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March 2 2009

The Bidvest Group Limited - Results for the half year ended December 31

BVT - The Bidvest Group Limited - Results for the half year ended December 31 2008 The Bidvest Group Limited

Registration number 1946/021180/06
Share code: BVT ISIN: ZAE000117321

Results for the half year ended December 31 2008
Revenue +11,3% to R60,0 billion
Trading profit +6,4% to R2,6 billion
Basic earnings per share +8,7% to 530,4 cents
Headline earnings per share -8,9% to 454,0 cents
Distributions per share -13,6% to 190,0 cents
(based on closing price of February 26 2009)

Consolidated income statement for the Half year endedYear ended December 31 June 30 2008 2007 Percentage 2008 R000s Unaudited Unaudited change Audited Revenue 59 990 887 53 884 531 11,3 110 477 551 Cost of (48 238 (43 711 260) (88 785 765) revenue 631) Gross income 11 752 256 10 173 271 15,5 21 691 786 Other income 181 066 197 842 267 357 Operating (9 318 599) (7 913 027) (16 624 277) expenses Sales and (6 205 722) (5 223 674) (11 201 947) distribution costs Administration (2 237 292) (1 993 116) (4 234 615) expenses Other costs (875 585) (696 237) (1 187 715) Trading profit 2 614 723 2 458 086 6,4 5 334 866 Net finance (562 891) (445 468) (931 040) charges Finance income 58 222 49 311 88 396 Finance (621 113) (494 779) (1 019 436) charges Share of 29 320 59 081 121 962 profit of associates Dividends 26 238 24 388 25 526 received Share of 3 082 34 693 96 436 current year earnings Non trading 44 019 (46 544) 9 041 items Net profit 293 672 (50 019) (60 480) (loss) on disposal of investments in subsidiaries, associates and operations Net loss arising on closure and reorganisation of operations (239 239) - - Reorganisation (165 338) - - costs Impairment of (73 901) - - property, plant and equipment Profit (loss) on disposal of property, plant and equipment (4 227) 3 475 46 747 Impairment of (6 204) - (63 722) goodwill Negative 17 - 86 496 goodwill recognised in income Profit before 2 125 171 2 025 155 4,9 4 534 829 taxation Taxation (477 456) (525 576) (1 199 960) Profit for the 1 647 715 1 499 579 9,9 3 334 869 period Attributable to: Shareholders 1 594 074 1 480 024 7,7 3 252 884 of the Company Minority 53 641 19 555 81 985 shareholders 1 647 715 1 499 579 9,9 3 334 869 Shares in issue Weighted 300 514 303 283 303 159 (`000) Diluted 302 932 310 195 308 075 weighted (`000) Basic earnings 530,4 488,0 8,7 1 073,0 per share (cents) Headline 454,0 498,1 (8,9) 1 068,0 earnings per share (cents) Diluted basic 526,2 477,1 10,3 1 055,9 earnings per share (cents) Diluted 450,4 487,0 (7,5) 1 051,0 headline earnings per share (cents) Distributions 190,0 220,0 (13,6) 495,0 per share (cents)* *Includes distribution from share premium and capitalisation issues

