| Wed 22 Aug 2001, 0:00 | | Imperial Holdings Limited - Audited Results |
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- Revenue up 46%
- Cash generated from operations up 38%
- Headline earnings per share up 23%
Income statement
for the years ended 25 June
2001 2000 %
Rm Rm change
Revenue 21 874 14 944 46
Profit from operations before
depreciation 2 681 1 914
Depreciation 810 612
Profit from operations 1 871 1 302 44
Net financing costs (428) (177)
Income from associates 42 21
Profit before exceptional items 1 485 1 146 30
Exceptional items 92 (6)
Profit before taxation 1 577 1 140 38
Taxation 298 238
Profit from ordinary activities 1 279 902 42
Outside shareholders' interest 60 39
Net profit for the year 1 219 863 41
Cents Cents
Earnings per share*
- Basic 573,5 434,1 32
- Diluted 568,8 430,1
Headline earnings per share*
- Basic 535,0 435,4 23
- Diluted 530,7 431,4
Earnings per share reconciliation*
Headline earnings per share before
restatements outlined below 535,0 444,0
Change in accounting policies
to comply with new accounting
standards# (8,8)
535,0 435,2
Goodwill amortisation (7,3)
Profit on sale of property,
plant and equipment 2,8 1,8
Exceptional items 43,0 (2,9)
573,5 434,1
* Based on the weighted average number of shares in issue
# Change in accounting policy
The group adopted AC 102 (Income Taxes) which had the effect of increasing
the taxation charge in the income statement by R14 million for June 2000.
The deferred tax asset was increased by R3 million at June 2000.
The group adopted AC 131 (Business combinations) and AC 129 (Intangible
assets). This had the effect of capitalising goodwill, being the surplus of
the purchase price above the net asset value (fairly valued) as an
intangible asset in the period under review amounting to R234 million. This
goodwill is being amortised over its estimated useful life (3-20 years) and
resulted in charge to the income statement of R17 million. This has not been
applied retrospectively.
The group also adopted certain other accounting standards which became
mandatory, but did not affect the group during the period under review
except for certain balance sheet reclassifications.
Except as stated above, the principal accounting policies adopted in the
preparation of this interim report are consistent in all material respects
with those applied in the previous annual report.
The consolidated financial statements are prepared in accordance with, and
comply with Standards of Generally Accepted Accounting Practice in South
Africa effective for the group's financial year.
Exceptional items Rm Rm
Attributable exception losses
and write down of investments
in associates (5)
Profit on disposal of Imperial
Bank Limited 137
Banking provisioning regulation
adjustment (6)
Impairment of assets (31)
Restructuring of investments
in subsidiaries and associates (8)
Foreign restructuring costs (1)
92 (6)
Additional information
Net asset value per share (cents) 3 367 2 831
Number of shares (million)
- in issue 215,6 209,3
- weighted average 212,6 198,9
Profit before taxation Rm Rm
This is stated after:
- Investment income - dividends 15 8
Interest income/(cost)
- Financial services businesses 142 221
- Other operations - paid (650) (398)
- received 222 221
- net (428) (177)
Balance sheet
at 25 June
2001 2000
Rm Rm
Property, plant and equipment 1 615 1 173
Intangible assets 280 23
Investments in associates 1 234 97
Other investments and loans 710 752
Banking and other advances 3 087
Deferred tax assets 133 87
Aviation leasing fleet 1 695 1 181
Transport and allied assets 1 804 1 295
Motor vehicles for hire 1 632 1 155
Inventories 2 538 1 554
Trade and other receivables 3 249 2 824
Taxation in advance 49 49
Cash and cash equivalents 1 508 1 099
Total assets 16 447 14 376
Insurance funds 247 209
Banking liabilities 1 605
Interest-bearing borrowings 4 110 3 068
Retirement benefit obligations 160 61
Deferred taxation 251 166
Other liabilities 4 420 3 342
Total liabilities 9 188 8 451
Net assets 7 259 5 925
FUNDED BY
Shareholders' equity 7 073 5 854
Outside shareholders' interest 186 71
