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Jardine Matheson Holdings Limited 2005 Issues Preliminary Announcement of Results
London, England: March 29, 2006 - The following was today issued to the London Stock Exchange with regard to Jardine Matheson Holdings Limited 2005 Preliminary Announcement of Results:
Highlights:
€¢Underlying earnings and net assets per share up strongly€¢
Full-year dividend up 13%€¢
Good profit growth at Astra and Dairy Farm€¢
Hongkong Land property portfolio value increases 34%€¢
Astra consolidated as a subsidiary€¢
Jardine Strategic acquires 20% interest in Rothschilds Continuation"After a number of years of outstanding profit increases, the effects on some Asian economies of higher interest rates and oil prices may dampen results in the current yearparticularly in Indonesia. The longer-term prospects for Jardine Matheson, however,remain encouraging." - Henry Keswick, Chairman, 29th March 2006
Overview
Good performances from a majority of the Group's operations enabled Jardine Matheson to achieve a satisfactory increase in profits and shareholders' funds in 2005.Performance
Jardine Matheson's underlying profit rose 17% in 2005 to US$463 million and underlying Earnings per share rose 19% to US$1.33, benefiting from the effect of earlier share repurchases. Earnings were, however, flattered by certain mark to market foreign exchange hedging contracts, which produced gains in 2005 following losses in 2004. Without these, the Group's underlying profit growth would have been closer to 10%.
In terms of trading profit the main contributors to a successful year were Astra and Dairy Farm, which both produced fine results, together with continuing businesses within Jardine Pacific. The significant increase in total net profit for the period was primarily due to the Company's share of the 34% revaluation of Hongkong Land's investment properties, which was taken through the profit and loss account. Net assets per share rose 36% to US$14.33, which figure does not reflect the market value of the Group's listed subsidiaries and affiliates.
The Board is recommending a final dividend of US¢35.65 per share, which together with the interim dividend of US¢9.35 gives a total for the full year of US¢45.00 per share, an increase of 13% compared with US¢40.00 for the prior year.
Business Developments
In recent years Group companies have achieved good operating cash flows, improved earnings and stronger balance sheets. Advantage has also been taken of the low interest rate environment to secure long-term financing. The resultant sound financial position has supported broad capital expenditure programmes, dividend growth and the pursuit of opportunities for profitable expansion.
The Group's policy of broadening its earnings base by complementing its established North Asian business portfolio with investments in Southeast Asia is proving effective. Some 44% of underlying profit came from Southeast Asia in 2005, and it is expected that the region will remain a significant contributor.