Barloworld – Trading Update
Key message: Barloworld released a Trading Update. HEPS guidance for continuing operations in 1H FY20 has gone negative. We adjust our forecasts based on the new information.
Imperial Logistics Investor Day and Trading Statement to March
Key message: Management point to an unsatisfactory result even before the lockdown. Continued portfolio rationalisation points to a struggling core business – hence the desire to grow into a new sector (international freight management).
Bidvest: Trading update – 10 months to April 2020
Key message: Remarkable ability to cut operating costs as revenue falls due to Covid-19. The portfolio will have its ups and owns but generally looks set to sail through the Covid era unscathed.
Super Group – Further earnings adjustments
Key message: We make further adjustments to our forecasts as a gradual easing of lockdown restrictions occurs.
Imperial Logistics – Further earnings adjustments
Key message: We make further adjustments to our forecasts as a gradual easing of lockdown restrictions occurs. The sale of the European shipping business should give the balance sheet some strength.
Bidvest – Further adjustments to earnings
Key message: We update our forecasts as we progress into a gradual unwind of lockdown restrictions. Bidvest has a relatively defensive portfolio of businesses but may not escape a loss in 2H FY20.
Bidcorp – Adjusting after Sysco Result
Key message: The impact of a sudden decline in volumes on operating margins was illustrated recently by peer foodservice company Sysco. We adjust our Bidcorp numbers based on the Sysco experience.
Motus Holdings – Rental Fleets and Residual Risk
Key message: The Motus business model does rely heavily on used car profits. In an environment of rapidly declining residual values, this business model may be tested.
Bidcorp – Sysco 3Q FY20 Results
https://chronux.co.za/wp-content/uploads/2020/05/BID-0520-Sysco.pdf
Bidvest – PHS In, Eqstra Out
Key message: The PHS deal has been completed, but Bidvest appear to have walked away from the Eqstra deal. The right deal has been consummated, in our opinion.