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Imperial profit up 44%

Johannesburg - Diversified industrial services and retail group Imperial Holdings [JSE:IPL] posted a 44% rise in first-half profit helped by a recovery in consumer demand and warned that a strike by local truck drivers is likely to hit its second-half performance.

Imperial, which runs car rental, car dealerships and logistic businesses, said on Wednesday basic headline earnings per share totalled 725 cents in six months to end-December compared with 503 cents a year earlier.

Headline EPS, which strips out certain one-off items, is the main profit measure in South Africa.

Imperial, whose trucks hauls fast-moving consumer goods, has been cutting costs to tackle tougher trading conditions but a recovery in the Africa's biggest economy and lower interest rates bolster demand for its products and services.

The company said revenue rose 22 percent to R31.36bn. The company said it expects the improving consumer demand in South Africa to have a positive impact on its second half, although a strike and a weaker than expected start during January will dampen performance during the six months.

In Europe, the company sees robust trade volumes and no signs of a slowdown for the rest of its financial year.

Imperial said it was well positioned to take advantage of any attractive acquisition opportunities as they arise.

The company declared an interim dividend of 220 cents per share.

Shares in Imperial, which have gained about 25 percent in the past year, have retreated around 10 percent so far this year, reflecting investors views that South African stocks are expensive.
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