HEADLINE EARNINGS

The following adjustments to profit attributable to shareholders were taken into account in the calculation of headline earnings: Profit 1 594 074 1 480 024 7,7 3 252 884 attributable to shareholders of the Company Impairment of 80 105 - 63 722 property, plant and equipment, goodwill and intangible assets Property, 73 901 - 21 113 plant and equipment Goodwill 6 204 - 16 753 Intangible -- 25 856 assets Net loss (293 672) 50 019 60 480 (profit) on disposal of investments in subsidiaries, associates and operations Net loss 4 227 (3 475) (46 747) (profit) on disposal of property, plant and equipment and intangible assets Property, 4 227 (3 475) (46 789) plant and equipment Intangible -- 42 assets Negative (17) - (86 496) goodwill recognised in profit Attributable -- 33 to minority shareholders Tax effect (20 461) (15 972) (6 072) Headline 1 364 256 1 510 596 (9,7) 3 237 804 earnings Rand/Sterling exchange rates Opening rate 15,893 14,180 14,180 Closing rate 13,704 13,691 15,893 Average rate 15,206 14,140 14,645 Segmental analysis for the Half year ended Year ended December 31June 30 2008 2007 Percentage 2008 R000s Unaudited Unaudited change Audited REVENUE Bidfreight 10 729 253 10 580 870 1,4 21 992 703 Bidserv 3 644 707 2 955 021 23,3 6 424 538 Bidvest Europe 19 329 869 16 007 122 20,8 33 683 788 Bidvest Asia 8 790 206 6 575 119 33,7 14 467 388 Pacific Bidfood 2 650 759 2 195 275 20,7 4 418 919 Caterplus and 1 705 122 1 478 667 15,3 2 925 383 Speciality Bidfood Ingredients 945 637 716 608 32,0 1 493 536 Bid Industrial and 4 969 103 4 594 101 8,2 9 403 025 Commercial Products Bidpaper Plus 1 167 584 1 020 377 14,4 1 937 393 Bid Auto 8 822 511 9 989 525 (11,7) 18 467 468 Bidvest Namibia 860 399 568 952 51,2 1 377 328 Corporate458 587 494 483 (7,3) 993 501 Ontime Automotive 450 397 489 923 (8,1) 973 259 Investment and 8 190 4 560 79,6 20 242 other income 61 422 978 54 980 845 11,7 113 166 051 Inter Group (1 432 (1 096 (2 688 eliminations 091) 314) 500) 59 990 887 53 884 531 11,3 110 477 551 TRADING PROFIT Bidfreight 365 456 330 874 10,5 690 813 Bidserv 489 401 384 816 27,2 838 659 Bidvest Europe 396 262 410 379 (3,4) 879 844 Bidvest Asia 285 729 251 300 13,7 551 403 Pacific Bidfood 217 634 186 138 16,9 358 792 Caterplus and 128 594 110 296 16,6 214 290 Speciality Bidfood Ingredients 89 040 75 842 17,4 144 502 Bid Industrial and 324 912 329 500 (1,4) 790 140 Commercial Products Bidpaper Plus 130 305 126 591 2,9 220 192 Bid Auto 214 382 353 617 (39,4) 742 994 Bidvest Namibia 126 013 30 009 319,9 164 002 Corporate64 629 54 862 17,8 98 027 Bidprop 69 491 54 190 28,2 98 650 Ontime Automotive (19 967) (10 913) (21 591) Investment, other 15 105 11 585 30,4 20 968 income and corporate costs 2 614 723 2 458 086 6,4 5 334 866 Consolidated cash flow statement for the Half year ended Year ended December 31 June 30 2008 2007 2008 R000sUnaudited Unaudited Audited Cash flows from operating activities Operating profit (including 2 684 980 2 435 930 5 369 433 dividends from associates) Depreciation and 745 314 703 767 1 432 651 amortisation Other non-cash items (107 985) 39 662 14 909 Cash generated by3 322 309 3 179 359 6 816 993 operations before changes in working capital Changes in working capital (2 405 069) (2 527 161) (730 298) Cash generated by917 240 652 198 6 086 695 operations Net finance charges paid (562 892) (367 145) (1 237 784) Taxation paid (650 677) (691 432) (1 166 305) Distribution of share (833 646) (761 148) (761 148) premium by Company Dividends paid by (19 385) (10 640) (22 995) subsidiaries (1 149 360) (1 178 167) 2 898 463 Cash effects of investment activities Net additions to vehicle (24 806) (124 055) (215 948) rental fleet Net additions to property, (1 058 677) (976 278) (2 341 plant and equipment458) Net additions to intangible (70 378) (179 652) (228 525) assets Net disposal (acquisition) 247 374 (1 042 456) (1 290 of subsidiaries, 245) businesses, associates and investments (906 487) (2 322 441) (4 076 176) Cash effects of financing activities Proceeds from shares issued 36 131 - 47 972 Net issue (purchase) of (49 384) 63 783 (560 435) treasury shares Net borrowings raised 182 484 1 713 393 1 180 666 Net increase in bank 1 442 098 1 650 182 972 087 overdrafts 1 611 329 3 427 358 1 640 290 Net increase (decrease) in (444 518) (73 250) 462 577 cash and cash equivalents Net cash and cash3 