| Tue 5 Mar 2002, 0:00 | | Liberty Holdings: Audited Preliminary Results For |
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December2001
Liberty Holdings Limited
(Registration number 1968/002095/06)
Share Code: LBH ISIN: ZAE000004032
(Incorporated in the Republic of South Africa)
Audited preliminary results for the year ended 31 December 2001
Liberty Holdings Limited (Liberty Holdings) is the holding company of
Liberty Group Limited (Liberty). Liberty Holdings has no other investments
and carries on no business other than that related to its investment in
Liberty. Shareholders are consequently referred to the announcement
published by Liberty simultaneously with this announcement, for details of
the operations of Liberty, the results of which are consolidated into
Liberty Holdings.
Interest in Liberty Group Limited
Liberty Holdings' sole investment at 31 December 2001 consisted of its
54,7%, or 148 928 570 shares (2000: 54,8% or 148 928 570 shares), interest
in Liberty.
Review of operations
Liberty Holdings received an amount of R1 787 million from Liberty
pursuant to the capital reduction on 4 April 2001, which has been accounted
for as a reduction in the cost of the Liberty investment and not as dividend
income. The dividend income from Liberty of R191 million for the year ended
31 December 2001 was consequently 53% lower than the R407 million income of
the previous year. Expenses incurred for the year ended 31 December 2001
amounted to R9 million (2000: R10 million).
Details of the activities of Liberty are contained in the announcement
referred to above. In order to reflect the performance of the underlying
continuing operations of Liberty, headline profit per ordinary share based
on the underlying continuing operations of Liberty for the year ended 31
December 2001 has been calculated for Liberty Holdings. On this basis
headline profit of
1 645,2 cents per ordinary share reflects a 15% increase on the comparable
1 435,3 cents for 2000.
Prospects
Key goals for 2002 have been set for further growth and improvement. The
life fund operating surplus, however, remains dependent on the performance
of local and international equity and bond markets.
Dividend declaration
Notice is hereby given that final ordinary dividend No. 65 of 453 cents
per share (2000: 3 462 cents, incorporating a distribution of cash receipts
from Liberty's capital reduction) has been declared in respect of the year
ended 31 December 2001. The important dates pertaining to this dividend are:
Last day to trade cum dividend Wednesday, 20 March 2002
First trading day ex dividend Friday, 22 March 2002
Record date Thursday, 28 March 2002
Payment date Tuesday, 2 April 2002
Share certificates may not be dematerialised or rematerialised between
Thursday, 14 March 2002 and Thursday, 28 March 2002, both days inclusive.
Where applicable, dividends in respect of certificated shareholders will be
transferred electronically to shareholders' bank accounts on or about
payment date. In the absence of specific mandates, dividend cheques will be
posted to shareholders. Shareholders who have dematerialised their share
certificates will have their bank accounts, which are linked to their CSDP
or broker's safe custody accounts, credited on Tuesday, 2 April 2002.
