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Liberty Holdings Limited - Interim Results For The Six Months Ended 30 June 2003
Release Date: 06/08/2003 08:00:02 Code(s): LBH
Liberty Holdings Limited - Interim results for the six months ended 30 June 2003
Liberty Holdings Limited
Interim results for the six months ended 30 June 2003
(Registration number 1968/002095/06)
(Alpha code LBH)
(ISIN code ZAE000004032)
(Incorporated in the Republic of South Africa)
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. At 30 June
2003 Liberty Holdings held a 54,40% interest in Liberty (31 December 2002:
54,43%).
Shareowners are consequently referred to the announcement published by Liberty
simultaneously with this announcement, for details of the operations (the
results of which are consolidated into Liberty Holdings) and prospects of
Liberty.
Liberty Holdings incurred expenditure in 2002 of R1,1 million. In 2003
expenditure was more than offset by a recovery of Regional Services Council
levies previously overpaid, resulting in a net recovery of R1,9 million.
DIVIDENDS Notice is hereby given that interim ordinary dividend No. 68 of 490
cents per share has been declared in respect of the year ending 31 December
2003, thus maintaining the interim dividend for 2003 at the same level as for
2002. This dividend distributes the entire underlying Liberty Group Limited
interim dividend to shareowners of Liberty Holdings.
The important dates pertaining to this dividend are:
Last day to trade cum dividend on the JSE. Friday, 22 August 2003
First trading day ex dividend on the JSE. Monday, 25 August 2003
Record date Friday, 29 August 2003
Payment date Monday, 1 September 2003
Share certificates may not be dematerialised or rematerialised between Monday,
25 August 2003 and Friday, 29 August 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, 1 September 2003.
Derek Cooper Myles Ruck
Chairman Chief Executive
6 August 2003
TRANSFER SECRETARIES
Computershare Limited
(Registration number 1958/003546/06)
70 Marshall Street, Johannesburg, 2001.
PO Box 1053, Johannesburg, 2000.
Telephone +27 11 370-5000
SPONSOR:Merril Lynch
ACCOUNTING POLICIES AND PRESENTATION
The accounting policies adopted comply with South African Statements of
Generally Accepted Accounting Practice as well as the South African Companies
Act, 1973. These accounting policies are consistent with those applied at 31
December 2002, except for:
* The determination of the life fund operating surplus, capital adequacy
requirement, embedded value and value of new business, which reflect the
Statutory Actuary"s best estimate for interim reporting purposes. A full
actuarial valuation is not performed at the half year.
* The adoption of the accounting statement on Financial Instruments:
Recognition and Measurement (AC 133), which became effective for financial
years commencing on or after 1 July 2002.
In accordance with this statement, in respect of financial assets,
policy-owners" assets have been designated as "held at fair value (through net
income)" and shareowners" trading assets have been designated as "held for
trading". All other shareowners" assets have been designated as available for
sale. Assets held at fair value (through net income) are valued at fair value
and investment gains or losses are included in net income. Due to the fact that
these assets back policy-owner liabilities, the gains or losses are
subsequently transferred to or from the life fund liabilities. Assets held for
trading are valued at fair value and investment gains or losses are included in
headline earnings. Available-for-sale assets are valued at fair value and
unrealised gains or losses are accounted for against equity. Realised gains or
losses are included in income, but below headline earnings.
Insofar as liabilities are concerned and in accordance with this statement
read together with the draft guidance on the application of AC 133 to
liabilities arising from long-term insurance contracts as approved by the
Accounting Practices Committee, certain liabilities have been designated as
"insurance contracts" while others have been designated as "investment
contracts". Insurance contracts continue to be valued in terms of the
Financial Soundness Valuation (FSV) basis with the actuarially determined
liabilities now being disclosed separately from liabilities under investment
contracts on the balance sheet. Investment contracts are valued at fair value
as described in AC 133 and the draft guidance.
There is currently no International Financial Reporting Standard for
insurance, although the International Accounting Standards Board has a project
in progress to address this issue. Finalisation is not expected for a number
of years to come. Solutions are consequently being implemented in order to
limit significant temporary changes to the treatment of investment and
insurance contracts within South Africa, while adhering to the principles
contained in AC 133. The impact on the results of the Liberty Group for the
six months to 30 June 2003 in respect of the adoption of AC 133 is described
in the footnote to the income statement. There is however an ongoing process
to develop guidance for the long-term insurance industry, both from an
accounting and actuarial perspective which could impact results in the future.
