Divisional overviews – Office & Print
Pleasing progress continues to be made across the division in streamlining businesses to better service customer needs. The market remained tough, which together with the non-recurrence of a significant voter registration project in Tanzania and the disposal of Kolok Mozambique, resulted in revenue declining by 4,0%. Trading profit ended down 6,9% after being 14,0% down at half-year. This was driven mainly by a volatile foreign exchange environment impacting Kolok and Konica Minolta margins. Management of expenses and funds employed was exceptional.
- Waltons has been operating since 1949 and remains a clear market leader. The plan to simplify the business remains on track under the new, revitalised management team.
- Silveray delivered excellent results off the back of improved efficiencies.
- Kolok results were disappointing as volumes and prices declined.
- Margin and expense management at Cecil Nurse drove results.
- Konica Minolta retained its position as the number one office automation company in South Africa, a position held since 2011.
- Zonke Monitoring Solutions achieved good growth.
- Bidvest Data delivered solid results as it continues to adapt to market changes and lowered the cost of doing business.
- Lithotech results were pleasing as they continue to offer a wider range of services to its customers.
- The Packaging division showed a noteworthy increase in trading profit, albeit driven by site rationalisations in a constrained demand environment.
The willingness to change to anticipate market shifts and improve business efficiencies and customer service is the key to success. The Office & Print team has excelled in this regard.
We have simplified business models, and strengthened the core Bidvest philosophies throughout the division. We live our values of decentralisation with genuine authority, autonomy and responsibility every day. We treat all our brands with the greatest care and respect since most – including Waltons, Cecil Nurse and Konica Minolta – are iconic South African brands. None of this is possible without the energy, drive and passion of our people.
Innovation, at its core, is about changing thinking and continually looking at better ways of doing things. We are continually assessing new ways of excelling and we do not hesitate in implementing innovative ideas across the division.
South Africa’s business environment has been characterised by low business confidence, and in this environment, we have placed our customers front and centre of everything we do. Technological innovation remains a focus across all companies.
We insist on all our companies completing their own respective B-BBEE scorecards and have achieved pleasing results. Efforts at improving employment equity also intensified and Waltons did particularly well.
Employment equity remains a focus across all companies. We are committed to leaving a good legacy in terms of our principles, philosophies and achievements.
Our people form the DNA of our underlying businesses and we continue to invest in them. Training spend increased 18% to R45 million.
Trading conditions are expected to remain tight going forward. We will continue to ensure remedial action is taken, where necessary, and retain our focus on margin, expense and asset management. Ensuring enhanced customer service is essential, as is protecting and growing our customer base. Consolidating gains, further extracting efficiencies, simplifying the various business models, and looking for suitable acquisitions (bolt-on or otherwise) are key focus areas going forward.