Interim Results

Jardine Matheson Hldgs Ld 3 August 2000 The following announcement was today issued to the London Stock Exchange. Jardine Matheson Holdings Limited Interim Report 2000 Highlights * Profits return to growth * Asian markets strengthen * Robert Fleming stake sold for US$1.2 billion * Share repurchase offer launched Results ____________________________________________________________ (unaudited) Six months ended 30th June 2000 1999 Change US$m US$m % ____________________________________________________________ Revenue 5,276 5,219 +1 Net profit excluding non- recurring items 117 89 +32 Net profit 180 93 +94 ____________________________________________________________ USc USc % ____________________________________________________________ Earnings per share 29.62 15.42 +92 Earnings per share excluding non-recurring items 19.24 14.66 +31 Interim dividend per share 7.80 7.80 - ____________________________________________________________ 'During the first half, the Group has taken advantage of the opportunities which Asia's recovery offers. We expect full-year 2000 results not only to show significant non-recurring gains, but also to mark a return to sustainable profit growth.' Henry Keswick, Chairman 3rd August 2000 The interim dividend of USc7.80 per share will be payable on 22nd November 2000 to shareholders on the register of members at the close of business on 29th September 2000 and will be available in cash with a scrip alternative. The ex-dividend date will be on 27th September 2000, and the share registers will be closed from 2nd to 6th October 2000, inclusive. Jardine Matheson Holdings Limited Interim Report 2000 Performance Jardine Matheson Holdings Limited today announced that the trading environment continued to strengthen as the Asian markets saw further recovery throughout the first half of the year, leading to improved operating performances in many of the Group's businesses, especially Jardine Pacific and Robert Fleming. Net profit for the period excluding non-recurring items increased 32% to US$117 million, compared with US$89 million for the same period in 1999. Including non-recurring items, net profit rose 94% to US$180 million. Earnings per share excluding non-recurring items were USc19.24, compared to USc14.66 in the first half of 1999. Including non-recurring items, earnings per share increased 92% to USc29.62. An unchanged interim dividend of USc7.80 per share has been declared. At the end of last year two areas were identified as needing particular attention. In the United Kingdom, Jardine International Motors has begun to implement a detailed plan to address its problem properties and dealerships in what is still a depressed market. At Dairy Farm, the severe Hong Kong supermarket price war is showing some signs of easing, but the difficulties in repositioning the company's Australian supermarket business remain. Business Developments Turning to the developments, the Chairman, Henry Keswick, said that the sale of Robert Fleming will provide Jardine Matheson with an attributable profit of some US$800 million. The disposal of Jardine Pacific's stake in its Chubb and Trane China joint ventures accounts for additional profits of some US$65 million. In May, Mandarin Oriental acquired The Rafael Group for US$143 million, adding six new hotels that will provide critical mass in the United States and Europe and will be enhanced by Mandarin Oriental's brand. The acquisition, which brings to 19 the number of hotels under management, followed a rights issue at the start of the year that was underwritten by Jardine Strategic. In March, Cycle & Carriage acquired a 25% interest in Astra International which has since been increased to 31% for a total investment of some US$380 million. Astra International is one of Indonesia's largest conglomerates with a dominant presence in the automotive sector and interests in agribusiness, heavy industry, information technology and financial services. In June, the Company announced proposals for the privatisation of the 25% minority interest in Jardine International Motors through a scheme of arrangement. Upon acceptance by the minority shareholders, the scheme will become effective by the end of September at a cost to the Company of approximately US$63 million. Jardine International Motors has also reached agreement with DaimlerChrysler regarding the Hong Kong distribution arrangements for Mercedes-Benz vehicles. Effective 1st July 2002, DaimlerChrysler will assume the role of distributor and Jardine International Motors will continue as exclusive dealer in Hong Kong and Macau. While the new arrangements