038 618 2 374 442 2 374 442 equivalents at beginning of period Exchange rate adjustment (105 504) (10 603) 201 599 2 488 596 2 290 589 3 038 618 Consolidated balance sheet at December 31 June 30 2008 2007 2008 R000sUnaudited Unaudited Audited ASSETS Non-current assets 17 017 052 14 613 196 17 250 060 Property, plant and 9 632 011 8 175 995 9 556 529 equipment Intangible assets529 638 404 857 486 471 Goodwill 3 996 419 3 912 432 4 556 137 Deferred tax asset 412 199 396 104 397 297 Defined benefit pension 120 200 - 120 983 surplus Interest in associates 640 862 664 517 972 039 Investments 1 252 468 712 766 782 371 Banking and other advances 433 255 346 525 378 233 Current assets 24 754 750 22 234 444 24 611 325 Vehicle rental fleet 679 058 613 049 654 252 Inventories 8 731 101 7 876 548 8 389 646 Short-term portion of 438 103 277 764 244 688 banking and other advances Trade and other receivables 12 417 892 11 176 494 12 284 121 Cash and cash equivalents 2 488 596 2 290 589 3 038 618 Total assets 41 771 802 36 847 640 41 861 385 EQUITY AND LIABILITIES Capital and reserves 13 538 700 11 538 793 13 778 085 Attributable to 13 192 736 11 287 679 13 467 629 shareholders of the Company Minority shareholders 345 964 251 114 310 456 Non-current liabilities 5 770 660 4 975 618 4 680 474 Deferred tax liability 204 555 324 263 220 993 Life assurance fund 26 491 41 127 33 478 Long-term portion of 4 493 441 3 824 403 3 546 908 borrowings Post-retirement obligations 496 697 383 574 477 286 Long-term portion of 222 6 450 - banking liabilities Long-term portion of 361 377 244 705 218 152 provisions Long-term portion of 187 877 151 096 183 657 operating lease liabilities Current liabilities 22 462 442 20 333 229 23 402 826 Trade and other payables 15 233 696 13 787 079 17 200 173 Short-term portion of 437 001 236 917 290 397 provisions Vendors for acquisition - 7 049 6 127 Taxation 302 269 218 249 511 427 Short-term portion of 590 570 275 013 356 130 banking liabilities Short-term portion of 5 898 906 5 808 922 5 038 572 borrowings Total equity and 41 771 802 36 847 640 41 861 385 liabilities Number of shares in issue 300 887 304 171 300 575 Net tangible asset value 2 880 2 292 2 803 per share (cents) Consolidated statement of changes in equity for the Half year ended Year ended December 31 June 30 2008 2007 2008 R000sUnaudited Unaudited Audited Shareholders' interest Issued share capital 15 044 15 209 15 029 balance at beginning of 15 029 15 143 15 143 period in terms of share incentive 40- 54 scheme net movement in treasury (25) 66 (168) shares Share premium arising on (2 303 068) (880 088) (1 456 shares issued 154) balance at beginning of (1 456 154) (182 657) (182 657) period in terms of share incentive 36 091 - 47 918 scheme refund of share premium to (833 646) (761 148) (761 148) shareholders net movement in treasury (49 359) 63 717 (560 267) shares Foreign currency 924 664 1 007 131 1 968 975 translation reserve balance at beginning of 1 968 975 1 158 151 1 158 151 period realisation of reserve on - - 25 disposal of subsidiaries arising during the current (1 044 311) (151 020) 810 799 period Statutory reserves 7 984 13 398 13 049 balance at beginning of 13 049 16 691 16 691 period transfer to retained income (5 065) (3 293) (3 642) Equity-settled share-based 238 492 195 432 220 559 payment reserve balance at beginning of 220 559 165 664 165 664 period arising during the current 17 933 29 768 54 895 period Movement in retained 14 309 620 10 936 597 12 706 171 earnings balance at beginning of 12 706 171 9 453 517 9 453 517 period profit attributable to 1 594 074 1 480 024 3 252 884 shareholders of the Company change in fair value of 4 310 (237) (3 872) available-for-sale financial assets transfer from statutory 5 065 3 293 3 642 reserves Capital and reserves 13 192 736 11 287 679 13 467 629 attributable to shareholders of the Company Minority shareholders balance at beginning of 310 456 198 457 198 457 period attributable profit 53 641 19 555 81 985 dividends (19 385) (10 640) (22 995) share of movement in 2 474 1 132 4 053 foreign currency translation reserve share of movement in equity- 3473 126 settled share-based payment reserve changes in shareholding (1 256) 42 537 48 830 345 964 251 114 310 456 Total equity 13 538 700 11 538 793 13 778 085 Comment Solid trading results were delivered for the half year to December 31 2008.

