Industrial conglomerate Bidvest on Monday reported double-digit increases in half-year revenue and headline earnings. Its share price jumped more than 6% in opening trading on Monday.
The JSE-listed company provides security, facility management and aviation services. It also has an automotive division, and offers commercial products, including protective clothing and equipment, plumbing and bathroom products, branded products for office use, niche packaging and pharmaceuticals, through its subsidiary Adcock Ingram. It also has a renewable energy division which designs and installs solar systems.
Bidvest posted a 15% increase in headline earnings, with revenue growth of 14% to R57.2 billion for the six months to December 2022. The company expected renewable energy, mining, agriculture, tourism and hospitality-related sectors to remain healthy.
The company hiked its interim dividend of 437c, which was 15% higher than the payout reported in the same period last year.
It believes it would continue to benefit from planned investments in alternative energy amid the electricity crisis.
Even as it expected consumer disposable income to come under pressure, it also reported that demand for select bulk commodities would remain robust, supporting terminal activity in the southern African ports.
The company said all its recent acquisitions were performing in line with expectations and that several corporate action opportunities were "being actively pursued", adding that its strong balance sheet was able to support its growth plans.
Bidvest's shares were trading at R248.74 on Monday morning, close to the highest level in the past year.