Divisional reports

Office and Print

Sustainability

Konica Minolta carbon neutral status: Planted 46 001 trees over 11 years offsetting almost 17 000 tons of CO2

Packing operations recycled 110 tons of hazardous waste

R61m spend on training, learnerships and bursaries

Lufil introduced paper packaging alternatives to plastic

Kevin Wakeford, chief executive
The division delivered an excellent set of results considering the significant challenges.”
Kevin Wakeford, chief executive

Salient features

  • Trading profit up 5.0% to R735 million, revenues marginally up
  • ROFE: 33.0%
  • Product innovation and range extensions in trusted brands delivering results
  • Focused strategic actions over the last few years deliver positive impacts from good margin management, cost control, efficiencies and strategic acquisitions
  • Most companies performed well in challenging markets

Review of the year

The division delivered an excellent set of results considering the significant challenges in these sectors and the loss of the Zonke monitoring business in December 2017.

The year’s result was positively impacted by good overall margin management, excellent cost control, enhanced efficiencies, as well as contributions from the recent bolt-on acquisitions, namely, Aluminium Foil Converters and Make Me Mobile (both effective 1 July 2018), as well as Logo Print (effective 1 December 2018).

Waltons continues to see benefits from additional operating and technology efficiencies, and further simplification of the business. Revenue remains a focus.

Silveray’s margins were well managed and overheads were reduced, resulting in good trading profit growth. Product innovation and range extensions in trusted brands are standing this company in good stead.

Kolok delivered commendable growth in trading profit as gross margins were well managed.

Additional investments were made to Waltons’ online sales and marketing capabilities. The new warehouse configuration and management system will be implemented in FY20.

Konica Minolta bedded down the more onerous, lower margin Treasury contract and a strategic revitalisation is progressing well.

Data, Print and Packaging made an excellent contribution. In terms of the print businesses, Lithotech delivered a resilient result and Rotolabel benefitted from improved factory efficiencies. With regard to the packaging offerings, Lufil benefitted from additional new business, but Sprint had a difficult year exacerbated by fuel price increases.

Masterpack had a solid year assisted by the Logo Print acquisition while Aluminium Foil Converters was slightly below expectations from pressures in the dairy industry. Bidvest Data had a good year as higher sales were assisted by improved efficiencies. The new Bidvest Mobility entity created from the amalgamation of Bartrans and Make Me Mobile completed their integration in March 2019 and has met its planned trading profit targets.

Bidvest Mobility provides market leading products and software solutions in hand held computing.

The furniture businesses are feeling the effects of the constrained corporate market, but Cecil Nurse recovered from a poor first quarter to maintain profitability. There was excellent progress at the factory in reducing stock and improving controls. Dauphin continues to benefit from revised structures and philosophies implemented in the past, but the seating chair manufacturing business remains under pressure.

Looking forward

While there are some positive indications, the markets served by this division are not showing signs of any real improvement. However, very pleasing progress has been made on the numerous remedial actions across the division and right sizing businesses to current economic conditions. The various strategic actions implemented over recent years are showing results and will continue for the next financial year.