will allow a key relationship to continue, they are bound to affect the future profitability of the business. Other significant developments in the first half included the acquisition of the United Kingdom retail broker Burke Ford by Jardine Lloyd Thompson and the purchase by Jardine Matheson of some 5% of Jardine Strategic in the market. In addition, Jardine Strategic has increased its holdings in a number of its own affiliates. Tender Offer On 1st August the sale of Robert Fleming to Chase Manhattan became fully unconditional and Jardine Matheson shall shortly be receiving some US$960 million for its holding. The Directors have undertaken a comprehensive review of the various options open to the Company for utilising the proceeds and have concluded that the best interests of shareholders would be served by giving them the opportunity to receive a substantial return of capital by means of a share repurchase offer. Shareholders are therefore being invited to tender their shares at prices between US$4.80 and US$5.50 per share. The Company will accept repurchases of up to 100 million shares, being 12% of the outstanding share capital. There is an option to increase to 165 million shares, being 20% of the outstanding share capital, should the Directors determine that there is sufficient demand and shareholder approval is given. Full details of the tender offer, which will be open for an initial period from 4th August to 1st September, are being sent to shareholders. Jardine Matheson is committed to shareholder value through improving its focus on its core businesses and enhancing the efficiency of the Company's capital structure. The steps the Group is taking are designed to increase earnings and net asset value per share. At the same time the Group is confident that it is retaining adequate resources to support the growth of all its existing businesses. Looking Ahead * Jardine Pacific expects to see continued progress in earnings in the second half of the year. * Commercial property values will show some gains at the year end, and the current trend indicates that improvements in commercial rents in Hong Kong will produce overall positive rent reversions for Hongkong Land by the middle of next year. * Mandarin Oriental's flagship London property re-opened in May following extensive renovation. Assisted by the expected increase in tourism in Asia, the company's profitability should return to growth next year. * Despite good performances in many of its operations, and an anticipated improvement in the second half, Dairy Farm is expected to produce an overall loss this year. * Jardine Lloyd Thompson continues to gain market share and its prospects remain encouraging. * The contribution from Robert Fleming will end upon completion of the sale. In conclusion, Henry Keswick said, 'During the first half, the Group has taken advantage of the opportunities which Asia's recovery offers. We expect full-year 2000 results not only to show significant non-recurring gains, but also to mark a return to sustainable profit growth.' Operating Review Jardine Pacific Jardine Pacific achieved a profit before non-recurring items of US$45 million in the first half, up 115%, with most businesses within its portfolio benefiting from the improved trading conditions in Asia. The result was further enhanced by a non-recurring profit of US$65 million, primarily from value released on the sale of a 50% interest in Chubb China. The restructuring undertaken last year has also produced significant savings in central overheads. In marketing and distribution, Jardine OneSolution (JOS) increased its profit by 84%. JOS is developing its systems integration and application solutions business, and has increased its regional presence with a number of acquisitions in Singapore and Malaysia. Restaurants benefited from both stronger trading conditions and the rationalisation of its Ruby Tuesday business. IKEA in Hong Kong also achieved a marked turnaround in its result. However, there were further losses from the group's sugar interests in the Philippines. Jardine Engineering again did well, and Gammon produced improved profits, although this trend will be difficult to sustain in an increasingly competitive construction sector in Hong Kong. Jardine Schindler improved its profitability despite losses in its Malaysian factory. HACTL benefited from enhanced operating efficiencies and a significant increase in cargo volumes at Chek Lap Kok. Shipping services also achieved an excellent result. Income from properties declined 13% due to negative rental reversions, and the contribution from the property and