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Imperial Holdings Limited - Unaudited Interim Results For The Half Year Ended 25
Release Date: 01/03/2004 08:01:00 Code(s): IPL
IMPERIAL HOLDINGS LIMITED - UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 25
DECEMBER 2003
IMPERIAL HOLDINGS LIMITED
Imperial Holdings Limited
(Registration number 1946/021048/06)
Share code: IPL ISIN: ZAE 000003620
CASH GENERATED BY OPERATIONS
UP 45% TOR1 386 million
HEADLINE EARNINGS PER SHARE
UP 13% to 366 cents
Delivering mobility Creating value
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 25 DECEMBER 2003
INTRODUCTION
The six-month period to December 2003 was a challenging time for Imperial. We
dealt with a strong rand and increased currency volatility, a changing interest
rate environment that negatively affected some of our businesses, the
implementation of AC133 across the group, an impairment provision in our
aircraft leasing division and the distribution by Tourvest of its cash holdings
and the consequent Secondary Taxation on Companies (STC) expense for Imperial.
Against this tough background, we have managed well, with headline earnings per
share growing by 13% to a record 366 cents.
Highlights during the period included the announcement of our black economic
empowerment transaction and the successful placement of a R1 billion seven-year
bond.
Imperial will declare a capital distribution of 140cents a share (2002:
125cents), payable to shareholders on or about 23March2004.
FINANCIAL OVERVIEW
Income Statement
Group revenue was 6% higher at R17,4billion (2002: R16,5billion), with our South
African revenue up 11% to R13,7billion (2002: R12,4billion). International
revenue, in rand terms, declined by 12% to R3,2billion (2002: R3,6billion)
although it grew by 4% in euro terms.
Our operating profit increased by 4% to R1328million (2002: R1272million),
although it was negatively impacted by currency translation of R4million and an
impairment charge of R26million on our aviation assets. Operating margin dropped
to 7,6% from 7,7% due to our business mix and the weakness in our higher margin
Rental and Tourism and Aviation Leasing divisions.
Profits before exceptional items were up R101million for the period to
R1106million (2002: R1005million), after absorbing the impairment charge.
Our taxation charge was R54million higher at a tax rate of 34,2%. Tourvest had
an STC charge of R31million on its special dividend of R268million, which
accounted for a large portion of Imperial"s increased taxation charge. Minority
interests were 34% lower at R48million, mainly as a result of the taxation
charge on Tourvest and tough conditions within the tourism sector that caused a
decline in its operating profits.
Headline earnings were R742million, up 11% from R668million and as a result of
the share buy-backs the weighted average number of shares in issue was 1,8%
lower, giving us a 13,2% increase in headline earnings per share.
Balance Sheet
Total assets increased year-on-year by 7% to R23,2billion (2002: R21,6billion).
Shareholders" equity comprises a strong 38% of the total assets at R8,8billion.
32% of our assets were funded through debt and the balance (30%) were funded
through interest free liabilities. Net interest-bearing debt increased by
R1,2billion on last year to R6,3billion (2002: R5,1billion). The main portion of
this was due to the higher working capital requirements for the period to end
December, a typical pattern for our business at the interim stage.
Our revenue producing fleets totalled R7,5billion (2002: R7,2billion), which
comfortably exceeds our net debt of R6,3billion.
Our borrowings are well structured with a balance between short, medium and long
term durations. The debt profile was further enhanced by the successful placing
of a seven-year R1billion bond in November 2003.
Cash Flow
Imperial generated R1,4billion (2002: R956million) in cash from operations, an
increase of R430million. Following substantially increased taxation payments and
distributions to shareholders, we had available R381million for future capital
expenditure and investment.
During the period, Imperial spent R99million on acquisitions mostly from
existing minority shareholders, R416million on capital expenditure for
expansion, R601million on replacement capital expenditure and R456million on
investments and associates.
We normally expect that cash generation to improve significantly in the second
half of a financial year. Our current debt levels are expected to be lower by
June 2004.
REVIEW OF DIVISIONS
Logistics
Overall revenue fell by almost 2% to R5,9billion (2002: R6,0billion), mainly due
to a lower global inflationary environment, fuel price reductions in South
Africa, the continued weakness in the German economy and the translation of euro
revenue at an improved exchange rate.
South African revenue increased by 15% to R2,8billion (2002: R2,4billion).
