In a bid to counter slower growth in its home market, Imperial Holdings, which owns South Africa's largest network of car dealerships, is in search of new acquisitions that will allow it to expand its logistics business on the continent.
According to company CEO, Mark Lamberti, Imperial believes that the rest of Africa will grow at a faster rate than South Africa. Lamberti pegged Imperial's logistics business as its major growth vector - logistics currently contributing some 39% of total revenue, with most of the unit's revenue generated outside of South Africa.
Deteriorating conditions aside, Imperial's operating profit gained 1% in the 12 months through June, resting at R6.2 billion (approximately $469 million), according to Moneyweb. Earnings per share declined 6%, allegedly due to the drop in profitability of Imperial's vehicle import business, on the back of the weaker rand. The company has said it expects single-digit growth in revenue and operating profit from ongoing operations during the 2016 fiscal year.