Total shareholders' equity 7 259 5 925
Supplementary information
Investments
Listed at market value 419 502
Unlisted at directors' valuation 194 186
Loans receivable 112 63
Investments in associates
At carrying value 245 55
Loans 989 42
Capital expenditure 3 801 2 863
Capital commitments 214 99
Contingent liabilities 83 101
Lease commitments 794 397
Abridged cash flow
for the years ended 25 June
2001 2000
Rm Rm
Cash flow from operating activities
Generated by operations 2 247 1 465
Net financing costs (428) (177)
Dividends paid (22) (2)
Taxation paid (252) (166)
Net cash flow from operating activities 1 545 1 120
Cash flow from investing activities
Net acquisition of property, plant
and equipment (523) (304)
Net acquisition of aviation leasing fleet (606) (598)
Net acquisition of transport and allied assets (602) (167)
Net acquisition of motor vehicles for hire (727) (627)
Net acquisition of intangibles (58) (13)
Subsidiaries, associates and minorities,
net of cash acquired (210) (405)
Proceeds on sale of subsidiary 282 -
Investments, long-term receivables and others (497) (853)
Proceeds from disposal of investments 438 530
Net cash flow used in investing activities (2 503) (2 437)
Cash flow from banking activities 626 (886)
Cash flow from financing activities
Cash flow from the issue of shares and
repayment of minorities 6 964
Decrease in banking cash (265)
Increase in long-term borrowings 773 264
Net cash flow from financing activities 514 1 228
Net movement in cash and cash equivalents 182 (975)
Statement of changes in equity
for the years ended 25 June
Non-
Share capital distributable Distributable
and premium reserve reserve Total
Rm Rm Rm Rm
Balance at
25 June 2000
as restated 3 585 117 2 152 5 854
Translation of
foreign
operations (10) (10)
Net gains and
losses not
recognised
in the income
statement (10) (10)
Net profit for
the year 1 219 1 219
Share of retained
earnings
of associates 66 (66)
Realised profits
on sale of
investments
released (55) 55
Contingency
reserve 9 (9)
Issue of ordinary
shares 10 10
Capitalisation
issue 236
Premium utilised
in respect
of capitalisation
issue (236)
Balance at
25 June 2001 3 595 127 3 351 7 073
Segmental information
25 June
2001 2000 %
Rm Rm change
Revenue
Banking(1) 317 516 (39)
Insurance 862 688 25
Leasing and fleet management 1 033 882 17
Aviation leasing 1 460 1 036 41
Logistics and transport 8 745 4 395 99
Car rental and tourism 1 294 1 100 18
Distributorships 3 320 1 639 103
Motor vehicle dealerships 7 956 6 267 27
Group 984 302
25 971 16 825 54
Eliminations 4 097 1 881
21 874 14 944 46
Profit from operations
Banking(1) 155 161 (4)
Insurance 137 88 56
Leasing and fleet management 335 258 30
Aviation leasing 205 100 105
Logistics and transport 367 206 78
Car rental and tourism 165 163 1
Distributorships 275 140 96
Motor vehicle dealerships 213 174 22
Group and eliminations 19 12
1 871 1 302 44
Assets Liabilities
2001 2000 2001 2000
Assets and liabilities Rm Rm Rm Rm
Banking(1) 1 253 3 550 25 2 870
Insurance 1 110 1 244 589 566
Leasing and fleet management 1 630 1 298 133 124
Aviation leasing 2 379 1 693 377 353
Logistics and transport 4 464 3 222 2 164 1 422
Car rental and tourism 812 563 214 107
Distributorships 2 092 1 080 777 548
Motor vehicle dealerships 1 438 1 018 600 476
Group and eliminations 55 (11) 128 (1 048)
15 233 13 657 5 007 5 418
Reconciliation to balance sheet
- Balance per above 15 233 13 657 5 007 5 418
- Loans receivable 112 63
- Loans included in financial
services businesses (4) (17)
- Deferred tax assets 133 87
- Taxation in advance 49 49
- Cash and cash equivalents 1 508 1 099
- Cash included in financial
services businesses (572) (481)
- Interest-bearing
borrowings 2 536 1 721
- Deferred taxation 251 166
- Current tax liabilities 214 193
- Current portion of
borrowings 1 574 1 347
- Group loans included in
financial services
businesses (12) (81) (394) (394)
16 447 14 376 9 188 8 451
(1) The group's full investment in Imperial Bank Limited has been
consolidated for six months and only the group's 49,9% holding since January
2001 has been equity accounted.
