| Thu 27 Feb 2003, 18:01 | | Liberty Holdings Limited - Audited Prelimiary Resu |
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Release Date: 27/02/2003 16:13:36 Code(s): LBH
Liberty Holdings Limited - Audited Prelimiary Results for the year ended 31
December 2002
Liberty Holdings Limited
(Registration number 1968/002095)
(Alpha code LBH)
(ISIN code ZAE000004032) 52E50865BDF5EFDC00AED1A2657FDD37
(Incorporated in the Republic of South Africa)
Audited Prelimiary Results for the year ended 31 December 2002
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.
Shareowners 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.
Liberty performed well in all aspects under its control with record levels of
new business premiums, improved margins on new business, increased net cash
inflows from insurance operations and well-controlled expenses. The group
could however not escape the effects of weak and volatile investment markets
and the strengthening of the Rand, which had a severe negative impact on the
life fund operating surplus as a result of the fact that shareowners share in
10% of capital bonuses on certain classes of business. Nevertheless, Liberty`s
embedded value per share of R55,28 at 31 December 2002 was 2% higher than the
embedded value per share of R54,21 at 31 December 2001.
ACCOUNTING POLICIES AND PRESENTATION
The accounting policies adopted for purposes of this report comply 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
2001.
INTEREST IN LIBERTY
Liberty Holdings` sole investment at 31 December 2002 consisted of its 54,43%
(31 December 2001: 54,67%) interest in Liberty.
REVIEW OF OPERATIONS
Liberty Holdings received an amount of R464,7 million in dividends from
Liberty (2001: R190,6 million) and incurred expenditure of R4,5 million (2001:
R8,4 million) for the year ended 31 December 2002. The level of dividends
received is much higher than in 2001 as Liberty Holdings received a capital
distribution of R12,00 per share from Liberty in 2001 which reduced the cost
of Liberty Holdings` investment in Liberty and consequently was not reflected
as income. The company paid R464,6 million to ordinary shareowners by way of
dividends during the year ended 31 December 2002.
Total headline profit decreased by 31,1% from R838,6 million in respect of
the twelve months ended 31 December 2001 to R577,9 million in 2002 and reflects
the underlying earnings of the total operations of Liberty. Based on the
underlying continuing operations of Liberty, the headline profit after
preference dividend for the twelve months ended 31 December 2002 of Liberty
Holdings amounted to R576,5 million reflecting a decrease of 28,9% on the
R810,9 million so calculated in respect of 2001. Total consolidated profit
decreased by 48,4% from R1 151,8 million for 2001 to R594,2 million for 2002.
The decreases are mainly attributable to a higher STC charge in Liberty for
2002 and the effect that the weak investment markets and the strengthening of
the Rand have had on Liberty`s life fund operating surplus and shareowners`
funds.
DIVIDEND
Notice is hereby given that the final ordinary dividend No. 67 of 350 cents
per share has been declared in respect of the year ended 31 December 2002.
Total dividends declared for 2002 have been maintained at the same level as
2001.
The important dates pertaining to this dividend are:
Last day to trade cum dividend Thursday, 20 March 2003
on the JSE
First trading day ex dividend on the JSE Monday, 24 March 2003
Record date Friday, 28 March 2003
Payment date Monday, 31 March 2003
Share certificates may not be dematerialised or rematerialised between
Monday, 24 March 2003 and Friday, 28 March 2003 both days inclusive.
Where applicable, dividends in respect of certificated shareowners will be
transferred electronically to shareowners` bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
shareowners. Shareowners who have dematerialised their shares will have their
accounts with their CSDP or broker credited on Monday, 31 March 2003.
PROSPECTS
Shareowners are referred to the comments on future prospects as detailed in
Liberty`s announcement.
AUDIT OPINION
The auditors, PricewaterhouseCoopers Inc., have issued their opinion on the
Group financial statements for the year ended 31 December 2002. A copy of the
auditors` unqualified report is available for inspection at the Company`s
registered office.
