| Mon 14 Jan 2002, 0:00 | | Imperial's Safair Lands Euro80-m Contract With Dhl |
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Share Code : IPL
ISIN Code : ZAE000003620
Johannesburg - Monday January 14, 2002
Transport and mobility group, Imperial Holdings is continuing to expand and
Safair (Pty) Limited, in the aviation leasing division has secured a new
long-term blue chip contract. The prize leasing contract with DHL
International in Europe is worth Euro80-million. Safair will supply DHL
International with five Airbus cargo aircraft over a minimum period of six
years.
Making this announcement today chief executive Bill Lynch says that Imperial
expects to announce pleasing interim results for the six months ended
December 25. Imperial has an enviable unbroken record of reporting profit
increases since it was listed in 1987.
Giving an update of the group's performance over the past few months, Mr
Lynch said that the group was performing well in spite of the challenges of
recent months.
"Our two largest divisions - logistics and transport, and leasing and fleet
management - are on track and performing well. The leasing contract with
the Government of the Northern Cape has commenced satisfactorily and many of
our companies in these two divisions have secured attractively priced new
business."
Imperial also recently announced an offer to purchase the remaining shares
in Imperilog that it does not already own, in a move to expand its logistics
business.
Mr Lynch continued: "Our aviation division has performed up to our
expectations and in line with budget, and is looking good with its blue chip
contracts and dollar-based assets. We are pleased to report that there have
been no customer defaults in spite of the events of September 11. Demand
for the services that we provide continues to be sound with a large portion
of the division's revenue being generated in hard currencies."
On the travel and tourism side, Mr Lynch reported that, as is to be
expected, the inbound tourist market is strong with travellers from Europe
more than compensating for the decline in tourists from the United States.
Car rental is benefiting from the healthy incoming tourism market. Imperial
enjoyed its best ever December profits from its tourism and rental
activities.
In the financial services area, Imperial Bank experienced strong growth in
advances which at the end of December were 40% ahead of the previous 12
months. The Regent insurance businesses grew revenues but the pressure on
underwriting continues, according to Mr Lynch.
He went on to say that the depreciation of the Rand will naturally exert
pressure on margins in Imperial's distribution businesses and some of this
pressure had already been felt in the December quarter but motor trading
based on local franchises improved.
"Despite the weakness in the German economy, our international operations
have held up well and it should be remembered that the group will earn
significant exchange gains from our offshore operations. In fact, you could
say, that Imperial is well hedged against the Rand volatility."
Imperial is contemplating approaching the debt capital market again under
its R2,5-billion medium term note programme in the near future. In August
Imperial successfully issued a R800-million bond maturing in March 2006,
under this programme. Mr Lynch confirmed that Merrill Lynch and Investec,
together with Imperial Bank, have been appointed to assist Imperial in this
regard.
Imperial's interim results for the six months ended December 25 will be
released on Thursday February 28,
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 25 000 people at 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 (21) 434-6513
MOBILE 082-55-77-444