Imperial Bank Holdings Limited is included for a 12 month period.
Registration number (1946/021048/06)
IMPERIAL
Code = IPL
ISIN:ZAE 503620
NATURE OF BUSINESS
Imperial's activities include a wide range of services relating to the
transportation of people and products. The activities encompass motoring,
car rental and tourism, transport, trucking, aviation leasing, logistics and
fleet management outsourcing, forklifts and a comprehensive related
financial services arm supplying banking, short-term insurance and life
assurance. These services combine to facilitate maximum synergy between
Imperial's business entities, whilst a decentralised management structure
empowers each business unit to act in an entrepreneurial way.
The group's businesses are founded on two elements - transaction originators
and transaction enhancers. While the transaction originators seek the
greatest volume and coverage, the transaction enhancers seek maximum added
value. The transaction enhancers provide either full service outsourcing to
the customer without ownership of the asset or a facilitation service where
the customer takes ownership of the asset.
In this way, Imperial has positioned itself across the wider transportation
and mobility market for the movement of people and goods. Whilst this is a
focused concept, which involves a consistent application of principles,
disciplines and processes, it gives the group an exposure to a wide array of
markets and business opportunities.
FINANCIAL RESULTS
The group is pleased to report satisfactory growth in headline earnings per
share which increased by 23% to 535 cents, although second half EPS growth
was lower than the first half. Earnings per share including exceptional
items rose by 32% to 574 cents. Whilst the results are pleasing,
underperformance in some areas mitigated against an even better performance.
The cash performance of the group remains very strong: cash generated from
operations improved by 38% to R1 545 million, notwithstanding sharply higher
financing costs. The cash operating margin (EBITDA) of 12,3% is also solid.
With the group's international expansion activities over the past two years,
contribution to revenue from international activities is 25%.
New milestones were reached including record revenue of R21 874 million and
an increased contribution from international operations. We have further
entrenched our market position in the major areas of our business thereby
ensuring a strong position for future growth. Cognisance needs to be taken
of the lower inflation rate when comparing this year's growth with previous
years'. The revenue increase over 2000 was R6 930 million. Of this
acquisitions accounted for R2 485 million, whilst the remaining R4 445
million reflects strong organic growth from Imperial's various businesses
together with the full benefits of last year's acquisitions.
Revenue from services including financial services was R12 589 million, an
increase of R4 930 million over last year. Sales of products at R9 285
million was 27% higher. The trend towards services is evident with
contribution to revenue now 57% against 50% just two years ago.
Group operating profit of R1 871 million, reflects a substantial improvement
of 44%. Group margin at 8,6% declined slightly from 8,7% last year due
mainly to the increased contribution from the international operations where
margins are lower. The South African operations' margins are over 10%.
Margins in the international logistics business are lower as the clearing
and forwarding businesses operate at low margins in line with that service
industry.
Net financing costs increased by R251 million to R428 million, largely as a
result of substantial expansion in the asset base to facilitate the R6 930
million revenue growth. Pre-tax profit reflected a pleasing increase of 30%
and the taxation rate was slightly lower. Exceptional items includes the
surplus of R137 million relating to the sale of 50,1% of Imperial Bank to
Nedcor. This was effective from 1 January 2001 and income from associates
includes R19 million representing our share of net income earned by Imperial
Bank in the second half of the year. Attributable profits of R1 219 million
represents a significant increase of 41%. Headline earnings improved by 31%
to R1 138 million.