Revenue for the rest of Africa was 12% higher at R201 million (2002: R180
million). Internationally, revenue decreased by 14,6% to R2,9billion (2002:
R3,4billion) although in euro terms it was up 4%.
Overall operating profits were up 6% to R307million (2002: R290million) and
margins increased to 5,2% compared to 4,8% in 2002. The revenue growth in South
Africa, coupled with its consistent margin of 8,5% and the decline in the
revenue for the rest of the world, explains the increase in the group"s overall
margin.
The division"s net capital expenditure was R311million, which was R44million
lower than the same period in 2002 (R355million). The division"s operating
assets were up 2% to R6,2billion (2002: R6,1billion).
The overall performance was very satisfactory.
Leasing and Fleet Management
Revenue increased by 13% to R1035million (2002: R918million), this was flattered
by increased sales of goods to R222million (2002: R149million).
Leasing services only increased by 3%. Vehicle and forklift prices were flat; no
new major outsourcing contracts were included and lower interest rates meant
lease charges were reduced.
The operating margin was 23,8%, down from 25,9%. However, on its own, the
margins in the leasing business were the same. Our business in the UK was below
budget for the period, but has recently improved. As expected, we also sustained
a small loss in establishing our Imperial Hypercar chain.
Our operating assets grew by 12% to R2,9billion (2002: R2,6billion). The leasing
assets grew by 8%. Capital expenditure, net of disposals, was R276million,
R65million lower than 2002 (R341million).
The overall result was reasonable.
Aviation Leasing
Revenue was up by 21% to R1190million (2002: R983million), with sales of
products being 73% higher at R394million.
Aviation services were up 6%. Considering the effect of the strong rand on our
substantial overseas services revenue, this was a good performance. Our fleet is
fully engaged, with our MD80s placed on long-term leases and all our customers
performing in terms of their obligations.
Our operating profit was R109million, substantially down on the R183million of
2002. This was partly due to a charge of R26million for impairment. The strength
of the rand had a severe effect on operating profit in the conversion of foreign
revenue and the sale of aircraft, which are negotiated at dollar prices. The
operating profit margin shrunk to 9,2% from 18,6% in 2002.
The division"s operating assets fell R115million (3%) to R3,8billion and no
capital expenditure was incurred for the period.
We believe the performance is unsatisfactory, although it is fully explained by
factors beyond our control. We are continuing to work hard at improving the
business and are confident about its future.
Car Rental and Tourism
Revenue was up only 1% to R1,7billion. This division, and especially Tourvest in
which we have a 64% interest; was adversely affected by the strong rand. The 30%
drop in Tourvest"s operating income, from R107million to R75million, was due to
the rand"s 29% appreciation against the US dollar over the period under review.
This appreciation reduced the discretionary spend of tourists, especially in
jewellery stores, it reduced commissions on foreign exchange transactions and
led to a downgrading by tourists of their spend.
Our car rental and its allied activities maintained their operating profits at
R151million. Auto Pedigree expanded its business and had an excellent six
months.
The division"s overall operating profit was R226million, down 12% on the
previous period (2002: R258million).
The division"s assets were R2145million, up 6% (2002: R2016million) and net
capital expenditure was R356million, down R98million on last year (2002:
R454million).
As indicated above, the generally disappointing results in the car rental and
tourism division is due to a combination of increased competition in the sector,
as well as the severe effects of the strong rand.
Distributorships
The division"s revenue increased by 22% to R2,9billion (2002: R2,4billion);
notwithstanding the fact that we still earned R376million from our Renault
business last year, which is now an associate. We experienced increased revenue
growth across the board in both our car and truck distributors. The strong rand
enabled us to claw back our market share and restore margins to acceptable
levels. This division, as an importer, is the perfect counter to the areas of
our business disadvantaged by the strong rand.
Operating profit was R208million, an increase of 65% (2002: R126million). The
operating margin improved to 7,1% from 5,3%.
There was a large increase in operating assets due to the increased revenue
growth and seasonal factors. Assets increased by R751million to R2,7billion
(2002: R1,9billion).
We are delighted by the performance of this division over the period.
Motor Vehicle Dealerships
Revenue was up 10% to R5,3billion (2002: R4,8billion). Despite the good growth
in the industry, the motor vehicle dealerships division operated in a
competitive and difficult environment. Pressures from suppliers, discount
packages incorporating new finance offerings and investment in new facilities
all took their toll.