Basic earnings per share rose 8,7% however headline earnings per share declined by 8,9%. The decline in headline earnings is in part due to the expensing of R165,3 million in closure and reorganisation costs in certain operations within motor retail, the UK foodservice and Ontime Automotive businesses. Without these closure and rationalisation costs headline earnings per share would have decreased by 0,8% on the previous interim period. Decisive actions were taken to put the Group in a stronger position at a time of uncertainty and worldwide economic recession. Difficult times provide opportunities and Bidvest is alert to the potential this offers. Earnings reflect a number of good contributions, notably from Bidserv, Bidvest Australasia and the South African food businesses. Areas of underperformance reside principally in 3663 First for Foodservice in the United Kingdom and Bid Auto.

Bid Auto's poor trading performance can in the main be attributed to the prevailing high interest rate environment, a sharp decrease in consumer spending and consumers inability to obtain vehicle finance. 3663's performance declined markedly as the severity of the recession in the UK impacted consumer confidence and compounded weaker trading. Rand weakness had a positive effect on the translation of the UK earnings. The rand traded at an average of R15,21 (2007: R14,14) against sterling. Working capital management remains an area of critical focus in an environment of heightened debtor delinquencies and the inflationary impact on inventory holdings. Tightening controls to improve returns on funds employed remains management's number one priority. Capital expenditure in all operations is being revisited and prioritised in view of the current economic climate. Financial overview Revenue grew 11,3% to R60,0 billion (2007: R53,9 billion). Growth reflected market share gains in many instances. The trading margin was slightly down at 4,4% (2007: 4,6%) reflecting in the main the drop in the Bid Auto performance. Our balance sheet remains strong and is appropriately capitalised. Key focus areas remain the delivery of adequate returns on recent infrastructure investments in the medium term and the aggressive management of costs and working capital as the threat of deflation looms. Net debt rose to R7,9 billion (June 2008 R5,6 billion) driven by seasonal working capital demands. Interest cover at 4,7 times reflects adequate borrowing capacity. Finance charges increased 26,4% to R562,9 million reflecting higher interest rates and the refinancing of term loans in the last quarter of the previous financial year. Bidvest's conservative attitude to debt remains appropriate in the current climate.

Divisional review

Bidfreight Reasonable results were achieved, though contracting volumes and growing margin pressures were experienced by several operations. Trading profit was up 10,5% to R365,5 million while revenue was marginally higher at R10,7 billion. Bulk liquids performed well, buoyed by increased capacity and rental adjustments. Good results were returned by SA Bulk Terminals. SACD Freight recorded satisfactory results. Commodity exports are down and there was no sign of an uptick of exports on the back of the weaker rand. Port Operations experienced declines in the export of steel, forest products and ferrochrome. Imports of cement and rice also fell. Bulk Connections performed satisfactorily, though manganese volumes tailed off in the second quarter. Clearing and forwarding's results were negatively impacted as seafreight volumes were flat while airfreight volumes fell by 15%. Marine performed well, driven by vehicle exports and the higher activity levels within port operations. Operations in Mozambique traded in an increasingly competitive environment. Operations in Southern Africa showed a good improvement over the prior year with increased volumes of agricultural products handled.