The group's return on equity improved to 17,6% based on headline earnings as
a percentage of average ordinary shareholders' equity. Based on attributable
profits (flattered by exceptional items) the percentage was 18,9%. As a
group we are focussing strongly on this ratio and plan to steadily improve
it, whilst also considering other return measurements.
Imperial's balance sheet remains strong with adequate scope for further
growth when needed. We have funded all acquisitions in the last 18 months
from internal cash resources, and we will continue to do so, unless the
magnitude of a potential acquisition dictates alternate funding options. The
group is currently diversifying its sources of borrowings to lessen its
dependence and exposure to the commercial banks. We have a successful
commercial paper programme in place and we recently announced a Medium Term
Note Programme which will be activated in the near future.
Imperial is a substantial generator of discretionary cash flow, with the
current year recording R1545 million from operations. Imperial spent R2516
million (net of recoupments) in expansion of fixed and revenue-producing
assets and R210 million in acquisitions.
Interest-bearing debt (net of cash) is R2 602 million which is 36% of
shareholders' funds. Our rental and leasing assets, which are quasi-banking
revenue-producing assets, totalled R3 327 million. Interest was covered by
EBITDA over six times.
A major development in the year under review was the sale of 50,1% of
Imperial Bank to Nedcor, thereby relieving Imperial of its funding
obligations in this area.
A good measure of our financial strength is that shareholders' funds of R7
259 million represent 49% of gross assets (excluding cash) of R14 939
million. The group's balance sheet ratios demonstrate no constraints on our
ability to grow our business further.
Major highlights of the past year include
- Achieving EBITDA of R2,6 billion;
- Achieving revenue of over R20 billion for the first time;
- Entering into partnership with Nedcor in Imperial Bank;
- Expanding the vehicle dealership network by 20 new dealerships;
- Adding of 5 000 vehicles and 21 large aircraft to our respective fleets;
- Increasing our vehicle sales by 20% to 77 700 units.
Disappointments include
- Troubles in a number of our flat deck transport operations;
- Mismanagement in our Australian car rental business;
- Weaker underwriting trends in our short-term insurance;
- Unsatisfactory performance in truck distribution.
Fortunately these setbacks were small relative to the pleasing performances
achieved elsewhere and with the remedial action already taken we are
confident that they will be turned around.
The group has recorded strong growth over the past few years as illustrated
by the table below reflecting solid compound annual growth rates:
Compound
Rm Rm annual
2001 1998 growth %
Revenue 21 874 8 739 36
Profit before tax and
exceptional items 1 485 696 29
Total assets 16 447 7 552 30
Shareholders' equity 7 259 3 891 23
Cents
Headline earnings per share 535 285 23
Employment numbers within the Imperial group now total in excess of 25 000
compared to 18 000 in 1998. In what is essentially a service-oriented
business, Imperial's people are critical to our success. They make the
Imperial wheels turn.
REVIEW OF OPERATIONS
Banking enjoyed a good year, although reported profits were 4% lower than
last year. This is as a result of the sale of 50,1% of Imperial Bank to
Nedcor, effective from 1 January 2001. Accordingly, the 2001 result includes
only 6 months income from the bank, whilst our 49,9% interest in Imperial
Bank's second half earnings is reported as income from associates (R19
million). The balance of the division's income is derived from Imperial Bank
Holdings' investment in the secondary capital of Imperial Bank. Imperial
Bank itself increased its pre-tax profits by 60% to R98 million for the full
year on net advances growth of 37% to R4 300 million.
