RNS Number:4390V
Bidcorp PLC
14 February 2004

MARGIN PRESSURE SQUEEZES BIDCORP PLC

TOUGH trading conditions and intense pressure on margins produced an operating
loss from continuing operations of #1.6 million for the six months to December
312003 for Bidcorp plc, Bidvest's 57% owned London Stock Exchange-listed
subsidiary which provides services to the automotive, shipping and property
sectors.

This loss compares with a profit of #0.6 million for the previous comparable
period.

Turnover from continuing operations declined 1% to #64.4 million. Capacity on
additional sailings added to the Dartline ferry service was insufficiently taken
up, and contracted rates for Volume Transport reduced significantly.

A positive feature of the results was that net gearing remained constant at 27%.
Hire purchase debt of #3 million was repaid during the period.

Turnover from the Automotive division's continuing operations declined 8% to
#41.8 million, resulting in an operating loss of #0.9 million. (2002:
break-even).

Shipping and Ports reported a 14% increase in turnover to #20.4 million, but the
heavy costs associated with establishing expanded sailing schedules resulted in
an operating loss of #0.8 million. Sailings have since been curtailed and
turnover and costs will reduce correspondingly in the next period. This division
operates a fleet of six ferries under the Dartline brand, offering scheduled
sailings between the Bidcorp-owned port at Dartford on the Thames and the
European ports of Zeebrugge (Belgium), Vlissingen (Holland) and Dunkerque
(France).

Property and Outsourced Services is the smallest of the group's three divisions,
and manages and develops investment property on behalf of the group as well as
third parties.

The Automotive division's main business is the volume distribution of vehicles
throughout the UK and continental Europe, repatriation of vehicles from mainland
Europe, vehicle refurbishment and pre-delivery inspections, specialist delivery
services and niche marketing and promotional services to the automotive
industry. The group also operates the UK's largest rescue and recovery operation
outside the motoring clubs, under the Ontime Rescue and Recovery brand. Its
Traffic Management business provides a vehicle clamping and removal service to
local borough councils.

The Volume Distribution business in the UK is particularly competitive, the
result of pressure from manufacturers and excess transport capacity. Though this
unit reported losses for the period, a substantial investment in new fleet
combined with business restructuring has created a stronger platform for
operational improvement.

The Automotive businesses have been rationalised from three into two operating
divisions: the Specialist Transport, Vehicle Preparation, Prestige Vehicle
Distribution and Promotional Support businesses have been merged with Rescue &
Recovery and Traffic Management into Ontime Specialist Automotive Services.

The Rescue and Recovery business, which is highly weather-dependent, attended to
100,000 call-outs during the six-month period and is performing to expectations.
A reduction in promotional activities within the automotive sector had a
negative impact on Specialist Transport and Prestige Vehicle Distribution.
Traffic Management performed below expectations, though corrective action has
been taken by management.

Despite poor results from Shipping and Ports, management and staff have improved
the service to customers as well as client perceptions of Dartline. New sales
initiatives will be directed at balancing capacities and cargoes and extending
the sales footprint to several new centres across Europe. "The focus for the
rest of the financial year will be on maximising returns on our established
routes," says Chief Executive Rodger Graham.

The Property and Outsourced Services division showed favourable results which
included the sale of a property in Kent to a developer. Lower car parking
turnover at its facilities were experienced as a result of the levying of the
Central London congestion charge.

Chairman Brian Joffe said though the results for the period are disappointing,
fixed overheads have been reduced significantly throughout the group. Emphasis
is now on operating efficiencies, increased capacity utilisation and greater
turnover.

No dividend has been declared for the period.