Summarised Group income statement (unaudited)
Six months ended 30 June
2003 2002 %
Rm Rm Change
Life fund operating surplus from life
insurance subsidiary 252,7 563,0 (55,1%)
Revenue earnings attributable to
shareowners" funds 150,8 125,7 20,0%
Preference dividend in subsidiary (45,0) (28,0) 60,7%
Minority interests in headline earnings (162,3) (300,7) (46,0%)
Headline earnings 196,2 360,0 (45,5%)
Goodwill amortisation and impairment (39,0) (4,4) 786,4%
Investment gains (1) 6,6 328,3 (98,0%)
Capital gains tax attributable to
shareowners" investment gains (1,4) (30,5) (95,4%)
Dividends on preference shares (0,8) (0,8) -
Total earnings attributable to ordinary
shareowners 161,6 652,6 (75,2%)
Per share details cents cents
Headline earnings after preference dividend
per ordinary share 396,4 728,7 (45,6%)
Total earnings per ordinary share
attributable to shareowners 327,8 1 323,7 (75,2%)
Total number of shares in issue (millions) 49,3 49,3 -
Weighted average number of shares in issue
(millions) 49,3 49,3 -
(1) With the implementation of AC 133 unrealised investment gains/(losses) on
available for sale assets are taken directly to equity with effect from 1
January 2003. Only realised gains/(losses) on available for sale assets are
shown in the income statement (below headline earnings). For the six months
ended 30 June 2003 unrealised losses amounting to R184,1 million have been
taken directly to equity and realised gains of R6,6 million are reflected in
the income statement. The comparatives have not been restated. Both unrealised
losses and realised gains amounting to R49,2 million and R377,5 million
respectively for the six months ended 30 June 2002 are included in the income
statement comparative.
Summarised Group cash flow statement (unaudited)
Six months ended 30 June
2003 2002
Rm Rm
Cash flows from operating activities 2 606,8 1 648,8
Cash flows from investing activities (2 343,2) (1 785,1)
Cash flows from financing activities 4,8 24,4
Net increase/(decrease) in cash and cash equivalents 268,4 (111,9)
Cash and cash equivalents at beginning of period 273,6 913,1
Foreign exchange movements on cash balances (8,2) (13,7)
Cash and cash equivalents at end of period 533,8 787,5
Summarised Group balance sheet (unaudited) (audited)
30 June 31 December
2003 2002
Rm Rm
Assets
Investments 81 807,0 81 369,3
Owner-occupied properties 643,9 625,1
Goodwill 86,5 158,2
Other intangible assets 59,4 35,6
Tangible assets 345,3 321,7
Current assets 3 631,3 3 753,6
Total assets 86 573,4 86 263,5
Capital, reserves and liabilities
Shareowners" funds 4 494,1 4 670,0
Minority interests 3 770,0 3 914,7
Life fund 73 803,7 73 700,3
Liabilities under insurance contracts 50 526,1 73 595,6
Liabilities under investment contracts 23 224,2
Deferred capital gains tax 53,4 104,7
Convertible bonds 1 713,7 1 946,8
Retirement benefit obligation 152,0 143,0
Deferred tax 79,2 120,8
Current liabilities 2 560,7 1 767,9
Total capital, reserves and liabilities 86 573,4 86 263,5
Statement of changes in Group shareowners" funds (unaudited)
Six months ended 30 June
2003 2002
Rm Rm
Shareowners" funds at beginning of period 4 670,0 4 562,5
Total earnings 162,4 653,4
Unrealised investment gains/(losses) attributable to
shareowners" funds (184,1) 2,9
Capital gains tax attributable to shareowners"
unrealised investment gains 25,9
Preference dividends (0,8) (0,8)
Ordinary dividends (172,5) (224,1)
2001 Final dividend No. 65 of 453 cents - LDR 20 March
2002 (224,1)
2002 Final dividend No. 67 of 350 cents - LDR 20 March
2003 (172,5)
Translation difference relating to equity component of
the convertible bonds (6,8) (12,9)
Subscription for shares 1,1
Shareowners" funds at end of period 4 494,1 4 982,1