Good contributions came from all divisions, especially specialised, motor
and general aviation finance, where the bank is becoming an important force
in the industry. Advances growth in the core lending businesses of motor and
general aviation finance outside the group were 55% and 74% respectively. A
return of 20,5% was achieved on average equity. Bad debts were well under
control at 1,4% of average advances for the year, and costs were contained
to 32% of income. We were delighted to form a partnership with Nedcor in
Imperial Bank which will ensure appropriate funding for the bank and in due
course introduce many synergies. This partnership is a natural alliance as
Imperial generates substantial business and Nedcor is a well-established
banking group. We are ambitious for the future growth of Imperial Bank and
are confident that the joint venture will flourish.
The purchase price of the bank, based on net asset value, plus goodwill of
R270 million, is payable in three tranches. The first tranche has been paid
and brought to account. A further R426 million, arising from the conversion
of the compulsorily convertible debentures will be received in March 2002.
Our Insurance businesses achieved combined premium income of R862 million
which was 25% up on last year. Profits were R137 million comprising R67
million from life and R70 million from short term. This result represents
growth of 56% over the very disappointing result of the previous year. We
have experienced a deterioration in underwriting in our short-term business
and significant attention and energy will be directed towards this area.
Investment income in the financial year was strong. At year-end R270 million
in dividends were distributed to improve return on equity in these
operations.
The Leasing and Fleet Management business increased revenue by 17% to R1 033
million. Operating profit increased by 30% to R335 million. The vehicle
leasing business is performing well with high levels of efficiency for our
various government contracts, as well as corporate leasing. The South
African forklift leasing business continued its good performance. In the
United Kingdom we were successful in converting our business into leasing
from outright cash sales but as a result of the growth in business, our
results, although reasonable, did not achieve budgeted levels. Of the
group's total assets, R1 000 million represents leasing assets (including
forklifts) totalling 19 500 units. In addition we manage another 5 500
units.
Aviation Leasing had an excellent year. Revenue increased by 41% to R1 460
million. Operating profit grew by an outstanding 105% to R205 million. 21
large aircraft were added to the fleet and this, coupled with the major
expansion in the prior year as well as increased maintenance and added value
activity, proved rewarding. National Airways Corporation had a fine year as
did Air Contractors, our Dublin-based associate which is achieving good
growth in its business base. We invested R514 million net of depreciation in
expanding the fleet. Value added leasing is receiving greater focus as we
enjoy world-class maintenance facilities. We have substantial dollar-based
income and our assets are traded with reference to dollar valuations. The
assets are currently fully engaged. We have a fleet of 55 aircraft in
Safair, 16 in Air Contractors and 70 small aircraft in National Airways
Corporation in charter.
In Logistics and Transport we faced some challenges this last year. Revenue
was up 99% to R8 745 million. Of this increase 25% reflected organic growth
with the balance arising from acquisitions made this year and in the prior
year. Good new business was negotiated both locally and overseas. The
substantial increase in diesel prices negatively impacted the division's
performance. Operating profit was R367 million, reflecting growth of 78%.
The margin of 4,2% was lower than last year's 4,7%, due in part to the high
revenue in our international clearing and forwarding activities which
operate at lower margins. The international operations represent 60% of our
total revenue of R8 745 million, with an operating margin of 2,3%. Against
this, the margin in the South African operation is 7%. The asset intensive
nature of our local business is relevant to the differences in margins. The
margins in our international operations are significantly impacted by the
industry trend in cost-related pricing, which delivers lower margins.
We experienced difficulties in certain of our local activities, particularly
some flat deck operations. Substantial rationalisation costs and losses were
absorbed here. We absorbed planned-for losses in start-up costs in Synchrony
Logistics, as well as new long-term contracts in Europe. Our warehousing,
truck rental and other activities performed well.
The acquisition of Haniel Reederei was a success and is living up to our
expectations. Our clearing and forwarding business in JH Bachmann came close
to break even point. Our South African support fleet did not increase.
