| Fri 28 Sep 2001, 0:00 | | Imperial Holdings Limited - Imperial Cuts Its Loss |
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Rental Venture
IMPERIAL HOLDINGS LIMITED
ISIN CODE : ZAE000003620
SHARE CODE : IPL
Johannesburg - Friday September 27, 2001
Imperial Holdings, the country's leading mobility group, is closing its
vehicle rental business, Pacific Car and Truck Rentals Holdings Limited in
Australia.
In July last year Imperial entered into a partnership with the owners of
Pacific Car and Truck Rentals Holdings, obtaining an 80% interest in
Pacific, a move that proved unsuccessful. Imperial's chief executive Bill
Lynch announced today that after a full appraisal of the business and its
prospects, Imperial reached the decision that a turnaround in the business
is not possible. Imperial has elected to close the business and write off
its investment in Pacific which was provided for in the financial year ended
June 25, 2001.
"The expansion of the Pacific business, under the previous management,
resulted in substantial over-fleeting. This in turn led to the position
were a number of the company's assets were unproductive and needed to be
impaired. In the 2001 financial year Imperial impaired assets of
approximately R31-million, including goodwill on acquisition of R4-million.
"We did everything we could, including replacing the founders of the
business with experienced Imperial executives, but after a further two
months of losses, we decided to close down the business. This decision will
lead to a further small amount in closure costs - around R10-million."
Mr Lynch said that the Australian vehicle rental market remained depressed
and there was little prospect of Pacific turning around in the foreseeable
future. `We decided to take our medicine and cut our losses, and
concentrate our energies and resources on our many successful businesses."
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
