Annual integrated report 2018

The directors have pleasure in presenting their report for the year ended June 30 2018. Nature of business Bidcorp is an international broadline foodservice group present in all continents other than North America and Antarctica. Bidcorp is focused on growth opportunities: organically in our current markets through attaining the appropriate business mix by selling more products to our existing customers and gaining new customers; via in-territory bolt-on acquisitions to expand our geographic reach and expanding our product ranges; and via larger acquisitions to enter new markets. Despite our appetite for acquisitions, we remain disciplined in our approach. Bidcorp’s entrepreneurial and decentralised business model, depth and experience of management teams and strength of the group’s culture has set up the group for sustained growth in the future. Financial reporting The directors are required by the Companies Act to produce financial statements, which fairly present the state of affairs of the group and company as at the end of the financial year and the profit or loss for that financial year, in conformity with IFRS and the Companies Act. The financial statements as set out in this report have been prepared by management in accordance with IFRS and the Companies Act and are based on appropriate accounting policies supported by reasonable prudent judgements and estimates. The directors are of the opinion that the financial statements fairly present the financial position of the group and of the company as at June 30 2018 and the results of their operations and cash flows for the year then ended. The directors are satisfied that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements. Stated capital The company’s authorised stated capital is 540 000 000 no par value ordinary shares. There were no issues of no par value ordinary shares during the year and as at June 30 2018 the total issued ordinary no par value shares was 335 404 212. Acquisitions and disposals In July 2017, 70% of Pier 7 Foods, a Munich-based foodservice business was acquired. Pier 7 Foods operates from five German locations and one Austrian location. Frustock Foodservice, S.A., a niche Portuguese horeca business was acquired and integrated into Bidfood Iberia. Further bolt-on acquisitions were concluded during the year namely, Festival City Food & Wine (Australia), Goldline Distributors Pty Limited (Australia), Cárnicas Saenz, S.L. (Spain), Jilin Food Service Limited (mainland China), Linson Global Seafood Trading Limited (Hong Kong), D&D S.p.A. (Italy), Van de Mheen Foodservices B.V. (Netherlands), Prepared Produce (New Zealand), Aeroshield (Malaysia), Famous Fresh (Pty) Limited (South Africa) and Efe Dagˇ ıtım ve Pazarlama A.S,. (Turkey). These acquisitions form part of the group’s strategic expansion plans in the international foodservice industry. Goodwill arose on the acquisitions as the anticipated value of future cash flows that were taken into account in determining the purchase consideration exceeded the net assets or net liabilities acquired at fair value. The acquisitions have enabled the group to expand its range of complementary products and services and, as a consequence, has broadened the group’s base in the marketplace. There were no significant contingent liabilities identified in the businesses acquired. There were no material disposals of businesses during the year. Discontinued operation In December 2017, management committed to a plan to discontinue the UK Contract Distribution (CD) business segment which operates in the United Kingdom. By year-end, we were close to finalising our proposed exit from this non-core segment. Costs associated with this anticipated exit were substantially provided for and any further costs are unlikely to be significant. Post the year-end, the prospective purchaser of our CD business 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. Accordingly, Bidcorp is currently considering alternative proposals which were suspended due to the advanced sale process. Subsequent events There have been are no material subsequent events from the reporting date. Results of operations The results of operations are dealt with in the consolidated statement of profit or loss, segmental analysis and commentary. Directors’ report 63 Bid Corporation Limited Annual integrated report 2018 This is Bidcorp ifc – 13 Leadership review 14 – 23 ESG reviews 24 – 47 Governance review 48 – 59 Financial statements 60 – ibc