Notwithstanding the 10% increase in revenue; profits at the operating level fell
by R20million to R144million (2002: R164million). Operating margin was down to
2,7% from 3,5% for the period last year and 3,3% to our full year in June 2003.
The division"s assets grew by R151million to R1,9billion, partly due to revenue
growth and seasonal factors.
We aim to improve this division in co-operation with our principals and through
an increased focus on tight asset management.
Insurance
Revenues grew by 10% to R788million (2002: R714million). Our Life business grew
revenue by 25%, whereas our short-term business grew by 2%. The latter placed
emphasis on good underwriting and discontinued its unprofitable business. This
strategy has been rewarded and both companies delivered fine performances.
Profits before investment gains were R74million versus R50million for 2002.
Investment returns were up R56million, leading to a pre-tax profit of
R115million for the period (2002: R39million).
The cash and investment exposure in this division increased by R270million to
R1073million.
Associates
Our principal associates all performed profitably, with income up 90% to
R110million (2002: R58million). Imperial Bank had an excellent year to December
2003 and its total attributable income for the year was R232million. Its assets
grew 40% to R13billion and it had an ROE of 29,4%. Our 49,9% share of its
earnings for the six months to December 2003 was R56million, up 22% on 2002.
Safair Lease Finance, in which we have a 50% shareholding, returned R28million
for the period and our other associates, including Ukhamba and Renault,
delivered income of R26million for the period.
General
Imperial retailed 44 256 vehicles in the six months under review, an increase of
5,5%. New vehicle sales increased by 12,5%, but used vehicle sales declined by
2,6%. Overall, we sold 24 928 new and
19 328 used vehicles.
In terms of the group"s exposure to the volatile rand, we are well positioned.
The aviation, tourism and foreign businesses are negatively affected, while the
vehicle importing businesses and forklift activities are positively impacted.
The strong rand has contributed to an environment of low inflation, enabling the
Reserve Bank to substantially reduce interest rates. The current interest rate
levels are beneficial for Imperial and its customers alike. Many of our large
customers are exporters and would prefer a somewhat weaker, but stable rand.
Our ROE reached an annualised rate of 18,1% in the period, up from 17,2% a year
earlier. We aim to regularly increase this rate. Our team is devoting increased
energy to manage cash flow, asset management and the optimisation of our
financial resources.
Prospects
The economic conditions in South Africa are reasonably good, underpinned by low
inflation and relatively attractive interest rates. However, economic conditions
in Europe and particularly Germany are flat, with no upturn in sight.
Turning to our businesses, on balance, we see our divisions" prospects as quite
positive.
Logistics is aiming to repeat its first half performance, backed up by a good
order book in South Africa and abroad. However, the first half of the year is
usually the stronger period. We have a good business model with quality assets
and in the coming period we will focus on becoming more efficient, whilst
growing our business.
The Leasing and Fleet Management division generally sees a strong improvement in
the second half, with increased business flows in South Africa in our vehicles
and forklift activities. We also expect a continued improvement in the UK
business.
Our Aviation Leasing business is expecting good profit growth in the second half
of the year, benefiting from aircraft sales, full fleet utilisation and
increased maintenance income. An unknown factor will be the continued volatility
of the rand.
In Rental and Tourism we see little change from the conditions of the first
half. The dye is cast for the next couple of months of the holiday season,
however, recent car rental activity has been buoyant.
We expect the strong performance from our Distributorships to continue. We are
currently seeing strong growth in volumes of passenger vehicles and heavy
trucks.
Motor Dealerships should benefit from increased volumes, stimulated by lower
interest rates and an improvement in vehicle choice. We aim to marginally
improve the profit performance in the second half.
The Insurance division aims to repeat its first half performance, but relies on
good equity growth for that objective.
Imperial Bank is likely to experience margin pressure on its interest rates and
we don"t expect a repeat of the fine results of the six months to December,
although results will remain healthy. The strong rand also introduces
uncertainty into the prospects of Safair Lease Finance.
We expect a good performance from our other associates, including Renault South
Africa.
On a group level, we are confident about the opportunities and prospects for
Imperial for the foreseeable future. We will therefore be striving to achieve
continued good growth in earnings for the full year to June.
