UNBUNDLING WILL DENT IMPERIAL EARNINGS

Imperial Logistics signalled that due to the unbundling of Motus, a diversified vehicle business, its headline interim earnings would fall as much 79 percent. However, its underlying business profit grew. Motus was unbundled from Imperial Holdings and listed on the JSE in November 2018. Yesterday, in a trading statement for the six months to December 31, its headline earnings per share (Heps) were expected to be at between 176 cents and 202c, while its earnings per share could be between 210c to 236c, down as much as 93 percent. However, when excluding Motus and Consumer Packaged Goods, which Imperial exited last year, it said its interim Heps and earnings per share (Eps) were expected to increase, with its Eps up as much as 14 percent to between 362c and 380c and its Heps up as much as 12 percent to between 364c and 377c. The profit hike was due to the rationalisation process it had undertaken last year as well as certain once-off trading costs that were recorded in the prior period not recurring in the current six months, which was partially offset by increasingly challenging trading conditions, Imperial said. Last year Imperial intensified its restructuring and rationalisation of its operations in South Africa as it was exiting unprofitable contracts, consolidated its operations and reduced its expenses. Imperial said it would probably release its results on February 25.