| Wed 24 Feb 2010, 7:05 | | IPL/IPLP - Imperial - Unaudited results for the six months ended December 2009 |
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IPL/IPLP - Imperial - Unaudited results for the six months ended December 2009
Imperial Holdings Limited
Registration number: 1946/021048/06
Ordinary share code: IPL ISIN: ZAE000067211
Preference share code: IPLP ISIN: ZAE000088076
("Imperial" or "the group")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED DECEMBER 2009
HIGHLIGHTS
Continuing HEPS up 17% to 506 cps
Operating profit up 25% to R1 441 million
Revenue 10% lower to R25 683 million
An interim dividend of 150 cents
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDING 31 DECEMBER 2009
Overview of results
These pleasing results are indicative of the resilience of Imperial after its
recent restructuring and viewed against the challenging trading conditions
experienced in most of its markets.
Our Automotive Retail (previously Motor Dealerships) and Distributorships
divisions increased operating profit by 65% on a combined basis despite an
extremely tough motor market, where new vehicle volumes were 17% lower than
the corresponding period.
Although lower than last year, our Logistics division`s performance was
satisfactory against the background of the recession in the economies in
which it operates. The comparison of its performance is relative to a high
base, as the full effect of the recession only impacted the division in the
second half of our previous financial year. The combined logistics operating
profit was 19% lower than the corresponding period.
Group operating profit of R1 441 million from continuing operations was 25%
higher and headline earnings per share (HEPS) from continuing operations was
17% higher at 506 cents. Cash generated by continuing operations (before net
capital expenditure on rental assets) declined by 16% to R1 700 million for
the six months.
Continuing HEPS and cash generated by operations in the previous period
included a foreign exchange gain of R394 million (212 cents per share) which
was earned from the repatriation of capital from our European operations.
Excluding the effect of this item, continuing HEPS would have been 130%
higher than in the previous period. The increase stemmed primarily from:
the strong performance by our Distributorships division;
a R92 million gain in the market value of the equity portfolios of the
Regent group compared to a R110 million loss in the prior period;
a marked improvement in Imperial Bank`s profitability (contribution from
Imperial Bank up 95% to R152 million);
reduced finance costs (down 37% to R319 million);
a fair value gain of R72 million on a financial instrument relating to the
Lereko BEE transaction;
the reversal of a surplus relating to the share trust loan impairment
provision amounting to R24 million, and a benefit of R45 million on the tax
line arising from the reversal of the share trust loan impairment provision
which was previously not deductible; and
a benefit of R27 million on the repurchase of approximately R400 million of
our Euro bonds.
Operating profits in our Logistics operations in Southern Africa and in Europe
were down 11% and 35% respectively, while operating profit from the Regent
group was up 239%, mainly due to the stronger equity markets. Car Rental and
Tourism was up 4% at the operating level despite difficult market conditions.
Revenue was 10% lower at R25,7 billion, as a result of the 16% decline in
Logistics revenue and the 7% decline in the revenue from the Automotive Retail
and Distributorships divisions. The decline in revenue in the Logistics
division is attributable to a reduction in fuel prices, lower trading volumes
and a stronger Rand against the Euro which exacerbated the revenue decline in
Europe. The reduction in the revenue of the Automotive Retail division is
mainly as a result of lower commercial vehicle sales and dealership closures.
The group`s operating margin from continuing operations improved from 4,0% to
5,6%, mainly due to higher gross margins and reduced costs in the Automotive
Retailing and Distributorships divisions and the stronger investment results
of the Regent group. Operating margins in Logistics were largely maintained,
albeit on lower revenue, largely due to cost savings in the international
division. Margins in the Car Rental and Tourism division were slightly lower at
11,7%.
The 37% reduction in net finance charges on continuing operations to R319
million can be attributed to significantly lower interest bearing borrowings,
fair value adjustments on interest rate swaps and lower interest rates.
Income from associates at R152 million was materially higher due to an improved
contribution from Imperial Bank. Lower earnings were contributed by Ukhamba
Holdings largely as a result of lower income from its holding in Distribution
and Warehousing Network Limited.
The effective tax rate was 26,8%, after taking STC and CGT of R40 million into
account. This was offset by the once-off benefit of R45 million relating to
reversal of provisions previously not deductible.
Net interest bearing debt (excluding preference shares) at R5,8 billion was
lower than the R7,9 billion at December 2008, and represents an increase of
R634 million from June 2009. The increase is due to seasonal factors, the
acquisition of Midas (Pty) Limited ("Midas") and the fact that June 2009 was
exceptionally strong from a cash flow point of view. Net gearing stands at 50%
compared to 75% at December 2008 and 50% at June 2009.
Business conditions in our markets
Trading conditions in the automotive retail market remained tough throughout
the period. Consumer demand was weak and lower interest rates were countered by
more stringent lending criteria by banks. New retail volumes were never
the less 55% higher in our motor vehicle Distributorships business, driven by
stronger demand for well priced models and from the car rental industry. New
vehicle volumes in the Automotive Retail division were 33% down with dealership
closures and a weak medium and heavy commercial vehicle market primarily
contributing to the decline. Margins in both the Distributorships and the
Automotive Retail divisions were markedly better at 5,0% (2008: 2,6%) and 2,2%
(2008: 1,6%) respectively. This was driven by improved volumes in the
Associated Motor Holdings ("AMH") group, a stronger Rand helping importers
and a significant reduction in overhead costs in both divisions. The used car
market proved to be more resilient than the new car market and is currently
strong.
Lower vehicle sales also reduced the premium income in the Regent group.
Our southern African Logistics business experienced a marked slowdown in
volumes compared to the same period last year. This was felt generally across
all sectors of the economy in which it operates, including fast moving
consumer goods. Lower fuel prices assisted margins and helped to ease the cost
pressure for our customers. However, our rest of Africa logistics operation
showed healthy growth.
Whilst trading conditions for our European Logistics business remain tough,
there are signs of improvement in the activity levels with in our customer
base.
Car Rental volumes were impacted by a decline in corporate business, which was
offset by an increase in demand in the vehicle replacement and domestic
leisure markets. The international inbound tour is market was weak as a result
of the global economic crisis and had a negative effect on our car rental and
tourism operations.
Discontinued operations
The winding down of Commercial Vehicle Holdings is virtually complete and the
remaining Aviation assets are in the process of being realised.
