| Fri 28 Sep 2001, 0:00 | | Imperial Holdings Limited - Us Terror Attacks Cut |
|
BUT NOT AVIATION
ISIN Code : ZAE000003620
Share Code : IPL
Johannesburg - Friday September 28, 2001
The September 11 terror attacks in the United States are not likely to have
much impact on the aviation interests of Imperial Holdings, the country's
largest mobility group.
Commenting on the effect of the attacks and the consequent global economic
uncertainty, Imperial's chief executive Bill Lynch said that the group's
aviation leasing business will not be much affected by the recent events.
"While some of our aircraft are leased and operated by SA Airways, Comair,
Air Liberte (France) and Spirit Airways (USA), the rest of our fleet carries
freight and is leased out on contracts with an average life of three years
still to run. Right now, and without the benefit of knowing what could
happen in the future, we do not expect our aviation leasing business to be
much affected."
Aviation leasing contributed R205-million or 11% of the group's operating
profit of R1 871-million, a 96% increase over the previous year.
Imperial's car rental and tourism division, on the other hand, could well be
affected by recent events and by the consequences of any reprisals that the
United States may initiate. The division's contribution to group operating
profit remained static last year at R165-million or less than 9% of the
total. Mr Lynch notes that inbound tourism to South Africa could well
decline as it is clear that international travellers are cutting back on
their travel plans. Domestic car rental actively is currently buoyant.
"It is difficult to gauge at this stage what the extent of the decline could
be and of course, any military action would be negative for the
international tourism market. We are hopeful however, provided there is no
major escalation of tensions, that southern Africa could become a preferred
tourist destination."
Mr Lynch said that while earnings expectations naturally need to be tempered
following recent events and the uncertainty going forward, Imperial should
not harm its earnings growth record.
ends
Please note:
Imperial Holdings activities include a wide range of services relating to
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. While these services combine to facilitate maximum synergy
between business entities, a decentralised management structure engenders
industry best practice. Management is empowered to develop each business
with entrepreneurship into unique business units within the strength and
support structures of the Imperial group.
Imperial employs 24 000 people at 650 locations in 26 countries and had
total assets of R16,4-billion at June 25, 2001 and its revenues totalled
R21,9-billion.
Visit our websites- www.imperial .co.za and www.imperialtoday.co.za
ISSUED BY: PENELOPE GRACIE INVESTOR RELATIONS
ON BEHALF OF: IMPERIAL HOLDINGS LIMITED
FURTHER INFORMATION: PENELOPE GRACIE
CONTACT: OFFICE +27 (11) 447-3301
MOBILE 082-55-77-444