Issued on behalf of:            The Bidvest Group Limited
By:                             Cleardistinction Communications
Bidvest Contracts:              Brian Joffe (Chairman)
                                Tel: + 27 (0) 11 772-8704
                                David Cleasby (Investor Relations)
                                Tel : +27 (0) 11 772 8706
Bidcorp Contacts:               Rodger Graham (Chief Executive)
                                Tel: + 44 (0) 20 7408 0123
Consultancy Contact:            Carol Dundas
                                Tel: +27 (0) 11 444-0650
    Mobile: +27 (0) 83 447-6648

Bidcorp plc
Report of the interim results for the six months ended December 31 2003

Company information

Bidcorp plc
("Bidcorp" or "the Group")

Directors

B Joffe* (Chairman)
RW Graham (Chief Executive)
SD Bender*
DC Brinklow
BP Connellan*
ARCB Cooke*
R Herman
MJ Kingshott*
JL Pamensky*
LP Ralphs*
DK Rosevear*
IR Spry
DA Winduss
*Non-executive

Registration number
231534

Registrars
Lloyds TSB Registrars
The Causeway
Worthing
West Sussex BN99 6DA
United Kingdom

Administration and registered office
6 Stratton Street
London WIJ 8LD
United Kingdom

Operational and financial review for the six months ended December 31 2003

Introduction
The slowdown in market activity and intense pressure on margins experienced in
the previous reporting period continued. Trading conditions in the last quarter
were particularly difficult. Capacity on additional sailings added to the
Dartline ferry service was insufficiently taken up, and contracted rates for
Volume Transport reduced significantly. As a consequence the results are again
disappointing. Management has continued to concentrate on reducing costs,
wherever possible, without inhibiting the ability to grow the core businesses in
the future.

Financial overview
Turnover from continuing operations decreased by 1% to #64.4 million (2002:
#65.0 million) and the Group incurred an operating loss from ongoing activities
of #1.6 million (2002: #0.6 million profit).

The retained Group loss, after a taxation credit of #0.8 million (2002: #0.2
million), and other finance expenses was #1.4 million (2002: #0.6 million).

Net interest and other finance expenses payable remained unchanged at #0.5
million.

Despite the losses incurred and the capital reinvestment, net gearing has
remained unchanged at 27%. Hire purchase debt #3.0 million has been repaid since
the beginning of the period.

Review of operations
Automotive division
The Automotive division's turnover, from continuing operations, decreased by 8%
to #41.8 million resulting in an operating loss of #0.9 million (2002: Nil).

During this period further reorganisation of the Automotive businesses was
undertaken with the division having been rationalised from three operating
divisions into two. The Specialist Transport, Vehicle Preparation, Prestige
Vehicle Distribution and Promotional Support businesses have been merged with
Rescue & Recovery and Traffic Management into Ontime Specialist Automotive
Services. The integration of these businesses is still in progress and it is
expected that this reorganisation will produce significant cost savings and
increase operational efficiency.

The better than normal weather conditions and the fact that a major customer
took a substantial part of their business in-house did not assist the financial
performance of the Rescue & Recovery business. Despite this, the Rescue &
Recovery business performed profitability, attending over 100,000 calls for
assistance.

Specialist Transport and Prestige Vehicle Distribution operations have been
adversely affected by a reduction in automotive promotional activities and
particularly by the delay in new model launches by manufacturers.
The Vehicle Preparation Centre at Wellesbourne is now marginally profitable and
currently outperforming budget. Several new contracts are being negotiated
which, if won, will improve the asset utilisation.

Due to the delay in securing better located storage pounds, the Traffic
Management business performed below expectations. Planning permission has been
granted on an appropriate site which should improve the situation within the
next period.

Significant downward pressure on rates impacted on the Volume Transport business
which resulted in operating losses and further restructuring. This process is
nearing completion and management is confident that, together with the
investment which has been injected into the rejuvenation of the fleet, the
restructured business should improve its performance in what is an extremely
competitive market.

Shipping and Ports division
Turnover from ongoing operations increased by 14% to #20.4 million as a result
of expanded sailing schedules.The costs incurred in establishing these
additional sailings resulted in an operating loss of #0.8 million. Sailings have
since been curtailed and revenues and costs will reduce correspondingly in the
next period.

Whilst the results are disappointing, an enormous effort by the management and
staff has led to major improvements in the service provided to customers and in
improved client perceptions of Dartline. New sales initiatives will be directed
at balancing capacities and cargos and the use of agents in Ireland, Germany,
France and Eastern Europe will increase our area of coverage.

