Liberty Group Limited/Liberty Holdings Limited - T
Liberty Group Limited/Liberty Holdings Limited - Trading Statement
Liberty Group Limited
(`Liberty Life`)
Registration number 1957/002788/06
Alpha Code LGL
Issuer Code LIBU
ISIN Code ZAE000057360
Incorporated in the Republic of South Africa
LIBERTY HOLDINGS LIMITED
Registration number 1968/002095/06
Alpha Code LBH
ISIN Code ZAE000004032
Incorporated in the Republic of South Africa
TRADING STATEMENT
Liberty Life`s interim results for the six months ended 30 June 2005 will be
released on 11 August 2005. Shareholders are advised that the group`s interim
BEE normalised1 headline earnings per share for 2005, before taking account of
any International Financial Reporting Standards adjustments, are expected to be
between 50% and 60% higher than the 167,2 cents per share recorded for the six
months ended 30 June 2004 and 10% to 20% lower than the 298,2 cents per share
recorded for the second six months of 2004.
The weighted average investment return used as a proxy to calculate
shareholders` 10% share of policyholder capital bonuses on certain classes of
business was 11,5% at 30 June 2005 compared with 0,2% at 30 June 2004 and 22,7%
at 31 December 2004. Due to the significant impact of investment market
performance on the Group`s earnings, it is considered appropriate to
contextualise the resultant volatility by including a comparison of earnings
against the second six months of 2004.
In addition to the impact of investment markets as detailed above, earnings for
the six months ended 30 June 2005 were positively impacted by:
- good operational performance;
- the inclusion for the first time of earnings generated by Capital Alliance
since the effective acquisition date of 1 April 2005; and
- a reduction in guarantee reserves resulting from better investment markets
and a weaker Rand.
No clarity exists as to whether there will be any significant future exposure
related to the increasing number of pension fund adjudication (PFA) rulings that
are being made against the life assurance industry.
Consequently provisions have not been made to date.
The information contained in this announcement has not been reviewed or audited
by the company`s external auditors.
Note 1
As defined in the 2004 annual report, Black Economic Empowerment (BEE)
normalised headline earnings per share include dividends received but accounted
for directly in equity on the Group`s BEE preference shares and also include the
reinstatement of the number of shares in issue relating to the Group`s BEE
transaction. This measure reflects the economic reality of the transaction as
opposed to the required technical accounting treatment that reflects the BEE
transaction as a share buy-back.
Johannesburg
Date: 21 July 2005
Liberty Holdings Limited is the holding company of Liberty Group Limited and has
no other investments and carries on no other business other than that related to
its investment in Liberty Group Limited. Consequently, Liberty Holdings Limited
shareholders are referred to the comments made above in respect of Liberty Group
Limited.
SPONSOR
Merrill Lynch South Africa (Proprietary) Limited
Date: 21/07/2005 08:15:43 AM
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