Interim Results - Part 2
St. James's Place Capital PLC
26 July 2000
Part 2
Review Report by the Auditors
To The Board of St. James's Place Capital plc
Introduction
We have been instructed by the company to review the financial information set
out on pages 9 to 22 and we have read the other information contained in the
interim report for any apparent misstatements or material inconsistencies with
the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The Listing
Rules of the Financial Services Authority require that the accounting policies
and presentation applied to the interim figures should be consistent with
those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board. A review consists principally
of making enquiries of group management and applying analytical procedures to
the financial information and underlying financial data and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed
in accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on
the financial information.
Review conclusion
On the basis of our review we not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2000.
PricewaterhouseCoopers
Chartered Accountants
London
Consolidated Long-Term Business
Technical Account
Restated
6 Months 6 Months
Ended Ended
30 June 30 June
2000 1999
=========== ===========
Note £'Million £'Million
Earned premiums, net of reinsurance
Gross premiums written 4 508.7 353.1
Outwards reinsurance premiums (10.5) (8.0)
=========== ===========
498.2 345.1
Increase in value of long-term 28.6 35.9
business in force
Investment income 426.1 109.1
Unrealised gains on investments - 135.9
=========== ===========
952.9 626.0
=========== ===========
Claims incurred, net of
reinsurance
Claims paid
- gross amount (116.2) (78.5)
- reinsurers' share 6.2 5.0
=========== ===========
(110.0) (73.5)
Change in the provision for claims
- gross amount (3.0) (3.1)
- reinsurers share 0.6 (0.5)
=========== ===========
(2.4) (3.6)
=========== ===========
(112.4) (77.1)
=========== ===========
Change in other technical
provisions, net of reinsurance
Long-term business provision (2.3) (10.0)
- reinsurers' share 0.3 2.8
=========== ===========
(2.0) (7.2)
Technical provisions for linked
business (475.6) (439.2)
Net operating expenses (76.3) (66.0)
Investment expenses and charges (7.4) (5.4)
Unrealised losses on investments (225.9) -
Tax attributable to the
long-term business (33.9) (12.0)
=========== ===========
(933.5) (606.9)
=========== ===========
Balance on the long-term business
technical account 3 19.4 19.1
=========== ===========
Consolidated Non-Technical Account
Restated
6 Months 6 Months
Ended Ended
30 June 30 June
2000 1999
=========== ===========
Note £'Million £'Million
Balance on long-term business
technical account 3 19.4 19.1
Tax credit attributable to balance
on long-term business technical
account 8.3 8.3
=========== ===========
Shareholders' profit from long-term
business 27.7 27.4
Investment income
Income from participating
interests
- continuing 11.9 4.7
- discontinued - 2.6
Income from other investments 3.4 2.0
Other income 19.1 10.5
Other expenses and charges (17.3) (10.1)
Exceptional items 6 (8.9) 1.6
=========== ===========
Profit on ordinary activities 2
before tax 35.9 38.7
Tax on profit on ordinary 7
activities (13.6) (11.0)
=========== ===========
Profit on ordinary activities 2
after tax 22.3 27.7
Dividends 8 (4.2) (3.2)
=========== ===========
Retained profit for the period 18.1 24.5
=========== ===========
Pence Pence
Earnings per share 9 5.3 6.6
Adjusted earnings per share 9 7.7 6.6
Fully diluted earnings per share 9 5.1 6.3
Fully diluted adjusted earnings 9
per share 7.5 6.3
Dividend per share 8 1.00 0.75
Net asset per share 101.21 75.22
In arriving at the operating profit, unless otherwise stated, all amounts
are in respect of continuing operations. The adjusted 1999 earnings per share
figures have been amended as detailed in note 9.
Consolidated Statement of Total
Recognised Gains and Losses
6 Months 6 Months
Ended Ended
30 June 30 June
2000 1999
=========== ===========
£'Million £'Million
Profit for the period 22.3 27.7
Currency translation
movements - 0.4
=========== ===========
Total recognised gains
for the period 22.3 28.1
=========== ===========
Consolidated Balance Sheet
30 June 30 June
2000 1999
=========== ===========
Note £'Million £'Million
Investments
In participating interests 93.7 85.1
Land and buildings 1.1 0.8
Other investments 152.8 98.3
=========== ===========
247.6 184.2
=========== ===========
Value of long-term business 204.5 167.1
in force
Assets held to cover linked 3,955.3 2,824.2
liabilities
Reinsurers' share of technical
provisions
Long-term business provision 18.3 14.9
Claims outstanding 1.4 2.1
Debtors 48.8 38.8
Other assets
Tangible assets 7.2 5.3
Cash and cash equivalents 69.9 29.2
Prepayments and accrued income 18.7 4.2
Deferred acquisition costs 29.1 23.4
=========== ===========
Total assets 4,600.8 3,293.4
=========== ===========
Technical provisions (88.0) (53.6)
Technical provision for linked (3,955.3) (2,824.2)
liabilities
Provisions for other risks and 10
charges (13.3) (6.3)
Creditors
Amounts owned to credit (11.9) (22.9)
institutions
Other creditors (78.8) (53.6)
Proposed dividend (4.2) (3.2)
Accruals and deferred income (20.9) (13.3)
=========== ===========
Total liabilities (4,172.4) (2,977.1)
=========== ===========
Total net assets 428.4 316.3
=========== ===========
Capital and reserves
Share capital 11 63.5 63.1
Shares to be issued 12 0.8 1.2
Other reserves 12 364.1 252.0
=========== ===========
Equity shareholders' funds 428.4 316.3
=========== ===========
Consolidated Cash Flow Statement
(excluding policyholder funds)
6 Months 6 Months
Ended Ended
30 June 30 June
Note 2000 1999
=========== ===========
£' Million £' Million
Operating activities
Net cash inflow/(outflow)from
operating activities 13 4.1 (0.4)
Dividends received from
participating interests - 2.2
Returns on investments and
servicing of finance
Interest received 3.4 1.7
Interest paid (0.2) (0.9)
=========== ===========
3.2 0.8
Taxation
Corporation tax paid (11.2) (0.9)
Capital expenditure and financial
investment
Purchase of tangible
fixed assets (2.2) (2.1)
Sale of fixed assets 0.2 0.1
=========== ===========
(2.0) (2.0)
Equity dividends paid (4.2) (3.2)
Financing
Issue of ordinary share capital 0.1 -
Increase in new loan - 0.2
=========== ===========
0.1 0.2
=========== ===========
Net cash outflow (10.0) (3.3)
=========== ===========
The net cash outflow was invested
as follows:
Net portfolio investments
Deposits with credit institutions (17.8) 0.6
Increase/(decrease) in cash
holdings 7.8 (3.9)
=========== ===========
Net application of cash flows (10.0) (3.3)
=========== ===========
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