Balance sheet
Movement in key line items
Gross assets remained stable since June 2009. Accounts receivable increased by
R804 million due to improved trading and is seasonally higher during December
than in June. Trade and other payables and provisions increased by R256 million.
Inventories however remained stable. Vehicles for hire increased by R156 million
(9%), due to the fleeting up by the Car Rental division ahead of its peak season
in December and an increase in the vehicles provided by the Distributorships
division to car rental companies on a rental basis. Cash resources reduced to R2
786 million from R4 655 million in June, mainly as a result of the repayment of
borrowings and the buy-back of a part of our Euro bond as well as transfers from
our deposits to investments that lengthen the maturity profile.
Imperial Bank
By the end of December 2009 all the conditions precedent to the sale of our
49,9% of Imperial Bank had not been fulfilled, in that the approval for the
sale in terms of section 37 of the Bank s Act had not been obtained as had
been anticipated. Consequently, the investment in Imperial Bank has been
reclassified under "Investment in associates and joint ventures" from its
previous presentation as "Associate held for sale" and has been equity
accounted.
Lereko
Included in Investments in associates and joint ventures is our call option in
Lereko Mobility. As a result of the increase in the share price of Imperial the
value of the call option has increased by R316 million to R381 million, R72
million of which was included in attributable profit.
The preference shares and debt funding provided by third party financiers on
the implementation of the Lereko Mobility BEE transaction is due for
repayment at the end of September 2010. Alternatives to refinance funding
provided by third parties are currently being assessed.
Share Purchase Trust
A net receivable of R177 million for loans granted to all participants in the
Imperial Executive Share Purchase Trust was realised through the sale of
Imperial shares, which were held as collateral for the loans owing by
participants. The impairment provisions raised in prior periods exceeded the
requirements to settle the short fall on the loans and the cost of the Share
Appreciation Rights allocated for this purpose. The loan receivable from the
Imperial Executive Share Purchase Trust has now been settled and hence there
are no further amounts due or receivable.
Interest bearing borrowings
Bonds to the value of R2 billion are due for repayment in this calendar year.
The group has sufficient cash resources and facilities to settle the bonds. The
R1 billion IC01 bond matures on 31 August 2010 and the R1 billion IPL 3 bond
matures on 30 November 2010. Options are being evaluated for settlement and
refinancing of some of these bonds, taking into consideration the group`s
liquidity requirements.
Approximately R400 million worth of Euro bonds (which mature in April 2013)
were acquired in the current period, bringing the total value of bonds acquired
to date to approximately R625 million. As at 31 December 2009, 82% of the
original e300 million is still outstanding.
Cash flow
Cash generated by operations (after net capital expenditure on rental assets)
is down by 23% mainly as a result of the inclusion of a substantial realised
foreign exchange profit in the prior period.
Total net capital expenditure for continuing operations of R886 million was
incurred compared to R1 173 million in the corresponding period (down 24%). The
net investment in our transport fleet is lower than a year ago and capital
expenditure in our International Logistics business was significantly lower
due to the contraction in economic activity in Europe. R390 million (2008:
R348 million) represented continuing net capital expenditure incurred on rental
assets, which was in line with the prior period. The increase in expansion
capital expenditure on rental assets, which increased from R44 million to R120
million was mainly due to the Distributorships division providing rental
vehicles to car rental companies.
Interest bearing borrowings of R1 227 million was repaid during the period.
Vehicle sales
In South Africa, the group retailed 30 149 new and 26 707 used vehicles,
respectively. This was in line with the sales in the corresponding previous
period. The Distributorships division gained ground in new vehicle sales
relative to its competitors. The group further sold 4 527 new vehicles to
out side dealers as a distributor, a 36% decrease from last year indicating
the pressure currently being experienced by independent dealers. The
Australian, Swedish and United Kingdom operations sold 4 807 new and 2 050
used vehicles, respectively 24% and 5% down on last year`s sales.
Expansion of the group during the period
Imperial acquired a 75% shareholding in Midas, an aftermarket parts
distributor with effect from 1 December 2009.
Our International Logistics business acquired a 55% shareholding in Provaart,
a chartering business in Rotterdam operating on the Rhine River.
Subsequent to the sale of Imperial Bank, the Automotive Retail division, Auto
Pedigree and AMH have created a vehicle financing alliance with Nedbank
through the Motor Finance Corporation ("MFC").
New directors
During the period Marius Swanepoel and Thembisa Dingaan joined the board.
Divisional reports
Logistics
Southern African Logistics
Change
R million H1 2010 H1 2009 %
Revenue 5 114 5 308 (3,7)
Operating profit 367 411 (10,7)
Operating margin (%) 7,2 7,7
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue 13,1 4 523 9 831
Operating profit 12,2 327 738
Operating margin (%) 7,2 7,5
The operating profit and revenue of the division were down on last year due to
the decline in the region`s economy. The half year under review showed good
growth over the preceding six months, which was partially caused by seasonal
factors. The year-on-year decline in the operating margin can be ascribed to
lower volumes.
Earnings were under pressure in most parts of the division. Our Transport
and Warehousing business, which mainly service the manufacturing, mining,
commodities and construction industries performed well despite lower volumes
and tougher trading conditions.
Our Specialised Freight business produced pleasing results despite tough
trading conditions, which were impacted by erratic volumes on cement and
industrial chemicals. The effort made in cutting costs and rationalising
the fleet to meet current demand has been successful.
The Consumer Logistics business was negatively affected by the slowdown in
consumer demand and volumes are only expected to increase late in this
calendar year. Entities within the division have implemented a cost cutting
and rationalisation drive in order to compensate for the drop in volumes, which
protected operating margins to some extent.
The new sub-division, Integration Services, which houses asset-light
businesses made good progress in the delivery of professional services by
leveraging the division`s skills, processes and information technology. A
non-controlling interest was acquired in Pragma Holdings, a leader in physical
asset management services to industrial and public service entities. The
group`s technology business, Imperial Online was also transferred to this
division. A decline in import and export volumes has resulted in decreased
profitability in our freight for warding business, Megafreight.
Gross capital expenditure of R493 million was incurred. The net investment in
the fleet is higher than a year ago.
International Logistics
Change
R million H1 2010 H1 2009 %
Revenue 3 252 4 686 (30,6)
Operating profit 131 202 (35,1)
Operating margin (%) 4,0 4,3
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue (3,2) 3 360 8 046
Operating profit 11,0 118 320
Operating margin (%) 3,5 4,0
Results exceeded our expectations under the extremely tough trading
conditions which persisted in Europe throughout the period. The strengthening
of the Rand contributed to the reported declines in revenue and operating
profit, which declined by 23% and 29% respectively in Euro terms.