Derek Cooper Roy Andersen
Chairman Group Chief Executive
5 March 2002
31 December
Summarised group 2001 2000
balance sheet Rm Rm
Assets
Investments 85 617 71 564
Goodwill 113 123
Intangible assets 70 58
Office furniture, computer equipment
and other tangible assets 372 310
Deferred tax - 63
Current assets 3 230 3 848
Total assets 89 402 75 966
Capital, reserves and liabilities
Shareholders' funds 4 563 5 274
Minority interests 3 784 4 345
Life funds 75 918 62 138
Convertible bonds 2 874 1 827
Retirement benefit obligation 135 114
Deferred tax 119 -
Current liabilities 2 009 2 268
Total capital, reserves and liabilities 89 402 75 966
31 December
Summarised group 2001 2000 %
income statement Rm Rm Change
Life fund operating surplus from
life insurance subsidiary 1 320 1 153 14
Revenue earnings attributable to
shareholders' funds 262 387 (32)
Preference dividend in subsidiary company (43) (40) 7
Minority interests in headline profit (700) (683) 3
Dividends on preference shares (2) (2) -
Total headline profit attributable to
ordinary shareholders 837 815 3
Goodwill amortisation (9) (3) 146
Investment surpluses/(deficits) attributable
to ordinary shareholders 603 (429)
Capital gains tax attributable to
shareholder investment surpluses/(deficits) (78)
Secondary tax on companies relating to
capital reduction of subsidiary company
and dividend declared (203)
Total consolidated profit 1 150 383 200
Per share details
Headline profit per ordinary share(cents) 1 698,0 1 655,3 3
Total consolidated profit per
ordinary share (cents) 2 333,5 777,8 200
Headline profit per ordinary share
based on underlying continuing
operations(cents) 1 645,2 1 435,3 15
Dividends per ordinary share
Interim (cents) 387,0 385,0
Final (cents) 453,0 3 462,0
Number of ordinary shares in issue(000's) 49 286 49 286 -
Weighted average number of ordinary
shares in issue (000's) 49 286 49 253 -
31 December
Statement of changes 2001 2000
in group shareholders' funds Rm Rm
Shareholders' funds at beginning of year 3 379 5 027
Changes in accounting policies
2000 final dividend 1 706
Secondary tax on companies relating to the
capital reduction of Liberty Group Limited 205
1999 final dividend 202
Secondary tax on companies relating to the 1999
final dividend of Liberty Group Limited 19
Provision for leave pay net of deferred tax (16) (18)
Shareholders' funds restated at beginning of year 5 274 5 230
Total consolidated profit as restated for changes
in accounting policies 1 152 385
Total consolidated profit as previously reported 197
Changes in accounting policies
Secondary tax on companies relating to the capital
reduction of Liberty Group Limited 205
Secondary tax on companies relating to the 1999 final
dividend of Liberty Group Limited (19)
Provision for leave pay net of deferred tax 2
Investment surpluses on shareholders' investments
reflected directly in reserves 6 38
Preference dividends (2) (2)
Ordinary dividends (1 897) (392)
Exchange difference relating to equity component
of the convertible bonds 30 10
Subscriptions for shares - 5
Shareholders' funds at end of year 4 563 5 274
31 December
Summarised group 2001 2000
cash flow statement Rm Rm
Cash flow from operating activities (873) 3 905
Net purchase of investments (25) (3 292)
Cash flow from financing activities 117 65
Net (decrease)/increase in cash and cash equivalents (781) 678
Cash and cash equivalents at beginning of year 1 424 734
Cash balances of subsidiary acquired 10
Foreign exchange movements on cash balances 270 2
Cash and cash equivalents at end of year 913 1 424
Accounting policies and presentation
The accounting policies adopted by the Company and the Group comply, in
all material respects, with South African Statements of Generally Accepted
Accounting Practice, as well as the South African Companies Act, 1973 and
the Long-term Insurance Act, 1998. The consolidated financial statements are
prepared on the historical-cost basis, modified by the revaluation of
investment properties, owner-occupied properties and financial instruments
to fair value.
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 as well as opening retained earnings
in respect of 2000 have been restated. The capital reduction in Liberty
which was paid on 4 April 2001 has also been accounted for as a first half
2001 transaction in accordance with the new accounting statement.
* the adoption of the revised accounting statement on Employee Benefits (AC
116), in terms of which leave pay provisions have been recognised in respect
of past service of employees. This change has been applied retrospectively
and comparative figures as well as opening retained earnings in respect of
2000 have been restated.
The financial statements of Liberty Holdings incorporate both the
continuing operations of its sole subsidiary, Liberty, as well as the income
attributable to the capital reduction and the 2000 results therefore are not
comparable with those of 2001.
Transfer secretaries: Mercantile Registrars Limited, 10th Floor, 11
Diagonal Street, Johannesburg, 2001. PO Box 1053, Johannesburg, 2000. Tel
(011) 370-5000
These results and an overview of the Liberty group are available at
www.liberty.co.za.
Liberty's presentation to the Investments Analysts' Society of Southern
Africa will similarly be available on 6 March 2002.