The Car Rental and Tourism division increased its revenue by 18% to R1 294
million. The acquisitions of Pacific in Australia and eight Europcar outlets
in the United Kingdom, as well as Maui Brits in South Africa accounted for
almost half of the increase. All markets within which we operate were very
competitive, with a sustained price war in the car rental market in South
Africa. The operating profit of R165 million was slightly ahead of last
year. We did well in the United Kingdom and our support services performed
well. The car rental operations also improved their results. However, the
Australian operation sustained a pre-tax loss of R24 million, due to
mismanagement, including an over-statement of performance. The extent of
this was uncovered during an internal audit in April 2001. Nevertheless
substantial growth took place in the roll out of 27 outlets in a short
period. New management has been appointed and we await an upturn in business
as the busy season occurs in summer in Australia, as in South Africa. As a
consequence of the above activity we have made provision of R31 million for
impairment in the value of the fleet and goodwill.
Activities in our tourism division were flat in a subdued market. The
acquisition of Tourvest after the year-end will add many opportunities for
our group. The acquisition is effective only from the beginning of our new
financial year and should add about R1 000 million to revenues.
We had an outstanding year in our Distributorships. External revenue was
R1525 million. A further R1795 million of revenue was generated mainly from
the group's motor division. Whilst Renault continues to perform well,
Daihatsu has established a niche in the marketplace. However, Hyundai and
Kia are continuing in a consolidation phase. Our other distribution
businesses include our forklift distributorship, Lectrolite, the NGK
distributor and our International and Peterbilt heavy truck distribution.
An operating profit of R275 million - an increase of 96% on the previous
year - was recorded. Margins, best read with reference to total revenue
(internal and external), were 8,3%, slightly down on last year. The star
performer was our car distribution business with good operating profits from
each franchise.
As well as achieving strong growth in the market, we are establishing major
parts, servicing, service plans, leasing and financial service offerings to
our customers which is being leveraged off our growing expertise in some of
these areas. A large part of our sales are conducted through dealerships
housed in our motor division. We have a good number of independent dealers
and countrywide coverage. Our suppliers have placed increasing pressure on
us for volume performance. This has led to substantial advertising and
marketing spend and to high stock levels of new vehicles.
Our forklift distribution was up on last year, although slightly below
budget due mainly to weakness in our Clark/Samsung division essentially in a
start-up phase. Lectrolite enjoyed another fine performance.
The truck distribution business, Tyco, achieved a reasonable operating
profit , but suffered a pre-tax loss due to a high interest bill. As our
trucks are imported from the USA with its strong dollar, we were forced to
surrender margins to compete. Impact Fork Trucks in the United Kingdom
reflected profits below expectations, but we are satisfied with this
investment and are optimistic for its future.
The Motor Division had a very good year. Revenue including internal sales,
increased by 27% to R7 956 million. Operating profit increased by 22% to
R213 million, with the operating margin of 2,7% down slightly on the 2,8% of
the previous year. Excluding the franchise devoted to our imported brands,
the operating margin is far higher and one of the best in the industry. We
are dealers for almost all brands and we now operate 130 dealerships. This
division is a major originator of business for our banking, and insurance
operations, and is well leveraged for other activities.
Our distribution and motor businesses are also major players in parts and
vehicle servicing and used vehicles are a significant part of the income
streams. Apart from our vehicle sales of 77700 units, revenue for the two
divisions is over R1500 million in parts and just under R800 million in
services. As these operations enjoy much stronger margins the businesses
reflect a sound mix of income. We sold 46828 new vehicles last year
representing 14% of industry sales, an increase of 25%. Used vehicles sold
by our group increased by 13% to 30 938 units.
INVESTMENTS
Investments shown in our balance sheet are those of our insurance companies
and total R710 million. Investments in associates mainly reflect our
investment of R926 million in Imperial Bank.
Stellenbosch Motors, a Volkswagen and Audi dealer was acquired, as was a car
rental business in Mozambique named Plus Rent-a-Car. We bought out a number
of minority shareholders in subsidiaries and increased our interests in some
minorities to majority positions.
Post year-end we acquired a controlling 60,4% interest in Tourvest. We
recently finalised the acquisition of 60% of Megafreight, a clearing and
forwarding business in South Africa, and our JH Bachmann business will be
injected into it.
