Imperial interim results December 2020
23 February 2021 7:40
Revenue for the interim period went up 15% to R26.4 billion (2019: R23 billion) whilst operating profit decreased by 18% to R1.2 billion (2019: R1.5 billion). Net profit attributable to owners from continuing operations fell to R232 million (2019: R590 million). In addition, headline earnings per share from continuing operations was lower at 180 cents per share (2019: 315 cents per share).

Dividend
For the six months ended 31 December 2020 notice is hereby given that a gross interim ordinary dividend in the amount of 83.00 cents per ordinary share has been declared by the board of Imperial, payable to the holders of the 202 074 388 ordinary shares. The dividend will be paid out of income reserves.

Company prospects
Many of our markets continue to face increasing uncertainty and volatility, being in various levels of lockdown and restrictions. However, as some of these restrictions are easing and COVID-19 vaccines are in the process of being rolled out, volumes and operating activities are improving — but the business is not yet at pre-COVID-19 levels. It remains to be seen how the second wave of COVID-19 will fully impact the business. Forecasts indicate that most economies in the key African markets in which we operate contracted in 2020, with low to modest growth expected in 2021. We therefore expect volatile trading conditions across the markets in which we operate until some level of normalisation is reached around the COVID-19 pandemic.

At this stage, for the 12 months to 30 June 2021, subject to stable currencies, steady recovery in volumes and revenue on the back of easing COVID-19 restrictions, as well as a recovery from current levels in markets in which we operate, we expect Imperial’s continuing operations to deliver:
> Double-digit revenue growth compared to F2020.
> Double-digit operating profit growth compared to F2020.
> Double-digit growth in continuing HEPS compared to F2020.
> Double-digit growth in core EPS compared to F2020.
> Strong free cash flow generation - free cash conversion expected to be between 70% and 75%.

Imperial’s balance sheet remains strong and resilient, with headroom in terms of deprospbt capacity and liquidity to facilitate our strategic growth aspirations. We have a strong pipeline of new business opportunities which we are working hard to translate into new contracts. While we will continue to meet the demands and manage the implications of the pandemic in the short term, we will also ensure that we continue to deliver on our strategic objectives.

The organisational structure to support our strategy has been implemented, and we have a highly motivated and dedicated team to deliver our strategy and initiatives. We have a clear focus on organic growth through new contract gains, as well as on the integration of our acquisitions to unlock stakeholder value. At the same time, our focus remains on delivering the best from our current operations by making them lean and efficient, servicing our clients profitably, executing flawlessly and growing organically, while still delivering on our strategy. We thank our shareholders and funders for their ongoing support.
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