Capital Distribution NUMBER 4
Notice is hereby given that a capital distribution of 140 cents per ordinary
share has been declared, in terms of the general authority granted at the annual
general meeting of shareholders held on 4 November 2003 to the company and is
payable to shareholders recorded in the books of the company at the close of
business on Friday, 19 March 2004. In compliance with the requirements of
STRATE, the electronic settlement and custody system used by the JSE Securities
Exchange South Africa, the company has determined the following salient dates
for the payment of the capital distribution:
2004
Last day to trade cum-capital distribution Friday, 12 March
Shares commence trading ex-capital distribution Monday, 15 March
Record date Friday, 19 March
Payment date Tuesday, 23 March
Share certificates may not be dematerialised/rematerialised between Monday, 15
March 2004 and Friday, 19 March 2004, both days inclusive.
On Tuesday, 23 March 2004, the capital distribution will be electronically
transferred to the bank accounts of certificated shareholders that utilise this
facility. In respect of those who do not, cheques dated 23 March 2004 will be
posted on or about that date. Shareholders who have dematerialised their shares
will have their accounts, held at their CSDP or broker, credited on Tuesday, 23
March 2004.
On behalf of the board
R Mumford
Group Secretary
Johannesburg
27 February 2004
Income statement
Half year ended 25 December 2003
Year ended
Unaudited 25 June
2003 2002 % 2003
Rm Rm change Rm
Revenue 17 363 16 454 6 32 277
Profit from operations
before depreciation and
amortisation 1 938 1 847 5 3 776
Depreciation and
amortisation, net of
recoupments 610 575 1 149
Operating profit 1 328 1 272 4 2 627
Foreign exchange losses (4) (6) (35)
Fair value adjustments
to foreign exchange
derivatives (17)
Goodwill amortisation (28) (31) (67)
Profit before net
financing costs 1 279 1 235 2 525
Net financing costs (283) (288) (555)
Income from associates 110 58 167
Profit before
exceptional items 1 106 1 005 10 2 137
Exceptional items 6 54 97
Income before taxation 1 112 1 059 5 2 234
Taxation 341 287 606
Income after taxation 771 772 1 628
Minority interest 48 73 151
Net attributable profit
for the period 723 699 3 1 477
Basic earnings per
share* (cents)
Headline earnings
per share 366,3 323,6 13 700,2
Goodwill amortisation (12,9) (13,2) (28,4)
Exceptional items 2,7 26,1 4,5
Profit on sale of
property, plant
and equipment 0,9 2,0 42,4
Earnings per share 357,0 338,5 5 718,7
Diluted earnings per
share* (cents)
Headline earnings
per share 364,1 322,7 13 698,4
Earnings per share 354,8 337,6 5 716,9
*Based on the weighted
average number of shares
in issue.
Net asset value per
share (cents) 4 122,6 3 833,0 4 040,9
Number of shares (million)
- in issue (net of
treasury stock) 202,5 206,7 202,9
- weighted average 202,7 206,5 205,3
Accounting policies
The financial statements are prepared in accordance with, and comply with,
Statements of Generally Accepted Accounting Practice in South Africa, effective
for the group"s financial period, and are consistent in all material respects
with those applied in the previous annual report, except for the adoption of
AC133 - Financial Instruments: Recognition and Measurement (revised 2002).
Change in accounting policy
In the current year, the group adopted AC133 - Financial Instruments:
Recognition and Measurement (revised 2002). AC133 has introduced a comprehensive
framework for accounting for all financial instruments. The principal effect of
the adoption of AC133 has been the fair value adjustment of forward exchange
contracts, derivative instruments and interest bearing debt.