We are making pleasing progress in our empowerment business Ukhamba which
now has 1 200 members. It has a good spread of investments, notably a
significant share in the recently announced Citroen Distributor for South
Africa. Ukhamba has created 377 jobs and we expect that its credentials will
become better known and appreciated as time passes.
CORPORATE GOVERNANCE
During the year under review Imperial has addressed a number of important
corporate governance issues. The roles of chairman and chief executive have
been separated: Leslie Boyd has been appointed as non-executive chairman,
whilst Bill Lynch has relinquished his former dual role and is now chief
executive of the group. The board now comprises a majority of non-executive
directors. Other structures down the line have also been strengthened.
An executive committee has been established and will manage the operational
affairs of Imperial. This committee comprises chief executive Bill Lynch as
its chairman, Ralph Boettger, Manny de Canha, Tak Hiemstra, Hafiz Mahomed
and Carol Scott. The executive committee's practical function and its
closeness and interaction with the main board will ensure improved focus on
strategy, governance and decision making.
Prospects and Strategy for the next year
It is unlikely that South Africa will remain immune from the storm clouds
gathering over the major economies. We are in for a challenging year and
economists' growth projections for South Africa are being tempered.
Nevertheless the prospect of lower interest rates is encouraging. We outline
Imperial's opportunities and strategies for the year ahead.
Overall we expect strong cash generation as a result of leveraging the
group's substantial asset base and leading to lower debt and lower financing
costs. We plan to contain the misfortunes, achieve the turnarounds
identified and benefit from the acquisitions made. We plan to deliver
continued satisfactory results as befits the ambitions of the Imperial team.
In our Banking division we see strong growth in our advances book as a
result of our substantial vehicle sales and improving penetration. An
improved treasury operation and increased available funding together with a
continuing low cost to income ratio will enhance our profits.
In Insurance we could experience lower investment income as a result of
declining interest rates. Underwriting could improve but is unlikely to be
substantially corrected in the immediate short-term.
In Vehicle Leasing we expect continued growth in outsourced contracts from
government and the corporate sector. Our forklift leasing will benefit from
expected lower borrowing costs and we anticipate our United Kingdom leasing
returns to improve significantly.
Our Aviation Leasing benefits from full utilisation and has new contracts
with Jet Airways of India as well as increased business in Air Contractors
and NAC. The division too will benefit from further outsourcing, lower
interest rates and increased maintenance and added value activities.
The Logistics and Transport business, although vulnerable to a reduction in
volumes in an economic slowdown, plans for better times this year. We aim to
vastly improve the underperforming businesses, as well as leverage further
our existing asset base with better asset management. We expect greater
stability in fuel prices. The division should benefit from the trend to
outsourcing on the part of manufacturers and distributors and logistics
growth. Our international operations should gain from the maturing of some
start-up contracts and has flexibility in its Haniel Reederei operation with
a large sub-contracting base. Locally the JH Bachmann and Megafreight
combination will enhance our position.
In Car Rental and Tourism we expect better margins due to price increases as
there are indications that the price war is over. We are expecting growth
from both the local corporate and international in-bound markets. A
turnaround in Australia and good growth from our Europcar franchise in the
UK is anticipated and steady improvement is expected in our support
businesses. Initial indications are that Tourvest will have a good year.
We plan for growth in our Distributorships which should benefit from their
growing market position and investment last year. Lower stock levels and
interest costs will further assist growth. The increase in after sales
activity will add a further dimension. Our forklift businesses plan for
improved figures locally and overseas. Lower interest rates, the maturing of
the Clark/Samsung division and the larger fleets will also be significant
elements in that improvement. We have negotiated better terms from our truck
suppliers in the United States.
The Motor Division should also benefit from a lower interest rate
environment and the increasing success of our local and import franchises.
Volume growth is expected and a few additional dealerships will be opened
and acquired.
