to my fellow directors and to chief executive Brian Joffe and his executive team for a job well done. During the year, Myron Berzack, Peter Mageza and Lilian Boyle resigned. In order to deal with directors’ succession plans and accommodate a smaller board to conform with modern corporate governance norms, a process was undertaken by the nominations committee to address these matters. We welcome the appointments of Paul Baloyi, Eric Diack, Alexander Maditsi and Lorato Phalatse and look forward to their contribution to the Group. Fred Barnes, Lionel Jacobs and Joe Pamensky will not be offering themselves for re-election. Simultaneously Muriel Dube, Mathabo Kunene and Peter Nyman have tendered their resignation to be effective from the annual general meeting date. Alan Salomon, who retires by rotation, has agreed not to make himself available for re-election. Due to the growth of the Bank under his guidance and the perceived conflicts of interest with his executive responsibilities as chief executive of Bidvest Bank, the board believes that his independence is good governance and thanks him for his acceptance of this assigned responsibility. The directors concerned have given many years of combined service and contribution to the growth and development of Bidvest and are sincerely thanked for their years of loyalty and dedication. Challenges will doubtless continue in the year ahead, but I am confident that our businesses are well positioned for the immediate and long-term future. Change comes without a guarantee. However, opportunities and challenges are always attached. Those opportunities will be grasped and the challenges addressed, and I look forward to another year of growth.
Cyril Ramaphosa |