At a glance
Overview and key investment highlights
Imperial Logistics is an integrated outsourced logistics service provider with a diversified presence across Africa and Europe. With its strong regional growth platforms, specialist capabilities customised to serve multinational clients in attractive industry verticals, and “asset-right” business model, Imperial Logistics is expected to deliver sustainable revenue growth, enhanced profitability and a stable dividend. Improvements in asset mix and cash flow, and plans to achieve targeted returns on capital in excess of weighted average cost of capital (WACC), will support this expectation.
Ranked in the top 25 global third-party logistics (3PL) providers as published by Armstrong & Associates Inc (#15 for land-based revenue in 2017), with a presence in 33 countries on five continents and approximately 30 000 employees, Imperial Logistics’ key investment highlights include:
- Track record for consistent growth: proven ability to acquire, develop and leverage specialist capabilities to establish growth platforms in emerging and advanced markets;
- Leading positions in regional markets provide platforms for sustainable growth: market leader in South Africa, a leader in selected industries (consumer packaged goods (CPG) and pharmaceuticals) in the African Regions and in certain specialised capabilities in Europe;
- Competitive differentiation centred on agility and customisation: specialised capabilities across the value chain enable customised and integrated solutions, with service offerings and operating models tailored to client requirements and market maturity;
- Trusted partner to multinational clients: quality contract portfolio in high-growth and defensive industries, with partnerships demonstrating reach, capabilities, assets, innovation and legitimacy;
- Vision to unlock benefits of “one Imperial Logistics”: strategy focused on sustainable revenue growth, enhanced returns and improved competitiveness, with initiatives to drive substantial organic growth enabled by differentiated approach to digitalisation and innovation, and enhanced financial flexibility supporting selective acquisitive growth;
- “Asset-right” business model underpins financial profile: more optimal asset mix and targeted returns on capital, support prospects for sustainable revenue growth and enhanced profitability; and
- Strong and committed leadership: highly experienced, long-serving management team and a strong independent board.
Overview and key investment highlights
Motus is a diversified (non-manufacturing) service provider to the automotive sector with unrivalled scale and scope in South Africa, and a selected international presence in the United Kingdom and Australia. Motus’ unique business model is fully integrated across the motor value chain – Import and Distribution, Retail and Rental, Motor Related Financial Services and Aftermarket Parts. This business model provides diversified service offerings, significant annuity earnings underpin, maximises revenue and income opportunities, and provides returns in excess of WACC, enabling Motus to maintain sustainable free cash flow and pay an attractive dividend.
Supported by over 18 300 employees and as southern Africa’s largest vehicle group, Motus’ key investment highlights include:
- Diversified (non-manufacturing) service provider in the automotive sector with a leading position in South Africa and selected international presence (UK and Australia);
- Fully integrated business model across the vehicle value chain – Import and Distribution, Retail and Rental, Motor Related Financial Services and Aftermarket Parts;
- Unrivalled scale in South Africa underpins a differentiated value proposition to original equipment manufacturers (OEMs), customers and business partners, providing multiple customer touch points supporting resilience and customer loyalty through the entire vehicle ownership cycle;
- Access to annuity income streams, sustainable free cash flow generation with best-in-class earnings, return on invested capital exceeding WACC, providing a platform for an attractive dividend yield;
- Defined organic growth trajectory through portfolio optimisation, continuous operational enhancements and innovation, with a selective acquisition strategy outside South Africa leveraging best-in-class expertise; and
- Highly experienced management team with deep industry knowledge of regional and global markets, and a proven track record with years of collective experience.
Motus is reported as a discontinued operation in these results for the financial year ended 30 June 2018.