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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Blackthorn | LSE:BRL | London | Ordinary Share | AU000000BTR5 | ORD NPV |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 3.375 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
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RNS No 1932q
BRIERLEY INVESTMENTS LIMITED
9 September 1999
PRELIMINARY STATEMENT OF RESULTS
FOR THE YEAR ENDED 30 JUNE 1999
30 JUNE 1999 30 JUNE 1998
NZ$THOUSANDS
OPERATING REVENUE 1,966,989 2,869,930
NET OPERATING SURPLUS
BEFORE TAXATION* 78,608 264,036
Taxation 18,877 31,542
SURPLUS AFTER TAXATION 59,731 232,494
Minority Interests 34,029 50,398
Equity Earnings 87,806 104,809
Investments Writedowns and NIL 1,191,191
Provisions
NET SURPLUS 113,508 (904,286)
Amount absorbed by final dividend NIL NIL
*there were no extraordinary items
Rate of final dividend per share NIL NIL
Amount absorbed thereby NA NA
Imputation tax credit per share NA NA
Supplementary dividend per share NA NA
Earnings per share (adjusted) 3.8 cents (29.4) cents
1. All amounts in New Zealand dollars or cents.
2. The Results have been audited.
3. No dividend has been authorised.
4. The Annual Report will be sent to shareholders about 4 October 1999.
The Report will be available at about that date at the Company's
office 4th Floor, Stratton House, Stratton Street, London W1X 6BN.
5. The Annual Meeting will be held at the Aotea Centre, 15 Mayoral Drive,
Auckland, New Zealand on 11 November 1999, commencing at 11 a.m.
M B Horton
Company Secretary
PRELIMINARY FULL YEAR REPORT ANNOUNCEMENT
For Full Year Ended 30 June 1999
(referred to in this report as the "current full year")
Preliminary full year report on consolidated results (including the results for
the previous corresponding full year) in accordance with Listing Rule 10.4.2 of
the Listing Rules of the New Zealand Stock Exchange.
This report has been prepared in a manner which complies with generally accepted
accounting practice and gives a true and fair view of the matters to which the
report relates and is based on audited accounts.
The Issuer has a formally constituted Audit Committee of the Board.
CONSOLIDATED OPERATING STATEMENT
Current Up/ Previous
full year Down corresponding
full year
1 OPERATING REVENUE $NZ'000 % $NZ'000
(a) Sales revenue 1,687,237 2,349,541
(b) Other revenue 279,752 520,389
(c) Total operating revenue 1,966,989 down 31 2,869,930
2(a) OPERATING SURPLUS (DEFICIT) BEFORE
UNUSUAL ITEMS AND TAX 78,608 down 70 264,036
(b) Unusual items for separate
disclosure NIL (1,191,191)
(c) OPERATING SURPLUS (DEFICIT) BEFORE
TAX 78,608 (927,155)
(d) Less tax on operating profit 18,877 31,542
(e) Operating surplus (deficit) after
tax but before minority interests 59,731 (958,697)
(f) Less minority interests 34,029 50,398
(g) Equity earnings 87,806 104,809
(h) OPERATING SURPLUS (DEFICIT) AFTER
TAX ATTRIBUTABLE TO MEMBERS OF
LISTED ISSUER 113,508 up 113 (904,286)
3(a) Extraordinary items after tax NIL NIL
(b) Less minority interests NIL NIL
(c) Extraordinary items after tax
attributable to members of issuer NIL NIL
4(a) TOTAL OPERATING SURPLUS (DEFICIT)
