Al­ways on the move

In­de­pen­dent Im­pe­rial Lo­gis­tics a com­pelling in­vest­ment propo­si­tion, says CEO-des­ig­nate It has a pres­ence in 38 coun­tries with 30,000 em­ploy­ees, of­fer­ing spe­cialised ca­pa­bil­i­ties and cus­tomised so­lu­tions

Financial Mail - Investors Monthly - - Corporate Profile -

Im­pe­rial Lo­gis­tics Lim­ited — pre­vi­ously known as Im­pe­rial Hold­ings Lim­ited, which re­cently un­bun­dled its mo­tor busi­ness, Mo­tus — is en­ter­ing an ex­cit­ing new era as a separately listed com­pany.

The un­bundling of Mo­tus in Novem­ber paves the way for two stand­alone, strate­gi­cally fo­cused blue-chip busi­nesses.

Im­pe­rial Lo­gis­tics will pur­sue in­de­pen­dent strate­gic ini­tia­tives with a spe­cific as­set fo­cus and a flex­i­ble cap­i­tal al­lo­ca­tion to sup­port its strat­egy on a long-term, sus­tain­able ba­sis, says CEO-des­ig­nate Mo­hammed Akoo­jee.

He be­lieves the com­pany’s in­de­pen­dence pro­vides a more com­pelling in­vest­ment propo­si­tion.

An in­te­grated out­sourced lo­gis­tics ser­vice provider, Im­pe­rial Lo­gis­tics is ranked in the top 25 third-party lo­gis­tics providers glob­ally and is the lead­ing third-party and fourth­party lo­gis­tics provider in SA. It has a pres­ence in 38 coun­tries over five con­ti­nents with about 30,000 em­ploy­ees, of­fer­ing spe­cialised ca­pa­bil­i­ties and cus­tomised so­lu­tions in trans­porta­tion man­age­ment, ware­hous­ing and dis­tri­bu­tion man­age­ment, value-add lo­gis­tics so­lu­tions, sup­ply chain man­age­ment so­lu­tions and routeto-mar­ket so­lu­tions to lo­cal and multi­na­tional clients mainly in SA, Sub-Sa­ha­ran Africa, Europe and the UK.

Its African Re­gions busi­ness is fo­cused on the health­care and con­sumer pack­aged goods in­dus­tries. It pro­vides a plat­form for multi­na­tional fast­mov­ing con­sumer goods and phar­ma­ceu­ti­cal firms to ac­cess high-growth con­sumer mar­kets, and lever­ages SA ex­per­tise in un­der­de­vel­oped third­party lo­gis­tics mar­kets.

Its in­ter­na­tional busi­ness has a well-es­tab­lished con­tracts lo­gis­tics plat­form in Ger­many with spe­cialised ca­pa­bil­i­ties in au­to­mo­tive and chem­i­cals. It is West­ern Europe’s largest provider of ex­press pal­letised dis­tri­bu­tion ser­vices and the mar­ket leader in in­land wa­ter­ways.

The busi­ness is man­aged in two ma­jor re­gions: Lo­gis­tics Africa (in­clud­ing SA and African Re­gions) and In­ter­na­tional (mainly Europe), with stan­dard­ised fi­nan­cial mea­sures and one brand iden­tity.

Akoo­jee in­tends for the com­pany to be­come an in­ter­na­tion­ally ac­claimed tier-one provider of out­sourced, in­te­grated value-add lo­gis­tics, sup­ply chain man­age­ment and route-to-mar­ket so­lu­tions. Sus­tain­able rev­enue will be grown through fo­cused or­ganic growth in each re­gion, com­ple­mented by strate­gic ac­qui­si­tions. Com­pet­i­tive­ness will be im­proved by in­vest­ing in the busi­ness’s peo­ple, pro­cesses, dig­i­tal­i­sa­tion and in­no­va­tion.

Five cor­po­rate strate­gies will turn this vi­sion into re­al­ity: client-cen­tric­ity; as­set right­ness; flaw­less ex­e­cu­tion; lo­cal rel­e­vance; and a fo­cus on in­ter­na­tional freight man­age­ment. De­liv­ery on these strate­gies and meet­ing the busi­ness’s key fi­nan­cial ob­jec­tives over the next three to five years should re­sult in a value un­lock and a re-rat­ing of Im­pe­rial Lo­gis­tics ver­sus its peer groups, says Akoo­jee.

Merg­ers & ac­qui­si­tions, says Akoo­jee, will be fo­cused on ex­ist­ing ge­ogra­phies and in­dus­tries to pen­e­trate or pro­tect mar­kets, ex­pand the com­pany’s ca­pa­bil­i­ties, or fur­ther de­velop its in­ter­na­tional freight man­age­ment ca­pa­bil­i­ties.

An im­proved as­set com­po­si­tion and risk-ad­justed tar­geted re­turn on in­vested cap­i­tal will en­hance prospects for sus­tain­able rev­enue growth, cash flow, re­turns and prof­itabil­ity, while its self-suf­fi­cient cap­i­tal struc­ture will al­low for ac­qui­si­tions as well as di­rect ac­cess to eq­uity and debt cap­i­tal mar­kets.

“Our abil­ity to gen­er­ate cash gives us the liq­uid­ity to fund work­ing cap­i­tal and re­place­ment capex and in­vest in growth while con­tin­u­ing to pay a healthy div­i­dend to share­hold­ers in line with 45% of head­line EPS,” he says.

Im­pe­rial Lo­gis­tics is well po­si­tioned to cap­i­talise on growth in the global lo­gis­tics in­dus­try. SA was ranked 20th out of 160 coun­tries in 2016 by the World Bank’s lo­gis­tics per­for­mance in­dex. Im­pe­rial Lo­gis­tics, says Akoo­jee, is well po­si­tioned to act as an en­abler for com­pa­nies op­er­at­ing in the e-com­merce space in Africa and Europe. He in­tends for the com­pany to be at the fore­front of dis­rup­tion and in­no­va­tion.

Akoo­jee is con­fi­dent that Im­pe­rial Lo­gis­tics is well po­si­tioned to de­liver sus­tain­able rev­enue growth, en­hanced prof­itabil­ity and re­turns — and de­liver con­sis­tent div­i­dends to share­hold­ers.

Pic­ture: FREDDY MAVUNDA/ FI­NAN­CIAL MAIL

Mo­hammed Akoo­jee, CEO-des­ig­nate of Im­pe­rial Lo­gis­tics.

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