Fair value and other AC133 adjustments resulting in a reduction to opening
distributable reserves are summarised as follows:
2003
Rm
Foreign exchange derivatives 44
Borrowings and interest rate swaps 74
Investments and loans receivable (15)
103
Attributable share from associates 44
147
Minority interest (1)
Total adjustment to opening
distributable reserves 146
Fair value and other AC133 adjustments resulting in an increase in profit in the
current year are summarised as follows:
2003
Rm
Foreign exchange derivatives (17)
Borrowings and interest rate swaps 9
Investments and loans receivable 11
3
Attributable share from associates 24
27
Taxation 1
26
Minority interest (1)
Total increase in attributable
profit for the period 27
Year ended
2003 2002 2003
Additional information Rm Rm Rm
Income before taxation
This is stated after
Investment income - dividends 8 4 20
Interest income - financial
services businesses 22 22 52
Impairment of aviation
leasing aircraft (26)
Net financing costs (283) (288) (555)
Net interest (292) (288) (555)
Fair value adjustments on
borrowings and interest rate
swap instruments 9
Exceptional items 6 54 97
Surplus on disposal of Imperial
Bank Limited - - 45
Impairment of assets - - (4)
Profit/(loss) on sale of
investments in subsidiaries
and associates 6 54 56
Balance sheet
At 25 December 2003
Unaudited 25 June
2003 2002 2003
Rm Rm Rm
Property, plant and equipment 2 305 2 119 2 180
Intangible assets 552 560 504
Investments in associates and
joint ventures 1 651 1 225 1 281
Other investments and loans 913 755 708
Deferred taxation 268 349 247
Leasing assets 4 519 4 598 4 713
Transport fleet 1 999 1 704 1 881
Vehicles for hire 981 915 735
Inventories 3 721 3 253 3 551
Trade and other receivables 5 134 4 651 4 480
Taxation in advance 64 86 61
Cash and cash equivalents 1 097 1 393 1 298
Total assets 23 204 21 608 21 639
Insurance funds 588 400 566
Interest-bearing borrowings 7 388 6 447 6 135
Retirement benefit obligations 194 218 206
Deferred taxation 565 539 531
Other liabilities 5 729 5 629 5 509
Total liabilities 14 464 13 233 12 947
Net assets 8 740 8 375 8 692
FUNDED BY
Shareholders" equity 8 350 7 921 8 199
Minority interest 390 454 493
Total shareholders" equity 8 740 8 375 8 692
Supplementary information
Contingent liabilities 210 252 215
Capital commitments 280 377 299
Abridged cash flow
Half year ended 25 December 2003
Year ended
Unaudited 25 June
2003 2002 2003
Rm Rm Rm
Cash flows from operating activities
- Cash generated by operations
before changes in working capital 1 921 1 914 3 900
- Working capital movements (535) (958) (1 140)
Cash generated by operations 1 386 956 2 760
- Net financing costs (283) (288) (555)
- Taxation paid (298) (36) (240)
Cash flows from operations 805 632 1 965
- Dividends paid (424) (53) (97)
381 579 1 868
Cash flows from investing activities
- Net (acquisitions)/disposals of
subsidiaries and businesses (99) 52 98
- Expansion capital expenditure (416) (408) (1 087)
- Net replacement capital
expenditure (601) (837) (966)
- Investments, equities and loans
to associates (456) (63) 48
(1 572) (1 256) (1 907)
Net cash flows from financing
activities
Cash flows from financing
activities 588 13 (362)
Capital distribution - (247) (500)
588 (234) (862)
Net movement in short-term finance (603) (911) (901)
Net short-term finance at beginning
of period (1 564) (663) (663)
Net short-term finance at end
of period (2 167) (1 574) (1 564)
Statement of changes in equity
Half year ended 25 December 2003
Share Non-
capital distri- Distri-
and butable butable
premium reserve reserve Total
Rm Rm Rm Rm
Balance at
25 June 2003 2 205 403 5 591 8 199
Opening distributable
reserves adjustment
arising from AC133 (146) (146)
Translation of foreign