AND EXTRAORDINARY ITEMS AFTER TAX 147,537 (853,888)
(b) Operating surplus (deficit) and
extraordinary items after tax
attributable to minority interests 34,029 50,398
(c) OPERATING SURPLUS (DEFICIT) AND
EXTRAORDINARY ITEMS AFTER TAX
ATTRIBUTABLE TO MEMBERS OF THE
ISSUER 113,508 up 113 (904,286)
5. DETAILS OF SPECIFIC RECEIPTS/OUTLAYS,
REVENUES/EXPENSES FOR FULL YEAR CONSOLIDATED
Current Previous
full year corresponding
full year
$NZ'000 $NZ'000
(a) Interest revenue included in 2(c) 60,635 53,609
(b) Interest revenue included in 5(a) but not
yet received 3,154 1,932
(c) Interest expense included in 2(c) 271,080 274,618
(d) Interest costs excluded from 5(c) and
capitalised in asset values 37,137 4,883
(e) Outlays (other than those arising from
the acquisition of an existing business)
capitalised in intangibles NIL 13,646
(f) Depreciation including all forms of
amortisation and writing down of property/
investment 48,000 91,995
(g) Write-off of intangibles 10,509 33,030
(h) Unrealised changes in value of investments NIL NIL
6. (a) UNUSUAL AND EXTRAORDINARY ITEMS OF THE GROUP
GROUP - CURRENT FULL YEAR
DETAILS AND COMMENTS Before tax Related income tax After tax
$NZ'000 $NZ'000 $NZ'000
Unusual items NIL NIL NIL
Total unusual items NIL NIL NIL
Extraordinary items NIL NIL NIL
Total extraordinary items NIL NIL NIL
6. (b) COMMENTS BY DIRECTORS:
7. EARNINGS PER SECURITY
Calculation of basic and fully diluted, EPS in accordance with IAS33: Earnings
Per Share
CONSOLIDATED
Current Previous
full year corresponding
full year
NZ cents NZ cents
(a) Basic EPS 3.8 (29.4)
(b) Diluted EPS (if materially different
from (a))
8. (a) MATERIAL ACQUISITIONS OF SUBSIDIARIES
(i) Name of subsidiary or group of subsidiaries NA
(ii) Contribution to consolidated surplus (deficit)
and extraordinary items after tax
(iii)Date from which such contribution has been
calculated
(iv) Operating surplus (deficit) and extraordinary
items after tax of the subsidiary for the
previous corresponding full year
(b) MATERIAL DISPOSALS OF SUBSIDIARIES
(i) Name of subsidiary or group of subsidiaries Sky City Limited
(ii) Contribution to consolidated operating surplus
(deficit) and extraordinary items after tax from
operation of subsidiary $13,011,000
(iii)Date to which such contribution has been calculated 31 December 1998
(iv) Contribution to consolidated operating surplus
(deficit) and extraordinary items after tax for the
previous corresponding full year $20,663,000
(v) Contribution to consolidated operating surplus
(deficit) and extraordinary items from sale of
subsidiary $241,887,000
9. REPORTS FOR INDUSTRY AND GEOGRAPHIC SEGMENTS: see below
STATEMENT OF ASSETS, LIABILITIES AND SHAREHOLDERS EQUITY
CONSOLIDATED
At end of As shown in As show in
current full last Annual last Half
year Report Yearly Report
$NZ'000 $NZ'000 $NZ'000
10. CURRENT ASSETS
(a) Cash 861,754 165,708 1,150,047
(b) Receivables 269,743 295,114 341,909
(c) Investments 211,767 2,632 2,327
(d) Inventories 180,114 224,632 205,547
(e) Other NIL NIL NIL
(f) TOTAL CURRENT ASSETS 1,523,378 688,086 1,699,830
NON-CURRENT ASSETS
(g) Receivables NIL NIL NIL
(h) Investments 4,343,562 5,893,611 4,683,282
(i) Inventories NIL NIL NIL
