Imperial Holdings share drops on ‘muted guidance’
The transport and logistics firm expects a muted performance from its logistics business
Imperial Holdings slipped more than 7% in early JSE trade on Tuesday after the transport and logistics group issued what one analyst said was a muted guidance for its logistics business. At close of trade, the share price was 6.83% down at R15.89. Imperial — which is in the final stages of separating its logistics and automotive businesses — said a combination of high unemployment, negative economic growth, VAT increases and fuel price rises weighed heavily on its logistics business. As a result, reduced volumes and depressed consumer demand affected the Imperial Logistics performance in the first quarter of the 2019 financial year, Imperial said in an update after its annual general meeting (AGM). Imperial Logistics generates 32% if its revenue in SA.
Imperial said Imperial Logistics’s revenue and operating profits for the first six months of the 2019 financial year would be flat, compared with those of the previous matching period. Mark Hodgson, an analyst at Avior Capital M...