Imperial Holdings FY HEPS down 3%

Imperial Holdings, a company listed on the JSE, recently announced mostly unchanged earnings per share and core earnings per share, with a marginal decline in headline earnings per share for the year ending June 30, 2016. Despite facing challenges in the operating environment, the CEO of Imperial Holdings, Mark Lamberti, remains optimistic about the future growth of the global firm. Lamberti highlighted that Imperial is currently in a phase of transition, navigating through currency headwinds and market economy challenges. The company successfully sold off 5.3 billion rand worth of assets that were off-strategy or underperforming. Although not all of these sales have been approved by the Competition Commission, Imperial has already received 2.3 billion rand in cash from these transactions. On the acquisitions front, Imperial made a significant move by acquiring Palletways in the UK, marking it as the second-largest acquisition in the company's history. This strategic investment in the logistics sector aims to streamline Imperial's operations into two major divisions - logistics and vehicles - providing investors with more transparency and focus on the company's core activities. One of the key discussions during the interview revolved around the potential impact of Brexit on Imperial's operations in Europe and the UK. Lamberti acknowledged the uncertainty surrounding the post-Brexit scenario but expressed a belief that the impact may not be as severe as initially anticipated. The fluctuating currency exchange rates post-Brexit have presented both challenges and opportunities for the company. Moving closer to home, the performance of Imperial's African operations stood out as a highlight, outperforming the South African market. The company's logistics business in Africa has been thriving, with revenues projected to hit nearly 12 billion rand. Lamberti emphasized the growth potential in the medical logistics sector in Africa, driven by partnerships with international pharmaceutical giants. The interview also shed light on Imperial's strategic shift towards an asset-light model and comprehensive coverage of the logistics value chain. The recent acquisition of SESPAN further solidifies Imperial's position in offering end-to-end solutions for its customers. Lamberti reiterated the company's focus on expanding its international logistics business in the coming years. On the domestic front, the South African market's stagnant growth poses challenges for Imperial, particularly in the mining and commodities sector. Despite the soft economy, Lamberti remains cautiously optimistic about the business's performance, attributing the volatility to currency movements. Imperial has ruled out further acquisitions in South Africa to avoid overexposure to the local market. Looking ahead, Lamberti emphasized executing a transformation plan to make Imperial more capital-light and focused. The company aims to strengthen its international logistics business while maintaining a steady performance in the South African market. The CEO instilled confidence in investors and stakeholders by addressing succession concerns and outlining a clear growth strategy for the future. In conclusion, Imperial Holdings, under the leadership of Mark Lamberti, is navigating through market challenges with a strategic vision for growth and transformation. The company's focus on streamlining operations, expanding internationally, and capitalizing on opportunities in the African market positions it well for sustainable long-term success.