The division reacted fast to the advent of the global economic slump with cost
savings and restructuring of supplier arrangements, evidenced by the healthy
increase in the operating margin over the preceding half year.
Revenue was particularly low during the July and August summer break when
manufacturing customers curtailed production to reduce inventories. The
biggest revenue decline was in the inland water way business where revenues in
Euro were 28% lower than in the previous year. Lower freight rates further
contributed to the lower turnover, although the profit effect thereof was
partly offset by lower inward charter rates. We however benefitted handsomely
from the active support of our own fleet by our charter division and
increased fleet utilisation due to low water levels in the latter part of the
period.
Results from the Logistics business were also negatively affected by economic
conditions, but the turnaround in Gillhuber from a loss in the comparative
period turned the business to positive growth. Logistics services to European
auto manufacturers benefited from the scrapping allowance programme on older
vehicles, which has now been terminated. The port operator, Neska also posted
lower profits. Whilst the container operations of Neska were very weak, the
storage and handling of bulk materials was much more resilient.
A major steel furnace for which we perform shipping and port operations was
shut down for early maintenance during most of 2009. This furnace was
re-commissioned in Januay 2010, which will contribute positively to results
for the rest of the financial year.
Capital expenditure was significantly lower due to the contraction in economic
activity and uncertainty about the duration of the present economic
downturn.
Car Rental and Tourism
Change
R million H1 2010 H1 2009 %
Revenue 1 444 1 337 8,0
Operating profit 169 163 3,7
Operating margin (%) 11,7 12,2
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue 12,7 1 281 2 618
Operating profit (2,3) 173 336
Operating margin (%) 13,5 12,8
The division achieved modest year-on-year growth in revenue and operating
profit. Real growth was experienced in the Car Rental business with revenue days
increasing by 8%. Although corporate and Government travel declined from a more
buoyant market a year ago, an increase in the vehicle replacement and domestic
leisure markets, as well as the prior years` acquisition of U Drive, supported
the growth. International inbound car rental volumes recovered after a poor
first quarter to match the previous year`s volumes at half year.
Although the rental fleet size was unchanged from last year, utilisation
improved by 5% but revenue per day was 2% below last year due to a change in
the business mix.
The used vehicle market was tough at the start of the year, but showed strong
improvement late in the period. Retail unit sales were slightly up while margins
declined. New ventures in the division, namely Auto Auctions and AA Autobay
commenced trading and performed to expectation.
The global recession negatively impacted the tourism businesses, which remain
under extreme pressure from a decline in their main feeder markets in the UK,
Europe and North America.
In anticipation of the World Cup, de-fleeting will not take place during the
winter months. This will increase the fleet by some 20% over last year for the
duration of the tournament. We also expect longer than normal rental periods.
The touring division which is the sole transporter of the 32 participating teams
for the duration of the tournament acquired new coaches for this purpose.
Forward bookings for this period are strong in this division.
Distributorships
Change
R million H1 2010 H1 2009 %
Revenue 7 633 7 061 8,1
Operating profit 380 182 108,8
Operating margin (%) 5,0 2, 6
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue 26,1 6 051 13 112
Operating profit 23,0 309 491
Operating margin (%) 5,1 3,7
The main contributor in the division, AMH continued the strong performance of
the second half of the previous financial year. In South Africa year-on-year new
and used unit retail sales growth of 36% was achieved with new unit retail sales
up 55% compared to a market decline of 17%. Wholesale sales however declined by
36%. The improved margin is as a result of the stronger Rand as AMH is an
importer, as well as from effective cost control.
AMH`s imported brands have enjoyed good growth in all segments where they
compete. It is expected that the prominent sponsorship of Hyundai and Kia for
the 2010 FIFA World Cup will further boost growth and help entrench these brands
as major competitors in the South African market.
During the period AMH ceased the distribution of Citroen in Southern Africa.
In the Auto Parts division, the Midas acquisition became effective from 1
December 2009. Midas acquires parts and accessories both locally and
internationally. Its products are sold to the aftermarket, mainly for vehicles
which are no longer under manufacturers` warranties. It operates 404 retail
outlets, workshops and fitment centres either as owner or franchisor as well as
distribution centres and warehouses. Given an average age of the vehicle
population of over ten years, and a steadily growing vehicle parc, the business
should continue delivering strong volume growth.
Earnings from the General Aviation business, National Airways Finance
Corporation ("NAC") declined as aircraft sales came under pressure, both from
lower demand and a lack of availability of bank funding for this asset class.
The Australian dealerships made a modest profit after interest.
We invested a further R150 million in the form of convertible preference shares
in Renault South Africa, our 49% held associate company. We are more optimistic
about the prospects for this business due to its new comprehensive product range
and significant operational corrective action taken by management.
Automotive Retail
Change
R million H1 2010 H1 2009 %
Revenue 7 714 9 496 (18,8)
Operating profit 169 151 11,9
Operating margin (%) 2,2 1,6
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue 7,2 7 195 16 691
Operating profit 32,0 128 279
Operating margin (%) 1,8 1,7
In line with the group`s rebranding initiative, the Motor Dealership division
has changed its name to Automotive Retail.
New vehicle sales volumes for the period were down 33% on last year which was
more than the market decline due to dealership closures and a weak commercial
vehicle market. Volumes were however slightly up on the immediately preceding
half year. Following strict cost management and the closure of unprofitable
dealerships, the operating margin however improved to 2,2% from 1,6% year-on-
year and 1,8% for the preceding half year. Margins also benefitted from the
robust used vehicle market and continued focus in the after sales businesses.
Current trends indicate that passenger and light commercial vehicle sales have
bottomed out, but medium and heavy commercial vehicle sales are still
declining.
The availability of credit to consumers has recently improved marginally, but
continues to limit vehicle sales. Vehicle price inflation has also impacted
negatively on market growth. While manufacturers have assisted with slow
moving new vehicle stocks, the realignment of their overall stock positions
resulted in a shortage of new vehicle stock late in the period, which hampered
new vehicle sales. This increased demand for quality used cars, which resulted
in stronger used vehicle margins.
Further rationalisation in the UK truck dealerships reduced cost s and
resulted in a modest improvement in profitability in a market which remained
extremely depressed. The four Nissan dealerships in Sweden were sold.
