Liberty Holdings Limited

Transcription

1 Liberty Holdings Limited AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 December 2006

2 Commentary on results Liberty Holdings Limited (Liberty Holdings) is the holding company of Liberty Group Limited. Liberty Holdings carries on no business other than that related to its investment in Liberty Group Limited. At 31 December 2006 Liberty Holdings held a 52,0% interest in Liberty Group Limited (31 December 2005: 52,2%). Shareholders are consequently referred to the announcement published by Liberty Group Limited on 2 March 2007 (available at for further details and a review of their operations and prospects, the results of which are consolidated into Liberty Holdings. On 12 June 2006 Liberty Group Limited paid a capital reduction of R3,60 per share. The proceeds received were R523 million. Consequently a special dividend of R464 million (946 cents per share) was declared on 23 May 2006 and paid on 19 June Secondary tax on companies amounted to R57 million. As a consequence of adopting International Financial Reporting Standards, the company s issued ordinary shares that are held by its subsidiary companies for the benefit of their policyholders are accounted for as treasury shares in the Group consolidated financial statements. Non-related party shareholders of the company s subsidiary Liberty Group Limited on the 29 January 2007 approved the acquisition of the remaining ordinary shares in STANLIB Limited for a consideration in the order of R1,6 billion. Dividend Notice is hereby given that the 2006 final dividend of 670 cents per share (2005: 650 cents per share) has been declared. The important dates pertaining to this dividend are: Last day to trade cum dividend on the JSE Friday, 23 March 2007 First trading day ex dividend on the JSE Monday, 26 March 2007 Record date Friday, 30 March 2007 Payment date Monday, 2 April 2007 Share certificates may not be dematerialised or rematerialised between Monday, 26 March 2007 and Friday, 30 March 2007 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, 2 April Accounting policies and presentation The results have been prepared in accordance with International Financial Reporting Standards. There have been no changes to accounting policies from those applied for the year ended 31 December LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

3 Commentary on results (continued) Segment information and restatement of comparatives Shareholders are referred to the announcement published by Liberty Group Limited on 2 March 2007 for details regarding segment information and changes to comparative figures for the years ended 31 December 2005 and Derek Cooper Chairman 5 March 2007 Audit opinion The auditors, PricewaterhouseCoopers Inc., have issued their opinion on the Group s financial statements for the year ended 31 December They have issued an unmodified audit opinion. A copy of their audit opinion is available for inspection at the company s registered office. Liberty Holdings Limited Transfer Secretaries (the Company) Computershare Investor Services 2004 (Pty) Limited Incorporated in the Republic (Registration number: 2004/003647/07) of South Africa Ground Floor, 70 Marshall Street, Johannesburg 2001 (Registration number: 1968/002095/06) PO Box 61051, Marshalltown, 2107 Alpha code: LBH Telephone ISIN code: ZAE Sponsor These results are available at LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER

4 Condensed group balance sheet as at 31 December 2006 Assets Investments Intangible assets Reinsurance assets Deferred taxation Disposal groups held for sale Prepayments, insurance and other receivables Cash and cash equivalents Other assets Total assets Liabilities Policyholders liabilities Financial liabilities Third party liabilities arising on consolidation of mutual funds Deferred taxation Disposal groups held for sale Insurance and other payables Other liabilities Total liabilities Equity Ordinary shareholders funds Minority interests Total equity Total equity and liabilities LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

5 Condensed group income statement for the year ended 31 December 2006 Total revenue Net insurance benefits and claims (38 140) (32 816) Fair value adjustment to policyholder liabilities under investment contracts (8 276) (6 834) Fair value adjustment on third party mutual fund liabilities (1 480) (1 879) Acquisition costs associated with insurance and investment contracts (2 413) (3 594) Expenses (3 903) (3 969) Preference dividend in subsidiaries (184) (138) Goodwill impairment (397) Profit on dilution of subsidiary shareholding 4 Profit/(loss) on sale of subsidiaries 374 (2) Equity accounted earnings from joint ventures Profit before taxation Taxation (2 307) (1 634) Total earnings Attributable to: Equity holders Minority interest Weighted average number of shares in issue Earnings per share Cents Cents Basic earnings 2 978, ,6 Fully diluted 2 977, ,2 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER

6 Headline earnings for the year ended 31 December 2006 Rm Rm Reconciliation of headline earnings Total earnings attributable to equity holders Goodwill impairment 199 (Profit)/loss on sale of subsidiaries (194) 1 Headline earnings Headline earnings per share Cents Cents Basic earnings 2 561, ,3 Fully diluted 2 561, ,7 6 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

7 Condensed statement of changes in group ordinary shareholders funds for the year ended 31 December 2006 Balance at 1 January Total earnings Ordinary dividends (959) (383) Preference dividend (2) (2) Treasury shares (5) (14) Subscriptions for shares 1 3 Black Economic Empowerment transaction Share based payments Owner-occupied properties net fair value adjustments Reversal of fair value adjustment on Capital Alliance Holdings Limited existing shares (8) Foreign currency translation movement on subsidiaries 25 (1) Share buy-back transaction (49) Ordinary shareholders funds Minority interests Total shareholders funds at 31 December LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER

8 Condensed group cash flow statement for the year ended 31 December 2006 Operating activities Investing activities (11 341) (5 411) Financing activities (393) Net (decrease)/increase in cash and cash equivalents (7 213) Cash and cash equivalents at beginning of year Net cash acquired on business acquisition and disposals Reclassified to disposal groups held for sale (137) Cash and cash equivalents at end of year LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006

9 Commitments summary as at 31 December 2006 Operating leases properties and equipment Within 1 year to 5 years to 10 years Capital commitments Stanlib Limited acquisition Investment and owner-occupied property 311 Equipment Related parties as at 31 December 2006 The approved STANLIB acquisition by Liberty Group Limited is a significant related party transaction that will occur in 2007 as 37,4% of the shares acquired are held by the group s ultimate holding company, Standard Bank Group Limited. There have been no further significant changes to the nature of the related party transactions as described in note 42 to the 31 December 2005 annual financial statements. Summary of movement in investments in ordinary shares held by the group and its subsidiaries in the group s ultimate holding company is as follows: Market Number value Ownership 000 Rm % Standard Bank Group Limited Balance at 31 December ,44 Purchases Sales (11 247) (906) Fair value adjustments 747 Balance at 31 December ,83 LIBERTY HOLDINGS LIMITED AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER