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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 |
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RNS Number:9579G
Brierley Investments Limited
9 March 2000
HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
Herewith
* Half Yearly Report
* Copy of Preliminary Half Year Report Announcement made to the New Zealand
Stock Exchange.
* Associated Commentary.
* Press Release announcing new dvision investing in internet related
businesses in the Asia Pacific region.
HALF YEARLY REPORT
FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
31 December 1999 31 December 1998
$thousands
NET TURN OVER 737,080 1,056,137
PROFIT (LOSS)
BEFORE TAXATION* (162,383) (132,452)
Taxation on profits (4,330) (15,430)
SURPLUS AFTER TAXATION (166,713) (147,882)
Minority Interests 551 (30,408)
Equity Earnings 82,884 26,960
PROFIT (LOSS) ATTRIBUTABLE
TO SHAREHOLDERS (83,278) (151,330)
* there were no
extraordinary items Includes Investment Write Downs and Provisions
of (150,482)
Amount absorbed by interim
Dividend ($ thousands) NA NA
Rate of interim dividend
cents per share NIL NIL
Imputation tax credit cents
per share NA NA
Supplementary dividend cents
per share NA NA
Adjusted earnings cents per share (2.9) (5.1)
1. All amounts in New Zealand dollars or cents.
2. This Report has not been audited.
3. This Report should be read in conjunction with the Company's interim
report to shareholders.
4. A report to shareholders will be dispatched about 31 March 2000.
9 March 2000
STATEMENT OF ASSETS, LIABILITIES AND SHAREHOLDERS EQUITY
CONSOLIDATED
At end of As shown in As shown in
current half last Annual last Half
year Report Yearly Report
$NZ'000 $NZ'000 $NZ'000
CURRENT ASSETS
(a) Cash 464,709 861,754 1,150,047
(b) Receivables 283,118 269,743 341,909
(c) Investments 6,116 211,767 2,327
(d) Inventories 220,495 180,114 205,547
(e) Other Nil Nil Nil
(f) TOTAL CURRENT ASSETS 974,438 1,523,378 1,699,830
NON-CURRENT ASSETS
(g) Receivables Nil Nil Nil
(h) Investments 4,607,902 4,343,562 4,683,282
(i) Inventories Nil Nil Nil
(j) Property, plant and
equipment 440,056 485,937 1,035,082
(k) Intangibles 33 7,310 103,472
(l) Other Nil Nil Nil
(m) TOTAL NON-CURRENT ASSETS 5,047,991 4,836,809 5,821,836
(n) TOTAL ASSETS 6,022,429 6,360,187 7,521,666
CURRENT LIABI1LITIES
(a) Accounts payable 469,566 330,889 421,146
(b) Borrowings 341,754 428,384 800,807
(c) Provisions 1,464 (6,826) 4,406
(d) Other Nil Nil Nil
(e) TOTAL CURRENT LIABILITIES 812,784 752,447 1,226,359
NON-CURRENT LIABILITIES
(f) Accounts payable Nil Nil Nil
(9) Borrowings 2,561,744 2,606,014 3,448,576
(h) Provisions Nil 39,325 42,410
(i) Other Nil Nil Nil
(j) TOTAL NON-CURRENT
LIABILITIES 2,561,744 2,645,339 3,490,988
(k) TOTAL LIABILITIES 3,374,528 3,397,786 4,717,347
(l) NET ASSETS 2,647,901 2,962,401 2,804,319
SHAREHOLDERS EQUITY
(a) Share capital 1,979,494 2,106,203 2,106,203
(b) Reserves
(i) Revaluation reserve Nil Nil Nil
(ii) Other reserves (623,636) (605,239) (620,720)
(c) Retained surplus
(accumulated deficit) 1,128,709 1,294,071 1,029,238
(d) Convertible Notes Nil Nil Nil
(e) SHAREHOLDERS'EQUITY
ATTRIBUTABLE TO MEMBERS
OF THE HOLDING COMPANY 2,484,567 2,795,035 2,514,721
(f) Outside equity interests
in subsidiaries 163,334 167,366 289,598
(G) TOTAL SHAREHOLDERS
EQUITY 2,647,901 2,962,401 2,804,319
Certain comparatives have been restated to correspond with current period
presentation.
PRELIMINARY HALF YEAR REPORT ANNOUNCEMENT
For Half Year Ended 31 December 1999
(referred to in this report as the "current half year")
Preliminary half year report on consolidated results (including the results for
the previous corresponding half 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 unaudited accounts.
The Issuer has a formally constituted Audit Committee of the Board of Directors.
CONSOLIDATING OPERATING
STATEMENT
Current Up/ Previous
half year Down corresponding
half year
$NZ'000 % $NZ'000
1. OPERATING REVENUE
(a) Sales revenue 653,473 1,098,762
(b) Other revenue 83,607 (42,625)
(c) Total operating revenue 737,080 Down 30 1,056,137
2(a) OPERATING SURPLUS (DEFICIT)
BEFORE UNUSUAL ITEMS AND TAX (11,901) Up 91 (132,452)
(b) Unusual items for separate
disclosure (1) (150,482) Nil
(c) OPERATING SURPLUS (DEFICIT)
BEFORE TAX (162,383) (132,452)
(d) Less tax on operating profit 4,330 15,430
(e) Operating surplus (deficit)
after tax but before
minority interests (166,713) (147,882)
(f) Less minority interests (551) 30,408
(g) Equity earnings 82,884 26,960
(h) OPERATING SURPLUS (DEFICIT)
AFTER TAX ATTRIBUTABLE TO
MEMBERS OF LISTED ISSUER (83,278) Up 45 (151,330)
3(a) Extraordinary items
after tax Nil Nil
(b) Less minority interests Nil Nil
(c) Extraordinary items after
tax attributable to members
of listed issuer Nil Nil
4(a) TOTAL OPERATING SURPLUS
(DEFICIT)AND EXTRAORDINARY
ITEMS AFTER TAX (83,727) (120,922)
(b) Operating surplus (deficit) and
extraordinary items
after tax attributable to
minority interests (551) 30,408
(c) OPERATING SURPLUS (DEFICIT) AND
EXTRAORDINARY ITEMS AFTER TAX
ATTRIBUTABLE TO MEMBERS OF
THE LISTED ISSUER (83,278) Up 45 (151,330)
(1) Investment Writedowns and Provisions
5. DETAILS OF SPECIFIC RECEIPTS/OUTLAYS,
REVENUES/EXPENSES FOR HALF YEAR
CONSOLIDATED
Current half Previous
year corresponding
half year
$NZ'000 $NZ'000
(a) Interest revenue included in 2(c) 15,659 39,657
(b) Interest revenue included in 5(a) but
not yet received 696 2,906
(c) Interest expense included in item 2(c) 87,338 165,319
(d) Interest costs excluded from 5(c) and
capitalised in asset values 20,466 229
(e) Outlays (other than those arising from
the acquisition of an existing
business) capitalised in intangibles NIL NIL
(f) Depreciation including all forms of
amortisation and writing down of
property/investment 19,485 41,289
(9) Write-off of intangibles NIL 2,741
(h) Unrea1ised changes in value af investments NIL NIL
6.(a) UNUSUAL AND EXTRAORIDINARY ITEMS OF THE GROUP
GROUP - CURRENT HALF YEAR
Before tax Related income tax After tax
DETAILS AND COMMENTS
$NZ'000 $NZ'000 $NZ'000
Unusual Items - 2(b) (150,482) NIL (150,482)
Total unusual items (150,482) NIl (150,482)
Extraordinary items - 3(a) NIL NIL NIL
Total extraordinary items NIL NIL NIL
Unusual items are Investment Writedowns and Provisions.
6.(b) COMMENTS BY DIRECTORS:
See below.