Beekman Canopies penetrated new markets to ensure that sales volumes are
maintained despite a large reduction in the light commercial vehicle market,
while Jurgens Caravans also improved profitability. Management was successful
in harnessing synergies between these businesses and the group.
Insurance
Change
R million H1 2010 H1 2009 %
Revenue 1 349 1 454 (7,2)
Investment income,
including fair value
adjustments 203 7
Policyholders
investment returns
(See note) (38) (19)
Adjusted investment
income, including fair
value adjustments 165 (12)
Adjusted
underwriting result 96 89 7,9
Underwriting and other 58 70 (17,1)
Policyholders
investment returns
(See note) 38 19
Operating profit 261 77 239
Adjusted under writing margin % 7,1 6,1
Change
% on
R million H2 2009 H2 2009 F 2009
Revenue (3,2) 1 393 2 847
Investment income,
including fair value
adjustments 52.6 133 140
Policyholders
investment returns
(See note) (5) (24)
Adjusted investment
income, including fair
value adjustments 128 116
Adjusted
under writing result (12,7) 110 199
Under writing and other (44,8) 105 175
Policyholders
investment returns
(See note) 5 24
Operating profit 9,7 238 315
Adjusted under writing margin % 7,9 7,0
Note:
The profit before tax of an insurance business is made up of the underwriting
result and investment return. Policyholder investment returns include
investment income and fair value gains for the benefit of policyholders. The
above table reflects a reallocation of policyholder investment returns between
the under writing result and the investment return. The adjusted under
writing result and investment return more accurately reflect the relative
investment and under writing performance.
The improvement in operating profit is mostly derived from the investment
income of R 203 million compared to R7 million in the prior period, primarily
caused by a positive fair value adjustment of R92 million against a negative
fair value adjustment of R110 million in the prior period. Equities currently
represent approximately 20% of the investment portfolio.
Gross written premium was 7,2% lower, mostly due to the loss of an account in
Botswana. The balance of the short fall was experienced in the commercial
vehicle and motor comprehensive operation of the SA short-term company as a
result of a depressed motor market.
The profit contributed by the single premium business run-off is reducing in
line with expectations and will come to an end in the 2012 financial year.
The adjusted underwriting result was 7,9% higher at R96 million. Subsequent to
the introduction of cell captives in the second half of last year, we account
for our external partners` share of profits as income attributable to
non-controlling shareholders. Excluding the positive impact of this for
comparative purposes, the adjusted under writing result would have been 5,6%
lower than the prior period. This can be attributed to the reduced benefit of
the run-off of the single-premium book and the loss of an account in Botswana.
In contrast, the Individual Life business performance was pleasing following a
re-pricing on certain lines of business and improved distribution.
The adjusted underwriting results were also 12,7% lower than the R110 million
achieved in the second half of last year, in which R57 million was released
from actuarial reserves.
Underwriting conditions in the foreseeable future will continue to be tough.
The short-term insurance business will continue to be negatively impacted by
the depressed motor market and competitive pricing pressures. Management is
focused on building a new monthly premium book whilst also positioning the
business to be less reliant on traditional dealership originated business. This
process will take some time to bear fruit.
During the period we disposed of our 35% interest in Flagstone Re Africa for a
consideration of R84 million.
Skills development and Corporate Social Investment
We continued our strong commitment to the development of our staff and
management with approximately R40 million invested in skills development
programmes. Key initiatives include the cascading of our senior management
programmes to the middle management level. Career development opportunities
for previously disadvantaged individuals in all divisions are a key priority.
The Imperial and Ukhamba Community Development Trust supports seven schools in
under privileged parts of Gauteng and has spent R17 million at these schools
since inception. The projects have achieved significant progress in terms of
numeracy and support 7 500 learners in terms of curriculum development,
textbooks, teacher training and the construction of much needed infrastructure.
Ordinary dividend
An interim ordinary dividend of 150 cents per share (2008: 80 cents per
share) has been declared. The interim dividend was relatively low because of
the uncertain economic climate and financial crisis. The amount of the final
dividend will be considered at the time with due regard to all the prevailing
circumstances.
Strategic intentions
While we continue to focus on high returns on capital and prudent balance sheet
management, we are also focusing on renewed growth in selected areas of our
existing businesses where we have proven expertise. Such opportunities will
always be baanced against shareholder remuneration, financial prudence and
optimal management of the balance sheet.
With low financial leverage, substantial long-term undrawn facilities and the
imminent receipt of the proceeds of the sale of Imperial Bank, the group has
significant financial capacity to pursue these opportunities.
In the evaluation of any acquisition we prudently consider operational risks,
potential returns relative to our cost of capital, possible synergies and the
suitability of the opportunity given our existing portfolio and skills set. We
also formally evaluate recent additions to enable us to learn and improve our
acquisition process.
The strategy to limit the group`s relative exposure to the motor retailing
industry continues. Whilst no divestitures from the motor portfolio are
planned, Further investments in the logistics industry and selected areas
in the tourism industry will be favoured. Internationally, our expansion will
be aligned to Imperial Logistics International and will be in the logistics
field. Our Southern African and European Logistics management have identified
a number of areas to pursue jointly, which will strengthen the respective
portfolios.
Tourism continues to provide future growth opportunities. We have identified
expansion potential in transport, accommodation management, conferencing,
touring and sports. We will continue to seek businesses in these areas to
augment our existing operations.
Prospects
The Southern African logistics industry is expected to remain sluggish for
most of the 2010 financial year, although business activity is adequate for
the division to deliver good returns. The division`s diversification into
asset-light businesses, acquisition opportunities, new contract gains and our
strategy to strengthen our presence in the African market will be a source of
future growth in this division.
Whilst conditions for our European logistics business remain tough, there has
been some improvement which could be maintained as inventory levels in the
European industrial sector are stabilising. This is evident from the activity
levels within certain parts of our customer base. Unfortunately the
special incentives which artificially supported the automotive industry
during 2009 have come to an end. The European logistics market is highly
fragmented and we are ideally positioned to take advantage of attractive
acquisition opportunities that may arise.
The Car Rental and Tourism division is currently being negatively affected by
weak international inbound tourism and a slowdown in business travel. The FIFA
2010 World Cup and a general improvement in tourism will provide a stimulus to
this division. We expect an improvement in our fleet utilisation resulting in
improved margins.
While motor vehicle sales remain weak, there are signs of an improvement as
seen in our Automotive Retail and Distributorships divisions during the period.
