Profitable growth
Strategic intent:
To double revenue and achieve targeted growth in total shareholder returns (TSR) over the five years to 2020.
Growth activities
While significant opportunities have been identified and are under review, a number of niche acquisitions and growth projects were implemented during the year, which include:
- Car Rental expanded through the acquisition of the Budget licence
- Avis Fleet growth into Tanzania (Tanzuk Limited) and Zambia
- Expanded motor retail dealership footprint (GM Ferndale)
- Acquired the remaining stake in re-, and rebranded the business SmartMatta
- Entered the mobile crane market
These growth initiatives were complemented by corporate restructure, and capital reallocation to optimise returns. This included:
- Disposed of the logistics business in Spain
- Exited Sea Air Transport (SAT) in Germany
- Exited the agriculture business in Russia
Growth opportunities
The industries and regions in the table below have been identified to provide growth opportunities for the group into the future.
| GROWTH SEGMENT |
GROWTH DRIVER |
GEOGRAPHY | ||
|---|---|---|---|---|
MINING
| Emerging market industrialisation driving long-term demand for commodities | Southern Africa, Russia | ||
INFRASTRUCTURE |
Infrastructure backlogs and rapid urbanisation in developing economies | Southern Africa, Russia, Iberia | ||
POWER |
Increasing demand in electricity, marine, petroleum and industrial power segments | Southern Africa, Russia, Iberia | ||
AGRICULTURE |
Importance of food security, growing demand for biofuels and rich agricultural potential across southern Africa | Southern Africa | ||
AUTOMOTIVE |
Increasing need for flexible vehicle usage solutions in private, corporate and government segments and exposure to the growing tourism market | Southern Africa, East Africa, West Africa | ||
LOGISTICS |
Growing regional trade and trend to outsource supply chain management activities | Southern Africa, Middle East | ||