financial services businesses also reduced following the sale of Central Registration at the end of 1999 and a reduction in the stake in UMF Singapore. Jardine International Motors Jardine International Motors', including its associates and joint ventures, sales of motor vehicles in the first half increased by 14% over the same period in 1999 to some 88,500. Net profit for the six months was US$19 million, a decrease of 25%. The proposed privatisation of Jardine International Motors by way of a scheme of arrangement was announced in June. It is believed that the complexities involved in restructuring the business as a public company outweigh the advantages of a stock market listing. The scheme is expected to become effective by the end of September, and the cost of acquiring the 25% minority interest is some US$63 million. The group has reached agreement with DaimlerChrysler AG on the future arrangements for the distribution of Mercedes-Benz motor vehicles in the Hong Kong and Macau markets. With effect from 1st July 2002, DaimlerChrysler will assume the role of distributor and Zung Fu will continue as exclusive dealer in Hong Kong and Macau. While the new arrangements allow a key relationship to continue, they will have an adverse impact on the future profitability of Jardine International Motors. Zung Fu continued to perform well, and improved performances were also achieved in the group's other Asian operations and in the United States. The United Kingdom business is still being adversely affected by the controversy over manufacturers' pricing levels, and significant costs are also being incurred in the reorganisation of this business. In France, Cica has benefited from a continuing strong market, but the translated earnings were reduced by the weakness of the Euro. Cica has consolidated a number of its Internet- compatible business ventures into one new subsidiary, Exlinea, and the group is also reviewing other e-business initiatives that may have wider applications. Jardine Lloyd Thompson Jardine Lloyd Thompson again announced record results with turnover for the six months increasing 9% to £138 million. Pre tax profit was up 7% at £35 million. The results reflect further strong new business development across the entire group and an indication of a slightly hardening market in some areas of the business. There were also benefits arising from improvements in process efficiencies within Corporate Risks. Revenue growth of 12% has been achieved in Risk Solutions, 14% in Corporate Risks and 5% in Services, after allowing for acquisitions and disposals. Including acquisitions, Corporate Risks revenue growth was 17%. In the first six months there have been significant developments in the group's structure with the creation of Capital Risk Group in New York, a joint venture with The Blackstone Group; the acquisition of Burke Ford in the United Kingdom; and the launch of JLT InterActive, an e-commerce initiative in the United States aimed at the affinity group market. Robert Fleming Robert Fleming reported an extremely strong performance for its financial year ended 31st March 2000. The integration of Fleming Martin and Jardine Fleming enabled the group to deliver a more competitive service to its clients, which, together with the strong recovery in the Asian markets, contributed to significantly improved results. The profit for the six months to 31st March that has been consolidated into the half-year results of Jardine Matheson amounted to US$41 million. In April, The Chase Manhattan Corporation made an offer for Robert Fleming. It is believed that the businesses of Flemings and Chase are complementary both in terms of product range and geographic spread. It was felt that the sale gave Flemings the best opportunity for long-term growth, while releasing the significant value built up by the Company through its original 50% stake in Jardine Fleming. The offer became fully unconditional on 1st August. The profit on the sale of some US$800 million will be accounted for in the second half of the year. Jardine Strategic Jardine Strategic's 19%-held investment, Edaran Otomobil Nasional, continued to record an improved performance as the motor market in Malaysia strengthened. Connaught Investors saw modest gains as its net assets rose by some 3% during the half year to reach US$1,061 million. Jardine Strategic itself recorded a net profit for the half year of US$71 million, a decrease of 17% over 1999. The company will be receiving net proceeds of some US$250 million from the sale of its interest in Robert Fleming and it is its intention to utilise the proceeds