The focus for the second half of the financial year will be on maximising
returns from our established routes.

Property and Outsourced Services
The division continues to manage investment properties on behalf of third
parties and has disposed of a site in Kent to a developer following the granting
of planning permission.

The car parking activities in Central London traded at lower levels asa result
of the negative impact of the congestion charge, but still showed favourable
results.

Dividends
No dividend is proposed for the six-month period ended December 31 2003.

Outlook
Fixed overheads have been reduced significantly throughout the Group. Emphasis
is now on operating efficiencies, increased capacity utilisation and greater
revenue.

Brian Joffe
(Chairman)

Independent review report to bidcorp plc

Introduction
We have been instructed by the Company to review the financial information for
the six months ended December 31 2003 which comprises the consolidated profit
and loss account, the consolidated balance sheet, the consolidated cash flow
statement, the consolidated statement of total recognised gains and losses and
related notes 1 to 7. We have read the other information contained in the
Interim Report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report is made solely to the Company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the Company those matters we are required to state to them in an
independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the Company, for our review work, for this report, or for the conclusions we
have formed.

Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures are consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed
We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended December 31 2003.

Deloitte & Touche LLP
Chartered Accountants
London
February 13 2004

Consolidated profit & loss account          
for the six months ended December 31 2003
                              Unaudited       Unaudited*        Audited
                                       6 months        6 months       18 months
                                          ended           ended           ended
                                        Dec 31          Dec 31         June 30
#000's                          Note       2003            2002            2003
Turnover                        1        64,408          71,309         204,484
Continuing operations                    64,408   64,995         189,758
Discontinued operations                       -           6,314          14,726
Operating (loss) profit                  (1,787)           (420)         (2,044)
Continuing operations                    (1,643)           604             810
Discontinued operations                    (144)         (1,024)         (2,854)
Profit on disposal of                       105              57             219
fixed assets
Profit on sale of                            13       -             435
investments
Loss on ordinary activities     1        (1,669)           (363)         (1,390)
before interest
Net interest payable                       (440)           (460)         (1,343)
Other finance expense           (88)            (54)           (210)
Loss on ordinary                         (2,197)           (877)         (2,943)
activities before
taxation
Tax on loss on ordinary         2           829             244             799
activities
Loss retained for                        (1,368)           (633)         (2,144)
the period
Loss per share                  3          (0.6)           (0.3)           (0.9)
(pence)
Diluted loss per share          3          (0.6)           (0.3)   (0.9)
(pence)
*Comparative figures for the six months ended December 31 2002 have been derived
by deducting the published results for the six months ended June 30 2002 from
the twelve months ended December 31 2002.

Consolidated balance sheet
at December 31 2003
                                     Unaudited       Unaudited         Audited
                                        Dec 31          Dec 31         June 30
#000's                          Note      2003            2002     2003
Fixed assets
Tangible assets                         57,159          52,439          56,161
Investments                                101           6,271           2,077
                                        57,260          58,710    58,238
Current assets
Stocks and work                          3,178           2,830           3,027
in progress
Debtors                                 24,539          30,139          30,060
Cash at bank and in hand                 1,231    2,376           1,626
                                        28,948          35,345          34,713
Current liabilities
Creditors: Amounts falling due         (34,397)        (33,615)        (37,753)
within one year
Net current (liabilities)               (5,449)          1,730          (3,040)
assets
Total assets less                       51,811          60,440          55,198
current liabilities
Creditors: Amounts falling                (657)         (3,734)           (816)
due after more than
one year
Provisions for liabilities              (3,482)         (4,655)         (4,371)
and charges
Net assets excluding                    47,672          52,051          50,011
pension liability
Pension liability                  (2,167)         (2,712)         (2,637)
Net assets including                    45,505          49,339          47,374
pension liability
Capital and reserves
Called up share capital                 49,644          49,644          49,644
Share premium                           13,228          13,228          13,228
Merger reserve                           9,327           9,327           9,327
Capital reserve                            480             480             480
Profit and loss account                (25,007)        (20,628)        (22,668)
excluding pension
liability
Pension liability                       (2,167)         (2,712)         (2,637)
Profit and loss account                (27,174)        (23,340)        (25,305)
including pension
liability
Equity shareholders'                    45,505          49,339          47,374
funds
Net asset value per             4         18.3            19.9            19.1
share (pence)

