| Mon 10 May 2010, 10:32 | | IPL - Imperial Holdings Limited - Trading Statement And Update On Operational |
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IPL
IPL
IPL - Imperial Holdings Limited - Trading Statement And Update On Operational
Performance
Imperial Holdings Limited
Registration number: 1946/021048/06
JSE share code: IPL
ISIN: ZAE000067211
("Imperial" or "the group")
TRADING STATEMENT AND UPDATE ON OPERATIONAL PERFORMANCE
This trading statement is published in compliance with Rule 3.4(b) of the JSE
Listings Requirements.
Imperial is pleased to provide the following guidance regarding the range of the
expected increase in headline earnings per share ("HEPS") and earnings per share
("EPS") for the financial year ending on 30 June 2010:
Year ended June Year ending June
2009 2010 expected
increase range
HEPS 715 cents 25% to 45%
EPS 776 cents 22% to 42%
The expected earnings calculated using the above ranges would be the total HEPS
and EPS for 2010 including discontinued operations, which are negligible,
representing less than 3% of total earnings.
Headline earnings and earnings for the year include items which were highlighted
in the interim results announcement, namely a gain of 37 cents per share ("cps")
(R69 million) from the reversal of provisions relating to the share trust, and a
gain of 15 cps (R27 million) from the repurchase of approximately R400 million
in Euro bonds. In addition to earnings during the first half of 39 cps (R72
million) from the revaluation of a financial instrument relating to the Lereko
BEE transaction, a further 74 cps (R137 million) revaluation gain is expected to
be reported, based on an assumed Imperial share price of R95 per share.
The gain on the sale of Imperial Bank amounted to 71 cps (R132 million), which
will not be included in HEPS. In terms of accounting standards for HEPS, the
bulk of the charge for Capital Gains Tax (CGT) on the transaction, namely 65 cps
out of the total CGT of 75 cps (R120 million out of R139 million) will be
included in HEPS.
Headline earnings and earnings in the previous year included 212 cps (R394
million), which relates to a foreign currency gain on the repatriation of
capital from our international operations.
The forecast financial information herein has not been reviewed or reported on
by Imperial`s auditors. This update is based on available information at the
time of publication. Imperial`s final results are expected to be released on
SENS on or about 25 August 2010.
Operational performance
The logistics division is experiencing an improvement over the first half, since
activity in Southern Africa and Europe are recovering in some of the sectors in
which the division operates.
The benefits resulting from the 2010 FIFA World Cup in the car rental and
tourism division will be limited; however the division is expected to perform
satisfactorily.
Growth in vehicle sales and the benefit of restructuring the automotive
businesses last year positively affected both our vehicle trading divisions. The
distributorships division also benefits from the prevailing currency conditions.
Insurance underwriting results are in line with the first half of the financial
year. The impact of equity market volatility is limited on the equity portfolio
of the insurance division due to a hedging strategy that has been implemented.
At the time of the release in February of the interim results for the six months
to December 2009, it was stated that the board expected operational performance
to be maintained for the remainder of the financial year. It is now anticipated
that, should current trading conditions prevail, operating profit in the second
half will exceed that of the first half.
RA Venter
Company Secretary
Bedfordview
10 May 2010
Sponsor to Imperial
MERRILL LYNCH SOUTH AFRICA (PTY) LIMITED
Date: 10/05/2010 10:32:01 Produced by the JSE SENS Department.
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