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The Bidvest Group has placed Bidvest Bank as a discontinued operation in its latest financial results ahead of the bank's sale to Nigerian giant Access Bank.
In its results for the six months ended 31 December 2024, the group said that its Financial Services segment was dismantled, and a formal process was started to dispose of Bidvest Bank and FinGlobal.
This is the group's first results with the operations excised from the finances, showing the beneficial impact of the discontinuation and sale.
Bidvest Bank is a full-service bank offering customers foreign exchange, fleet, business and personal financial solutions, while FinGlobal mainly focuses on emigration services.
The remaining Financial Services short-term insurance businesses were transferred to the group's Automotive segment.
In December 2024, Nigeria's largest lender by assets, Access Bank, agreed to acquire 100% of the share capital of Bidvest Bank for R2.8 billion.
Access Bank is a full-service commercial bank with 60 million customers globally and a network of over 700 branches in 23 countries across three continents.
The acquisition is expected to close in the second half of 2025, subject to regulatory approvals.
When the acquisition is concluded Bidvest Bank will be merged with the Access Bank's existing South African subsidiary.
Momentum Strategic Investments also agreed to acquire 100% of the share capital of FinGlobal in December 2024.
The Bidvest Group has also received binding offers from existing life insurers for 100% of Bidvest Life's share capital and claims.
"As announced in December 2024, we are pleased with the respective signed offers that make both financial and strategic sense whilst also providing continued employment for employees," said the group.
Bidvest said that the relevant requirements of IFRS 5 mean that Bidvest Bank, FinGlobal and Bidvest Life were all classified as discontinued operations.
When it comes to financial accounting, discontinued operations are reported separately from continuing operations on the income statement.
Bidvest said that the comparative consolidated income statements, consolidated statement of cash flows and financial reporting were restated to show the discontinued operation separately from continuing operations.
Moreover, the disposal group is measured and presented at the lower carrying amount and fair value, with a lower cost to sell.
Financials
Bidvest said its results for the period were decent despite the expected headwinds in bulk commodity movements and renewable energy products.
The group was also affected by Adcock Ingram's unexpectedly poor performance, which the group owns a majority share in.
The majority of the Bidvest business generated substantial and consistent profits, with four of the group's six divisions reporting trading profit growth.
"The majority of Bidvest businesses generated substantial and consistent profits, with four of the six divisions reporting trading profit growth," said the group.
"This performance was driven by continued demand for everyday essential products and services supplied by the Group across most sectors of the economy."
"New business growth, additional tank capacity and bolt-on acquisitions helped to mitigate the impact of price-sensitive customers and weaker than anticipated discretionary consumer spend."
Group revenue increased by 5.7% to R64.5 billion, while a slightly lower overall gross profit margin of 27.6% was achieved, mainly due to a large divisional mix shift.
Four of the six divisions reported good trading profit growth, with the group's Freight and Commercial Products and Adcock taking a hit.
The Freight Business was hit by no maize export volumes handled and the cycling of the elevated renewable energy sales base.
Adcock Ingram was hurt by low consumer spending, reduced inventory holdings and factory under-recoveries.
The group's basic earnings per share (EPS) increased by 5.8% from 960.8 cents to 1,016.1 cents on the back of a 1.3% contraction in continuing operations EPS.
It was also boosted by a huge increase in profit after tax from discontinued operations as depreciation and amortisation were suspended in terms of IFRS and healthy trading profit from all three entities.
Group HEPS increased by 2.8% to 1,015.5 cents, with a net impairment recognised on the disposal group held-for-sale in the prior period moderating growth.
The group also slightly increased its return to shareholders, increasing its interim dividend by 1% to 470 cents per share.
In its results for the six months ended 31 December 2024, the group said that its Financial Services segment was dismantled, and a formal process was started to dispose of Bidvest Bank and FinGlobal.
This is the group's first results with the operations excised from the finances, showing the beneficial impact of the discontinuation and sale.
Bidvest Bank is a full-service bank offering customers foreign exchange, fleet, business and personal financial solutions, while FinGlobal mainly focuses on emigration services.
The remaining Financial Services short-term insurance businesses were transferred to the group's Automotive segment.
In December 2024, Nigeria's largest lender by assets, Access Bank, agreed to acquire 100% of the share capital of Bidvest Bank for R2.8 billion.
Access Bank is a full-service commercial bank with 60 million customers globally and a network of over 700 branches in 23 countries across three continents.
The acquisition is expected to close in the second half of 2025, subject to regulatory approvals.
When the acquisition is concluded Bidvest Bank will be merged with the Access Bank's existing South African subsidiary.
Momentum Strategic Investments also agreed to acquire 100% of the share capital of FinGlobal in December 2024.
The Bidvest Group has also received binding offers from existing life insurers for 100% of Bidvest Life's share capital and claims.
"As announced in December 2024, we are pleased with the respective signed offers that make both financial and strategic sense whilst also providing continued employment for employees," said the group.
Bidvest said that the relevant requirements of IFRS 5 mean that Bidvest Bank, FinGlobal and Bidvest Life were all classified as discontinued operations.
When it comes to financial accounting, discontinued operations are reported separately from continuing operations on the income statement.
Bidvest said that the comparative consolidated income statements, consolidated statement of cash flows and financial reporting were restated to show the discontinued operation separately from continuing operations.
Financials
Bidvest said its results for the period were decent despite the expected headwinds in bulk commodity movements and renewable energy products.
The group was also affected by Adcock Ingram's unexpectedly poor performance, which the group owns a majority share in.
The majority of the Bidvest business generated substantial and consistent profits, with four of the group's six divisions reporting trading profit growth.
"The majority of Bidvest businesses generated substantial and consistent profits, with four of the six divisions reporting trading profit growth," said the group.
"This performance was driven by continued demand for everyday essential products and services supplied by the Group across most sectors of the economy."
"New business growth, additional tank capacity and bolt-on acquisitions helped to mitigate the impact of price-sensitive customers and weaker than anticipated discretionary consumer spend."
Group revenue increased by 5.7% to R64.5 billion, while a slightly lower overall gross profit margin of 27.6% was achieved, mainly due to a large divisional mix shift.
Four of the six divisions reported good trading profit growth, with the group's Freight and Commercial Products and Adcock taking a hit.
The Freight Business was hit by no maize export volumes handled and the cycling of the elevated renewable energy sales base.
Adcock Ingram was hurt by low consumer spending, reduced inventory holdings and factory under-recoveries.
The group's basic earnings per share (EPS) increased by 5.8% from 960.8 cents to 1,016.1 cents on the back of a 1.3% contraction in continuing operations EPS.
It was also boosted by a huge increase in profit after tax from discontinued operations as depreciation and amortisation were suspended in terms of IFRS and healthy trading profit from all three entities.
Group HEPS increased by 2.8% to 1,015.5 cents, with a net impairment recognised on the disposal group held-for-sale in the prior period moderating growth.
The group also slightly increased its return to shareholders, increasing its interim dividend by 1% to 470 cents per share.
Source - businesstech