(j) Property, plant and equipment 485,937 1,456,263 1,035,082
(k) Intangibles 7,310 203,780 103,472
(l) Other NIL NIL NIL
(m) TOTAL NON-CURRENT ASSETS 4,836,809 7,553,654 5,821,836
(n) TOTAL ASSETS 6,360,187 8,241,740 7,521,666
11. CURRENT LIABILITIES
(a) Accounts payable 330,889 634,937 421,146
(b) Borrowings 428,384 1,315,872 800,807
(c) Provisions (6,826) (5,263) 4,406
(d) Other NIL NIL NIL
(e) TOTAL CURRENT LIABILITIES 752,447 1,945,546 1,226,359
NON-CURRENT LIABILITIES
(f) Accounts payable NIL NIL NIL
(g) Borrowings 2,606,014 2,944,928 3,448,578
(h) Provisions 39,325 46,737 42,410
(i) Other NIL NIL NIL
(j) TOTAL NON-CURRENT LIABILITIES 2,645,339 2,991,665 3,490,988
(k) TOTAL LIABILITIES 3,397,786 4,937,211 4,717,347
(l) NET ASSETS 2,962,401 3,304,529 2,804,319
12. SHAREHOLDERS EQUITY
(a) Share capital 2,106,203 2,106,203 2,106,203
(b) Reserves (i) Revaluation reserve NIL NIL NIL
(ii) Other reserves (605,239) (594,408) (620,720)
(c) Retained surplus
(accumulated deficit) 1,294,071 1,180,388 1,029,238
(d) Convertible Notes NIL NIL NIL
(e) SHAREHOLDERS' EQUITY
ATTRIBUTABLE TO MEMBERS
OF THE HOLDING COMPANY 2,795,035 2,692,183 2,514,721
(f) Outside equity interests in
subsidiaries 167,366 612,346 289,598
(g) TOTAL SHAREHOLDERS EQUITY 2,962,401 3,304,529 2,804,319
Certain comparatives have been restated to correspond with current period
presentation.
STATEMENT OF CASH FLOWS FOR FULL YEAR
Current Previous
full year corresponding
full year
$NZ'000 $NZ'000
13. CASH FLOWS RELATED TO OPERATING ACTIVITIES
(a) Receipts from customers 1,791,072 2,334,982
(b) Interest received 96,946 84,044
(c) Dividends received 124,591 177,575
(d) Payment to suppliers and employees (1,761,470) (2,288,762)
(e) Interest paid (319,352) (291,731)
(f) Income taxes paid (13,395) (24,354)
(g) Other 34,358 29,725
(h) NET OPERATING CASH FLOWS (47,250) 21,479
14. CASH FLOWS RELATED TO INVESTING ACTIVITIES
(a) Cash proceeds from sale of property, plant and
equipment 436,348 21,832
(b) Cash proceeds from sale of equity investments 2,034,182 1,300,338
(c) Loans repaid by other entities 5,027 1,737
(d) Cash paid for purchases of property, plant
and equipment (65,424) (158,222)
(e) Interest paid - capitalised (37,137) (4,883)
(f) Cash paid for purchases of equity investments (391,849) (945,575)
(g) Loans to other entities NIL (12,500)
(h) Hedging transactions (89,391) (565,356)
(i) Other 3,090 (8,108)
(j) NET INVESTING CASH FLOWS 1,894,846 (370,737)
15. CASH FLOWS RELATED TO FINANCING ACTIVITIES
(a) Cash proceeds from issues of shares, options etc (18,491) 25,163
(b) Borrowings 998,289 1,777,181
(c) Repayment of borrowings (2,108,506) (1,424,907)
(d) Dividends paid (11,140) (258,905)
(e) Other (31,680) (37,066)
(l) NET FINANCING CASH FLOWS (1,171,528) 81,466
16. NET INCREASE (DECREASE) IN CASH HELD 676,068 (267,792)
(a) Cash at beginning of full year 116,557 378,333
(b) Exchange rate adjustments to 16(a) 61,729 6,938
(c) Net effect of acquisitions and disposals of
subsidiaries (15,450) (922)
(d) CASH AT END OF FULL YEAR 838,904 116,557
17. NON-CASH FINANCING AND INVESTING ACTIVITIES: Nil (1998: Investment
writedowns and provisions of $l,191,191,000 were made).