largely to increase its stakes in its core investments and to initiate a share repurchase programme. Dairy Farm Dairy Farm's performance has been dominated by difficult operating conditions in its two largest businesses. In Hong Kong, there are some positive signs in the supermarket price war, with margins rising gradually, but it is expected that the effects will continue to be felt into 2001. In Australia, Franklins has experienced a decline in sales at a time when it is investing in repositioning its brand. While the initiatives should deliver benefit, acceptable levels of financial performance are not expected until 2002. Dairy Farm's other businesses are performing at or above expectations, and of particular significance has been the successful integration of the Giant chain in Malaysia and the Tops stores in Singapore. Against this mixed background Dairy Farm made a loss of US$51 million in the first six months, and has therefore not declared an interim dividend. The second half of the year will remain difficult as the company maintains its price position in Hong Kong and continues to invest in improved systems and stores at Franklins. This investment strategy is necessary to secure its longer-term performance and achieve its goal of becoming the leading food and drugstore retailer in the region. Hongkong Land A strong recovery in demand in Hong Kong's Grade A commercial property market, coinciding with tightening supply, has led to significantly increased rents. Vacancy was below 2% in Hongkong Land's office portfolio, and is likely to remain low in the absence of any significant new supply over the next two years. However, the reversion pattern of Hongkong Land's leases will delay the impact of this recovery on profit. Net profit for the first six months of 2000 was US$118 million, a decline of 21%. The positive impact on capital values of the recovery in rentals will be measured at the year end. Hongkong Land's office development in Singapore, One Raffles Link, opened fully let in the first half, and the retail element was successfully launched. In Hong Kong, 11 Chater Road remains on track for completion in 2002. The 29%-owned associate, Asia Container Terminals, completed its debt financing and awarded the main construction contract for the new container terminal in Hong Kong. In Mainland China, the group's power and water infrastructure investments made progress, and a small investment was made in the India Project Development Fund. Sensibly-priced investment opportunities are becoming more common in Asia, which, despite the current impact on its earnings of negative rent reversions, Hongkong Land is well positioned to pursue. Mandarin Oriental Mandarin Oriental took a significant step forward in its development when it acquired the prestigious Rafael Group in May, increasing its room portfolio from 5,800 to 7,000. The US$143 million acquisition was funded by a rights issue. Operationally, there was a continued recovery in Hong Kong, but that was more than offset by costs associated with the closure of its London property, which reopened in May following an extensive renovation programme. The net profit for the period at US$3 million, compared with US$9 million in 1999. In the rest of Asia, poor markets affected the hotels in Manila and Jakarta; The Oriental, Bangkok did well, commencing a US$30 million room renovation programme; while the hotels in Singapore and Macau performed satisfactorily. Results from the group's North American hotels continued to improve. The strategy is to position Mandarin Oriental as one of the world's leading luxury hotel brands, with a growing presence in North America, Europe and Asia, increasing the number of rooms under management to 10,000. In the second half of 2000 the group will begin to benefit from the reopening of the London hotel and the continuing recovery in Hong Kong. Cycle & Carriage Cycle & Carriage has acquired 31% of the voting rights in Astra International for an investment of some US$380 million. Astra International is one of Indonesia's largest conglomerates with a dominant presence in the automotive sector and further interests in agribusiness, heavy industry, information technology and financial services. The acquisition is a significant step in Cycle & Carriage's strategy of diversifying its earnings stream. Cycle & Carriage's profit for the first half of 2000, excluding non-recurring items, was S$83 million, a 57% increase. Earnings from motor operations rose 164% with improved performances from both Singapore and Malaysia. Underlying property earnings declined by 67% due to fewer development