7. EARNINGS PER SECURITY CONSOLIDATED
Calculation of basic and fully diluted, EPS in Current Previous
accordance with IAS33: Earnings Per Share half year corresponding
half year
NZ cents NZ cents
(a) Basic EPS (2.9) (5.1)
(b) Diluted EPS (if materially different from (a)) NA NA
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 half year
(b) MATERIAL DISPOSALS OF SUBSIDIARIES
(i) Name of subsidiary or group of subsidiaries NA
(ii) Contribution to consolidated operating
surplus (deficit) and extraordinary items
after tax from operation of subsidiary
(iii) Date from which such contribution has been
calculated
(iv) Contribution to consolidated operating surplus
(deficit) and extraordinary items after tax for
the previous corresponding half year
(v) Contribution to consolidated operating surplus
(deficit) and extraordinary items from sale of
subsidiary
9. REPORTS FOR INDUSTRY AND GEOGRAPHIC SEGMENTS: see below
STATEMENT OF ASSETS, LIABILITIES AND SHAREHOLDERS EQUITY
CONSOLIDATED
At end of As shown in As shown in
current half last Annual last Half
year Report Yearly Report
$NZ'000 $NZ'000 $NZ'000
10. CURRENT ASSETS
(a) Cash 464,709 861,754 1,150,047
(b) Receivables 283,118 269,743 341,909
(c) Investments 6,116 211,767 2,327
(d) Inventories 220,495 180,114 205,547
(e) Other NIL NIL NIL
(f) TOTAL CURRENT ASSETS 974,438 1,523,378 1,699,830
NON-CURRENT ASSETS
(g) Receivables NIL NIL NIL
(h) Investments 4,607,902 4,343,562 4,683,262
(i) Inventories NIL NIL NIL
(j) Property, plant and equipment 440,056 485,937 1,035,082
(k) Intangibles 33 7,310 103,472
(l) Other NIL NIL NIL
(m) TOTAL NON-CURRENT ASSETS 5,047,991 4,836,809 5,821,836
(n) TOTAL ASSETS 6,022,429 6,360,187 7,521,666
11. CURRENT LIABILITIES
(a) Accounts payable 469,566 330,889 421,146
(b) Borrowings 341,754 428,384 800,807
(c) Provisions 1,464 (6,826) 4,406
(d) Other NIL NIL NIL
(e) TOTAL CURRENT LIABILITIES 812,784 752,447 1,226,359
NON-CURRENT LIABILITIES
(f) Accounts payable NIL NIL NIL
(g) Borrowings 2,561,744 2,606,014 3,448,578
(h) Provisions NIL 39,325 42,410
(i) Other NIL NIL NIL
(j) TOTAL NON-CURRENT LIABILITIES 2,561,744 2,645,339 3,490,988
(k) TOTAL LIABILITIES 3,374,528 3,397,786 4,717,347
(l) NET ASSETS 2,647,901 2,962,401 2,804,319
12. SHAREHOLDERS EQUITY
(a) Share capital 1,979,494 2,106,203 2,106,203
(b) Reserves (i) Revaluation reserve NIL NIL NIL
(ii) Other reserves (623,636) (605,239) (620,720)
(c) Retained surplus (accumulated
deficit) 1,128,709 1,294,071 1,029,238
(d) Convertible Notes NIL NIL NIL
(e) SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO MEMBERS OF THE HOLDING
COMPANY 2,464,567 2,795,035 2,514,721
(f) Outside equity interests in
subsidiaries 163,334 167,366 289,598
(g) TOTAL SHAREHOLDERS EQUITY 2,647,901 2,962,401 2,804,319
Certain comparatives have been restated to correspond with current period
presentation.
STATEMENT OF CASH FLOWS FOR HALF YEAR
Current Previous
half year corresponding
half year
$NZ'000 $NZ'000
13. CASH FLOWS RELATED TO OPERATING ACTIVITIES
(a) Receipts from customers 643,680 1,098,242
(b) Interest received 21,947 68,863
(c) Dividends received 53,896 75,792
(d) Payment to suppliers and employees (697,402) (1,033,487)
(e) Interest paid (109,820) (154,040)
(f) Income taxes paid (1,554) (10,175)
(g) Other (103) 9,917
(h) NET OPERATING CASH FLOWS (89,356) (55,112)
14. CASH FLOWS RELATED TO INVESTING ACTIVITIES
(a) Cash proceeds from sale of property, plant
and equipment 20,262 357,468
(b) Cash proceeds from sale of equity investments 294,127 1,219,293
(c) Loans repaid by other entitles 12,043 158
(d) Cash paid for purchases of property, plant
and equipment (19,131) (23,148)
(e) Interest paid - capitalised (20,466) (229)
(f) Cash paid for purchases of equity
investments (284,893) (194,378)
(g) Loans to other entities (447) (279)
(h) Hedging transactions 16,108 190,755
(i) Other (1,879) 2,594
(j) NET INVESTING CASH FLOWS 15,724 1,170,724
15. CASH FLOWS RELATED TO FINANCING ACTIVITIES
(a) Cash proceeds from issues of shares,
options etc NIL 1,830
(b) Repurchase of shares (44,612) (15,007)
(c) Borrowings 856,674 1,008,541
(d) Repayment of borrowings (1,149,689) (1,231,952)
(e) Dividends paid (1,302) (10,529)
(f) Other 5,475 (9,013)
(g) NET FINANCING CASH FLOWS (333,454) (256,130)
16. NET INCREASE (DECREASE) IN CASH HELD (407,086) 969,706
(a) Cash at beginning of half year 636,904 116,557
(b) Effect of disposal of subsidiaries (1,557) (1,138)
(c) Exchange rate adjustments to 16(a) 6,579 20,181
(d) CASH AT END OF HALF YEAR 436,640 1,105,306
17. NON-CASH FINANCING AND INVESTING ACTIVITIES: 149,167,393 ordinary shares
were cancelled by way of a share buyback. The consideration for the
buyback was Capital Notes issued by BIL Finance Limited.