operations not
recognised in the
income statement (109) (109)
Net profit for the
period 723 723
Share of non-
distributable and
distributable reserves
of associates 78 (78)
Contingency reserve 10 (10)
Dividend declared of
140 cents per share 21 (303) (282)
Purchase of treasury
stock (64) (64)
Issue of 768 901
ordinary shares in
terms of the share
option scheme 29 29
Balance at
25 December 2003 2 191 382 5 777 8 350
Segmental information
25 December 2003
Leasing
and fleet
INCOMESTATEMENT Group Logistics management
2003 2002 2003 2002 2003 2002
Rm Rm Rm Rm Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 8 465 7 384 293 256 222 149
- Rendering of services 8 171 8 432 5 165 5 583 735 712
- Gross premiums received 674 598 0 0 0 0
- Interest income 22 22 0 0 0 0
- Dividend income 8 4 0 0 0 0
- Other 23 14 23 14 0 0
17 363 16 454 5 481 5 853 957 861
Inter-segment revenue 442 179 78 57
17 363 16 454 5 923 6 032 1 035 918
Operating expenses 15 466 14 596 5 426 5 566 579 485
Realised and unrealised
(gains)/losses on
investments (30) 11
Fair value gains
investments (11)
Depreciation 712 664 219 201 232 212
Recoupments (102) (89) (29) (25) (22) (17)
Operating profit 1 328 1 272 307 290 246 238
Foreign exchange
(losses)/gains (4) (6) (2) (11) 1 0
Fair value losses foreign
exchange derivatives (17) 0 (9)
Goodwill amortisation (28) (31) (17) (19) 1 (1)
Profit before net
financing costs 1 279 1 235 288 260 239 237
Net financing costs (283) (288) (51) (67) (81) (82)
Income from associates 110 58 12 9 (1) (1)
Profit before exceptional
items 1 106 1 005 249 202 157 154
GEOGRAPHIC SEGMENTATION
Revenue 17 363 16 454 5 923 6 032 1 035 918
- South Africa 13 701 12 382 2 814 2 446 837 711
- Rest of Africa 462 424 201 180 88 76
- Rest of world 3 200 3 648 2 908 3 406 110 131
Operating profit 1 328 1 272 307 290 246 238
- South Africa 1 190 1 115 238 206 198 199
- Rest of Africa 75 55 15 15 37 24
- Rest of world 63 102 54 69 11 15
Net financing costs 283 288 51 67 81 82
- South Africa 262 259 45 49 70 72
- Rest of Africa 14 20 4 10 7 8
- Rest of world 7 9 2 8 4 2
BUSINESS SEGMENTATION
ASSETS
Property, plant and
equipment 2 305 2 119 1 028 1 093 92 68
Intangible assets
(including goodwill) 552 560 272 311 12 17
Investments, loans and
associates 1 781 1 399 76 42 (1) 1
Leasing assets 4 519 4 598 2 205 2 037
Transport fleet 1 999 1 704 2 049 1 752
Vehicles for hire 981 915
Inventories 3 721 3 253 160 156 287 218
Trade and other
receivables 5 134 4 651 2 659 2 746 296 238
Cash in financial
services businesses 328 367
Operating assets 21 320 19 566 6 244 6 100 2 891 2 579
Deferred tax assets 268 349
Loans to associates
and other investments 783 581
Taxation in advance 64 86
Cash and cash equivalents 769 1 026
Total assets per
balance sheet 23 204 21 608
LIABILITIES
Insurance funds 588 400 0 0 0 0
Retirement benefit
obligations 194 218 194 218 0 0
Accounts payable and
provisions 5 298 5 190 2 237 2 506 415 391
Non-interest-bearing
liabilities 6 080 5 808 2 431 2 724 415 391
Interest-bearing
borrowings 7 388 6 447
Deferred tax liabilities 565 539
Current tax liabilities 431 439
Total liabilities per
balance sheet 14 464 13 233
GEOGRAPHIC SEGMENTATION
OPERATING ASSETS 21 320 19 566 6 244 6 100 2 891 2 579
- South Africa 17 838 16 179 4 150 3 978 2 212 1 884
- Rest of Africa 590 563 215 199 218 193
- Rest of world 2 892 2 824 1 879 1 923 461 502
NON-INTEREST-BEARING
LIABILITIES 6 080 5 808 2 431 2 724 415 391
- South Africa 4 769 4 328 1 438 1 498 320 272
- Rest of Africa 231 189 61 45 44 28
- Rest of world 1 080 1 291 932 1 181 51 91
INTEREST-BEARING
BORROWINGS 7 388 6 447 1 815 1 804 1 573 1 390
- South Africa 6 647 5 872 1 562 1 499 1 287 1 157
- Rest of Africa 308 317 72 156 132 121
- Rest of world 433 258 181 149 154 112