Summarised consolidated cash flow statement
for the six months ended December 31 2003
                                  Unaudited       Unaudited            Audited
                                   6 months        6 months          18 months
                                      endedended              ended
                                     Dec 31          Dec 31            June 30
#000's                        Note     2003            2002               2003
Cash flow from operating      5       3,853           1,156             11,498
activities
Returns on investments                 (440)           (514)            (1,254)
and servicing of finance
Interest received                         -               5                334
Interest paid                 (253)           (165)              (514)
Interest element of                    (187)           (354)            (1,074)
finance lease payments
Taxation paid                           (39)             (2)              (213)
Capital expenditure and              (2,526)         (3,578)           (13,373)
financial investment
Purchase of tangible                 (4,862)         (3,622)           (14,951)
fixed assets
Sale of tangible assets                 348              44            1,578
Sale of investments                   1,988               -                  -
Net cash inflow (outflow)               848          (2,938)            (3,342)
before financing
Financing                            (1,775)         (3,926)     7,689
Issue of shares                           -               -             31,056
Repayment of secured loans                -            (782)           (12,776)
Repayment of loan notes                   -               -               (913)
New hire purchase                     1,192               -                  -
agreements
Capital repayments under             (2,967)         (3,144)            (9,678)
hire purchase obligations
(Decrease) increase in        6        (927)     (6,864)             4,347
net cash

Consolidated statement of total recognised gains and losses and reconciliation
of movement in shareholders' funds
at December 31 2003
                                     Unaudited     Unaudited           Audited
                                      6 months      6 months         18 months
                                         ended         ended             ended
                                        Dec 31        Dec 31           June 30
#000's2003          2002              2003
Loss attributable to                    (1,368)         (633)           (2,144)
equity shareholders for the period
Actuarial loss on defined                 (253)         (287) (1,263)
benefit schemes
Deferred tax arising in                   (228)           86               379
respect of defined benefit
pension schemes
Currency translation                       (20)          (77)             (184)
differenceson foreign
currency net investments
Total recognised losses                 (1,869)         (911)           (3,212)
relating to the period
New shares                                   -             -            31,056
Net (decrease) increase in   (1,869)         (911)           27,844
shareholders' funds
Equity shareholders' funds at           47,374        50,250            19,530
the beginning of the period
Equity shareholders' funds              45,505        49,339            47,374
at the end of the period

Notes to the accounts
for the six months ended December 31 2003

1. Principal activities
                                          Property and
                   Automotive     Shipping  Outsourced
#000's      Services    and Ports    Services   Net debt       Total
Turnover
December 31 2003
- continuing           41,812       20,449       2,147          -      64,408
operations
December 31 2002       49,828       19,820       1,661          -  71,309
- continuing           45,398       17,936       1,661          -      64,995
operations
- discontinued          4,430        1,884           -          -       6,314
operations
June 30 2003           138,823      61,101       4,560     -     204,484
- continuing           128,930      56,268       4,560          -     189,758
operations
- discontinued           9,893       4,833           -          -      14,726
operations
(Loss) profit before    (1,069)       (829)        229          -      (1,669)
interest
December 31 2003
- continuing              (925)       (829)        229          -      (1,525)
operations
- discontinued            (144)          -           -          -        (144)
operations
December 31 (785)        183         239          -        (363)
2002
- continuing                (5)        427         239          -         661
operations
- discontinued            (780)       (244)          -          -      (1,024)
operations
June 30 2003            (2,321)        491         440          -      (1,390)
- continuing              (440)      1,464         440          -       1,464
operations
- discontinued          (1,881)       (973)          -          -      (2,854)
operations
Net assets              23,789      32,334       1,633    (12,251)     45,505
December 31 2003
December 31 2002        25,444      35,504       1,839    (13,448)     49,339
June 30 2003            24,550      33,823       2,100    (13,099)     47,374