projects. The overall improved trading was, however, largely offset by foreign exchange losses on the debt of Astra International. The good trading performance of Cycle & Carriage is expected to be sustained in the second half of the year, albeit at a slower rate. The performance of Astra International should also continue to improve, although the level of its contribution will depend upon the stability of the Rupiah. ________________________________________________________________ Jardine Matheson Holdings Limited Consolidated Profit and Loss Account ________________________________________________________________ (unaudited) Year ended Six months ended 30th June 31st December 2000 1999 1999 US$m US$m US$m ________________________________________________________________ Revenue (note 2) 5,276.2 5,219.0 10,674.8 Cost of sales (4,024.1) (3,916.0) (8,039.7) -------- -------- -------- Gross profit 1,252.1 1,303.0 2,635.1 Other operating income 95.1 17.6 88.2 Selling and distribution costs (925.8) (877.9) (1,847.6) Administration expenses (305.2) (339.8) (652.2) Other operating expenses (24.2) (15.2) (61.2) -------- -------- -------- Operating profit (note 3) 92.0 87.7 162.3 Net financing charges (40.3) (28.7) (61.9) Share of results of associates and joint ventures 184.0 134.2 286.4 -------- -------- -------- Profit before tax 235.7 193.2 386.8 Tax (note 4) (58.7) (39.3) (92.2) -------- -------- -------- Profit after tax 177.0 153.9 294.6 Outside interests 3.3 (60.8) (87.2) -------- -------- -------- Net profit (note 5) 180.3 93.1 207.4 ======== ======== ======== ________________________________________________________________ USc USc USc ________________________________________________________________ Earnings per share (note 7) - basic 29.62 15.42 34.26 - diluted 29.60 15.41 34.22 Earnings per share excluding non-recurring items (note 7) - basic 19.24 14.66 29.07 - diluted 19.23 14.65 29.04 ________________________________________________________________ ________________________________________________________________ Jardine Matheson Holdings Limited Consolidated Balance Sheet ________________________________________________________________ (unaudited) At At 30th June 31st December 2000 1999 1999 US$m US$m US$m ________________________________________________________________ Net operating assets Goodwill 105.6 34.3 114.1 Tangible assets 2,739.4 2,437.6 2,742.4 Associates and joint ventures 3,005.4 2,897.5 2,975.4 Other investments 424.3 393.3 398.6 Deferred tax assets 20.7 37.3 26.3 Pension assets 83.2 85.0 81.1 -------- -------- -------- Non-current assets 6,378.6 5,885.0 6,337.9 Stocks and work in progress 955.2 999.2 1,111.5 Debtors and prepayments 857.0 952.2 878.7 Bank balances and other liquid funds 1,349.4 1,687.7 1,601.4 -------- -------- -------- Current assets 3,161.6 3,639.1 3,591.6 -------- -------- -------- Creditors and accruals (2,100.0) (2,151.8) (2,320.6) Borrowings (603.9) (808.4) (555.6) Current tax liabilities (30.5) (29.8) (30.9) Provisions (44.0) (31.2) (43.9) -------- -------- -------- Current liabilities (2,778.4) (3,021.2) (2,951.0) -------- -------- -------- Net current assets 383.2 617.9 640.6 Long-term borrowings (1,682.8) (1,229.6) (1,553.7) Deferred tax liabilities (71.0) (94.4) (77.1) Pension liabilities (13.3) (12.4) (14.2) Other non-current liabilities (9.8) (15.6) (9.5) -------- -------- -------- 4,984.9 5,150.9 5,324.0 -------- -------- -------- Capital employed Share capital 199.2 197.3 199.3 Share premium and contributed surplus 272.8 346.7 345.1 Revenue and other reserves 3,155.3 2,858.3 3,051.2 Own shares held (566.3) (474.9) (489.6) -------- -------- -------- Shareholders' funds 3,061.0 2,927.4 3,106.0 Outside interests 1,923.9 2,223.5 2,218.0 -------- -------- -------- 4,984.9 5,150.9 5,324.0 ======== ======== ======== _________________________________________________________________ _________________________________________________________________ Jardine Matheson Holdings Limited Consolidated Statement of Changes in Shareholders' Funds _________________________________________________________________ (unaudited) Year ended Six months ended 30th June 31st December 2000 1999 1999 US$m US$m US$m _________________________________________________________________ At beginning of period 3,106.0 2,931.6 2,931.6 Property revaluation - - 78.0 Deferred tax on property revaluation 0.6 0.2 (2.8) Net exchange translation differences - amount arising in period (45.0) (28.5) (13.5) - disposal of subsidiary undertakings, associates and joint ventures - (0.4) 0.6 Other 1.4 - 0.4 Net (losses)/gains not recognised in the consolidated profit