GROSS CAPITAL EXPENDITURE 1 952 1 964 426 473 489 532
- South Africa 1 742 1 736 319 409 401 379
- Rest of Africa 78 80 26 11 45 58
- Rest of world 132 148 81 53 43 95
Gross capital expenditure 1 952 1 964 426 473 489 532
Less: Proceeds on disposal (884) (719) (115) (118) (213) (191)
Net capital expenditure 1 068 1 245 311 355 276 341
Segmental information
25 December 2003
Aviation Car rental Distri-
INCOMESTATEMENT leasing and tourism butorships
2003 2002 2003 2002 2003 2002
Rm Rm Rm Rm Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 394 228 604 630 2 259 1 957
- Rendering of services 796 752 1 033 1 010 195 153
- Gross premiums received 0 0 0 0 0 0
- Interest income 0 0 0 0 0 0
- Dividend income 0 0 0 0 0 0
- Other 0 0 0 0 0 0
1 190 980 1 637 1 640 2 454 2 110
Inter-segment revenue 0 3 102 84 460 288
1 190 983 1 739 1 724 2 914 2 398
Operating expenses 996 708 1 421 1 376 2 682 2 257
Realised and unrealised
(gains)/losses on
investments
Fair value gains
investments
Depreciation 82 92 145 131 25 21
Recoupments 3 0 (53) (41) (1) (6)
Operating profit 109 183 226 258 208 126
Foreign exchange
(losses)/gains 0 8 (3) (3) 1 0
Fair value losses foreign
exchange derivatives (1) (7)
Goodwill amortisation 0 0 (12) (11) 0 0
Profit before net
financing costs 108 191 211 244 202 126
Net financing costs (63) (69) (16) (4) (53) (52)
Income from associates 30 5 1 1 11 (3)
Profit before
exceptional items 75 127 196 241 160 71
GEOGRAPHIC SEGMENTATION
Revenue 1 190 983 1 739 1 724 2 914 2 398
- South Africa 1 008 876 1 678 1 660 2 876 2 398
- Rest of Africa 0 0 61 60 38 0
- Rest of world 182 107 0 4 0 0
Operating profit 109 183 226 258 208 126
- South Africa 111 165 217 246 213 126
- Rest of Africa 0 0 9 12 (5) 0
- Rest of world (2) 18 0 0 0 0
Net financing costs 63 69 16 4 53 52
- South Africa 62 69 15 4 51 52
- Rest of Africa 0 0 1 1 2 0
- Rest of world 1 0 0 (1) 0 0
BUSINESS SEGMENTATION
ASSETS
Property, plant and
equipment 121 81 187 167 396 326
Intangible assets
(including goodwill) 13 0 240 215 0 7
Investments, loans and
associates 436 417 2 5 208 135
Leasing assets 2 141 2 352 180 216
Transport fleet
Vehicles for hire 990 926
Inventories 676 684 342 299 1 173 838
Trade and other
receivables 413 381 384 404 713 397
Cash in financial
services businesses
Operating assets 3 800 3 915 2 145 2 016 2 670 1 919
Deferred tax assets
Loans to associates
and other investments
Taxation in advance
Cash and cash equivalents
Total assets per
balance sheet
LIABILITIES
Insurance funds 0 0 0 0 0 0
Retirement benefit
obligations 0 0 0 0 0 0
Accounts payable
and provisions 513 506 588 717 808 353
Non-interest-bearing
liabilities 513 506 588 717 808 353
Interest-bearing
borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities
per balance sheet
GEOGRAPHIC SEGMENTATION
OPERATING ASSETS 3 800 3 915 2 145 2 016 2 670 1 919
- South Africa 3 550 3 827 2 114 1 975 2 641 1 919
- Rest of Africa 31 41 29
- Rest of world 250 88
NON-INTEREST-BEARING
LIABILITIES 513 506 588 717 808 353
- South Africa 416 503 574 686 794 353
- Rest of Africa 14 15 14
- Rest of world 97 3 16
INTEREST-BEARING
BORROWINGS 1 511 1 734 704 5 728 591
- South Africa 1 413 1 734 630 (17) 701 591
- Rest of Africa 74 22 27
- Rest of world 98
GROSS CAPITAL EXPENDITURE 14 12 689 694 180 226
- South Africa 6 12 682 683 180 226
- Rest of Africa 7 11
- Rest of world 8
Gross capital expenditure 14 12 689 694 180 226
Less: Proceeds on disposal (27) (1) (333) (240) (178) (159)
Net capital expenditure (13) 11 356 454 2 67
Segmental information
25 December 2003
Head office
Motor vehicle and
INCOMESTATEMENT dealerships Insurance eliminations
2003 2002 2003 2002 2003 2002
Rm Rm Rm Rm Rm Rm
BUSINESS SEGMENTATION
Revenue
- Sales of goods 4 692 4 163 0 0 1 1
