Imperial Logistics delivered unsatisfactory performance says CFO George de Beer, but there's room for strategic growth.
On 27 August, Imperial Logistics announced their annual results for the year ended 30 June 2019.
About the results, Imperial Logistics CFO George de Beer said:
“Imperial Logistics delivered an unsatisfactory operating performance, growing revenue from continuing operations by six percent and decreasing operating profit by nine percent.”
He explained that the results were supported by a good performance from African regions, offset by weaker operational performances, certain once-off trading costs of R65 million in international, and the once-off costs associated with the business rationalisation and restructuring in the company’s South African and international operations of R170 million. Excluding the once-off costs, operating profit for continuing operations decreased by one percent.
“Our balance sheet management remains sound with sufficient headroom in terms of capacity, together with good cash generation, for strategic growth,” he said.
The results reported were as follows:
- Revenue for the year increased to R49.720 billion
- Operating profit lowered to R2.501 billion
- Profit for the year from continuing operations fell to R90 million
- Headline earnings per share from continuing operations decreased to 542 cents per share
- Gross final ordinary divident in the amount of 109 cents per ordinary share
Also commenting on the results, Imperial Logistics CEO Mohammed Akoojee said:
“F2019 was a year of amplified strategic focus, unprecedented change and tough decisions. Despite the disappointing operational performance, we remain confident that the bold strategic decisions taken to refocus the business will reap real benefits from the 2020 financial year. The business remains sharply focused on delivery against clearly defined strategic, operational and financial objectives and is deeply committed to creating sustainable value for all its stakeholders.”
In a statement, the company said that the strategic portfolio rationalisation, cost-cutting initiatives, organisational restructure and key decisions taken will have far-reaching benefits for the business and its stakeholders.
It also reported that the balance sheet of the business remains strong, with sufficient headroom in terms of capacity and liquidity to facilitate Imperial Logistic’s strategic growth aspirations.