The far reaching steps that have been taken to right-size our motor operations
in line with our expectations of motor demand are proving beneficial and after
a significant decline in 2009, we expect vehicle sales to grow gradually
in the year ahead. AMH is expected to continue to benefit from the increase
in its market share. The acquisition of Midas will also contribute
meaningfully to the Distributorships division`s earnings. We therefore expect
a continued recovery of the Distributorships and Automotive Retail divisions.
An improvement in the Regent group`s underwriting performance will take a few
years as it builds a new book of monthly premium business and creates new
products out side of the automotive industry. The investment portfolio of
Regent is conservatively positioned against possible weakness in equity
markets.
Our strong balance sheet and portfolio of businesses position us well to
focus on our initiative of renewed growth within selected areas of our
businesses and take advantage of the expected improvement in global economies
and trading conditions.
In summary, under current market conditions we expect our operational
performance to be maintained for the remainder of the financial year.
By order of the board
TS Gcabashe, Chairman
HR Brody, Chief Executive
AH Mahomed, Financial Director
Declaration of dividend
Preference shareholders and ordinary shareholders
Notice is hereby given that:
a preference dividend of 399,863 cents per preference share has been
declared for the six month period ending 31 December 2009 payable to holders of
non-redeemable, non-participating preference shares; and
an ordinary dividend in an amount of 150 cents per ordinary share for the
six month period ending 31 December 2009 has been declared payable to ordinary
shareholders.
The company has determined the following salient dates for the payment of the
preference dividend and ordinary dividend:
2010
Last day for preference shares and ordinary
shares respectively to trade cum-preference
dividend and cum ordinary dividend respectively Thursday, 18 March
Preference and ordinary shares commence
trading ex-preference dividend and ex
ordinary dividend respectively Friday, 19 March
Record date Friday, 26 March
Payment date Monday, 29 March
Share certificates may not be dematerialised/rematerialised between Friday,
19 March 2010 and Friday, 26 March 2010, both days inclusive.
On Monday, 29 March 2010, amounts due in respect of the preference dividend
and the ordinary dividend will be electronically transferred to the bank
accounts of certificated shareholders that utilise this facility. In
respect of those who do not, cheques dated 29 March 2010 will be posted on
or about that date. Shareholders who have dematerialised their shares will
have their accounts, held at their CSDP or Broker, credited on
Monday, 29 March 2010.
Preferred ordinary shareholders (Unlisted)
Notice is hereby further given that a dividend of 267,5 cents per preferred
ordinary share has been declared and is payable to preferred ordinary
shareholders recorded in the registers of the company at the close of business
on Thursday, 25 March 2010.
On Friday, 26 March 2010 the dividend will be electronically transferred to
the bank accounts of preferred ordinary shareholders.
On behalf of the board
RA Venter
Group Company Secretary
24 February 2010
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Restated Restated
Unaudited Unaudited Audited
Dec 09 Dec 08 Jun 09
Rm Rm Rm
At 31 December 2009
ASSETS
Intangible assets 1 069 1 084 901
Investments in associates and joint
ventures 2 876 2 388 2 334
Property, plant and equipment 5 946 6 111 5 976
Transport fleet 3 557 3 722 3 483
Vehicles for hire 1 809 1 590 1 653
Deferred tax assets 644 526 645
Other investments and loans 1 392 1 701 1 136
Other non-current financial assets 231 367 203
Inventories 5 614 6 177 5 592
Taxation in advance 110 97 154
Trade and other receivables 6 437 6 834 5 633
Cash resources 2 786 3 160 4 655
Assets classified as held for sale 816 1 478 950
Total assets 33 287 35 235 33 315
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 10 10 10
Shares repurchased (1 816) (1 816) (1 816)
Other reserves 527 834 280
Retained earnings 12 052 11 029 11 300
Attributable to Imperial Holdings`
shareholders 10 773 10 057 9 774
Non-controlling interests 709 543 587
Total shareholders` equity 11 482 10 600 10 361
Liabilities
Non-redeemable, non-participating
preference shares 441 441 441
Retirement benefit obligations 2 49 310 256
Interest-bearing borrowings 8 559 11 064 9 794
Insurance and investment contracts 1 272 1 529 1 356
Deferred tax liabilities 676 573 652
Other non-current financial liabilities 134 83 157
Trade and other payables and provisions 9 594 9 387 9 338
Current tax liabilities 419 608 501
Liabilities directly associated with
assets
classified as held for sale 461 640 459
Total liabilities 21 805 24 635 22 954
Total equity and liabilities 33 287 35 235 33 315
Capital commitments 503 502 544
Contingent liabilities 171 535 256
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Restated Restated
Unaudited Unaudited Audited
Dec 09 Dec 08 Jun 09
Rm Rm Rm
for the period ended
Cash flows from operating
activities
Cash generated by operations
before movements in
working capital 2 039 2 535 4 324
Net working capital movements (161) (154) 1 429
Cash generated by operation
before net capital expenditure
on rental assets * 1 878 2 381 5 753
Expansion capital expenditure
- rental assets # (120) (44)
Net replacement capital
expenditure - rental assets # (215) (343) (460)
- Expenditure (918) (761) (1 396)
- Proceeds 703 418 936
Cash generated by operations 1 543 1 994 5 293
Net financing costs (354) (528) (961)
Taxation paid (369) (335) (739)
Cash flows from investing
activities 820 1 131 3 593
Proceeds from discontinued
operations 1 340 1 340
- Sale of Tour vest 1 003 1 003
- Sale of Safair Lease Finance 337 337
Net expenditure from
continuing operations
- Net acquisition of
subsidiaries and businesses (314) (343) (340)
- Expansion capital
expenditure - excluding rental assets (200) (465) (640)
- Net replacement capital
expenditure - excluding rental assets (296) (360) (577)
- Investments, equities and loans (295) 315 741
Cash flows from financing
activities (1 105) 487 524
Hedge cost premium paid (4) (135) (137)
Dividends paid (303) (555) (765)
Change in non-controlling interest (24) (107)
Decrease in interest-bearing
borrowings (1 227) (225) (137)
(1 558) (915) (1 146)
Net (decrease) increase in
cash resources (1 843) 703 2 971
Analysis of cash generated by
operations
* Cash generated by operations
before capital expenditure
on rental assets
- Continuing operations 1 700 2 030 5 187
- Discontinued operations 178 351 566
# Net capital expenditure on
rental assets 1 878 2 381 5 753