and loss account (43.0) (28.7) 62.7 Net profit 180.3 93.1 207.4 Dividends (note 8) (104.7) (83.7) (130.6) Exercise of share options 0.2 0.7 1.1 Scrip issued in lieu of dividends 71.0 55.4 88.8 Repurchase of shares (72.6) - - Change in attributable interests 0.5 1.5 2.2 Increase in own shares held (76.7) (42.5) (57.2) ------- ------- ------- At end of period 3,061.0 2,927.4 3,106.0 ======= ======= ======= _________________________________________________________________ _________________________________________________________________ Jardine Matheson Holdings Consolidated Cash Flow Statement _________________________________________________________________ (unaudited) Year ended Six months ended 30th June 31st December 2000 1999 1999 US$m US$m US$m _________________________________________________________________ Operating activities Operating cash flow of subsidiary undertakings (note 9(a)) 56.5 197.3 398.5 Dividends from associates and joint ventures 105.7 90.7 177.2 Cash flows from operating activities 162.2 288.0 575.7 Investing activities Purchase of subsidiary undertakings (note 9(b)) (307.6) (98.8) (218.6) Purchase of associates and joint ventures (note 9(c)) (54.1) (90.9) (115.0) Purchase of other investments (11.1) (17.1) (35.6) Purchase of tangible assets (153.2) (131.5) (382.4) Sale of subsidiary undertakings (10.7) 5.6 40.1 Sale of associates and joint ventures (note 9(d)) 106.2 83.9 138.7 Sale of other investments 0.8 11.5 17.0 Sale of tangible assets 16.3 10.9 58.5 Cash flows from investing activities (413.4) (226.4) (497.3) Financing activities Issue of shares 0.2 0.7 1.1 Repurchase of shares (59.9) - - Capital contribution from outside shareholders 16.3 2.3 3.3 Drawdown of borrowings 1,129.1 3,111.3 6,114.1 Repayment of borrowings (947.2) (3,090.6) (6,046.9) Dividends paid by the company (63.5) (49.7) (76.7) Dividends paid to outside shareholders (82.4) (85.1) (208.3) Cash flows from financing activities (7.4) (111.1) (213.4) Effect of exchange rate changes (27.8) (7.0) 2.2 -------- -------- -------- Net decrease in cash and cash equivalents (286.4) (56.5) (132.8) Cash and cash equivalents at beginning of period 1,548.3 1,681.1 1,681.1 -------- -------- -------- Cash and cash equivalents at end of period 1,261.9 1,624.6 1,548.3 ======== ======== ======== _________________________________________________________________ _________________________________________________________________ Jardine Matheson Holdings Limited Notes _________________________________________________________________ 1. Accounting Policies and Basis of Preparation The unaudited interim condensed financial statements have been prepared in accordance with IAS 34 - Interim Financial Reporting. The accounting policies used in the preparation of the interim condensed financial statements are consistent with those used in the annual financial statements for the year ended 31st December 1999. The Group's reportable segments are set out in note 2. 2. Revenue Six months ended 30th June 2000 1999 US$m US$m ___________________________ By business: Jardine Pacific - Marketing & Distribution 523.4 428.4 - Engineering & Construction 146.3 196.0 - Aviation & Shipping Services 144.1 155.6 - Property & Financial Services 12.9 11.7 826.7 791.7 Jardine International Motors 1,399.4 1,457.2 Dairy Farm 2,925.9 2,845.7 Mandarin Oriental 93.7 86.9 Other activities 30.5 37.5 ------- ------- 5,276.2 5,219.0 ======= ======= 3. Operating Profit Six months ended 30th June 2000 1999 US$m US$m ___________________________ By business: Jardine Pacific - Marketing & Distribution 11.6 5.3 - Engineering & Construction 6.1 6.6 - Aviation & Shipping Services 4.1 5.2 - Property & Financial Services 5.1 5.7 - Corporate and other interests (1.6) (5.8) 25.3 17.0 Jardine International Motors 41.3 38.0 Dairy Farm (45.1) 25.2 Mandarin Oriental 13.0 15.9 ------- ------- 34.5 96.1 Corporate and other interests (2.2) (11.4) Non-recurring items (note 6) 59.7 3.0 ------- ------- 92.0 87.7 ======= ======= 4. Tax Six months ended 30th June 2000 1999 US$m US$m ____________________________ Company and subsidiary undertakings 16.9 9.0 Associates and joint ventures 41.8 30.3 ------ ------ 58.7 39.3 ====== ====== Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates and includes United Kingdom tax of US$4.8 million (1999: US$8.7 million). 