Share

Bidvest sees challenging trading environment for SA

Johannesburg - Bidvest Group [JSE:BVT], the South African holding company with interests spanning catering to office supplies, said the country’s economic environment is a "major concern" and that it’s struggling to conclude government contracts.

While the company said in February that trading would improve, that outlook has changed and "market conditions have deteriorated as reflected in lowered business and consumer confidence," Johannesburg-based Bidvest said in a statement on Thursday.

"In view of the volatile socio-political outlook and the weaker than expected macro-economic environment, we now expect more challenging trading conditions for the rest of calendar 2017," it said. "With many government departments, state-owned enterprises and parastatals in flux, the finalizing and closing of contracts is challenging."

South Africa unexpectedly tipped into a recession after the economy shrank for a second consecutive quarter in the first three months of this year. Since then, political uncertainty has grown after President Jacob Zuma changed his cabinet and fired Pravin Gordhan as finance minister in March, a move that resulted in Africa’s most-industrialized economy losing its investment-grade status with two ratings companies for the first time in 17 years.

Bidvest fell 2.9% to R162.26 as of 10:29 in Johannesburg, giving the company a market value of R54.4bn. The business’s financial position remains sound and cash generation strong, it said.

The company has retained "adequate headroom to accommodate larger acquisitive and organic expansion opportunities, which we are actively seeking, both locally and internationally," Bidvest said.

Read Fin24's top stories trending on Twitter:
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders