Johannesburg - Imperial Holdings on Wednesday reported a 21 percent rise in headline earnings per share to 749 cents for the second-half of 2006 from 616.9 cents for the corresponding period a year ago. Diluted HEPS were up 19 percent to 686.9 cents from a previous 578.2 cents.
A distribution of 280 cents per share was declared, comprising a capital distribution out of share premium of 160 cents and a dividend of 120 cents.
The distribution was up 22 percent from 230 cents a year ago.
Revenue grew 29 percent to R33.4 billion, while attributable profit was 25 percent higher at R1.599 billion.
The company said that the effects of a modest slowdown in consumer spending and a weaker rand were muted by strong performances in non-consumer driven divisions, vehicle dealerships and financial services businesses.
Operating profit was 17 percent better at R2.5 billion. Operating profit declined in distributorships where the weaker rand impacted negatively on margins.
Imperial said the 2 percent increase in South Africa’s prime overdraft rate since June caused vehicle sales growth to slow.
Growth in demand for Imperial’s other services, namely logistics, vehicle leasing, car rental, tourism and vehicle related financial services remained strong.
“Our exposure to the mining and construction industries through the newly acquired MCC group, reported in our Leasing and Capital Equipment division, has been particularly rewarding to us,” Imperial noted.
The group said it expects further good growth in revenue and earnings for the full financial year.
“Vehicle sales growth will be lower than the previous financial year, but growth in the overall economy is expected to remain robust,†it said. - I-Net Bridge
Source: www.busrep.co.za
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