Imperial Logistics

Investment case

  • Leading positions in regional markets provide platforms for sustainable growth: market leader in South Africa, a leader in selected industries (consumer packaged goods (CPG) and healthcare) in the African Regions and in certain specialised capabilities in Europe.
  • Competitive differentiation centred on agility and customisation: specialised capabilities across the value chain enable customised and integrated solutions, with service offerings and operating models tailored to client requirements and market maturity.
  • Trusted partner to multinational clients: quality contract portfolio in high-growth and defensive industries, with partnerships demonstrating reach, capabilities, assets, innovation and legitimacy.
  • Asset right business model underpins financial profile: more optimal asset mix and targeted returns on capital support prospects for sustainable revenue growth, enhanced profitability and cash generation.
 
  • Vision to unlock benefits of "One Imperial Logistics": strategy focused on sustainable revenue growth, enhanced returns and improved competitiveness, with initiatives to drive substantial organic growth enabled by a differentiated approach to digitalisation and innovation, and enhanced financial flexibility supporting selective acquisitive growth.
  • Track record for consistent growth: proven ability to acquire, develop and leverage specialist capabilities to establish growth platforms in emerging and advanced markets.
  • Strong and committed leadership: highly experienced, long-serving management team and a strong independent board.

Capital structure, key financial indicators and targets


  • Pursuant to more efficient capital and funding structures, significant effort ensured that each business unit achieved appropriately geared independent and self- sustaining balance sheets as at FY June 2018
  • The debt syndication process and refinancing of existing facilities are on track
  • Sufficient commitments including an underwriting for the off-shore facilities have been secured for Imperial Logistics and Motus to facilitate growth, provide flexibility and maintain strong liquidity at competitive pricing levels
  •  
  • FY18
    (%)

  • Medium term target over
    3 years
  • Revenue

  • FY18
    (%)

    7.5% growth rate

  • Medium term target over 3
    years

    ILSA & ILI1: 2x GDP growth +
    inflation
    ILAR1: Low double digit
    growth

  • Cash conversion

  • FY18
    (%)

    77.8%

  • Medium term target over 3
    year

    Targeted cash conversion of
    70-75%

  • Debt capacity

  • FY18
    (%)

    N.A

  • Medium term target over 3
    years

    ZAR3bn – 5bn
    (on unbundling)

  • Net Debt/Equity

  • FY18
    (%)

    50%

  • Medium term target over 3
    years

    60% - 80%

  • ROIC

  • FY18
    (%)

    12.2% (WACC:8.5%)

  • Medium term target over 3
    years

    ILSA & ILAR: WACC + 3%
    ILI: WACC + 2%

  • Dividend

  • FY18
    (%)

    N.A

  • Medium term target over 3
    years

    Targeted payout ratio of 45%
    of HEPS