18. RECONCILIATION OF CASH
For the purposes of the Statement of Cash Flows, cash includes
Cash at the end of the half year as shown in the Current Previous
Statement is reconciled to the related items in half year Corresponding
the accounts as follows: half year
$NZ'000 $NZ'000
Cash on hand and at bank 58,385 11,893
Short term deposits 406,324 1,038,154
Bank overdraft (3,303) (4,721)
Short term borrowings at call (24,566) (40,020)
TOTAL = CASH AT END OF HALF YEAR - 16(d) 436,840 1,105,306
19. EQUITY ACCOUNTED ASSOCIATED COMPANIES AND OTHER MATERIAL INTERESTS
Equity Earnings
(i) GROUP SHARE OF RESULTS OF Previous
ASSOCIATED COMPANIES Current corresponding
Half year half year
$NZ'000 $NZ'000
(a) Operating Surplus (Deficit)
Before Tax 180,494 100,322
(b) Less tax 47,234 24,984
(c) Operating Surplus (Deficit)
After Tax 133,260 75,338
(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 133,260 75,338
(f) Less dividends paid to Group 50,376 48,378
(g) NET ADDITION TO (REDUCTION IN)
EQUITY CARRYING VALUE OF
INVESTMENTS FROM CURRENT PROFITS
- 2(g) 82,884 26,960
(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 operating
shares held at end of half surplus (deficit) and
year extraordinary items after tax
Equity accounted
associated companies Current Previous Current Previous
half year corresponding Half year corresponding
% half year $NZ'000 $NZ'000
%
Equity Accounted
Air New Zealand
Limited 47.7 41.7 59,889 34,552
James Hardie
Industries Limited 28.8 28.1 26,468 (22,855)
John Fairfax Holdings
Limited NIL 10.1 NIL NIL
Thistle Hotels plc 45.9 45.9 46,903 63,641
Other material interests Not Equity Accounted
NIL
(b) INVESTMENTS IN ASSOCIATED COMPANIES Current Previous
half year corresponding
half year
$NZ'000 $NZ'000
Carrying value of investments in associated
Companies (CV) 2,204,730 2,474,811
Share of associated companies retained
profits and reserves not included in CV:
Retained surplus
Reserves 944,426 909,978
Equity carrying value of investments 3,149,156 3,384,789
20. ISSUED AND QUOTED SECURITIES AT END OF CURRENT HALF YEAR
Category of Securities Number Issued Number Quoted
ORDINARY SHARES 2,736,127,266 2,736,127,266
Issued during current
half year * NIL NIL
Cancelled during half year 249,146,676
OPTIONS Exercise Expiry
over ordinary shares Price Date
$NZ
4,025,000 NIL 1.14 * 14/9/00
4,475,000 NIL 1.42 * 12/9/01
5,425,000 NIL 1.27 * 11/9/02
15,000,000 NIL 0.45 1/11/04
23,080,000 NIL 0.65 31/12/04
15,705,000 NIL 0.75 31/12/04
15,715,000 NIL 0.90 31/12/04
Issued during current
half year 69,500,000 NIL
DEBENTURES NIL NIL
UNSECURED NOTES NIL NIL
OTHER SECURITIES NIL NIL
*adjustable
21. DIVIDEND
No dividend has been authorised by the Board of Directors
22. TAXATION: see below.
This half year report has been approved by the Board of Directors.