Analysis by geographical area of operation
#000's                       United       Europe         Net debt        Total
                            Kingdom
Turnover
December 31 2003             58,739        5,669                64,408
December 31 2002             65,733        5,576                        71,309
June 30 2003                186,910       17,574                       204,484
Profit (loss) before
interest
December 31 2003             (1,731)         62                        (1,669)
December 31 2002               (350)         (13)                         (363)
June 30 2003                 (1,219)        (171)                       (1,390)
Net assets
December 31 2003             56,687        1,069          (12,251)      45,505
December 31 2002             61,448        1,339          (13,448)      49,339
June 30 2003                 59,364        1,109          (13,099)      47,374

The profit on ordinary activities before taxation is stated after charging
(crediting) the following items:
                                          Dec 31         Dec 31        June 30
#000's                                      2003           2002           2003
Directors' termination and           57            142            319
notice payments
Earn out provision not required                -              -           (308)
Set up costs of European recovery              -              -             62
operation

2. Taxation
The tax credit, excluding prior period credit adjustments of #381,000 provided
at December 31 2003, is based on the estimated effective tax rate for the full
period for each undertaking in the Group applied to the taxable profits for the
period.

3. Earnings per share
The calculation of the basic and diluted earnings per share is based on the
consolidated loss after taxation of #1,368,000 (2002: #633,000) and the weighted
average number of ordinary shares in issue during the period of 248,219,402
(2002: 248,219,402).

4. Net asset value per share
The calculation of net asset value per share is based on the total of equity
shareholders' funds of #45,505,000 (2002: #49,339,000) and the closing number of
ordinary shares in issue of 248,219,402 (2002: 248,219,402).

                                     Unaudited     Unaudited           Audited
                                      6 months      6 months         18 months
                                         ended         ended         ended
                                        Dec 31        Dec 31           June 30
#000's                                    2003          2002              2003
5. Reconciliation of operating
loss to net cash inflow from
operating activities
Operating loss                          (1,787)        (420)            (2,044)
Depreciation and amortisation            4,880        4,927             14,087
of other fixed assets
Write back of investments                    -            -        (13)
Working capital movements                1,773       (3,297)              (250)
Adjustment for pension                  (1,013)           -                  -
funding
Other non cash movements                     -          (54)         (282)
Net cash inflow from operating           3,853        1,156             11,498
activities


6. Reconciliation of net cash
(outflow) inflow to movement in net
debt
(Decrease) increase in cash               (927)      (6,864)           4,347
for the period
Cash outflow from decrease               1,775        3,926             23,367
in debt and leasing finance
Change in net debt resulting               848       (2,938)            27,714
from cash flows
Unwinding of discount on loan                -           (1)               (89)
Translation difference                       -          (25)                25
Movement in net debt in the                848       (2,964)            27,650
period
Net debt at the beginning (13,099)     (10,484)           (40,749)
of the period
Net debt at the end of the             (12,251)     (13,448)           (13,099)
period
Disclosed as:
Cash at bank and in hand                 1,231        2,376              1,626
Overdraft                               (9,739)      (5,162)            (9,207)
Debt due within one year                (3,086)      (6,928)            (4,702)
Debt due after one year                   (657)      (3,734)              (816)
         (12,251)     (13,488)           (13,099)
Net debt/net assets (%)                     27           27                 28

7. Basis of preparation
Statutory financial information
The unaudited interim results have been prepared on a basis consistent with the
accounting policies set out in the Annual Report and Accounts for the eighteen
months ended June 30 2003. The interim results should therefore be read in
conjunction with the 2003 Annual Report and Accounts. Theinterim results for
the six months to December 31 2003, which were approved by the Board of
Directors on February 13 2004, do not comprise statutory accounts within the
meaning of section 240 of the Companies Act 1985. Full accounts for the eighteen
months ended June 30 2003, incorporating an unqualified auditors' report, have
been filed with the Registrar of Companies.

Copies of this report are being sent to shareholders, and are available to the
public at the Company's registered office, 6Stratton Street, London W1J 8LD.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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