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However, wide-ranging and stringent new regulations such as Base
Erosion Profit Shifting and country-by-country reporting require
companies to be more strategic with a focused approach to internal
controls around these matters. Within Bidcorp we estimate our
exposure to these issues to be negligible. However, the cost of
compliance following a query on such matters can be onerous,
especially in terms of management time.
Cost efficiency and shared learning synergies
In all geographies, ongoing focus is applied to identify areas of
potential saving. This results in innovation being deployed to
drive efficiency gains. Learnings and ideas are shared across our
businesses, notably in the e-commerce arena, helping us implement
smart solutions faster and with minimal disruption and cost.
The year ahead
Bidcorp made a robust debut in 2016. This creates a sound foundation
from which to pursue further growth. Our financial position is strong,
free cash flow is good and our people are committed to the vision of
being a global leader in the foodservice industry.
We have ample financial resources to pursue opportunities to sustain
ongoing organic growth and strategic expansion into appropriate
markets.
Interest rates in many countries served by Bidcorp are low and, in
some cases, negative. Some fell even lower early in our 2017 year.
Where appropriate, we have renegotiated funding arrangements to
capture the benefits of these lower rates. We are also undertaking a
review of current gearing levels across the group in order to enhance
returns, without departing from our fundamental practice of matching
assets and liabilities in the same currencies.
Opportunities abound in each of our markets for an entrepreneurially
led business like Bidcorp, providing scope for further consolidation and
market share gains. Management teams have demonstrated a talent
for growth despite difficult environmental circumstances, something
that will serve us in good stead going forward.
David Cleasby
Chief financial officer
Leadership review
Bidcorp Limited Annual integrated report 2016 |
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