STRATE
Shareholders are advised that the company is scheduled to be officially
transferred to the new STRATE (Share Transactions Totally Electronic) system
of electronic settlement on the JSE Securities Exchange South Africa (JSE)
with effect from Monday, 5 November 2001, with electronic trading and
settlement commencing on Monday, 26 November 2001 and Monday, 3 December
2001 respectively. Consequently, the company's share certificates will no
longer be good for delivery in respect of transactions entered into on the
JSE on or after Monday, 26 November 2001.
A letter containing further detailed information relating to STRATE and the
dematerialisation process will, in the near future, be posted to
shareholders with registered addresses recorded in the company's register of
members. Copies of the letter will also be available from the office of the
company's share registrars.
DIVIDEND
At this time we are paying a cash dividend instead of the usual scrip
dividend. This is in view of the strong financial position of the group
impacted by the sale of a controlling interst in Imperial Bank and the
credits available for Secondary Tax on Companies (STC), the board has
declared a cash dividend of 100 cents per share payable on 25 September
2001. Future dividend policy will consider shareholders' interests and our
financial position.
DECLARATION OF ORDINARY DIVIDEND NO. 18
Notice is hereby given that an final dividend of 100 cents per ordinary
share, in the currency of the Republic of South Africa, has been declared in
respect of the financial year ended 25 June 2001.
Last day for registration Friday, 7 September 2001
Ex dividend date Monday, 10 September 2001
Date of payment Tuesday, 25 September 2001
By order of the board
WG LYNCH AH MAHOMED
Chief executive Financial director
Johannesburg
21 August 2001
Directors
L Boyd (Chairman)* (British) WG Lynch (Chief executive) (Irish) P Abelkop*
PL Erasmus* RL Hiemstra AH Mahomed GW Riemann (German) CE Scott JR
McAlpine* E Molobi* A Tugendhaft* F van Zyl Slabbert*
* Non-executive
R Mumford (Company secretary)
Executive committee
WG Lynch RJ Bo ttger MP de Canha RL Hiemstra AH Mahomed CE Scott
The full results announcement is available for viewing on the Imperial
Holdings website: www.imperial.co.za.
Business Address and registered office
140 Boeing Road East, Elma Park, Edenvale 1609
Share transfer secretaries
Mercantile Registrars Ltd, 11 Diagonal Street, Johannesburg 2001
Sponsor
Merrill Lynch SA(Pty) Ltd, 138 West Street, Sandown, Sandton 2196
www.imperial.co.za
File name: Penecv22.doc
NOTE-
DESCRIPTION-
SENS Announcement Cover Page
Submitting Company Details
Submit PENELOPE GRACIE INVESTOR Submitter PENELOPE GRACIE
ting REL Contact
Compan Person
y
Story Details
Flash IMPERIAL HOLDINGS - RESULTS FOR 12 MONTHS TO 25 JUNE
Headline 2001
Announcem RESULTS ANNOUNCEMENT
ent Type
Follows Price Listed CFO
Formal Sensit Company Approval
Announcem ive Release Required
ent Approval
Required
LID Name of CFO HAFIZ MAHOMED
Instructi
on
Reference
No.
Other Requirements
Associated 0 Cove Confirma
Story r tion of
Reference Page Release
No. Only Required
Release 23/08/2001 Dual Dual
Date & 08:00 List Listing
Time ing Exchange
(dd/mm/yyy
y hh:mm)
Other N/A
Regulatory
Approvals
Required
Special Please can you send out at 08:00 and call me on 011
Requests 447-3301 or 082 55 77 444 to let me know when it has
gone out.
Announcement Company Details
Listed Company Name Listed Listed Company
Company Authentication
Alpha Contact
Code
IMPERIAL HOLDINGS LIMITED IPL Penelope Gracie
Sponsorship Details
Sponso Merrill Lynch Sponsor CRAIG MILLER
r Name Contact
Person
Phone 3055808 Fax Number 305-5609
Number
Area 011 Announceme
Code nt
Approved
by
Sponsor?
E-mail millecra@exchange.za.ml.com
Addres
s
