Imperial records strong results despite tough international and local trading conditions - CNBC Africa

Imperial records strong results despite tough international and local trading conditions

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The group, which released annual results on Wednesday, said that revenue was up 14 per cent to 92.3 million rand for the year ended 30 June 2013, managing to in enhancing its portfolio of businesses by disposing of sub-scale operations and focusing on its core divisions, namely logistics, distribution of automotive and industrial products and financial services.

The group’s operating profit was also up 8 per cent to 6 million rand, with headline earnings per share up 15 per cent to 1,804 cents.

Their final dividend of 440 cents per share was also up 16 per cent.

Revenue for its logistics division was recorded at 33 592 million rand for the period ended June 2013 from 27.7 million rand for the same period in 2012.

Revenue for its automotive and industrial division was recorded at 57.5 million rand from 2012’s 51.6 million rand. Their financial services division recorded 4.2 million rand in revenue from 2012’s 3.9 million rand figure.

“The newly named Africa Logistics division (which includes South Africa) was negatively impacted by the transport workers’ strike during the first half of the year and a struggling SA economy, especially in the manufacturing sector,” the report said.

“The logistics businesses in the rest of Africa, which is involved in the distribution of FMCG products, performed well. The International Logistics division had to contend with a slowing European economy during the year but was operationally well managed in an environment where activity levels in some of its core markets were under pressure.”

The group’s other segments, which include Distribution, Retail and Allied Services, and Automotive Retail, also performed well in the year.

The Autoparts and Car Rental segments were however down in revenue and operating profit due to the group’s sale of aircraft distributor and aviation services business NAC in this year, of which Imperial had a 62% holding in.

Acquisitions during the year include a 100 per cent stake in pharmaceutical and healthcare business RTT Health Sciences and a 100 per cent stake in Orwell Trucks Limited in the United Kingdom, a Mercedes Benz commercial vehicle dealer.

Disposals included its 60 per cent holding of freight business Megafreight, Imperial’s tourism division and NAC.

In May, Imperial announced its acquisition of MDS, a leading logistics provider in Nigeria, for a cash consideration of 26 million US dollars. The aim of the acquisition was to strengthen their footprint in Africa.

Imperial is the leading third-party logistics provider in southern Africa, operating from more than 968 locations in 14 countries and has been listed on the Johannesburg Stock Exchange since 1987.