5. Net Profit Six months ended 30th June 2000 1999 US$m US$m ____________________________ By business: Jardine Pacific - Marketing & Distribution 10.0 4.2 - Engineering & Construction 21.0 14.0 - Aviation & Shipping Services 11.8 3.5 - Property & Financial Services 7.0 7.5 - Corporate and other interests (5.3) (8.5) 44.5 20.7 Jardine International Motors 17.7 18.8 Jardine Lloyd Thompson 11.1 9.5 Robert Fleming 40.5 5.6 Dairy Farm (17.3) 10.3 Hongkong Land 27.8 31.7 Mandarin Oriental 2.1 3.1 Cycle & Carriage 0.7 4.0 ------- ------- 127.1 103.7 Corporate and other interests (10.0) (15.2) ------- ------- Net profit excluding non-recurring items 117.1 88.5 Non-recurring items (note 6) 63.2 4.6 ------- ------- 180.3 93.1 ======= ======= 6. Non-recurring Items Six months ended 30th June 2000 1999 Gross Net Gross Net US$m US$m US$m US$m ________________________________ By nature: Discontinued activities - Chubb China 57.9 57.9 - - - other 14.2 13.9 0.4 0.2 72.1 71.8 0.4 0.2 Impairment of assets (5.5) (5.0) - - Sale and revaluation of properties - - 0.8 0.3 Onerous leases and lease exit costs (4.8) (3.6) 4.1 4.1 ------ ------ ----- ----- 61.8 63.2 5.3 4.6 ====== ====== ===== ===== By business: Jardine Pacific 64.5 65.0 - - Jardine International Motors (4.8) (3.6) - - Jardine Lloyd Thompson 2.1 1.8 1.3 1.2 Cycle & Carriage - - 1.0 0.4 Corporate and other interests - - 3.0 3.0 ------ ------ ----- ----- 61.8 63.2 5.3 4.6 ====== ====== ===== ===== Included in: Operating profit 59.7 3.0 Share of results of associates and joint ventures 2.1 2.3 ----- ----- 61.8 5.3 ===== ===== Gross non-recurring items are shown before net financing charges and tax. Net non-recurring items are shown after net financing charges, tax and outside interests. 7. Earnings Per Share Basic earnings per share are calculated on net profit of US$180.3 million (1999: US$93.1 million) and on the weighted average number of 608.7 million (1999: 603.7 million) shares in issue during the period. The weighted average number excludes the Company's share of the shares held by subsidiary undertakings and the shares held by the Trustee under the Senior Executive Share Incentive Schemes. Diluted earnings per share are calculated on the weighted average number of 609.1 million (1999: 604.1 million) shares after adjusting for the number of shares which are deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes based on the average share price during the period. Earnings per share excluding non-recurring items are calculated on the net profit after adjusting for non- recurring profits of US$ 63.2 million (1999: US$4.6 million). 8. Dividends Six months ended 30th June 2000 1999 US$m US$m __________________________ Final dividend in respect of 1999 of USc17.20 (1998: USc13.80) per share 137.1 107.1 Less Company's share of dividends paid on the shares held by subsidiary undertakings (32.4) (23.4) ------- ------- 104.7 83.7 ======= ======= An interim dividend in respect of 2000 of USc7.80 (1999: USc7.80) per share amounting to a total of US$62.2 million (1999: US$61.6 million) is declared by the Board. The net amount after deducting the Company's share of the dividends payable on the shares held by subsidiary undertakings of US$16.4 million (1999: US$14.3 million) will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2000. 9. Notes to Consolidated Cash Flow Statement Six months ended 30th June 2000 1999 US$m US$m _______________________ (a) Operating cash flow of subsidiary undertakings Operating profit 92.0 87.7 Depreciation and amortisation 120.0 114.0 Other non-cash items (57.5) (3.3) (Increase)/decrease in working capital (44.1) 65.3 Interest received 47.7 69.2 Interest and other financing charges paid (84.3) (117.4) Tax paid (17.3) (18.2) ------- ------- 56.5 197.3 ======= ======= Six months ended 30th June 2000 1999 US$m US$m ___________________________ (b) Purchase of subsidiary undertakings Tangible assets 102.3 1.6 Associates and joint ventures 21.8 - Other investments 21.2 - Deferred tax assets - 0.1 Current assets 29.6 10.4 Current liabilities (19.5) (5.6) Long-term borrowings (30.7) - Deferred tax liabilities - (0.1) Outside interests 0.1 0.4 -------- ------- Fair value at acquisition 124.8 6.8 Goodwill attributable to subsidiary undertakings 45.6 14.3 -------- ------- Total consideration 170.4 21.1 Adjustment for deferred consideration and carrying value of associates and joint ventures (8.2) (6.7) Cash and cash equivalents of subsidiary undertakings acquired (11.0) 0.1 -------- ------- Net cash outflow 151.2 14.5 Payment of deferred consideration 8.6 4.4 Purchase of shares in Jardine Strategic 137.8 61.1 Purchase of shares in Dairy Farm 1.6 17.1 Purchase of shares in Mandarin Oriental 8.4 1.7 -------- ------- 307.6 98.8 ======== ======= Total consideration of US$170.4 million included US$147.7 million relating to the acquisition of The Rafael Group by Mandarin Oriental. (c) Purchase of associates and joint ventures Purchase of associates and joint ventures included Jardine Strategic's increased interest in Hongkong Land of US$37.5 million. (d) Sale of associates and joint ventures Sale of associates and joint ventures included Jardine Pacific's sale of Chubb China of US$70.0 million. 