- Continuing operations (390) (348) (538)
- Discontinued operations 55 (39) 78
Cash generated by operations (335) (387) (460)
- Continuing operations 1 310 1 682 4 649
- Discontinued operations 2 33 312 644
1 543 1 994 5 293
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Restated
Unaudited Unaudited
Dec 09 Dec 08
for the period ended Rm Rm
CONTINUING OPERATIONS
Revenue 25 683 28 619
Net operating expenses (23 564) (26 824)
Profit from operations before depreciation
and recoupments 2 119 1 795
Depreciation, amortisation and recoupments (678) (643)
Operating profit 1 441 1 152
Recoupments from sale of properties 38 3
Foreign exchange (losses) gains (1) 470
Fair value losses on foreign exchange derivatives (5) (47)
Impairment reversals of share scheme loans 24
Gain on early settlement of European bond 27
Fair value gain on Lereko call option 72
Exceptional items 10 (246)
Profit before net financing costs 1 606 1 332
Net finance cost including fair value gains and losses (319) (505)
Income from associates and joint ventures 152 87
Profit before taxation 1 439 914
Income tax expense 345 246
Profit from continuing operations 1 094 668
Discontinued operations 12 556
- Trading (loss) profit from operations (5) (4)
- Fair value profit on discontinuation 17 560
Net profit for the period 1 106 1 224
Other comprehensive income
Exchange losses arising on
translation of foreign operations (45) (289)
Cash flowh edges 50 49
Fair value gains on available for sale financial assets 9 140
Fair value gain (loss) on Lereko call option 244 19
Share of other comprehensive income of associate (5)
Income tax relating to components of other
comprehensive income (1) (20)
Total comprehensive income for the period 1 363 1 118
Net profit attributable to:
Equity holders of Imperial Holdings Limited 1 012 1 155
Non-controlling interest - continuing operations 94 68
Non-controlling interest - discontinued operations 1
Total comprehensive income attributable to: 1 106 1 224
Equity holders of Imperial Holdings Limited 1 261 1 055
Non-controlling interest - continuing operations 102 62
Non-controlling interest - discontinued operations 1
Earnings per share (cents) 1 363 1 118
- Basic
Total 523 602
Discontinued operations 6 299
Continuing operations 517 303
- Diluted
Total 497 558
Discontinued operations 6 268
Continuing operations 491 290
Headline earnings/(loss) per share (cents)
- Basic
Total 503 432
Discontinued operations (3)
Continuing operations 506 432
- Diluted
Total 479 406
Discontinued operations (2) 1
Continuing operations 481 405
Headline earnings reconciliation
- continuing and discontinued operations Rm Rm
Attributable profit 1 012 1 155
Attributable to preferred ordinary shareholders (39) (39)
Attributable to ordinary shareholders 973 1 116
Profit on sale of property, plant and equipment (46) (6)
Impairment (impairment reversal) of as sets 6 7
Exceptional items - continuing operations (10) 246
Exceptional items - included in income from
associates and joint ventures 11
Exceptional items - discontinued operations (17) (650)
Taxation 19 90
Non-controlling interests (2)
Headline earnings - basic 936 801
Attributable to preferred ordinary shareholders 39 39
Headline earnings - diluted 975 840
Preferred ordinary shares
- Basic (cents) 268 268
Additional information
Net asset value per share (cents) 5 289 4 959
Number of ordinary shares (million)
- in issue 189 188
- weighted average 186 185
- weighted average for diluted earnings 204 207
Number of other shares in issue (million)
- Preferred ordinary 15 15
- Deferred ordinary 16 17
Net finance cost Rm Rm
Net interest paid 340 443
Foreign exchange (gain) loss on monetary items (37) 133
Fair value loss (gains) on interest rate swaps 16 (71)
Net finance cost - continuing operations 319 505
Net finance cost - discontinued operations 14 85
Exceptional items - continuing operations Rm Rm
Impairment of goodwill (8) (15)
Recognition of deferred profit on sale of Dawn
Limited 22
Net loss on disposal and rational is ation of
investment s in subsidiaries, associates and
joint ventures (4) (14)
Loss on sale of Eqstra Holdings Limited shares (217)
10 (246)
Exceptional items - discontinued operations Rm Rm
Profit on sale of Tour vest 575
Fair value profit (loss) on Aviation disposal group 17 75
Taxation (90)
17 560
Audited
% Jun 09
for the period ended Change Rm
CONTINUING OPERATIONS
Revenue (10) 52 219
Net operating expenses (48 454)
Profit from operations before depreciation
and recoupments 3 765
Depreciation, amortisation and recoupments (1 312)
Operating profit 25 2 453
Recoupments from sale of properties 75
Foreign exchange (losses) gains 400
Fair value losses on foreign exchange derivatives (8)
Impairment reversals of share scheme loans
Gain on early settlement of European bond
Fair value gain on Lereko call option
Exceptional items (431)
Profit before net financing costs 21 2 489
Net finance cost including fair value gains and losses (923)
Income from associates and joint ventures 107
Profit before taxation 57 1 673
Income tax expense 502
Profit from continuing operations 1 171
Discontinued operations 508
- Trading (loss) profit from operations 24
- Fair value profit on discontinuation 484
Net profit for the period 1 679
Other comprehensive income
Exchange losses arising on
translation of foreign operations (566)
Cash flowh edges (163)
Fair value gains on available for sale financial assets 150
Fair value gain (loss) on Lereko call option (6)
Share of other comprehensive income of associate (9)
Income tax relating to components of other
comprehensive income (20)
Total comprehensive income for the period 1 065
Net profit attributable to:
Equity holders of Imperial Holdings Limited 1 518
Non-controlling interest - continuing operations 160
Non-controlling interest - discontinued operations 1
Total comprehensive income attributable to: 1 679
Equity holders of Imperial Holdings Limited 940
Non-controlling interest - continuing operations 124
Non-controlling interest - discontinued operations 1
Earnings per share (cents) 1 065
- Basic
Total (13) 776
Discontinued operations (98) 273
Continuing operations 71 503
Total (11) 730
Discontinued operations (98) 244
Continuing operations 69 486
Headline earnings/(loss) per share (cents)
- Basic
Total 16 715
Discontinued operations 17
Continuing operations 17 698
- Diluted
Total 18 675
Discontinued operations 15
Continuing operations 19 660
Headline earnings reconciliation
- continuing and discontinued operations Rm
Attributable profit 1 518
Attributable to preferred ordinary shareholders (78)
Attributable to ordinary shareholders 1 440
Profit on sale of property, plant and equipment (71)
Impairment (impairment reversal) of as sets (8)
Exceptional items - continuing operations 431