18. RECONCILIATION OF CASH
For the purposes of the Statement of Cash Flows, cash includes
Cash at the end of the full year as shown in the Statement is reconciled to the
related items in the accounts as follows:
Current Previous
full year corresponding
full year
$NZ'000 $NZ'000
Cash on hand and at bank 49,623 109,706
Deposits at call 812,131 56,002
Bank overdraft (1,373) (3,715)
Short term borrowings at call (21,477) (45,436)
TOTAL = CASH AT END OF FULL YEAR 838,904 116,557
19. EQUITY ACCOUNTED ASSOCIATED COMPANIES AND OTHER MATERIAL INTERESTS
(i) GROUP SHARE OF RESULTS OF EQUITY EARNINGS
ASSOCIATED COMPANIES
Current Previous
full year corresponding
full year
$NZ'000 $NZ'000
(a) OPERATING SURPLUS (DEFICIT) 221,026 260,416
BEFORE TAX
(b) Less tax 45,403 42,348
(c) OPERATING SURPLUS (DEFICIT) 175,623 218,068
AFTER TAX
(d) (i) Extraordinary items (gross) NIL NIL
(ii) Less tax NIL NIL
(iii)Extraordinary items (net) NIL NIL
(e) OPERATING SURPLUS (DEFICIT) AND
EXTRAORDINARY ITEMS AFTER TAX 175,623 218,608
(f) Less dividends paid to Group 87,817 113,259
(g) NET ADDITION TO EQUITY CARRYING
VALUE OF INVESTMENTS FROM
CURRENT PROFITS 87,806 104,809
(ii) MATERIAL INTERESTS IN CORPORATIONS NOT BEING SUBSIDIARIES:
(a) The Group has a material (from Group's viewpoint) interest in the following
corporations.
Name Percentage of ordinary Combination of
shares held at end of operating profit and
full year extraordinary items
after tax
Equity accounted associated Previous Current Previous
Companies Current Corresponding full year Corresponding
full year full year $NZ'000 full year
% % $NZ'000
Equity Accounted
Air New Zealand Limited 47.1 41.7 90,536 60,449
James Hardie Industries Limited 28.2 27.2 (20,040) 29,752
Thistle Hotels plc 45.9 45.9 105,127 116,055
Other material interests Non Equity Accounted
NIL
Current Previous
full year Corresponding
full year
$NZ'000 $NZ'000
(b) INVESTMENTS IN ASSOCIATED COMPANIES
Carrying value of investments in associated 2,169,285 3,234,858
companies (CV)
Share of associated companies retained profits
and reserves not included in CV:
Retained surplus 900,245 989,640
Reserves
Equity carrying value of investments 3,069,530 4,224,498
20. ISSUED AND QUOTED SECURITIES AT END OF CURRENT FULL YEAR
Category of Securities Number Issued Number Quoted
ORDINARY SHARES 2,985,273,942 2,985,273,942
issued during current full
year NIL NIL
OPTIONS Adjustable Expiry Date
over ordinary shares Exercise
Price
$NZ
4,275,000 NIL 1.27 15/9/99
5,125,000 NIL 1.14 14/9/00
5,775,000 NIL 1.42 12/9/01
6,025,000 NIL 1.27 11/9/02
Issued during current full
year NIL NIL
DEBENTURES NIL NIL
UNSECURED NOTES NIL NIL
OTHER SECURITIES NIL NIL
21. DIVIDEND: No dividend has been authorised.
22. TAXATION: see below
23. ANNUAL MEETING (a) To be held at the Aotea Centre. 15 Mayoral Drive,
Auckland, New Zealand
(b) Date: 11 November 1999 Time: 11 a.m.
(c) Approximate date of availability of Annual Report:
4 October 1999.
This full year report was approved by resolution of the Board of Directors at
its meeting on 30 August 1999.
