Annual integrated report 2018

In May, Bidfood UK IT was named Technology Team of the Year at the Real-IT awards. Natural capital has long been a point of focus and work began to develop a “plastic pledge” to establish a baseline for plastic use in own brand products while exploring ways of reducing single-use plastics and boosting recycled content. The plate2planet online platform (a tool to help foodservice businesses share sustainability information and tips) has become a much-used resource. Other natural capital successes include a reduction of over 10% in emissions following refrigeration plant improvements and a 37% rise in recycled water consumption. In addition, over 120 000 sheets of paper were saved by transferring paper payslips to digital format while a 23% reduction of sugar in own brand ice cream was achieved along with a 19% sugar reduction in tray cake recipes. Another initiative sees the establishment of a responsible sourcing fish committee to further improve performance in this area. Bidfresh performed below expectations. However, a platform for renewed growth has been laid. Challenges related to the move of the Hensons meat business from the ageing site in King’s Cross, London, to a purpose- built facility in Woolwich. Some customers were lost and staff left. A new team and new processes are revitalising the business in the new facility. At Seafood, timely succession planning resulted in the deployment of a new management team at Daily Fish. The average sales to independents rose and customer numbers increased. Oliver Kay, the fresh fruit and vegetables business, opened a new depot in Birmingham designed to improve customer service and reduce cost inefficiencies. Scotland operations derived knock-on benefits and Campbells Produce staged an impressive turnaround. In PCL , management has dedicated significant effort to improve service levels. However, profitability has been impacted. Discussions are underway with the client in order to match activity and service level expectations with profitable returns. Discontinued operation – UK Contract Distribution (CD) Performance was extremely poor in this business, which recorded significant losses, particularly in the second half of the year. The exit of KFC in February and accompanying redundancies and restructuring, the downscaling of properties and vehicles, the subsequent onboarding of a part of the KFC contract, poor weather and reduced consumer confidence in the chain segment of the market all contributed, as did additional costs in relation to the exit of the business. United Kingdom continued At the time of the release of our results, Bidcorp was in the process of finalising an agreement with a proposed purchaser of the business who was in the final stages of clearing their approvals. Subsequently the prospective purchaser has notified Bidcorp that for its own internal reasons, it has decided not to proceed with the transaction. The CD business remains a non-core activity in respect of Bidcorp’s global foodservice operations and accordingly, Bidcorp is currently considering various proposals to exit the business. During the year, the management irregularities identified during 2015 and 2016 were settled against the former business director and numerous other defendants. Significant legal costs were incurred in pursuing this matter, which has been resolved to our satisfaction. Certain recoveries have been made but further recoveries are still expected, including the finalisation of the insurance matter. Sustainability Sustainability is a key area of our business focus within the United Kingdom. Our aim is to develop and implement a sustainability strategy that reflects the wider industry drive towards sustainable development and embraces the United Nations Sustainable Development Goals (UN SDGs) while further improving our ongoing engagement with our key stakeholders. Our ambition is to continue to lead and inspire change in foodservice through an enhanced strategy and new sustainable programme called “Food for the future” that is being embedded within UK operations. Bidfood UK is creating a healthier, more sustainable and more engaged approach to foodservice that is future fit. Natural capital UK operations continue to actively participate in the Climate Change Agreement (CCA), a UK government volunteer programme that sets sector-based greenhouse gas reduction targets. Numerous sites are engaged in the agreement. The current phase aims for an 8,3% carbon reduction target against the baseline year. Since 2016, Bidfood UK has been awarded The Planet Mark™ Sustainability Certificate and is the first foodservice business to obtain this external validation of its commitment to continued improvement of our sustainability credentials. 32 Bid Corporation Limited Annual integrated report 2018