| Tue 7 Aug 2001, 0:00 | | Liberty Holdings Limited - Interim Results For The |
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LIBERTY HOLDINGS LIMITED
(Registration no 1968/002095/06)
(Incorporated in the Republic of South Africa)
Interim results for the six months ended 30 June 2001
* Interim dividend of 387 cents on
underlying continuing operations + 19%
* Headline profit of 771 cents per share on
underlying continuing operations + 17%
* Headline profit on underlying total operations of 815 cents per share + 8%
Interest in Liberty Group Limited
Liberty Holdings' sole investment at 30 June 2001 consisted of its 54,76%
(31 December 2000: 54,82%) interest in Liberty Group Limited (Liberty).
Review of operations
During the six months ended 30 June 2001 Liberty Holdings received an amount
of R1 787 million pursuant to the capital reduction by Liberty (dividend
income amounting to R210 million for the six months ended 30 June 2000) and
incurred expenditure of R4 million (30 June 2000: R8 million) during the
same period. Substantially all of the net cash received was paid out to
shareholders of Liberty Holdings.
Total headline profit increased by 8% from R374 million in respect of the
six months ended 30 June 2000 to R403 million in the current period and
reflects the underlying results of the total operations of Liberty. Based on
the underlying continuing operations of Liberty, the headline profit for the
six months ended 30 June 2001 of Liberty Holdings of R380 million reflects
an increase of 17% on the R324 million so calculated in respect of the
comparative period in 2000.
Prospects
Liberty Holdings' sole investment consists of its interest in Liberty.
Shareholders are therefore referred to the comments on future prospects as
detailed in Liberty's announcement.
Dividend declaration
The Board has declared a cash interim dividend of 387,0 cents per ordinary
share payable to shareholders registered in the books of the Company at the
close of business on Friday, 24 August 2001. This represents a 19% increase
on the interim dividend on underlying continuing operations declared in
respect of the six months ended 30 June 2000 of 324,0 cents per share. The
rate of increase is higher than Liberty's as a result of the Company having
retained some cash in 2000 in order to fund operations thereby decreasing
the quantum of the 2000 interim dividend.
Dividend cheques payable in South African currency will be posted on or
about 7 September 2001.
Derek Cooper Roy Andersen
Chairman Group Chief Executive
7 August 2001
SUMMARISED GROUP BALANCE SHEET
(unaudited) (audited)
30 June 31 December
2001 2000*
Rm Rm
Assets
Investments 74 986 71 543
Goodwill 115 123
Intangible assets 44 58
Office furniture, computer equipment
and other tangible assets 362 310
Deferred taxation 65 63
Current assets 2 880 3 851
Total assets 78 452 75 948
Capital, reserves and liabilities
Shareholders' funds 4 055 5 274
Minority interests 3 347 4 345
Life funds 66 187 62 138
Convertible bonds 1 906 1 827
Retirement benefit obligation 122 114
Current liabilities 2 835 2 250
Total capital, reserves and liabilities 78 452 75 948
* Restated for changes in accounting policies.
SUMMARISED GROUP INCOME STATEMENT
(unaudited)
Six months ended
30 June
2001 2000* Change
Rm Rm %
Profit after taxation 629 688 (9)
Minority interests (226) (314) 28
Total headline profit 403 374 8
Secondary Tax on Companies relating to
capital reduction and final dividend (203)
Goodwill amortisation (4)
Investment surpluses/(deficits) 289 (274) 205
Total consolidated profit 485 100 385
Dividend on preference shares (1) (1) -
Total consolidated profit attributable
to ordinary shareholders 484 99 389
Per share details:
Headline profit per ordinary share
after preference dividends based on
underlying continuing operations of
Liberty Group (cents) 770,8 657,2 17
Headline profit per ordinary share
after preference dividends (cents) 815,4 758,1 8
Total consolidated profit per
ordinary share attributable to
shareholders (cents) 981,7 201,2 388
Weighted average number of
ordinary shares in issue (millions) 49,3 49,2 -
Number of ordinary shares
in issue (millions) 49,3 49,2 -
* Restated for changes in accounting policies.
STATEMENT OF CHANGES IN SHAREHOLDERS' FUNDS
(unaudited) (audited)
30 June 31 December
2001 2000
Rm Rm
Shareholders' funds at beginning
of period as previously reported 3 379 5 027
Prior year adjustments
2000 final dividend 1 706
Secondary Tax on Companies relating
to the capital reduction of the
life insurance subsidiary
and final dividend 205
1999 final dividend 202
Secondary Tax on Companies relating
to the 1999 final dividend of the
life insurance subsidiary 19
Provision for leave pay (16) (18)
Restated shareholders' funds at
beginning of period 5 274 5 230
Total consolidated profit as restated
for changes in accounting policies 485 385
Total consolidated profit as
previously reported 197
Prior year adjustments
Secondary Tax on Companies relating to
the capital reduction of the
life insurance subsidiary
and final dividend 205
Secondary Tax on Companies relating to
the 1999 final dividend of the
life insurance subsidiary (19)
Provision for leave pay 2
Investment surpluses on shareholders'
investments reflected directly
in reserves 1 38
Preference dividends (1) (2)
Ordinary dividends (1 706) (392)
1999 Final dividend No. 61 of 410 cents
- LDR 31 March 2000 (202)
2000 Interim dividend No. 62 of 385 cents
- LDR 1 September 2000 (190)
2000 Final dividend No. 63 of 3 462 cents
- LDR 30 March 2001 (1 706)
Exchange difference relating to equity
component of the convertible bonds 2 10
Subscriptions for shares 5
Shareholders' funds at end of period 4 055 5 274
SUMMARISED GROUP CASH FLOW STATEMENT
(unaudited)
Six months ended
30 June
2001 2000
Rm Rm
Cash flow from operating activities (1 646) 1 361
Net disposal/(purchase) of investments 743 (1 394)
Cash flow from financing activities 10 26
Net decrease in cash and
cash equivalents (893) (7)
Cash and cash equivalents at
beginning of period 1 424 734
Foreign exchange movements on
cash balances (1) 95
Cash and cash equivalents at
end of period 530 822
Accounting policies and presentation
The accounting policies adopted for purposes of this interim report comply,
in all material respects, with South African Statements of Generally
Accepted Accounting Practice, as well as the South African Companies Act of
1973 and the Long-term Insurance Act of 1998.
These accounting policies are consistent with those applied at 31 December
2000, except for:
* the adoption of the new accounting statement on Events After The Balance
Sheet Date (AC 107). In terms of this statement, dividends proposed or
declared after the balance sheet date and related Secondary Tax on Companies
are not recognised as a liability at the balance sheet date. This change in
the recognition of liabilities relating to dividends has been applied
retrospectively and comparative figures have been restated;
* the adoption of the revised accounting statement on Employee Benefits (AC
116). In terms of this statement, when an employee has rendered service to
an enterprise, it should recognise the short-term employee benefits expected
to be paid in exchange for that service. Leave pay provisions will be
recognised as part of the short-term employee benefits. This change has been
applied retrospectively and comparative figures have been restated.
Transfer secretaries
Mercantile Registrars Limited
10th Floor, 11 Diagonal Street,
Johannesburg, 2001
PO Box 1053, Johannesburg,2000
Telephone (011) 370-5000