G J Terry
Chief Executive Officer
9 March 2000
NZSE - NOTE 9
SEGMENTED PROFIT FOR THE SIX MONTHS ENDED 31 DECEMBER 1999
31 Dec 31 Dec
Operating Net 1999 1998
Surplus Interest Total Total
NZ$000 NZ$000 NZ$000 NZ$000
By Activity Segment
Trading Activities
Energy and Oil Royalties - - - 889
Engineering, Construction
and Property (13,324) (1,450) (14,774) (12,023)
Food Processing 17,144 (4,227) 12,917 10,291
Hospitality and
Entertainment (585) (24) (609) 27,955
Hotels 46,906 - 46,906 63,641
Manufacturing 25,992 (1,286) 24,706 (20,444)
Transport 63,638 50 63,688 41,254
Wholesale and Retail (8,950) 653 (8,297) (6,826)
Other 6,368 (3,264) 3,104 506
Trading Contribution 137,189 (9,548) 127,641 105,523
Taxation and Minority
Interests (3,263) (24,310)
Net Trading Contribution 124,378 80,943
Investment Activities
Dividend Income 3,233 13,949
Surplus on Sale of Assets
and investments 29,214 (107,224)
Other Income 301 818
Investment Contribution 32,748 (92,457)
Taxation and Minority interests (516) (21,528)
Net Investment Contribution 32,232 (113,985)
By Geographic Segment
New Australia Asia United United
Zealand States Kingdom
Trading
Contribution 78,890 18,171 - (16,326) 46,906 127,641 105,253
Investment
Contribution 8,085 (3,666) 2,931 111 25,287 32,748 92,457
Total
Contribution 86,975 14,505 2,931 (16,216) 72,193 160,389 12,796
Taxation and
Minority
Interests (3,779) (45,838)
Funding Costs
and Overheads (89,406) (118,288)
Investment Writedowns & Provisions (150,482)
Net Surplus $(83,278) $(151,330)
SEGMENTED ASSETS AND OPERATING REVENUE FOR
THE SIX MONTHS ENDED 31 DECEMBER 1999
31 Dec 1999 31 Dec 1998
Operating Operating
Assets Revenue Assets Revenue
NZ$000 NZ$000 NZ$000 NZ$000
By Activity Segment
Energy and Oil Royalties 764,458 1,047,347 17,611
Engineering, Construction
and Property 354,021 7,399 604,691 6,836
Food Processing 273,153 117,113 353,347 208,791
Hospitality and Entertainment 3,390 - 600,111 282,405
Hotels 1,651,807 1,757,590
Investment 466,687 83,124 553,705 (44,079)
Manufacturing 520,146 73,455 485,200 76,888
Media - - 275,431 -
Transport 1,095,774 27,102 943,771 120,770
Wholesale and Retail 162,563 409,485 151,811 370,386
Other 265,721 19,402 262,185 16,529
Provisions - - (663,570) -
5,557,720 737,080 6,371,619 1,056,137
Cash 464,709 - 1,150,047 -
$6,022,429 $737,080 $7,521,666 $1,056,137
By Geographic Segment
New Zealand 1,800,963 261,549 2,459,971 330,591
Australia 793,781 418,076 836,980 629,482
Asia 836,712 2,931 1,096,482 16,070
United States 360,915 7,145 605,693 52,007
United Kingdom 1,765,349 47,379 2,036,063 27,987
Provisions - - (663,570) -
5,557,720 737,080 6,371,619 1,056,137
Cash 464,709 - 1,150,047 -
$6,022,429 $737,080 $7,521,666 $1,056,137
NZSE - NOTE 22
RECONCILIATION OF TAXATION FOR THE
SIX MONTHS ENDED 31 DECEMBER 1999
31 Dec 31 Dec
1999 1998
NZ$000 NZ$000
Surplus/(Deficit) before Taxation (162,383) (132,452)
Taxation at 33% (53,586) (43,709)
Adjusted by the Tax effect of:
Non-assessable Dividend Income (13,814) (12,795)
Other Non-assessable Revenues (69,381) (10,451)
Non-deductible Expenses 64,591 119,805
Tax Losses Created/(Utilised) 74,801 (32,091)
Income at Other Tax Rates 1,297 2,120
Under/(Over) Provisions in Prior Years 326 (1,268)
Other 96 (6,181)
Taxation per Consolidated Profit
and Loss Account $4,330 $15,430
BRIERLEY INVESTMENTS LAUNCHES NEW DIRECTION AND
ANNOUNCES INTERIM RESULT
New Management Team Takes Positive Action to Create Shareholder Value
SINGAPORE - 9 March 2000 -- Brierley Investments Ltd, an international
investment company with a global portfolio of investments, today
heralded the move of its global headquarters to Singapore by unveiling
its new corporate direction and investment strategy. The company also
announced its interim result for the six months ended 31 December 1999,
and its intention to move its primary listing to Singapore.
