Bidvest CEO discusses company earnings, acquisition plans & COVID-19 vaccination

Bidvest, a leading hygiene service provider in the UK, has reported strong trading profit growth, boosted by the integration of PHS into their business. The demand for hygiene services has played a significant role in contributing to the company's positive results. Bidvest CEO, Mpumi Madisa, shared insights on the impact of the vaccination program on their UK business during an interview with CNBC Africa. Madisa mentioned that with the ongoing vaccination process, there has been an increase in demand for services, particularly in testing and vaccination stations where PHS provides services and consumables. However, as lockdown restrictions ease and employees return to corporate buildings, contractual revenue has decreased while one-off opportunities have helped offset the decline. Madisa anticipated that once herd immunity is achieved and the vaccination process is completed, the one-off revenue will likely diminish, but demand for contractual revenue should see a recovery. Despite reaching herd immunity, Madisa emphasized the importance of maintaining heightened hygiene standards due to the presence of COVID-19 variants and ongoing awareness around health and cleanliness. Acquisitions have been a focus for Bidvest, with a significant increase in cash generation reported. Madisa acknowledged the success in working capital management, leading to a substantial cash reserve of 6.1 billion. The company recently acquired Access Group, enhancing its scale and market share in security services. Madisa hinted at potential future acquisitions currently in the pipeline, highlighting Bidvest's strategic growth initiatives. Looking at opportunities beyond the UK, Madisa discussed Bidvest's footprint on the African continent, primarily focused on South Africa, Namibia, Botswana, and Mozambique. With the implementation of the African Continental Free Trade Area agreement, Bidvest sees potential growth opportunities, particularly in the freight division and port infrastructure. The company aims to explore opportunities for port terminal operations to expand its presence on the continent. In line with Bidvest's commitment to employee welfare, Madisa confirmed plans to support the vaccination of their workforce, especially those without medical aid. The company will align with government vaccination programs and ensure that the process remains voluntary for employees. Madisa expressed confidence in employee participation, citing the significant impact of the virus on lives and the widespread acceptance of vaccines for other illnesses. Emphasizing the importance of prioritizing employee health and safety, Bidvest is committed to supporting its workforce through the vaccination initiative. Madisa highlighted the opportunity to save lives and reiterated that the program would be voluntary, respecting individual choices regarding vaccination. Overall, Bidvest's strong financial performance, strategic acquisition plans, and proactive approach to employee vaccination underscore the company's resilience and commitment to sustainable growth.