| Tue 7 Mar 2006, 16:36 | | Liberty Holdings - Reviewed preliminary results: y |
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LBH
LBH
Liberty Holdings - Reviewed preliminary results: year ended 31 December 2005
Liberty Holdings Limited
"Liberty Holdings"
Incorporated in the Republic of South Africa
(Registration number: 1968/002095/06)
Alpha code: LBH
ISIN code: ZAE000004032
REVIEWED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
Liberty Holdings is the holding company of Liberty Group Limited (Liberty
Life). Liberty Holdings has no other investments and carries on no business
other than that related to its investment in Liberty Life. At 31 December 2005
Liberty Holdings held a 52,2% (31 December 2004: 50,2%) interest in Liberty
Life. Shareholders are consequently referred to the reviewed preliminary
Results published by Liberty Life on 2 March 2006 for details of its operations
(which are consolidated into Liberty Holdings) and prospects of Liberty Life.
Commentary on results
Headline earnings after preference dividend for the group have increased from
R664 million (1 346,0 cents per share), restated for IFRS, in 2004 to R917
million (1 965,3 cents per share) in 2005.
Liberty Life declared a final dividend for 2005 of 224 cents per share (153
cents per share in 2004), in line with its newly adopted dividend policy, as
communicated in the 2004 year end results. The total dividend from Liberty Life
for the year of 350 cents per share reflects an increase of 11% on the total
2004 dividend of 315 cents per share.
Liberty Life also announced a capital reduction of R1 billion subject to
shareholder and regulatory approvals.
During 2005 Liberty Holdings acquired 6 400 386 Liberty Life shares at
a total cost of R412 million in line with its publicly stated intention (on 8
November 2004) to utilise proceeds from the implementation on 8 November 2004
of Liberty Life"s Black Economic Empowerment Transaction, to rebuild
its shareholding in Liberty Life.
As a consequence of adopting International Financial Reporting Standards for
the year ending 31 December 2005 the company"s issued ordinary shares that are
held by its subsidiary companies for the benefit of policyholders, are
now accounted for as treasury shares in the Group consolidated financial
statements. Previously South African Generally Accepted Accounting Practice
recognised the beneficial economic ownership thereby allowing these
shareholdings to be accounted for as designated policyholder investments.
Events after balance sheet date
It was announced on 21 February 2006 by the chairman of Liberty Life that Myles
Ruck, Chief Executive of Liberty Life, would be stepping down effective 31 May
2006 and that Bruce Hemphill would be appointed Chief Executive effective 1 June
2006.
Liberty Life announced on 2 March 2006 a capital reduction of R1 billion,
subject to shareholder and regulatory approval. It is proposed that the
proceeds of the capital reduction be paid out to Liberty Holding
shareholders as a dividend as and when it is received. Shareholders will be
informed of the dates in this regard once Liberty Life has obtained the
necessary approvals.
Dividend
Notice is hereby given that the final ordinary dividend No. 73 of 650 cents
per share (December 2004 - 430 cents per share) has been declared in respect of
the year ended 31 December 2005. This dividend distributes the underlying
Liberty Life 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, 31 March 2006
First trading day ex dividend on the JSE Monday, 3 April 2006
Record date Friday, 7 April 2006
Payment date Monday, 10 April 2006
Share certificates may not be dematerialised or rematerialised between Monday,
3 April 2006 and Friday, 7 April 2006, 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, 10 April 2006.
Auditors opinion
PricewaterhouseCoopers Inc., has reviewed the group financial statements for the
year ended 31 December 2005. A copy of the auditors" unqualified review report
on the group financial statements is available for inspection at the Company"s
registered office.
