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Liberty Holdings Limited - Audited Preliminary Results For The Year Ended 31
Release Date: 03/03/2004 07:11:02 Code(s): LBH
LIBERTY HOLDINGS LIMITED - AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31
DECEMBER 2003
LIBERTY HOLDINGS LIMITED
(Registration number 1968/002095/06)
(Alpha code LBH)
(ISIN code ZAE000004032)
(Incorporated in the Republic of South Africa)
Audited preliminary results for the year ended 31 December 2003
COMMENTARY ON RESULTS
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 31
December 2003 Liberty Holdings held a 54,2% interest in Liberty (31 December
2002: 54,4%).
Shareholders 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 R4,5 million. In 2003
expenditure was largely offset by a recovery of Regional Services Council levies
previously overpaid, resulting in a net expense of R0,8 million.
Dividend
Notice is hereby given that the final ordinary dividend No. 69 of 350,0 cents
per share has been declared in respect of the year ended 31 December 2003, thus
maintaining the final dividend for 2003 at the same level as for 2002.
This dividend distributes the entire underlying Liberty Group Limited final
dividend to shareholders of Liberty Holdings.
The important dates pertaining to this dividend are:
Last day to trade cum dividend on the JSE Friday, 26 March 2004
First trading day ex dividend on the JSE Monday, 29 March 2004
Record date Friday, 2 April 2004
Payment date Monday, 5 April 2004
Share certificates may not be dematerialised or rematerialised between Monday 29
March 2004 and Friday 2 April 2004 both days inclusive.
Where applicable, dividends in respect of certificated shareholders will be
transferred electronically to shareholders" bank accounts on payment date. In
the absence of specific mandates, dividend cheques will be posted to
shareholders. Shareholders who have dematerialised their shares will have their
accounts with their CSDP or broker credited on Monday, 5 April 2004.
Audit opinion
The auditors, PricewaterhouseCoopers Inc., have issued their opinions on the
group financial statements and embedded value statement for the year ended 31
December 2003. A copy of the auditors" unqualified reports are available for
inspection at the Company"s registered office.
Accounting policies and presentation
The accounting policies adopted by the company and the group comply with South
African Statements of Generally Accepted Accounting Practice as well as the
South African Companies Act, 1973. The 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 and the
application of the equity method of accounting for investments in subsidiary
companies and joint ventures. These accounting policies are consistent with
those applied at 31 December 2002, except for 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 AC 133 read together with the guidance on the application of
AC 133 to liabilities arising from long-term insurance contracts, certain
policyholder liabilities have been classified as "insurance contracts" while
others have been classified as "investment contracts". Liberty classifies all
policyholder contracts that transfer significant insurance risk as insurance
contracts and values them in terms of the Financial Soundness Valuation (FSV)
basis contained in PGN104 issued by the Actuarial Society of South Africa. The
liabilities under insurance contracts are 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 its
guidance statement.
There is currently no International Financial Reporting Standard for insurance
contracts, although the International Accounting Standards Board has a project
underway to address this issue. It is likely that an International Financial
Reporting Standard on insurance contracts (phase 1) will be released in 2004.
Finalisation of phase 2 which will deal with the valuation of insurance
contracts 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 conforming to AC 133.
Derek Cooper Myles Ruck
Chairman Chief Executive
2 March 2004
TRANSFER SECRETARIES:
Computershare Limited
(Registration number 2000/006082/06)
70 Marshall Street, Johannesburg, 2001.
PO. Box 1053, Johannesburg, 2000.
Telephone +27 11 370-5000
SPONSOR:
Merrill Lynch
(Global markets and investment banking group)
Summarised group income statement
31 December 31 December %
2003 2002
Rm Rm Change
Operating profit from insurance
operations net of tax 719,5 889,1 (19,1%)
Revenue earnings attributable to
shareholders" funds 323,7 257,8 25,6%
Preference dividend in subsidiary (95,2) (81,9) 16,2%
Minority interests in headline
earnings (434,4) (487,1) (10,8%)
Headline earnings 513,6 577,9 (11,1%)
Goodwill amortisation and
impairment * (42,1) (7,4) 468,9%
Investment gains attributable to
shareholders" assets * 171,0 28,5 500,0%
Capital gains tax attributable to
shareholders" investment (13,6) (4,8) 183,3%
gains *
Dividends on preference shares (1,7) (1,7) -
Total earnings attributable to
ordinary shareholders 627,2 592,5 5,9%
* Net of minority interests.
Per share details
cents cents
Headline earnings after preference dividend
per ordinary share 1 038,3 1 169,5 (11,2%)
Total earnings per ordinary share 1 272,2 1 202,5 5,8%
Dividends per ordinary share 840,0 840,0 -
Interim 490,0 490,0 -
Final 350,0 350,0 -
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 31 December
2003 2002
Rm Rm
Cash flows from operating activities 4 219,0 3 083,1
Cash flows from investing activities (4 178,8) (3 712,2)
Cash flows from financing activities 45,6 44,2
Net increase/(decrease) in cash and cash
equivalents 85,8 (584,9)
Cash and cash equivalents at beginning of year 273,6 913,0
Foreign exchange movements on cash balances (13,8) (54,5)
Cash and cash equivalents at end of year 345,6 273,6
Summarised group balance sheet
31 December 31 December
2003 2002
Rm Rm
Assets
Investments 91 508,4 81 369,3
Owner-occupied properties 725,4 625,1
Goodwill 80,5 158,2
Other intangible assets 195,5 35,6
Tangible assets 363,3 321,7
Current assets 3 686,5 3 753,6
Total assets 96 559,6 86 263,5
Capital, reserves and liabilities
Shareholders" funds 4 754,8 4 670,0
Minority interests 4 021,3 3 914,7
Life fund 83 839,6 73 595,6
Liabilities under insurance contracts 56 296,0
Liabilities under investment contracts 27 543,6
Convertible bonds 1 499,8 1 946,8
Retirement benefit obligation 155,1 143,0
Deferred tax 313,2 225,5
Current liabilities 1 975,8 1 767,9
Total capital, reserves and liabilities 96 559,6 86 263,5
Statement of changes in group shareholders" funds
31 December 31 December
2003 2002
Rm Rm
Shareholders" funds at the beginning of the year 4 670,0 4 562,5
Restatement of opening retained surplus on
implementation of AC 133 (49,6)
Shareholders" funds as restated 4 620,4 4 562,5
Total earnings 628,9 594,2
Unrealised investment gains on shareholders"
assets recognised directly against equity (76,9) 5,5
Capital gains tax attributable to shareholders"
investment gains recognised directly
against equity 11,2
Preference dividends (1,7) (1,7)
Ordinary dividends (413,8) (464,6)
Translation difference relating to equity
component of the convertible bonds (13,3) (27,0)
Subscription for shares 1,1
Shareholders" funds at end of year 4 754,8 4 670,0
