Diversified services group Bidvest has reported higher annual earnings as the improved momentum reported in the first half continued into the second half.Group revenue for the year to end-June increased 3% to R130.3bn, while trading profit rose 8% to R13.1bn, it said on Monday. HEPS from continuing operations grew 6% to 1,864.2c.“The quality of the result is evident from profitability to cash generation, with every division delivering trading profit growth,” the company said on Monday.Cash generated by operations was up 17% to R17.2bn and R12.5bn of free cash flow was generated, an increase of 27%.A final dividend of 483c was declared, up 7% from a year ago.Group CEO Mpumi Madisa said the group improved its organic growth momentum, materially increased cash generation and maintained capital discipline, while the programme to rebuild returns remains a priority.During the year the group made progress with its strategic initiatives. The terminal operator licence for the renewed Island View 25-year port lease was signed, with two more under negotiation. Incremental value and contributions were realised in the hygiene and testing, inspection and compliance (TIC) sectors through the completed integration of Citron UK into PHS, the full-year contribution of Citron North America and nine-month contribution from Aquatico.Gross profit rose 5.2% to R36.9bn and the gross profit margin improved by 61 basis points to 28.3%, reflecting a positive business mix and operating leverage, and disciplined margin management, the group noted. Five divisions improved their gross margin. “Considering the structural shifts, rescoping of key contracts and the under recovery of wages in security, this is a very pleasing outcome,” said Madisa. Freight delivered 10.3% growth in trading profit as healthy agricultural and mineral export volumes added further impetus to positive operating leverage, the company said. In Services South Africa, the group highlighted strong results in hospitality and TIC services and demand for bottled water, resulting in 8.3% profit growth. Adcock and Branded Products reported trading profit growth of 9.4% and 5.4%, respectively, while Services International’s global hygiene operations grew trading profit by 4.3%. The acquisition of Aquatico, effective October 14 2025, expanded Bidvest’s TIC services platform into environmental monitoring and water testing, increasing the group’s exposure to an attractive structural growth market. Cleanbio, a small bolt-on hygiene business in Singapore, was also acquired in the first half. The disposal of Bidvest Life remains subject to customary regulatory approvals. The Bidvest Bank disposal process was relaunched after the initial transaction terminated due to Access Bank not securing the required approvals before the long stop date. “Negotiations are active and we remain confident in our ability to successfully execute this disposal,” Madisa said.“Bidvest enters FY27 with positive operating momentum and a strengthened platform for sustainable growth,” she said.Madisa said no material merger and acquisition activity is planned in the near term and free cash flow, disposal proceeds and capital recycling will continue to be directed to reducing debt. Growth capital will be allocated to expanding country-critical port terminal capacity, mobilising new contracts and building scale in North America, with a disciplined focus on sustainable long-term returns. The board has approved R2.5bn growth capex in Freight, which relates to the construction of a second LPG terminal in the port of Richards Bay and expanded bulk grain and liquid capacity in the port of Durban. Construction will commence once close-out conditions have been finalised.Business Day