Year end: Jun 2017
Assessment date: Feb 2018

Bidcorp’s passion for food is a strong theme that lends credence and sincerity to the report. A detailed and personal review from the CEO describes areas for improving the company’s value creation by exiting high-volume/low-margin contracts and in response to changing customer preferences.

Bidcorp inherited a reasonable framework for reporting from Bidvest, and has added its own front end aimed at telling its value-creation story to its shareholders. The company appears sincere about its most important value driver, excellent quality foodservice to its customers. Succession was well-signalled and proceeded smoothly, with mature response to KPMG as auditor.

Bidcorp’s decentralised management and entrepreneurial freedom at local level provides resilience against socio-political risks, but this may be tested following Brian Joffe’s exit. While Bidcorp appears to be responsive to its customers, it adopts a basic compliance approach to key issues; the quality of performance reporting and consequent discussion of material issues is generally light and lacking in strategic depth.

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