Bidcorp FY20 Results
Key message: The Foodservice market has proved to be resilient and has not faced structural changes due to Covid restrictions. Activity levels are back at 90% of prior periods.
Imperial Logistics: FY20 Results
Key message: A shift to a new business model brings risk. An acquisition-led growth strategy in and around Africa is brave – we are concerned the increased complexity and risk is not well understood.
Invicta Holdings – Initiation
Key message: Long a trusted distributor of industrial parts, Invicta has been impacted by non-operational issues in recent years. A renewed focus under a new CEO should refocus the Group on core activities.
Auto Anemometer: New Vehicle Sales – July 2020
Key message: Vehicle sales stabilise at the same level as June – this may be the new normal level for the remainder of the year. The used car market is gaining relative to new as rental fleets dump cars into the market.
Bidvest: Rentokil Initial 1H Results – What it Tells us about Hygiene Services in the Covid-19 Era
Key message: Hygiene services peer company Rentokil Initial saw a decline in HORECA and office washroom service activity due to lockdowns, but this was more than made up by demand for hygiene products. Air care is a growth sector in Hygiene as a result of Covid-19.
Barloworld Approaching a Crossroads
Key message: In a tough market balance sheet and cost management was good – Barloworld is more cost focused than before.
Auto Anemometer: New Vehicle Sales – June 2020
Key message: Vehicle sales recover in June but levels unlikely to grow significantly for the rest of the year. Significant rental de-fleeting will have a large impact on new car sales.
KAP Industrial Holdings: Pre-Closed Operational Update
Key message: Marginally better than our expectations, KAP seems to have weathered the lockdown in robust shape. Concerns over the Polymers division are overstated, in our opinion.
Super Group – Trading Update
Key message: Better than our previous forecast – but some large goodwill impairments likely.
Bidcorp – Capital Markets Trading Update
Key message: Management had an optimistic tone, with the restaurant trade opening quicker than expected. Cost control has been good (with help from government schemes to cover salaries).