Derek Cooper
Chairman
7 March 2006
Sponsor
Merrill Lynch
Global Markets & Investment Banking Group
Merrill Lynch South Africa (Pty) Ltd
Registration number 1995/001805/07
Registered Sponsor and Member of the
JSE Securities Exchange South Africa
Transfer Secretaries
Computershare Investor Services 2004 (Pty) Limited
(Registration number: 2004/003647/07)
Ground Floor, 70 Marshall Street, Johannesburg 2001
PO Box 61051, Marshalltown, 2107
Telephone +27 11 370 5000
Liberty Holdings Limited
Summarised group balance sheet
at 31 December 2005
2005 2004
As restated
under IFRS
Rm Rm
Assets
Investments 144 952 103 619
Intangible assets 1 843 425
Disposal groups held for sale 2 380
Prepayments, insurance and other receivables 2 747 3 163
Cash and cash equivalents 12 317 6 516
Other assets 1 641 837
Total assets 165 880 114 560
Liabilities
Policyholders" liabilities 140 835 97 993
Insurance contracts 103 979 65 972
Investment contracts 36 856 32 021
Financial liabilities at amortised cost 2 200
Third party liabilities arising on consolidation of
mutual funds 4 877 3 523
Deferred taxation 2 454 1 232
Disposal groups held for sale 1 267
Insurance and other payables 3 619 2 058
Other liabilities 1 224 681
Total liabilities 156 476 105 487
Equity
Ordinary shareholders" interest 4 967 4 823
Minority interests 4 437 4 250
Total equity 9 404 9 073
Total equity and liabilities 165 880 114 560
Liberty Holdings Limited
Summarised group income statement
for the year ended 31 December 2005
2005 2004
As restated
under IFRS
Rm Rm
Net insurance premiums, management and service fees 20 145 13 481
Investment returns 31 636 18 832
Total revenue 51 781 32 313
Net insurance benefits and claims (14020) (9 405)
Transfer and fair value adjustment to policyholder
liabilities (25630) (14 376)
Fair value adjustment on third party mutual fund
liabilities (1354) (1 028)
Acquisition costs associated with insurance and
investment contracts (3594) (1 920)
Expenses (3699) (2 924)
Preference dividend in subsidiary (138) ( 102)
Goodwill impairment (397)
Loss on sale of subsidiary (2)
Equity accounted earnings from joint ventures 91 73
Profit before taxation 3 038 2 631
Taxation (1 634) (792)
Total earnings 1 404 1 839
Attributable to:
Equity holders 719 995
Minority interest 685 844
Reconciliation of total earnings 1 404 1 839
Headline earnings 919 666
Insurance operations 613 502
Shareholders" fund investments 306 164
Non-headline earnings (200) 329
Total 719 995
Earnings per share Cents Cents
Basic 1 536.6 2 012.9
Fully diluted 1 536.2 2 012.2
Headline earnings
Reconciliation of headline earnings 1 965.3 1 346.0
Total earnings attributable to equity holders 719 995
Goodwill impairment 397
Loss on sale of subsidiary 2
Capital gains taxation 11
Net realised investment gains on available for sale
designated assets (599)
Minority interests (199) 259
919 666
Liberty Holdings Limited
Summarised statement of changes in group shareholders" funds
for the year ended 31 December 2005
2005 2004
As restated
under IFRS
Rm Rm
Balance at 1 January 9 073
IFRS adjustments (461)
Restated balance at 1 January 8 612 8 772
Total earnings 1 404 1 839
Net unrealised investment losses on available for
sale assets (57)
Increase in minorities resulting from acquisition of
Capital Alliance 161
Share based payments 45 16
Minority share of subsidiary dividend (378) (352)
Ordinary dividends (383) (414)
Preference dividend (2) (2)
Repayment of redeemable bonds (79)
Treasury shares (9)
Owner occupied properties - net fair value adjustments 94 (14)
Black Economic Empowerment transaction 72 (1 273)
Subscriptions for shares 3 4
Share repurchase (49)
Reversal of fair value adjustment on Capital Alliance
existing shares (17)
Foreign currency translation movement on subsidiaries (5)
Issue of shares in subsidiary 68
Unrealised profit on sale of subsidiary shares 208
Change in effective ownership (212) 425
Shareholders" funds at 31 December 9 404 9 073
Ordinary shareholders" interest 4 967 4 823
Minority interests 4 437 4 250
Liberty Holdings Limited
Summarised group cash flow statement
for the year ended 31 December 2005
2005 2004
As restated
under IFRS
Rm Rm
Operating activities 7 739 3 737
Investing activities (5 267) 39
Financing activities 2 022 (2 727)
Net increase in cash and cash equivalents 4 494 1 049
Cash and cash equivalents at beginning of year 6 516 5 479
Net cash acquired on business acquisition and
disposals 1 444
Reclassified to disposal groups held for sale (137)
Foreign exchange movements on cash balances (12)
Cash and cash equivalents at end of year 12 317 6 516
Accounting policies and presentation
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as well as the South African
Companies Act, 1973.
These are Liberty Holding"s first IFRS annual financial statements and the
provisions of IFRS 1 first-time adoption of International Financial Reporting
Standards, have been applied.
Shareholders are referred to the unaudited interim results at 30 June 2005
regarding details of the financial restatement impact and accounting policy
changes as a consequence of the IFRS adoption.
Date: 07/03/2006 04:36:17 PM Produced by the JSE SENS Department