Bidserv Excellent overall performance saw first-half trading profit rise 27,2% to R489,4 million while revenue grew 23,3% to R3,6 billion. The 57,9% return on funds employed was also pleasing. Prestige Group produced pleasing results in view of significant cost pressures in the cleaning sector. Bid Travel Services performed below expectation as its industry felt the economic slowdown. Travel brands are engaged in rigorous cost control. TMS was well ahead of last year, benefiting from the significant investment made in additional capacity. Steiner showed some growth but was below expectation. Laundry division benefited from good results from a buoyant garment rental market but was impacted by falling occupancy rates in the hospitality industry. Industrial products continued to perform exceptionally well, benefiting from the country wide rollout of G Fox. The results of Konica Minolta and Oce were well up on last year benefiting from contractual wins. Magnum put in another improved performance but Provicom was weaker which impacted the overall Security division. Global Payment Technologies recovered strongly as demand for its products gained momentum. BidAir's performance was up on last year, but further improvement is expected from the new management team. TopTurf met expectations, though activity levels have fallen. Hotel Amenities Supplies was impacted by falling hotel occupancy rates. Bidvest Bank and Master Currency performed exceptionally well, driven by product innovation and new branch openings. Bidvest Europe Results were disappointing other than the Benelux businesses, with overall trading profit falling 3,4% to R396,3 million. Revenue rose 20,8% on last year to R19,3 billion, somewhat ahead of budget. The UK economy's biggest quarter-on-quarter decline since 1980 (a decrease of 1,5%) occurred at the end of calendar 2008 following the onset of the financial crisis.

The major impact was seen in certain segments of 3663 First for Foodservice in the UK. The sector in which 3663 operates, the hospitality segment was one of the hardest-hit components of the overall quarterly GDP decline, with a drop of 2,4%. The chief challenge was margin pressure. Corrective action was reflected in lower than budgeted overhead costs. The Barton Meat Company was closed and together with other rationalisation costs, an exceptional charge of GBP11,8 million was taken. Trading profit fell at the Wholesale division while Logistics made a loss. Major projects to cut costs are being implemented. Trading profit at DeliXL Netherlands was significantly up on the previous year. Hospitality volumes began to diminish in the second quarter while sales rose in the institutional and catering markets. At Deli XL Belgium sales and trading profit were slightly behind projections, but well ahead of the previous year.

In Dubai, Horeca grew revenue at improved margins, hence improving trading profit. Bidvest Asia Pacific Overall results were good. Revenue grew 33,7% to R8,8 billion. Trading profit was 13,7% higher at R285,7 million. The consolidation of divisional figures masks under-performance particularly in Singapore and to a lesser degree in Hong Kong and China. Pleasing results were achieved by Bidvest Australia, despite a stalling economy. Revenue rose 15,1% to A$819,8 million. Trading profit of A$31,1 million was up 15,3%. Organic growth drove sales, though food inflation buoyed the results. It was a creditable performance in a flat market and reflects continued market- share gains. The business remains cash generative with solid working capital management. Foodservice performed well, with trading profit up 10,0% on 11,7% sales growth. Hospitality had a strong second quarter and QSR achieved a satisfactory result in tough conditions.

