Imperial Holdings Limited. JSE: IPL

Imperial Holdings shares

Background of Imperial Holdings

  • Established in South Africa in 1948, Imperial Holdings is today an international group of companies with five operating divisions covering the logistics and vehicles value chains. Logistics Africa services Southern, West and East African markets through three regional hubs, distributing consumer and pharmaceutical goods. Logistics International is based in Germany and provides complete solutions such as industrial contract logistics, bulk and container terminal operations, warehousing and contract manufacturing in the chemical industry.

  • Imperial is an exclusive importer of 16 automotive and industrial vehicle brands including Kia, Renault, Hyundai and Mitsubishi. Vehicles are put up for sale through a network of franchised dealerships in South Africa and several in selected African markets and Australia. Imperial also owns the Tempest and Europcar rental brands in South Africa, as well as pre-owned vehicle dealer Auto Pedigree.

  • Today, Imperial employs more than 50 000 people serving customers from more than 1 200 locations in 31 countries. The company achieved revenue of R110 billion in the 2015 financial year. The company is listed on the Johannesburg Stock Exchange (JSE) with a market cap of R37 billion, and Imperial share price has been unstable on the bourse.

Imperial Holdings Shares Growth Driver

  • Despite steady deterioration of trading conditions, Imperial had a 1% increase in operating profit for the 2015 financial year, up to R6.2 billion. South African operations had an acceptable performance considering the weak economic environment, with the group benefitting from operational efficiencies and its position as the country’s leading provider of logistical solutions. The consumer logistics division showed good operating profit growth due to the purchase of Pharmed. Manufacturing and industrial logistics showed depressed margins due to the tough economic environment.

  • The most significant milestone achieved during the year was the upgrade and relaunch of the Placecol skin care range, which is today considered one of the best skin care ranges available for sale in South Africa.

  • The group has enjoyed good results in the Rest of Africa, where operating profit grew by 89%, supported by contribution of strategically aligned acquisitions in the pharmaceutical sector. With net capital expenditure of R1 billlion, even better results are expected in 2016. International results were also in line with expectations, but the vehicle sector had muted growth as a result of the global economic downturn, which has hampered consumer appetite to buy vehicles.

  • The group’s interim data for the second half of 2015 showed single digit profit growth of 7%. A forecast of muted profit growth is expected to continue in the near to medium term. Imperial does however benefit from a strong international presence which shields it from the impact of rand weakness. Foreign revenue increased to 41% of group revenue and 22% of operating profit for the interim period.

Imperial Holdings Investor Tip

  • Imperial has diversified operations and is increasing the proportion of international contribution to group revenues. This provides a good shield from rand weakness. The live online JSE stocks chart shows that Imperial shares have been sluggishly priced over the past five years, and had a major dive at the end of 2015, falling from R186 down to R106. As a reflection of slightly improved trade conditions, Imperial share price has since climbed back to R177.

  • Investment analysts predict that Imperial shares price will continue to climb further, making the shares a relatively good buy. Investors however can’t expect great returns in the short-term.

Imperial Holdings Major Shareholders

Public Investment Corporation, M & G Investments, Lazard Asset Management, Ukhamba Holdings.

  • Sector

    Consumer Discretionary

  • Industry

    Retail – Discretionary

  • Sub industry

    Automotive Retailers

How to buy Imperial Holdings Shares

  • Imperial Holdings : How to buy Imperial Holdings Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Imperial Holdings shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Imperial Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Imperial Holdings shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Imperial Holdings.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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