Exceptional items - included in income from
associates and joint ventures 4
Exceptional items - discontinued operations (571)
Taxation 104
Non-controlling interests (2)
Headline earnings - basic 1 327
Attributable to preferred ordinary shareholders 78
Headline earnings - diluted 1 405
Preferred ordinary shares
- Basic (cents) 535
Additional information
Net asset value per share (cents) 7 4 820
Number of ordinary shares (million)
- in issue 188
- weighted average 186
- weighted average for diluted earnings 208
Number of other shares in issue (million)
- Preferred ordinary 15
- Deferred ordinary 17
Net finance cost Rm
Net interest paid 862
Foreign exchange (gain) loss on monetary items (216)
Fair value loss (gains) on interest rate swaps 277
Net finance cost - continuing operations 923
Net finance cost - discontinued operations 99
Exceptional items - continuing operations Rm
Impairment of goodwill (194)
Recognition of deferred profit on sale of Dawn Limited
Net loss on disposal and rational is ation of
investment s in subsidiaries, associates and
joint ventures (20)
Loss on sale of Eqstra Holdings Limited shares (217)
(431)
Exceptional items - discontinued operations Rm
Profit on sale of Tour vest 575
Fair value profit (loss) on Aviation disposal group (4)
Taxation (87)
484
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Shares Other
capital re-purchased reserves
for the period ended Rm Rm Rm
Balance at 30 June 2008 - Audited 10 (1 816) 1 273
Total comprehensive income for the
period (100)
Transfer of reserves on disposal of
assets (242)
Contingency reserve created in terms
of the Insurance Act 6
Share option hedging cost (135)
Movement in share - based equity
reserve 32
Dividends and capital distributions
Net decrease in non-controlling
interest
Non-controlling interest share of
dividends
Balance at 31 December 2008 -
Unaudited 10 (1 816) 834
Total comprehensive income for the
period (478)
Transfer to translation reserve 5
Transfer of reserves on disposal of
assets (19)
Contingency and other statutory
reserves (83)
Share option hedging cost (2)
Movement in share-based equity
reserve 23
Dividends paid
Net increase in non-controlling
interest
Non-controlling interest share of
dividends
Balance at 30 June 2009 - Audited 10 (1 816) 280
Total comprehensive income for the
period 249
Transfer of reserves on disposal of
assets 5
Contingency and other statutory
reserves 2
Share-based equity reserve
utilisation (63)
Movement in share-based equity
reserve 74
Dividends paid
Non-controlling interest arising on
business combination
Net decrease in non-controlling
interest (20)
Non-controlling share of dividends
Balance at 31 December 2009 -
Unaudited 10 (1 816) 527
Non-
Retained Attributable controlling Total
earnings equity interest equity
for the period ended Rm Rm Rm Rm
Balance at 30 June
2008 - Audited 10 138 9 605 811 10 416
Total comprehensive
income for the period 1 155 1 055 63 1 118
Transfer of reserves
on disposal of assets 242
Contingency reserve
created in terms of
the Insurance Act (6)
Share option hedging
cost (135) (135)
Movement in share-
based equity reserve 32 32
Dividends and capital
distributions (500) (500) (500)
Net decrease in
non-controlling
interest (276) (276)
Non-controlling
Interest share of
dividends (55) (55)
Balance at 31 December
2008 - Unaudited 11 029 10 057 543 10 600
Total comprehensive
income for the period 363 (115) 62 (53)
Transfer to
translation reserve (5)
Transfer of reserves
on disposal of assets 19
Contingency and other
statutory reserves 83
Share option hedging
cost (2) (2)
Movement in share-
based equity reserve 23 23
Dividends paid (189) (189) (189)
Net increase in
non-controlling
interest 3 3
Non-controlling
interestshare of
dividends (21) (21)
Balance at 30 June
2009 - Audited 11 300 9 774 5 87 10 361
Total comprehensive
income for the period 1 012 1 261 102 1 363
Transfer of reserves
on disposal of assets (5)
Contingency and other
statutory reserves (2)
Share-based equity
reserve utilisation (63) (63)
Movement in share-
based equity reserve 74 74
Dividends paid (253) (253) (253)
Non-controlling
interest arising on
business combination 74 74
Net decrease in
non-controlling
interest (20) (4) (24)
Non-controlling
share of dividends (50) (50)
Balance at 31 December
2009 - Unaudited 12 052 10 773 709 11 482
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PREPARATION
The condensed consolidated financial statements have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFR S) and it s interpretations adopted by the
International Accounting Standards Board (IASB) in issue and effective for
the Group at 31 December 2009. The results are presented in terms of IAS 34 -
Interim Financial Reporting and comply with the Listings Requirements of the
JSE Limited. These financial statements do not include all the information
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements as at and for the year
ended 30 June 2009. These condensed consolidated financial statements have not
been reviewed or audited by the group`s auditors and were approved by the board
of directors on 23 February 2010.
ACCOUNTING POLICIES
The accounting policies adopted and methods of computation used in the
preparation of the condensed consolidated financial statements are consistent
with those of the annual financial statements for the year ended 30 June 2009
except for the adoption of new or revised accounting standards and restatements
which are described below.
NEW ACCOUNTING STANDARDS
The group adopted accounting standards and interpretations that became
applicable during the current reporting period. Of the amendments included in
the Improvements to IFR S the following standards have had an impact on the
Group`s accounting policies and methods of computation:
- IFRS 3 - Business combinations
- IAS 7 - Statement of cash flows
- IAS 16 - Property, plant and equipment
- IAS 27 - Consolidated and separate financial statements
- IAS 28 - Investments in associates
The adoption of the above standards impacts the Group as follows:
1) Goodwill arising from non-controlling interest buy-out is recognised in
equity
2) Transaction related costs for new acquisitions are expensed in the
statement of comprehensive income
3) Adjustments to warranty payments provisions is recognised in the
statement of comprehensive income
4) Non-controlling interests shareholders share in accumulated losses above
the equity they contributed
5) Net capital expenditure for car rental assets are shown under operating
activities in the statement of cash flows
Amendments to these standards as noted under items 1 to 4 above have been
applied prospectively and have had no material impact to the comprehensive
income and the statement of financial position. IAS 7 was applied
retrospectively as noted under item 5.