Bidvest New Zealand performed satisfactorily. Trading profit rose 12,1% to NZ$9,9 million, though margins were under pressure. Revenue increased 15,3% to NZ$215,5 million. Management performed well in challenging conditions as the economy experienced four consecutive quarters of contraction. All divisions - Foodservice, Fresh and Logistics - performed ahead of expectations. Angliss Singapore suffered a trading loss of S$276K following major second quarter losses arising from falling food commodity prices, in particular poultry. Trading profit in the prior period was S$5,6 million. Revenue rose to S$166,4 million. Singapore is in recession, with markets characterised by massive competitor de-stocking in the wake of falling beef, pork and poultry prices. Angliss Hong Kong achieved profit of HK$21,3 million (2007: HK$24,4 million), though revenue of HK$866,0 million was only marginally below target. Profitability was severely impacted in the second quarter by the dumping of stock by competitors as banks squeezed credit lines and the Chinese market for western style product shrank significantly. Bidfood Satisfactory performances were achieved overall, with revenue up by 20,7% to R2,7 billion while trading profit rose 16,9% to R217,6 million. Caterplus and Speciality achieved continued growth in a challenging environment, with trading profit rising by 16,6% to R128,6 million off revenue of R1,7 billion, a rise of 15,3%. Caterplus continued its strategy of growing market share through increasing the average spend per customer and the average value of each drop. The business offers the most comprehensive `basket' of goods, creating competitive advantage in a difficult market. Rigorous expense management and improved cash flow contributed to a satisfactory performance. Trading conditions remain challenging, with increased credit risk. Capacity constraints in several branches impeded growth. New Cape premises are nearing completion and new facilities are planned for a number of other regions. Speciality with its basket of aspirational food brands delivered satisfactory results. The economic slowdown and falling confidence had particular impact on consumers in the middle and upper income bracket who drive demand for Speciality's brands. Speciality limited the impact through aggressive brand promotion and efficient distribution. Bidfood Ingredients (BFI) achieved pleasing results, with trading profit up 17,4%. All trading businesses performed well with the exception of NCP Yeast, who were unable to pass on abnormal raw material price increases timeously. Factories grew profitability with a notable turnaround in Chipkins Bakery Ingredients. Debt exposure is being closely monitored and stock positions are under scrutiny as the risk of deflation has grown. BFI continues to strengthen its technical base through Bid Food Technologies while seeking strategic alliances with major suppliers.

Bid Industrial and Commercial Products A satisfactory overall result was achieved in largely adverse trading conditions. Trading profit eased 1,4% lower to R324,9 million off revenue of R5,0 billion, an 8,2% increase. A falling copper price and a slowdown in the housing and retail sectors created challenges. The Electrical Wholesale division grew revenue by 6,0% while trading profit fell 2,5%. Many customers faced with shrinking order-books extended their traditional December shutdowns. Falling copper prices precipitated a reduction of inventory levels. Stock holdings fell by R112 million by December. The division continued its intensive cost-cutting. Concerted efforts to grow the businesses exposure in the infrastructure and energy efficiency segments continued. Stationery division performed exceptionally well with trading profit up 45,7%. Walton's performed well, benefited from store openings and refurbishments. Kolok's significant improvement was driven by improved trading conditions and the benefits of a weaker rand. Trading profit and revenue at the Furniture division were well below projections. Stock levels are being re-evaluated. Afcom GE Hudson achieved pleasing growth in trading profit while well-controlled expenses led to improved performance at Buffalo Executape. Vulcan Catering Supplies achieved acceptable results despite a tight market. Bidpaper Plus A solid result was returned in a challenging market, with revenue up 14,4% to R1,2 billion while trading profit increased 2,9% to R130,3 million. Results include the contribution of newly acquired Rotolabel and the inflationary effect of input cost increases. Products linked to credit transactions were impacted by credit constraints while businesses also felt the knock-on effects of a retail sector under pressure. A slow start to the year was followed by a gradual recovery in sales. Strong improvement was seen in the stationery distribution business following an aggressive drive for market share by a revitalised Croxley brand. The Rotolabel acquisition and the consolidation of label factories in Gauteng drove improvements in the labels and packaging business. Traditional print put in a weaker performance, though the Cape rationalisation is now complete and related costs were absorbed in the period. The laser and mail business achieved a measure of earnings growth. Working capital management remains a focus area.

