NEWSWATCH: Imperial Holdings' plans to unbundle Motus, its automotive arm, and Imperial Logistics
- which entails transport, warehousing, and distribution management - is still unconfirmed.
Imperial Logistics has assets mainly in South Africa, the rest of Africa, and Europe. Motus encompasses Imperial's vehicle import and distribution; vehicle retail and rental; aftermarket parts; and motor-related financial services operations.
Decision to be made by June
According to a report on Business Day Live, the group said the "key strategic question" was whether the long-term fortunes of its Imperial Logistics and Motus divisions would be boosted by separate listings. A decision would be made by June 2018.
The report further states that, according to Imperial CEO Mark Lamberti, splitting Imperial Holdings, which employed about 49,000 people in 33 African and European countries, into logistics and vehicle sectors would be carried out on the JSE. But for Motus to grow, it would have to happen outside of South African markets, he said.
The group posted double-digit growth in its first-half headline profit despite what it said was a competitive landscape. Headline earnings per share rose 16% to R7.17 in the six months to December. Group revenue was up 11% to a record R66.5bn and net profit rose 12% to R1.36bn.
Motus, the larger division, grew revenue by 16% and operating profit rose 5%. The group said revenue and profit rose at all four subdivisions, thanks mainly to "competitive vehicle pricing and a strong improvement in entry-level and pre-owned vehicle sales in SA, where stable interest rates improved affordability".
Imperial Logistics grew revenue by 5% and operating profit by 7%. Excluding businesses held for sale, revenue and operating profit increased by 7% and 5% respectively.
Ilse is a freelance journalist and editor who loves all things related to travel, wine, cars, and entrepreneurship. She is also the editor of Go & Travel, a platform connecting all the stakeholders in the travel & tourism industry. From 2010-2014, her beat was Marketing & Media at Bizcommunity.com. Then she had a 2-year adventure in Italy after which she returned to Bizcommunity as the Motoring, ICT, and Logistics editor. She decided to try the freelance thing as of August 2018 and she is still a contributing writer for Bizcommunity. You can check out her work here, here, and here. In her spare time, she's probably surfing, hiking, or travelling. Contact Ilse if you require any writing or editing services on (note .co NOT .com) or or find her on Twitter.
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