Annual Integrated Report 2019

Directors’ report The directors have pleasure in presenting their report for the year ended June 30 2019. Nature of business Bid Corporation Limited (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 and 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 2019 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 2019 the total issued ordinary no par value shares was 335 404 212. Acquisitions and disposals The group made the following acquisitions during the year namely: • • Punjab Kitchen (renamed Simply Food Solutions) (United Kingdom) a market leading manufacturer of texture modified meals and specialist ready meals, supplying primarily into the NHS and healthcare sector; • • Igartza, S.L. (Spain) a broadline foodservice distributor located in Guipúzkoa, northern Spain; and, • • In-territory bolt-on acquisitions of KBC Foods (Australia), Six Bar Trading 409 CC (South Africa) and Foodchoice (Chile). These acquisitions form part of the group’s strategic expansion plans in the international foodservice industry. 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 market place. There were no material disposals of businesses during the year. Discontinued operations The group is currently in negotiations for the sale of the UK Contract Distribution (CD) that operates in the United Kingdom. We are hopeful of being able to announce the details of this transaction within the near future. Any transaction is still subject to regulatory competition commission approval, which is anticipated to take up to four months to complete. PCL’s (dairy distribution business for Arla) performance for the year was disappointing. Towards the end of 2018, following a dispute with Arla, management committed to exit the PCL business by either selling the PCL transport operations to Arla or to close down the PCL business. At June 30 2019, the PCL transport operations have been exited and the sales process/exit of the insignificant warehousing and handling components are ongoing at June 30 2019. Subsequent events The group is currently in negotiations for the sale of the UK Contract Distribution business in the United Kingdom. The process is at an advanced stage and management is optimistic of a successful conclusion to these negotiations. Other than the matter above, there are no material events subsequent to June 30 2019. Results of operations The results of operations are dealt with in the consolidated statement of profit or loss, segmental analysis and commentary. Bid Corporation Limited Annual integrated report 2019 / 69