Bid Auto Trading profit was negatively impacted by three major factors namely the prevailing low level of business confidence, a sharp decline in consumer spending and thirdly, the inability of many customers to obtain vehicle finance. A trading profit of R214,4 million was recorded, a decline of 39,4% when compared to the prior year. Revenue was down from R10,0 billion to R8,8 billion. Motor Retail was severely affected by the decline in new vehicle sales volumes of 24,2%. Dealership cost structures contain a large element of fixed costs which require high volume throughput. The sudden and severe decline in sales gave rise to excessive levels of inventory and a high incidence of discounting and overtrading. Consequently, our dealerships experienced much reduced trading margins. Burchmore's Car Auctions produced pleasing results due to an increase in bank repossessions and the success of its "wholesale to the public" marketing programme. The Used Vehicle departments are beginning to show both volume and margin improvement and our Parts and Service departments continue to produce strong results. Due to the much lower than anticipated sales of the vehicle ranges imported from China, the Value Centre and Value Serve networks incurred substantial losses. This necessitated the closure of 16 Value Serve outlets and 7 Value Centres at a cost of R30,3 million. The Import and Distribution business was significantly impacted by the losses incurred in the importation of these Chinese vehicles due to the weaker rand and declining sales volumes. Yamaha delivered trading profits significantly behind those of the prior year. Heavy Equipment continues to grow and recorded a pleasing result. Financial Services performed well considering current business conditions. The Insurance operations were however, negatively affected by the mark-to-market adjustment of the Equity Portfolio. Increased impairments for doubtful debts contributed to a poor performance by McCarthy Finance. McCarthy Fleet Solutions delivered impressive profit growth over the prior year. Car and Van Rental profitability declined due to an over-fleeted rental market which resulted in competitor price wars. Working capital management has been a key focus area, resulting in a satisfactory reduction in inventory levels. Aligning working capital with activity levels will remain a priority as do aggressive cost cutting and efficiency improvements.

Bidvest Namibia Bidvest Namibia delivered excellent results, buoyed by a strong performance at the Bidfish division. Namsov in particular benefited from better catches, firmer prices and a weakening currency. All other businesses performed in line with expectation. The listing of Bidvest Namibia is anticipated to take place in the fourth quarter of the calendar year. Corporate Bidvest Properties continued to successfully manage and grow its strategic portfolio. UK-based Ontime Automotive was impacted by the GBP3,4 million cost of exiting the volume transport business, rationalisation of depots within Rescue and Recovery and the wind down of a major Parking Solutions contract. A slowdown in the prestige vehicle market negatively impacted the Specialist Transport business. The associate investment in Enviroserv Limited was sold with effect from November 2008 for a profit of R391,8 milion. Prospects The challenging economic conditions are set to continue as the realities of the fallout from the global financial crisis takes effect. The Group remains committed to its decentralised business model as the best foil to the risks associated with the worldwide economic climate. Our divisions continue to optimise opportunities across various geographies and industries whilst remaining focussed on the basic deliverables. Our balance sheet remains strong and we will continue to seek out strategic acquisition opportunities. Our focus remains on improving the management of working capital. In the medium term the goal is on increasing incremental returns from recent investments. The current environment is an opportunity to strengthen our skills base as human capital seeks strength and stability in a volatile market.

The `World Cup effect' is gaining momentum in South Africa as we move closer to 2010. Several opportunities have already been contracted and significant effort continues to be directed at achieving direct gains.

The economies of the UK and to a lesser extent Europe have slowed considerably. The UK businesses have taken some hard decisions and we are optimistic the rationalisation programme undertaken will yield improved results in the medium term. In Asia Pacific, we remain confident our Australian and New Zealand businesses are well placed to gain further market share and entrench their leading market positions. Our established bases in Hong Kong and Singapore continue to evolve and remain the springboard to growth in other geographies in the region. Bid Auto's markets should benefit from a falling interest rate environment and the increase in new car prices will improve the returns and demand in the used vehicle market.

