Trading statement in respect of the financial year ended 30 June 2009             

Headline Earnings per Share (“HEPS”) and Earnings per Share (“EPS”) is expected to be as follows:

Range (cents)

financial year ended 30 June 2009 between

Previous year (cents)

HEPS

Continuing

675 – 710

615

Discontinued

10 – 20

103

Total

685 – 730

718

EPS

Continuing

490 – 525

629

Discontinued

265 – 275

1139 (loss)

Total

755 – 800

510 (loss)

HEPS from continuing operations for the year to 30 June 2009 is expected to be between 10% and 15% higher than the previous year. 

Included in HEPS for 2009 is a foreign exchange gain of 212 cents per share which was earned from the repatriation of capital from our European operations. Our offshore businesses serve as a natural hedge against currency weakness and capital is repatriated from time to time when the exchange rate is favourable.   

The group performed satisfactorily against the background of tough trading conditions, with a particularly strong recovery in insurance underwriting income. The group also benefited from the restructuring initiatives undertaken recently.

The decline in vehicle sales and its effect on the profitability of our vehicle retailing operations had a significant negative impact on the group’s earnings, although the distributorships division had a much improved second half after the introduction of cost cutting measures. We are satisfied with the performance of the Southern African Logistics business, however, the contribution from our European logistics business was lower due to the sharp decline in business activity in that region during the second half of the financial year. The Car Rental and Tourism division experienced difficult trading conditions. The contributions from associate companies, IMPERIAL Bank and Ukhamba Holdings were substantially lower. 

The discontinued businesses which caused the loss in EPS in the previous period of 1,139 cents per share, have now been sold or closed and the fair value adjustments proved to be adequate.

The forecast financial information in this trading statement has not been reviewed or reported on by IMPERIAL's auditors either in terms of paragraph 3.4(b)(vi)(1)(aa) or paragraph 3.4(b)(vi)(1)(bb) of the Listings Requirements of JSE Limited. This update is based on available information at the time of publication. IMPERIAL’s interim results are expected to be released on SENS on or about 26 August 2009.