JOHANNESBURG - Imperial Holdings, the listed logistics and automotive group, expects to report double-digit growth in headline earnings a share for the year to June from last year’s low base.
The group expects headline earnings a share for this period, excluding Regent Insurance, which was disclosed as a discontinued operation for the year to June last year, to be between 23 and 30percent higher than in the previous year.
This equates to headline earnings a share of between 1525 cents and 1610c compared to 1240c in the previous year.
Earnings a share, excluding Regent, was expected to be between 34 and 41percent higher at between 1635c to 1725c compared to the 1221c last year.
Imperial said on Friday that the primary reasons for the increase were the reduction in foreign exchange losses in its 2018 financial year compared to the previous year, a reduction in net financing costs and increased profits from the sale of properties in its 2018 financial year, which positively impacted earnings a share, but was eliminated from headline earnings a share result.
For the six months to June for continuing operations, excluding Regent and businesses held for sale, Imperial expected capital efficiency and gearing to improve, with the group debt-to-equity ratio expected to be between 50 and 60percent; Imperial Logistics to increase revenues and operating profit in line with the first half growth; and Motus, its automotive business, to increase revenues in line with the first half growth, but operating profit at a higher rate than the first half.
Imperial renewed its cautionary announcement related to the proposed unbundling and separate listing of its logistics and Motus.
It said the proposed unbundling was on track and further details about it would be released in due course.
Imperial is expected to release its annual financial results on August 21.
Shares in Imperial closed 3.8 percent lower on Friday at R206.