68 I M P E R I A L H O L D I N G S L I M I T E D –
Integrated Annual Report
for the year ended 30 June 2014
We are exploring growth opportunities in
other markets. Inland water infrastructure
exists in other markets and clients benefit
from inland water shipping, as it is a highly
efficient way of transporting cargo. As goods
do not have to be transferred from one form
of transport to another, the risk of damage
to goods and any potential safety and
environmental impact is significantly
reduced.
In
Panopa
, ongoing tender activity supported
organic growth and increased penetration in
our main accounts. We are continuously
working on the extension of our services
to other industries to reduce reliance
on current market segments.
The division has pursued a strategy of
internationalisation to reduce regional
exposure and has launched new businesses
in China and the United States to benefit
from strong momentum in those regions.
As the market for steel and paper products
was volatile,
Neska
is increasingly focusing
on value-added services such as quality
control, steel-saws and other dedicated
services. We will increasingly offer an
extended service chain, and will focus on
specialised services such as high-quality
liquids or packaging paper, on the back of
falling demand for printing paper.
What were the major challenges during the year?
]
]
During the year under review, we focused on delivering against three priorities:
Streamlining to contain costs.
As part of our proactive approach to reducing
costs, we restructured the business. This had become an important issue given the
growth of the business through acquisitions over the past few years, and
particularly in light of the acquisition of Lehnkering, which saw the inclusion of
2 500 new employees. Shared services were created in functions such as finance,
human resources and marketing. The benefits of this restructuring are already
being felt throughout the business, as well as the resultant cost savings.
Expanding into new markets
. Our entry into Paraguay was executed well, which
paves the way for further expansion in South America. Although we have placed
orders for additional barges to service this business, we have so far been able to
service it with assets from our European base which allowed us to further
streamline our European operations and increase asset utilisation and reduce
concentration risk in our existing business.
Maintaining existing contracts in a competitive market and securing new
business
. During the year, we secured a broad range of new contracts, and are in
the process of expanding our activities in the automotive and chemical industry
with long term contracts with existing clients.
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