- Rendering of services 231 210 5 1 11 11
- Gross premiums received 0 0 674 598 0 0
- Interest income 0 0 22 22 0 0
- Dividend income 0 0 8 4 0 0
- Other 0 0 0 0 0 0
4 923 4 373 709 625 12 12
Inter-segment revenue 337 397 79 89 (1 498)(1 097)
5 260 4 770 788 714 (1 486)(1 085)
Operating expenses 5 101 4 591 711 660 (1 450)(1 047)
Realised and unrealised
(gains)/losses on
investments (30) 11
Fair value gains
investments (11)
Depreciation 15 15 4 4 (10) (12)
Recoupments 0 0 (1) 0 1 0
Operating profit 144 164 115 39 (27) (26)
Foreign exchange
(losses)/gains 0 0 0 0 (1) 0
Fair value losses foreign
exchange derivatives 0 0
Goodwill amortisation 0 1 0 0 0 (1)
Profit before net
financing costs 144 165 115 39 (28) (27)
Net financing costs (17) (17) 0 0 (2) 3
Income from associates 0 0 0 0 57 47
Profit before
exceptional items 127 148 115 39 27 23
GEOGRAPHIC SEGMENTATION
Revenue 5 260 4 770 788 714 (1 486)(1 085)
- South Africa 5 260 4 740 714 636 (1 486)(1 085)
- Rest of Africa 0 30 74 78 0 0
- Rest of world 0 0 0 0 0 0
Operating profit 144 164 115 39 (27) (26)
- South Africa 144 164 95 35 (26) (26)
- Rest of Africa 0 0 20 4 (1) 0
- Rest of world 0 0 0 0 0 0
Net financing costs 17 17 0 0 2 (3)
- South Africa 17 16 0 0 2 (3)
- Rest of Africa 0 1 0 0 0 0
- Rest of world 0 0 0 0 0 0
BUSINESS SEGMENTATION
ASSETS
Property, plant and
equipment 301 280 96 64 84 40
Intangible assets
(including goodwill) 7 (3) 6 8 2 5
Investments, loans
and associates 9 6 745 436 306 357
Leasing assets (7) (7)
Transport fleet (50) (48)
Vehicles for hire (9) (11)
Inventories 1 091 1 067 0 0 (8) (9)
Trade and other
receivables 508 415 521 319 (360) (249)
Cash in financial
services businesses 328 367 0 0
Operating assets 1 916 1 765 1 696 1 194 (42) 78
Deferred tax assets
Loans to associates
and other investments
Taxation in advance
Cash and cash equivalents
Total assets per
balance sheet
LIABILITIES
Insurance funds 0 0 588 400 0 0
Retirement benefit
obligations 0 0 0 0 0 0
Accounts payable
and provisions 585 644 476 297 (324) (224)
Non-interest-bearing
liabilities 585 644 1 064 697 (324) (224)
Interest-bearing
borrowings
Deferred tax liabilities
Current tax liabilities
Total liabilities
per balance sheet
GEOGRAPHIC SEGMENTATION
OPERATING ASSETS 1 916 1 765 1 696 1 194 (42) 78
- South Africa 1 916 1 743 1 500 1 018 (245) (165)
- Rest of Africa 22 196 176 (99) (68)
- Rest of world 302 311
NON-INTEREST-BEARING
LIABILITIES 585 644 1 064 697 (324) (224)
- South Africa 585 638 963 601 (321) (223)
- Rest of Africa 6 101 96 (3) (1)
- Rest of world 0 0
INTEREST-BEARING
BORROWINGS 179 346 13 2 865 575
- South Africa 179 328 13 2 862 578
- Rest of Africa 18 3 0
- Rest of world 0 (3)
GROSS CAPITAL EXPENDITURE 41 34 18 7 95 (14)
- South Africa 41 34 18 7 95 (14)
- Rest of Africa 0 0
- Rest of world 0 0
Gross capital expenditure 41 34 18 7 95 (14)
Less: Proceeds on disposal (12) (9) (4) (1) (2) 0
Net capital expenditure 29 25 14 6 93 (14)
Non-executive directors
L Boyd (Chairman), P Abelkop, PL Erasmus, MJ Leeming, JR McAlpine, E Molobi, AS
Tati, A Tugendhaft
Executive Directors
WG Lynch (Irish), RJ Boettger, MP de Canha, RL Hiemstra, AH Mahomed, GW Riemann
(German), CE Scott
Secretary
R Mumford
Business address and registered office
Imperial Place, Jeppe Quondam, 79 Boeing Road East, Bedfordview, 2007
Share transfer secretaries
Computershare Limited, 70 Marshall Street, Johannesburg, 2001
Sponsor
Merrill Lynch SA (Pty) Limited, 138 West Street, Sandown Sandton, 2196
Imperial Holdings Limited
(Registration number 1946/021048/06) Share code: IPL ISIN: ZAE 000003620
The result announcement is available for viewing on the Imperial Holdings
Website: www.imperial.co.za
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