Imperial’s strategy seeks to drive capability-based growth and focused value creation through greater strategic clarity and financial discipline at group and divisional level.
The key themes informing the strategy are:
- The group will leverage its capabilities, client relationships, scale and assets to drive aggressive organic growth.
- Larger “transformational” acquisitions, and bolt-on acquisitions, will be considered to deepen the group’s penetration within or in areas adjacent to its vehicles and logistics value chains, and to achieve niche domination or scale relevance outside South Africa.
- The South African logistics market is largely saturated with limited growth opportunities, specifically for acquisitions which are constrained by the group’s large market shares. The focus here will therefore be mainly on organic growth.
- Key driver of Imperial’s asset-light growth strategy, given the generally positive macro-economic outlook and the degree of fragmentation in logistics markets across the continent. The aim is for these operations to equal the contribution of the South African logistics operations by 2020.
- Similarly, the group will pursue asset-light organic and acquisitive growth opportunities in Europe and other regions where we can apply our capabilities and client relationships.
- Notwithstanding the impact of challenging macro-economic factors on our Vehicle Import, Distribution and Dealerships division, both our vehicle businesses in South Africa will remain a solid source of operating cash flows that will increase with any upturn in the macro-economic cycle.
- Given these considerations, further diversification of revenue and profit streams through the rebalancing of the group’s portfolio is an imperative.