Derek Cooper Roy Andersen
Chairman Group Chief Executive
27 February 2003
TRANSFER SECRETARIES: Computershare Investor Services Limited
(Registration number 1958/003546/06)
70 Marshall Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000.
Telephone +27 11 370-5000
31 December
Summarised Group income statement 2002 2001 %
Rm Rm Change
Life fund operating surplus from life
insurance subsidiary 889,1 1 319,7 (32,6%)
Revenue earnings attributable to
shareowners` funds 343,9 290,8 18,3%
Secondary tax on companies attributable
to shareowners` funds on ordinary
dividends (86,1) (28,6) 201,0%
Preference dividend in subs idiary (81,9) (42,9) 90,9%
Minority interests in headl ine profit (487,1) (700,4) (30,5%)
Total headline profit 577,9 838,6 (31,1%)
Goodwill amortisation (1) (7,4) (8,6) (14,0%)
Investment surpluses (1) 28,5 602,7 (95,3%)
Capital gains tax attributable to
shareowners` investment surpluses (1) (4,8) (78,2) (93,9%)
Secondary tax on companies relating
to capital reduction of subsidiary
company and dividend declared (1) (202,7) (100,0%)
Dividends on preference shares (1,7) (1,7)
Total consolidated profit attributable
to ordinary shareowners 592,5 1 150,1 (48,5%)
(1) Net of minority interests.
Per share details cents cents
Headline profit (after preference
dividends) per ordinary share 1 169,5 1 698,0 (31,1%)
Total consolidated profit (after
preference dividend) per ordinary 1 202,5 2 333,5 (48,5%)
share
Headline profit (after preference
dividend) per share based on underlying
continuing investments 1 169,5 1 645,2 (28,9%)
Dividends per ordinary 840,0 840,0
Share
Interim 490,0 387,0 26,6%
Final 350,0 453,0 (22,7%)
Total number of shares in issue at 31
December (millions) 49,3 49,3
Weighted average number of shares in
issue (millions) 49,3 49,3
Summarised Group cash flow statement 31 December
2002 2001
Rm Rm
Cash flows from operating activities 3 083,2 (780,1)
Cash flows from investing activities (3 712,2) (28,2)
Cash flows from financing activities 44,1 27,4
Net decrease in cash and cash equivalents (584,9) (780,9)
Cash and cash equivalents at beginning of year 913,0 1 424,3
Foreign exchange movements on cash balances (54,5) 269,6
Cash and cash equivalents at end of year 273,6 913,0
Summarised Group balance sheet 31 December
2002 2001
Rm Rm
Assets Investments 81 369,3 84 984,1
Owner-occupied properties 625,1 633,4
Goodwill 158,2 112,9
Other intangible assets 35,6 69,9
Tangible assets 321,7 371,9
Current assets 3 753,6 3 230,1
Total assets 86 263,5 89 402,3
Capital, reserves and liabilities
Shareowners` funds 4 670,0 4 562,5
Minority interests 3 914,7 3 784,2
Life funds 73 700,3 75 918,4
Convertible bonds 1 946,8 2 874,2
Retirement benefit obligation 143,0 135,4
Deferred tax 120,8 118,5
Current liabilities 1 767,9 2 009,1
Total capital, reserves and liabilities 86 263,5 89 402,3
Statement of changes in Group
shareowners` funds 31 December
2002 2001
Rm Rm
Shareowners` funds at beginning of year as
previously published 4 562,5 3 378,6
Changes in accounting policies:
2000 Final dividend 1 706,3
Secondary tax on companies relating to the
capital reduction of subsidiary company and
dividend declared 205,6
Provision for leave pay net of deferred tax (16,2)
Shareowners` funds restated at beginning of year 4 562,5 5 274,3
Total consolidated profit 594,2 1 151,8
Investment surpluses on shareowners` investments
reflected directly in reserves 5,5 5,5
Preference dividends (1,7) (1,7)
Ordinary dividends (464,6) (1 897,0)
Translation difference relating to equity
component of the convertible bonds (27,0) 29,6
Subscription for shares 1,1
Shareowners` funds at end of year 4 670,0 4 562,5
Date: 27/02/2003 04:13:07 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