10. Capital Commitments and Contingent Liabilities At At 30th June 31st December 2000 1999 1999 US$m US$m US$m ___________________________________ (a) Capital commitments 125.7 163.7 124.3 ======= ======= ======= (b) Contingent liabilities - guarantees in respect of facilities made available to associates and joint ventures 116.5 205.7 225.4 - other guarantees 50.1 50.6 50.5 - acceptances outstanding in the ordinary course of a banking business - 15.8 16.2 ======= ======= ======= Various Group companies are involved in litigation arising in the ordinary course of their respective businesses. Having reviewed outstanding claims and taking into account legal advice received, the Directors are of the opinion that adequate provisions have been made in the financial statements. 11. Post Balance Sheet Events (a) On 1st August 2000, the sale of the Group's interest in Robert Fleming to Chase Manhattan was declared wholly unconditional. The net proceeds of approximately US$1,210 million will be used to increase interests in Group companies and to repurchase shares in the Company by means of a tender offer announced on 3rd August 2000. Under the share repurchase offer, shareholders are entitled to tender their shares at prices between US$4.80 and US$5.50 per share. It is the intention of the Company to repurchase up to 100 million shares with an option to increase to 165 million shares. (b) In June 2000, the Company announced the proposed privatisation of Jardine International Motors by way of a scheme of arrangement. The cost to the Company will amount to approximately US$63 million. The scheme is expected to be effective by the end of September 2000. 12. Interim Report The Interim Report will be posted to shareholders on or about 18th August 2000. Copies may be obtained from Jardine Matheson International Services Limited, P.O. Box HM 1068, Hamilton HM EX, Bermuda; Capita IRG plc, Bourne House, 34 Beckenham Road, Beckenham, Kent BR3 4TU, England and M & C Services Private Limited, 16 Raffles Quay 23-01, Hong Leong Building, Singapore 048581. The interim dividend of USc7.80 per share will be payable on 22nd November 2000 to shareholders on the register of members at the close of business on 29th September 2000 and will be available in cash with a scrip alternative. The ex-dividend date will be on 27th September 2000, and the share registers will be closed from 2nd to 6th October 2000, inclusive. Shareholders will receive their cash dividends in United States Dollars, unless they are registered on the Jersey branch register where they will have the option to elect for Sterling. These shareholders may make new currency elections by notifying the United Kingdom transfer agent in writing by 2nd November 2000. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing ten business days prior to the payment date. Shareholders holding their shares through The Central Depository (Pte) Limited ('CDP') in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars or the scrip alternative. For further information, please contact: Jardine Matheson Limited Norman Lyle (852) 2843 8216 Matheson & Co. Limited Martin Henderson (44) 207 816 8153 Forrest International Limited Anne Forrest (852) 2522 6475 David Dodwell (852) 2501 7902 Golin/Harris Ludgate Richard Hews/Victoria Martin (44) 207 253 2252 Note to Editors Jardine Matheson is a multinational Group of seven core businesses focused primarily on the Asia-Pacific region. Its operations employ some 150,000 people and its activities are leaders in the fields of supermarkets, consumer marketing, engineering and construction, motor trading, property and hotels. The Group has undergone a sustained shift in emphasis over recent years as businesses that did not present the opportunity for profitable scale or market leadership have been exited. The Group is building its core businesses largely in Asia Pacific with the goal of enhancing shareholder value for the long term. The primary listing of the parent company, Jardine Matheson Holdings Limited, is in London, and the bulk of the shares are traded in Singapore. The Company is incorporated in Bermuda and the Group is managed from Hong Kong by Jardine Matheson Limited.

Companies

Jardine Matheson Holdings Ltd (Singapore Reg) (JAR)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today