M B Horton
Company Secretary
9 September 1999
SEGMENTED PROFIT FOR THE YEAR ENDED 30 JUNE 1999
30 June 30 June
Operating Net 1999 1998
Surplus Interest Total Total
By Activity Segment: NZ$000 NZ$000 NZ$000 NZ$000
Trading Activities
Energy and Oil Royalties - - - 355
Engineering, Construction and
Property (19,847) (4,377) (24,224) (34,643)
Food Processing 24,670 (11,041) 13,629 (3,725)
Forestry - - - (19,478)
Hospitality And Entertainment 40,655 (14,036) 25,619 76,267
Hotels 105,127 - 105,127 116,055
Manufacturing (9,125) (2,136) (11,261) 41,297
Media - - - 31,293
Transport 95,842 (377) 95,465 68,907
Wholesale and Retail (26,666) 1,830 (24,836) (87,889)
Other 12,149 (5,929) 6,220 5,101
Trading Contribution 222,805 (36,066) 188,739 193,540
Taxation and Minority Interests (30,639) (38,020)
Net Trading Contribution 156,100 155,520
Investment Activitites
Dividend Income 18,158 64,589
Surplus on Sale of Assets
and Investments 167,738 341,404
Other Income 3,356 5,090
Investment Contribution 189,252 411,083
Taxation and Minority Interests (22,267) (43,920)
Net Investment Contribution 166,985 367,163
By Geographic Segment
United United
New Zealand Australia Asia States Kingdom
Trading Contribution 161,892 (33,902) - (36,378) 105,127 186,739 193,540
Investment
Contribution 92,921 51,283 508 1,134 43,406 189,252 411,083
Total Contributon 244,813 17,381 508 (35,244) 148,533 375,991 604,623
Taxation and Minority
Interests (52,906) (81,940)
Funding Costs and Overheads (209,577) (235,778)
Investment Writedowns & Provisions - (1,191,191)
Net Surplus $113,508 $(904,286)
SEGMENTED ASSETS AND OPERATING REVENUE FOR THE YEAR ENDED 30 JUNE 1999
30 June 1999 30 June 1998
Operating Operating
Assets Revenue Assets Revenue
NZ$000 NZ$000 NZ$000 NZ$000
By Activity Segment:
Energy and Oil Royalties 1,100,186 - 964,466 -
Engineering, Construction and
Property 633,226 17,589 604,670 (266)
Food Processing 252,147 319,238 353,736 333,720
Forestry - - 247,411 -
Hospitality and Entertainment 3,577 281,856 1,038,470 697,961
Hotels 1,545,795 - 1,899,264 -
Investment 649,335 277,069 943,674 523,205
Manufacturing 490,838 158,318 510,056 160,284
Media - - 708,020 -
Transport 1,087,467 154,061 1,061,513 303,380
Wholesale and Retail 138,610 719,191 155,079 811,006
Other 260,822 39,667 253,243 40,640
Provisions (663,570) - (663,570) -
5,498,433 1,966,989 8,076,032 2,869,930
Cash 861,754 - 165,708 -
$6,360,187 $1,966,989 $8,241,740 $2,869,930
By Geographic Segment
New Zealand 2,017,749 820,026 2,642,566 920,236
Australia 772,725 1,006,749 2,029,400 1,767,466
Asia 1,114,049 508 1,007,295 22,092
United States 627,731 62,120 696,015 106,280
United Kngdom 1,629,749 77,586 2,364,326 53,856
Provisions (663,570) - (663,570) -
5,498,433 1,966,989 8,076,032 2,869,930
Cash 861,754 - 165,708 -
$6,360,187 $1,966,989 $8,241,740 $2,869,930
RECONCILIATION OF TAXATION FOR THE YEAR ENDED 30 JUNE 1999
30 June 30 June
1999 1998
NZ$000 NZ$00O
Surplus/(Deficit) before Taxation 78,608 264,036
Taxation at 33% 25,941 87,132
Adjusted by the Tax effect of:
Non-assessable Dividend Income (22,217) (56,288)
Other Non-assessable Revenues (10,342) (352,039)
Non-deductible Expenses 118,719 43,258
Tax Losses Created/(Utilised) (93,708) 301,774
Income at Other Tax Rates 1,228 7,442
Under/(Over) Provisions in Prior Years (826) 120
Other 82 143
Taxation per Consolidated Profit and Loss Account $18,877 $31,542
9 September 1999
BIL RETURNS TO PROFIT
Brierley Investments Limited (BIL) today announced a net surplus of $114 million
for the 1998/99 financial year. This represents a major turnaround from a loss
in the previous financial year of $904 million.