As part of the move to restructure the company, a new management team
was announced in October 1999. Led by Greg Terry, previously Vice
Chairman, Pacific Region, of Credit Suisse First Boston, the new team
brings significant regional and international talent into the business,
and is focussing on re-establishing BIL as one of the region's leading
investment companies.
Commenting an new direction, Mr Terry noted, "We have had to quickly
address the historical problems faced by BIL. Substantial restructuring
has been completed and a new management team is in place with a clear
vision, objectives and a strong focus on creating shareholder value."
He added, "We are committed to growing BIL through investing in
businesses where we can play an active role in managing and exploiting
opportunities in growth sectors like technology. Our approach combines
discipline and entrepreneurial flair, as well as the implementation of
international best practices. In achieving the results sought by our
shareholders, we are dealing promptly with assets which do not meet our
new investment return criteria.'
In creating shareholder value BIL plays an active role in the
management of investee companies, be it at Board level or directly
through the management of a business. The company aims to develop a
diversified investment portfolio comprising a mix of longer-term core
investments and several smaller investments, and to implement an
investment strategy which maximises value opportunities inherent in the
existing asset base. The company also plans to leverage existing
competencies in pursuing new investments and to explore strategic
investment alliances which leverage financial resources, key skills and
experience.
Asset Management
In line with the new strategy and the move to offer complete
transparency, management has adopted the following approach in
addressing the current asset base:
Resolve Problem Investments
- Asia Power - Equity value has been severely hit by tariff changes, and
the investment has been written off. Progress is being made on
restructuring the business, however there will be no further cash out
from BIL
- Graham Field - Equity value has been destroyed by years of inadequate
R&D and the business has been written off as a result of a decision
by the Board of that company to seek Chapter 11 bankruptcy protection
in the United States. The company is currently in workout using
Rothschild New York as advisors. There will be no further cash out
from BIL
- Vox is for sale through Rothschild Australia and cash is being returned
to BIL
- Mololkai Ranch has been written down to a level consistent with a
recent independent valuation, which is based on a full development
strategy. A strategic review of this asset is underway, and if the
current strategy changes, a further write off is possible
Optimise Realisation of Non-Core Assets
- Sealord - Expressions of interest have been sought for the business,
which is performing well. Strong interest has been received, however
no decision in regards to this investment has yet been made
- Bondway was sold for NZ$37 million in late 1999, achieving a
significant margin above book value
- We are currently reviewing smaller investments with the objective of
maximising shareholder returns
Advance Strategy in Regards to Core Assets
- Air New Zealand - The remainder of Ansett Australia not owned by the
company has now been acquired, creating the first true Australasian
airline. The new group will rank amongst the world's top 20 airlines,
BIL is working closely with the company to realise the synergies and
cost savings accruing from the merged group, which could amount to
more than NZ$200 million per annum within 1 to 3 years. The new
group will be a stronger competitor through focussed ownership,
combined asset base and cashlow, and increased borrowing and
purchasing capacity
- Thistle Hotels - BIL is working closely with management to position
Thistle as the UK's leading hotel group. The company is nearing
completion of a major refurbishment programme, and is developing an
e-commerce strategy designed to give it first mover advantage in the
UK hotel industry
- James Hardie Industries - A well managed business, James Hardle
continues as a high growth, high return business. A second Board seat
has been obtained for BIL, and James Hardie continues on the road to
globalising its world-leading fibre cement business
While the market ratings of BIL's key investments fell during the
period, all continue to generate solid earnings, with James Hardie
Industries in particular experiencing excellent earnings momentum. For
the third quarter of the 1999/2000 financial year James Hardie reported
a net profit of A$46.3 million, a 56 percent improvement over the
previous corresponding period.
Begin Investing In High Growth Opportunities
As a first articulation of the company's new direction, new investments
were made in a number of areas and reflect BIL's focus on the Asia
Pacific region as well as a commitment to investing in the technology
sector.