The adoption of the revised IAS 1 - Presentation of Financial Statements, IAS 32
- Financial instruments Presentation and IFR S 8 - Operating Segments introduced
changes to the presentation of the financial statements with no impact on the
Group`s accounting policies or methods of computations.
Circular 3/2009 - Headline earnings became applicable to Imperial on
1 July 2009. The impact of the adoption of the circular in the current
reporting period was immaterial.
RESTATEMENTS
Reclassification of recoupments
Operating profit has been restated to exclude recoupments on the sale of
properties. Comparatives o n the statement of comprehensive income and
segmental income statement have been restated accordingly. The
reclassification out of operating profit had no impact on profit from
continuing operations.
Reclassification of leasing assets
The leasing assets for December 2008 have been reclassified, inline with June
2009, to inventories, vehicles for hire and property, plant and equipment. The
statement of financial position and segmental balance sheet have been amended
accordingly.
Reclassification of car rental cash flow
Net capital expenditure for car rental assets has been reclassified from
investing activities to operating activities in the statement of cash flows.
This is to comply with amendments to IAS 16 - Property, Plant and Equipment and
IAS 7 - Statement of Cash Flows.
Re-presentation of the consolidated statement of financial position (Balance
sheet) - Imperial Bank Limited
By the end of December 2009 all the conditions precedent to the sale of the
holding of 49,9% of the Bank had not been fulfilled, in that the approval for
the sale in terms of section 37 of the Banks Act had not been obtained as
had been anticipated. Consequently, the investment in Imperial Bank Limited
was reclassified under "Investments in associates and joint ventures", from its
previous presentation as "Associate held for sale" with the comparative
disclosure on the balance sheet being re-presented and our share of Imperial
Bank Limited `s earnings continue to be equity accounted.
SUBSEQUENT EVENTS
On 8 February 2010 the notification of the final approval for the sale of
Imperial Bank Limited was received resulting in all the conditions precedent
being met. From this date onwards Imperial Bank`s earnings will no longer be
equity accounted. A profit on sale of approximately R130 million and CGT cost of
approximately R140 million will be recognised in the second half.
There were no other material events that require disclosure that has occurred
subsequent to the balance sheet date.
OPERATIONAL SEGMENTAL REPORTING
For management purposes, the group is organised in to five major operating
divisions - Logistics, Car Rental and Tourism, Distributorships, Automotive
Retail and Insurance. These divisions are the basis on which the group reports
its primary segment information. The principal services and products of each of
these divisions are as follows:
Logistics - provides complete logistics solutions including transportation,
warehousing, inland water way shipping, container handling and related
value-added services.
Car Rental and Tourism - vehicle rental operations span the domestic corporate
and leisure sectors as well as inbound tourists, with extensive support
services. Tourism operations include inbound tour operations and niche tourism
services.
Distributorships - this segment imports and distributes a range of passenger
and commercial vehicles, automotive products and motorcycles.
Automotive Retail - consists of a large net work of motor vehicle and
commercial vehicle dealerships in South Africa and representing all the major
original equipment manufacturers (OEM`s).
Insurance - the insurance operations are focused on a range of short-, medium-
and long-term insurance and assurance products that are predominantly
associated with the automotive market.
BUSINESS COMBINATIONS
The numbers reflected below represent the total of all the acquisitions made
during the reporting period. The only material acquisition is Midas Group
(Pty) Limited which represents approximately 90% of figures disclosed.
Reason for the acquisition
75% of Midas Group (Pty) Limited, an autoparts distributors was acquired on
1 December 2009 to improve the group`s distribution logistics.
Impact of the acquisitions on the results of the group
From the dates of their acquisition, the acquired businesses contributed
revenues of R248 million and net profit of R6 million. Had all the new
acquisitions been consolidated from 1 July 2009 the statement of comprehensive
income would have included additional revenue of R1 097 million and net
profit of R36 million for continuing operations for the six month period ended
31 December 2009. These numbers were estimated using the group`s accounting
policies.
Details of contingent consideration
The contingent consideration requires the group to pay the vendors an
additional total amount of R39 million over two years if the entities net
profit after tax exceeds certain earnings targets. Acquisition-related cost
amounting to R2 million have been excluded from the purchase consideration
transferred and have been recognised as an expense in the period, within the
`Net operating expenses` line item in the statement of comprehensive income.
Fair value of assets acquired and liabilities assumed at date of acquisition:
Rm
Assets
Intangible assets 7
Property, plant and equipment 44
Deferred taxation 10
Inventories 239
Trade receivables 293
Cash resources 115
Liabilities
Trade and other payables and provisions (364)
Current taxation (24)
Acquirees carrying amount at acquisition 320
Less: Non-controlling interest (74)
Net assets acquired 246
Purchase consideration transferred 442
- Cash 403
- Contingent consideration 39
Goodwill arising on acquisition 196
The receivables acquired had gross contractual amounts of R312 million and the
best estimate of the contractual cash flows not expected to be collected is
R19 million. The goodwill arising from the acquisitions consists largely of a
control premium and synergies expected. None of the goodwill is expected to
be deductible for tax purposes.
Non-controlling interest has been calculated based on their proportionate share
in net assets.
The segment report is contained on the Imperial Holdings website
www.imperial.co.za
CORPORATE INFORMATION
Non - executive directors
TS Gcabashe (Chairman), T Dingaan, S Engelbrecht,
P Langeni, MJ Leeming, JR Mc Alpine, MV Moosa,
RJA Spark s, A Tugendhaft (Deputy chairman), Y Waja
Executive directors
HR Brody (Chief Executive), OS Arbee, MP de Canha,
RL Hiemstra, AH Mahomed, GW Riemann (German),
M Swanepoel
Company Secretary
RA Venter
Business address and registered office
Imperial Place, Jeppe Quondam,
79 Boeing Road East, Bedfordview, 2007
Share transfer secretaries
Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg, 2001
Sponsor
Merrill Lynch SA (Pty) Limited,
138 West Street, Sandown Sandton, 2196
The results announcement is available on the Imperial Holdings
Website: www.imperial.co.za
Imperial Holdings Limited
Registration number (1946/021048/06)
Ordinary share code: IPL ISIN: ZAE000067211
Preference share code: IPLP ISIN: Z AE000088076
The results announcement is available on the Imperial website:
www.imperial.co.za
Date: 24/02/2010 07:05:08 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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