Bidvest shares tumble after guarded trading update
The services group says ‘trading profit continued to grow, but at a slower pace than reported to December 2017’
Bidvest’s share price tumbled nearly 5% on Friday morning as the market reacted to a business update it released at 5.32pm on Thursday.
The services group did not include an earnings forecast in its operating update for the 10 months to end-April, but said "trading profit continued to grow, albeit at a slower pace than that reported to December 2017".
Bidvest is scheduled to release its results for the year to end-June on September 3.
"Industrial project services weakened further with a lower trading result year on year. Travel results have been negatively impacted by lower volumes and less lucrative rebate structures," Bidvest said.
The group previously announced its intention to sell its Namibian fishing business.
"Discussions and processes continue with regards to the strategic assessment of Bidvest’s non-core assets. No further monetisation has occurred since year-end.
"Bidvest Namibia continues to trade under a cautionary. Bidvest divisional management have critically evaluated all businesses and are discontinuing various smaller operations in a portfolio clean-up exercise," the company said in its statement.
Good news in the update was that the freight division’s R1bn liquified petroleum gas (LPG) project in Richards Bay was on track.
"Piling of the site and manufacturing of the tanks have started and two-thirds of the multi-purpose tanks have been commissioned," the company said.