BIL had gross income of $376 million for the year ended 30 June 1999. Income
from subsidiaries and associate companies totalled $187 million, while
investment income was $189 million. Funding costs, inclusive of trust income
units, were $164 million (1997/98 - $181 million), and total overheads including
restructuring costs were $66 million (1997/98 - $82 million).
The sale of BIL's shareholdings in Sky City resulted in an investment surplus
of $242 million, the sale of English, Welsh & Scottish Railway $42 million and
John Fairfax Holdings $33 million. The sale of BIL's stake in the Central North
Island Forest Partnership resulted in a loss of $130 million (net of the
subsequent sale of the Group's residual shareholding in Fletcher Challenge
Forests letter stock).
There were no new provisions made during the year and no provisions were
released against the profit and loss account. The Board believes the existing
general provision of $664 million is adequate to cover the diminution in value
of existing assets.
Shareholders' funds were $2,795 million at 30 June 1999 (June 1998 - $2,692
million) and total assets $6,360 million (30 June 1998 - $8,242 million). Net
of cash, total assets were $5,498 million (30 June 1998 - $8,076 million).
Shareholders' funds as a percentage of total assets (net of cash) were 51
percent at 30 June 1999 compared with 34 percent at 30 June 1998.
Consolidated net debt at 30 June 1999 was $2,173 million (30 June 1998 - $4,095
million), 47 percent lower than at 30 June 1998.
COMMENTARY ON THE RESULT
BIL Chairman Sir Selwyn Cushing said "BIL has been substantially restructured,
is profitable and in a sound financial position.
"The last 18 months have without doubt been the most difficult in the Group's
thirty eight year history however the Board and management are confident that
the worst is behind BIL and we can look positively to the future.
"In this respect, it is pleasing that we have addressed most of the issues
impeding the Group's progress, the most pressing of which were an untenable
financial position caused by too much debt at a time when asset values were
falling, the lack of leadership at both the Board and management levels,
overhead costs that were too high and no apparent business plan.
"These issues have all been resolved, the Board has appointed an extremely
capable Chief Executive in Mr Greg Terry, and through his leadership we fully
expect BIL to enter a new phase of growth.
"The singular focus of the Board and management is to restore the shareholder
value and have that improvement reflected in BIL's share price. The share buy
back announced on 7 September is evidence of this determination."
ASSET SALES PROGRAMME
BIL embarked on an aggressive asset sales programme in July of last year to
address $3 billion of debt at the investment balance sheet level.
This programme has been a success with $2,200 million of investment sales and an
additional $270 million of capital returns realised. Investment balance sheet
senior debt fell by more than $1,700 million over the course of the financial
year to $1,310 million at 30 June 1999, excluding the Sky City instalment
receipt of $224 million.
"Two of the initial objectives, when I agreed to chair BIL, were to quickly
reduce debt and to facilitate the re-financing of the Group's lending
arrangements. These objectives have been achieved," Sir Selwyn said.
"The final stage of this process was the draw down of a three year, US$600
million funding facility on 31 July 1999. Throughout this period BIL retained
its 'BBB' investment grade credit rating which is evidence of the high level of
liquidity inherent in the Group's asset base."
ECONOMIC VALUE PERFORMANCE
At the investment balance sheet level, the value of BIL's asset base, net of
debt, was estimated to be 81 cents per share, or $2,431 million at 30 June 1999.
The Group's three largest investments, Thistle Hotels, James Hardie Industries
and Air New Zealand account for 68 percent of the market value of investment
balance sheet assets, and approximately 90 percent of the market value of listed
company investments.