- tech@BIL - Announced in a separate release today, the company has
established a new operating division which has received an initial
allocation up to US$100 million to invest in internet related
businesses in the Asia Pacific region. The division will incorporate
a number of existing investments including BIL's US$20m investment
in the Madrona Venture Fund. Further announcements regarding this new
division are likely to be made in the near future.
- BIL Rothschild - the Asia Recovery Fund is now established, and in
addition to initial funding has received commitments for a further
US$250 million from third parties. A joint venture between the two
companies has been formed, and a first investment has been made.
Interim Result
Consistent with the implementation of the new strategy, a conservative
approach to asset valuation, and the desire to offer complete
transparency to shareholders, the Board has approved the allocation of
the general investment provision of NZ$686 million to specific
non-performing investments. This approach has also resulted in an
additional provision of NZ$150 million being applied to specific
assets, reflecting management's assessment of the carrying value of the
company's asset base. Specific details of the provisions are included
within this release.
As a result of the additional provisioning, the company reported a net
loss of NZ$83million for the six month period to 31 December 1999 (NZ$67
million surplus before additional provisions).
Commenting an the provisioning effect, Mr Terry noted, "Our objectives
in preparing the financial accounts for the first half of the 200O
financial year were to ensure the asset values of our investments were
both realistic and transparent. We achieved both objectives through the
apportionment of the existing general investment provision, which the
Board had prudently established, against specific investments as well as
taking a further charge against the values of other investments where
further deterioration had occurred."
Consolidated Profit and Loss Account and Balance Sheet
BIL had gross income of NZ$160 million for the six month period.
Income from subsidiaries and associate companies totalled NZ$128
million, while investment income was NZ$32 million. Overheads were NZ$23
million compared to NZ$37 million in the previous corresponding period.
Shareholders' funds were NZ$2,485 million at 31 December 1999 (30 June
1999 - NZ$2,795 million) and total assets NZ$6,022 million (30 June
1999 - NZ$6,360 million). Net of cash, total assets were NZ$5,558
million (30 June 1999 - NZ$5,498 million). Shareholders' funds as a
percentage of total assets (net of cash) were 45 percent at 31 December 1999
compared with 51 percent at 30 June 1999.
Consolidated net debt at 31 December 1999 was NZ$2,439 million (30 June
1999 - NZ$2,173 million).
Investment Balance Sheet
Net assets per share at the investment balance sheet level was NZ 74
cents. or NZ$2,016 million at 31 December 1999. The Group's three
largest investments, Thistle Hotels, James Hardie industries and Air
New Zealand accounted for 66% of the market value of investment balance
sheet assets representing NZ 93 cents per share of net assets at 31
December 1999. The values of these investments reduced by NZ$83 million
or NZ 3 cents per share during the period.
Net senior debt at the investment balance sheet level was NZ$1,480
million at 31 December 1999 an increase of NZ$170 million over the 30
June 1999 figure.
An updated investment balance sheet accompanies this statement.
Shareholder Distributions
A dividend of 3 cents per share was paid in January 2000.
Condensed Consolidated
Profit and Loss Account
(unaudited)
Six months ended Year ended
31 Dec 30 June
1999 1998 1999
$000 $000 $000
SURPLUS/(DEFICIT)BEFORE TAXATION (11,901) (132,452) 78,608
Less
Taxation 4,330 15,430 18,877
SURPLUS/(DEFICIT) AFTER TAXATION (16,231) (147,882) 59,731
Less
Minority Interests Share of Surplus (551) 30,408 34,029
(16,680) (178,290) 25,702
Add
Equity Earnings 82,884 26,960 87,806
67,204 (151,330) 113,508
Less
Investment Write Downs and
Provisions (150,482)
NET SURPLUS/(DEFICIT) $(83,278) $(151,330) $113,508
Condensed Consolidated (unaudited)
