Imperial Holdings is a Johannesburg Stock Exchange (JSE) listed South African-based international group of companies operating in the logistics and vehicle sectors. In 2004 Imperial issued 22 755 389 Deferred Ordinary Shares to Ukhamba as part of its long-term strategy to effect true BBBEE. Ukhamba shares are 46.9% owned by Imperial with the balance owned by the Ukhamba Trust (47.1%) and the Imperial and Ukhamba Community Development Trust (6%). The Ukhamba Trust gave historically disadvantaged Imperial employees an opportunity to purchase an interest in Ukhamba through the purchase of Ukhamba Trust units. Ukhamba was formed to create a culture of savings, to generate wealth and to facilitate the transfer of skills for Imperial‘s historically disadvantaged employees.

Group A Beneficiaries

Initially staff members were encouraged to buy Ukhamba shares through Ukhamba Trust at R50 per unit and that money was invested in various business ventures. About 2 400 staff members actively invested in this scheme. Since inception to the end of 2007, staff members invested more than R30 million and have realised a growth in their investment of more than 1500% – from R50 to R812.00 per unit at the end of June 2008 when the scheme terminated.

Group B Beneficiaries

When Ukhamba Holdings was able to purchase a 10,1% stake in Imperial Holdings in March 2004, a new scheme, called the “B” scheme, was created. Through this scheme over 15 000 previously disadvantaged staff members of the Imperial Group automatically became beneficiaries. The criterion utilised to distribute these units was based on the length of service of each qualifying Previously Disadvantaged Individual employee as at 5 March 2004.

There are no conditions associated with the “B” scheme. Employees who were allocated these shares will receive them no matter what – whether they leave the employ of the Imperial, or pass away before benefits are distributed, in which case their nominated beneficiaries will receive the benefits.

Imperial’s strategy is to create value through:

 Improving clients’ competitiveness, as evidenced by the retention of long-term relationships and ongoing service innovation.

 Scale, expertise and technology to provide high-value logistics services that lower total cost and offer superior reliability for clients.

 Continued reliable service delivery and innovation to support client retention, expansion and new client engagement.

 End-to-end service offering that provides tangible value-add to clients through a fully integrated supply chain.

 Organisational agility and a commitment to corporate responsibility.

 A unique distributor approach based on the needs of emerging markets, supported by acquisitions and local partnerships, and benefiting from exclusive relationships with principals.

 Ability to grow consumer and pharmaceutical brands by bringing products to market in a trading environment where logistics are challenging, and sales and marketing channels are relatively underdeveloped and complex.

 Attractiveness to multinationals of end-to-end integrated route to market solutions across African markets.

Imperial also looks to grow through:

 Transport solutions – Inland shipping, road and express freight with dedicated fleet and equipment in target industries.

 Supply chain solutions – Being a leading provider of procurement logistics, manufacturing logistics, contract manufacturing, warehousing, outbound logistics and reverse logistics in selected industries.

 Industry experience – Expertise and experience in the automotive, machinery and equipment, steel, retail and consumer goods sectors.

Imperial is also looking to use its status as an exclusive importer of quality vehicle brands, the largest being Hyundai, Renault and Kia. As a huge driver of growth. These car brands will not only provide a boost to Imperial’s trade portfolio or see a rise in its share and shareprice attractiveness, but this will give rise to Ukhamba shares and the Ukhamba share price. Imperial looks to also ensure coverage of virtually all aspects of the vehicle value chain, from importing, retailing and rental to aftersales service, parts and financial services. This will be a strong driver of dividends in the company’s future and drive Ukhamba shares and Ukhamba share price value. Imperial’s ability to multi-franchise and add additional brands to its product portfolio by leveraging the scale in its existing distribution and dealership network. Will be an important driver of Ukhamba and will no doubt improve the shares attractiveness on live, online charts. As the major determinant of all future performance Imperial has continued to shape the group’s portfolio to achieve focused growth. The intent is to create a less complex, lower capital intense, higher return group of businesses, active particularly in the logistics and vehicles sectors.

To this end, Imperial disposed of non-core, strategically misaligned or low return assets amounting to R5,3 billion during the year. Excluding Regent Imperial has disposed or is in the process of disposing of 29 businesses that generated revenues of R6 billion and utilised R2,8 billion of invested capital to produce operating profit of only R45 million – clear evidence that bigger is not better! Imperial invested R4,4 billion to acquire minorities and new businesses, the most significant of which was 95% of Palletways, acquired on 5 July 2016 at an enterprise value of R3,2 billion (£162,9 million).

Despite difficult trading conditions, Imperial achieved history high revenues and operating profits in 2016, with all divisions producing revenue growth in rand terms. Double-digit growth of revenue and operating profit from foreign operations, increased Imperial’s share of revenue and operating profit from foreign operations to 42% and 36% respectively, this will be great news for Ukhamba shareholders who are not willing to put their shares up for sale, as the purchase sentiment, among investors rises. Total revenue increased by 8% to R118,8 billion (6% up excluding acquisitions) and for continuing operations, excluding Regent, by 8% to R115,7 billion. Revenue increased in all operating divisions. Imperial’s biggest changes were in logistics, which was up 19%, supported by volume growth and acquisitions, with Logistics South Africa experiencing a marginal decline due to lower volumes. Imperial’s data suggests that total operating profit increased 3% to R6,4 billion (1% up excluding acquisitions) and for continuing operations, excluding Regent, up by 4% to R5,9 billion.

The increase in operating profit was mainly due to strong performances from the Vehicle Import, Distribution and Dealerships division and Logistics Rest of Africa, which was assisted by the inclusion of Imres for a full year. This increase is expected to continue according to forecasts, given Imperial’s strong asset base and performance capacity. Group operating margin, including discontinued operations, was slightly down at 5,4% (2015: 5,6%). Ukhamba, due to Imperial’s impressive performance and operational capacity is one share portfolio to be seriously considered today.

Consumer Discretionary

Retailing

We have made it simple to buy JSE listed firm shares online. The easiest way to buy Ukhamba Holdings Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Ukhamba Holdings Group and assist you with the setup and management of your stock portfolio account.

1. Start by Filling in the BUY THIS SHARE form.
2. Insert your name, email, telephone number and monthly remuneration.
3. Then, Indicate the amount you are looking to invest in Ukhamba Holdings Group.
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6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)

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