The value of BIL's investment in Air New Zealand increased by approximately $340
million, while the market values of James Hardie Industries and Thistle Hotels
decreased by A$91 million and #144 million respectively, during the year. Since
balance date the value of BIL's shareholding in James Hardie has increased by
approximately A$23 million (as at 7 September 1999). In total, BIL's listed
investments had market values of $2,897 million at 30 June 1999.
A conservative approach was adopted to the valuation of the Group's unlisted
investments. As a result certain investments, including Molokai Ranch, SEABIL
Pacific and AsiaPower were effectively valued at levels below the prevailing
values at 30 June 1998. This is after adjusting for additional incremental
investment in these assets during the year. In total, BIL's unlisted assets
were estimated to have market values of $963 million as at 30 June 1999.
Sir Selwyn said, "Asset values were extremely volatile during the year. This is
particularly true of Thistle Hotels, whose stock price traded between #2.51 at
the height of speculation over the sale of BIL's shareholding in that Company,
and #1.07 by the end of December. This volatility resulted from the abandonment
of the sale process, a general decline of global stock markets and a downwards
re-rating of United Kingdom hotel stocks generally. By 30 June Thistle's share
price improved to #1.77.
"Air New Zealand performed exceptionally well over the period as that company's
strategy of shifting capacity out of Asia and into more profitable routes like
North America, the United Kingdom and Europe, paid off.
"BIL's other key investment, 26 per cent owned James Hardie Industries,
continues to experience buoyant operating conditions in its United States fibre
cement and gypsum businesses. In the first quarter of the current financial
year, James Hardie reported an operating profit after tax of A$29.2 million, a
43 percent improvement over the previous corresponding period."
SHARE BUY BACKS
On 7 September BIL announced it would buy back up to 100 million (3.3%) of the
Company's shares at a price of 50 cents per share. No buy backs will be
concluded before Friday 10 September 1999 with the buy back programme finishing
on or before 31 December 1999 (Share Buy Back 'Mark One').
In addition to this programme, BIL today announces it will buy back up to 300
million (10%) of its shares by offering capital notes as consideration (Share
Buy Back 'Mark Two')
Sir Selwyn said, "BIL's share price is trading at a significant discount to the
Company's underlying value.
"The cash buy back programme announced on Tuesday, together with the capital
notes programme seeks to address this disparity."
SHAREHOLDER DISTRIBUTIONS
It is the Board's intention to authorise a dividend of 3 cents per share to be
paid before the end of this calendar year.
OVERHEAD COSTS
"BIL's cost base has been lowered considerably with recurring overheads reducing
to $45 million (budget - $48 million) from $62 million the previous year. The
Group did however incur one off restructuring and transaction costs of $21
million during the year.
BUSINESS PLAN
"The implementation of the business plan announced in April is well advanced.
Chief Executive designate, Mr Greg Terry, is scheduled to join BIL on or before
1 November, BIL's investment portfolio has been substantially restructured, and
the issue of the Company's domicile has now been resolved.
BIL ROTHSCHILD FUND
"Work is progressing on the BIL Rothschild Fund with a view to initial funding
when suitable investments are identified.
"In the interests of ensuring a successful launch for the fund and having regard
to regional volatility, particular care is being taken to choose initial
investments likely to achieve appropriate returns.
RELOCATION OF HEAD OFFICE
"The Board has agreed to move BIL's head office to Singapore. It is also the
Board's intention in time to seek a primary sharemarket listing on the Stock
Exchange of Singapore. Secondary listings would be maintained in New Zealand
and Australia allowing shareholders to readily trade their shares.
"The Board believes it is imperative that BIL is based in a global financial
centre in order to attract the necessary management skills and access investment
transactions, both as a principal and in conjunction with other investment
groups.
TRANSFER OF INCORPORATION
"Because Singapore law does not allow for a transfer of incorporation, the Board
has chosen Bermuda as an appropriate jurisdiction, given this jurisdiction is
acceptable to Singapore. As a result BIL will transfer its incorporation to
this jurisdiction, subject to the approval by shareholders and other statutory
requirements."
END
FR NFNNNESKNEEN
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