Bidvest cleans up during pandemic

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Industrial conglomerate Bidvest, the operations of which span from cleaning services to property interests, upped its interim dividend after experiencing strong demand for hygiene-related services during Covid-19.

The group raised its interim dividend 2.8% to 290c per share in its six months to end-December, about a R987m payout, benefiting from strong demand for Covid-19-related work.

Trading profit from continuing operations grew 3.5% to R4.1bn, off a pre-pandemic base, enhanced by the consolidation of PHS, the UK’s biggest commercial cleaning service.

Group revenue grew 3.4% to R44.4bn, while cash generated from operations surged 86.2% to R6.2bn, amid focus on working capital management, as well as cost containment.

Trading profit in the group’s services segment — about 30% of revenue — jumped 37.9% to R1.7bn.

Michaele Avery caught up with new CEO Mpumi Madisa, to talk about taking over the reins during a pandemic and where the margin value sits in the hygiene business and how the firm plans to deploy capital into value enhancing growth acquisitions.
1 Mar 2021 11AM English South Africa Business · Investing

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