We remain committed to sustained value creation through superior trading performance and returns improvement, whilst ensuring a prudent capital structure with appropriate leverage.

Appreciation

The directors and management of Bidvest wish to thank all staff for their efforts during these challenging times. The Board wishes to acknowledge the loyal and dedicated service by former Company Secretary, Mrs MA David and wish to express their condolences to her family on her passing.

For and on behalf of the Board MC Ramaphosa B Joffe Chairman Chief Executive

Distributions

Notice is hereby given that a dividend of 100,0 cents per share will be paid ("dividend") and a capitalisation issue will be awarded in the ratio of 1,0 new share per 100 shares held ("capitalisation issue"), to shareholders recorded in the register at the close of business on Friday, March 27 2009. The dividend and the capitalisation issue ("the distribution") collectively amount to the equivalent of 190,0 cents per share (2007 - 220,0 cents per share). The last day to trade "cum" the distribution will be Friday, March 20 2009. The shares will trade "ex" the distribution as from Monday, March 23 2009, and the record date will be Friday, March 27 2009. Share certificates may not be rematerialised or dematerialised during the period Monday, March 23 2009 to Friday, March 27 2009, both days inclusive. Payment of the dividend will be made on Monday, March 30 2009. In terms of the capitalisation issue, new shares will be issued and posted or credited to CSDP or broker accounts on Monday, March 30 2009. Trading in the Strate environment does not permit fractions and fractional entitlements. Accordingly where a shareholder's entitlement to new shares calculated in accordance with the ratio mentioned above gives rise to a fraction of a new ordinary share, such fraction will be rounded up to the nearest whole number where the fraction is greater than or equal to 0.5 and rounded down to the nearest whole number where the fraction is less than 0.5. The capitalisation issue may have tax implications for resident as well as non- resident shareholders. Shareholders are therefore encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to take. In terms of the Companies Act, the directors confirm that after the payment of the dividend, the company will be able to pay its debts as they become due in the ordinary course of business, and its consolidated assets, fairly valued, will exceed its consolidated liabilities. For and on behalf of the board DE Cleasby Company Secretary Johannesburg March 02 2009

Basis of presentation of financial statements The financial statements have been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards (IFRS) and the presentation and disclosure requirements of IAS34 - Interim Reporting. The accounting policies are consistent with those of the prior year. These financial statements have not been reviewed or audited by the Group's auditors. No material events occurred between Decemeber 31?2008 and the date of this interim report. There has been no material change in the Group's contingent liabilities since the last financial year end. Reclassification Certain operations have been transferred to other segments. Comparative results have been restated Analyst presentation The presentation to investors will be available on the Bidvest website from 10:00 on March 2 2009.

The Bidvest Group Limited
Incorporated in the Republic of South Africa ("Bidvest" or "the Group" or "the Company")

Directors

Chairman: MC Ramaphosa Independent non-executive: DDB Band, S Koseff, D Masson, JL Pamensky, NG Payne, Adv FDP Tlakula Non-executive: LG Boyle*, AA Da Costa (alternate LJ Mokoena), MBN Dube, RM Kunene, T Slabbert Executive: B Joffe (Chief executive), FJ Barnes*, BL Berson**, MC Berzack, DE Cleasby, AW Dawe, LI Jacobs, P Nyman, SG Pretorius, LP Ralphs, AC Salomon (*British **Australian) Company Secretary DE Cleasby Transfer secretaries Link Market Services South Africa (Pty) Limited 11 Diagonal Street, Johannesburg, 2001, South Africa PO Box 4844, Johannesburg, 2000, South Africa Registered office Bidvest House, 18 Crescent Drive, Melrose Arch Melrose, Johannesburg, 2196, South Africa PO Box 87274, Houghton, Johannesburg, 2041, South Africa Further information regarding our Group can be found on the Bidvest website www.bidvest.com

Sponsor: Investec Bank Limited
Date: 02/03/2009 07:05:07

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