Balance Sheet Six months ended Year ended
31 Dec 30 June
1999 1998 1999
$000 $000 $000
FIXED ASSETS 440,056 1,035,082 485,937
INVESTMENTS 4,607,935 4,786,754 4,350,872
CURRENT ASSETS 974,438 1,699,830 1,523,378
TOTAL ASSETS 6,022,429 7,521,666 6,360,187
Less
TERM LIABILITIES 2,561,744 3,490,988 2,645,339
CURRENT LIABILITIES 812,784 1,226,359 752,447
NET ASSETS $2,647,901 $2,804,319 $2,962,401
EQUITY COMPRISES
Paid in Share Capital 1,979,494 2,106,203 2,106,203
Reserves 505,073 408,518 688,832
Minority Interests 163,334 289,598 167,366
TOTAL EQUITY $2,647,901 $2,804,319 $2,962,401
Condensed Consolidated (unaudited)
Statement of Movements Six months ended Year ended
in Equity 31st Dec 30th June
1999 1998 1999
$000 $000 $000
OPENING EQUITY 2,962,401 3,304,529 3,304,529
Net Surplus/(Deficit)
for the Period (83,278) (151,330) 113,508
Ordinary Dividend Provision (82,084)
Repurchase of Ordinary
Shares (126,709)
Other Movements (18,397) (26,132) (10,656)
Movement in Minority
interests (4,032) (322,748) (444,980)
CLOSING EQUITY $2,647,901 $2,804,319 $2,962,401
Condensed Consolidated (unaudited)
Statement of Cash Flows Six months ended Year ended
31st Dec 30th June
1999 1998 1999
$000 $000 $000
CASH FLOWS FROM
OPERATING ACTIVITIES
Operating Cash Flows (89,356) 55,112 (47,250)
CASH FLOWS FROM INVESTING
ACTIVITIES
Sale of investments
and fixed assets 326,432 1,576,919 2,475,557
Purchase of investment
and fixed Assets (324,937) (218,034) (494,410)
Other investing 14,229 (188,161) (86,301)
Total Investing Cash Flows 15,724 1,170,724 1,894,846
CASH FLOWS FROM FINANCING ACTIVITIES
Issue/(Repurchase) of
Shares and Capital Notes (44,612) (13,177) (18,491)
Borrowings 856,674 1,008,541 998,289
Repayment of Borrowings (1,149,689) (1,231,962) (2,108,506)
Dividends Paid (1,302) (10,529) (11,140)
Other 5,475 (9,013) (31,680)
Total Financing Cash Flows (333,454) (256,130) (1,171,528)
Net Change in Cash (407,086) 969,706 676,068
Closing Cash $436,840 $1,105,306 $838,904
Condensed Consolidated (unaudited)
Investment Balance Sheet Six months ended Year ended
31st Dec 30th June
1999 1998 1999
$000 $000 $000
Thistle Hotels 1,285 843 1,160
Air New Zealand 672 645 895
James Hardie Industries 586 444 571
Tasman Agriculture 68 63 61
Fine Art Developments 58 25 39
PDOC Holdings 35 37 36
Sky City - 454 -
John Fairfax - 291 -
Graham-Field Health Products - 55 25
Other Listed Investments 271 108 110
Total Listed investments 2,975 2,965 2,897
Unlisted Investments 893 1,075 963
Debtors/(Creditors) (21) (47) 199
3,847 3,993 4,059
Net Senior Debt (1,480) (1,826) (1,310)
Capital Notes (363) (318) (318)
Minority Interests - (23) -
Net Worth $2,004 $1,826 $2,431
Allocation of Book Strategic Write/Off
General Investment Value Value Provisions
Provision
31st Dec 99 31st Dec 99 31st Dec 99
$000 $000 $000
AsiaPower 407 - 407
Cedenco Shares 16 8 8
Graham Field 87 - 8
GRD Shares 42 9 33
Molokai Ranch 517 326 191
NZ Properties 32 23 9
1,101 366 735
Seabil Pacific/SEA
Holdings Loss 101
Total Provision Required 836
Existing General Investment
Provision 686
Additional Provision 150
Notes to Editors
Brierley Investments Limited (BIL) is an International investment company,
currently listed on the New Zealand, Australian and London stock exchanges, with
a planned primary listing on the Singapore Exchange. Key investments include a
46 percent shareholding in UK hotel group Thistle Hotels plc, the largest hotel
operator in London, a 47 percent shareholding in Air New Zealand, and a 28
percent shareholding in James Hardie Industries a global leader in fibre cement
building products and systems. BIL's primary role is as an active investor with
strategic shareholdings and active investment management aimed at extracting and
maximising shareholder value. The company recently moved its global
headquarters from New Zealand to Singapore. BIL's website can currently be
found at www.bil.co.nz.
For further information please contact:
Shandwick International - Hamish Bell or Ian Lee, Tel +65 339 1662,
hbell@shandwick.com / ilee@shandwick.com
Brierley Investments Ltd - Andrew Shepherd, Chief Financial Officer,
Tel +65 438 0002.
END
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