While trading conditions remain mixed and challenging, JSE-listed Imperial Holdings expects to hold its own in the 2018 financial year, as the first quarter of the year delivers performance in line with expectations and ahead of the prior year.
“We anticipate solid operating and financial results in the year to June 30, 2018, subject to stable currencies in the economies in which we operate, and South Africa retaining its investment grade,” CEO Mark Lamberti said in a statement on Tuesday.
In line with this, Imperial expects both its Imperial Logistics and Motus divisions to further grow revenues and operating profit, with Imperial Holdings expected to increase revenues and operating profit and achieve a double-digit growth in earnings a share from continuing operations for the full year.
Overall, Imperial Logistics recorded a stronger first quarter performance than Motus.
Meanwhile, Imperial is still mulling the separate listings for Imperial Logistics and Motus, given that the two divisions operate in “two distinctly different sectors in which synergies are negligible”.
In addition, the strategic, financial, organisational and managerial determinants of the success of the units were very different, said Lamberti, adding that preliminary work indicated that Imperial Logistics and Motus could achieve appropriate gearing and self-sustaining balance sheets by June 2018.
“Various financial considerations have led to the conclusion that a separation will best be implemented by means of the unbundling of Motus to Imperial shareholders,” he said.
A decision will be made by June 2018.
In the interim, the management structures of both Imperial Logistics and Motus continue to be refined pursuant to their operation as fully independent publically traded entities.