In making the announcmnet the Comapny noted the following highlights:
· Recurring earnings per share increased by 21% to US¢35.22
· Robert Fleming stake sold for a profit of US$767 million
· Successful 20% share repurchase offer
· Strong operating cash flows support business initiatives
Performance
Jardine Matheson Holdings Limited today announced that this was a year of progress for the Group, with a strong operating performance and a number of corporate moves designed to generate value for shareholders. Despite a slowing in the Group's primary Asian markets towards the end of the year, recurring earnings per share increased by 21% to US¢35.22. Asset sales, share repurchases and a recovery in Hong Kong commercial property rentals were responsible for a 67% increase in net assets per share to US$8.50.
The Board is recommending an increased final dividend of US¢18.70 per share, which together with the interim dividend of US¢7.80 per share, gives a dividend for the full year of US¢26.50 per share, compared with US¢25.00 in 1999.
Developments
Turning to the developments, the Chairman, Henry Keswick, said that the Group's operating cash flows of some US$400 million allow it to invest in all its core businesses as well as to purchase shares in Group companies when favourable market circumstances present themselves. Throughout the year the Group continued to rationalise its business portfolio, concentrating its resources on those of its operations which merit increased investment by virtue of their market leadership or growth prospects.
Notable business initiatives in 2000 included the acquisition of The Rafael Group by Mandarin Oriental, the privatisation of Jardine Motors Group, Cycle & Carriage's investment in Astra International, the regional development of Dairy Farm, the expansion of Jardine Lloyd Thompson's operations in the United Kingdom and the United States, and Hongkong Land's upgrading of its Central portfolio.
The sale of the Group's investment in Robert Fleming to Chase Manhattan for US$1.2 billion, payable half in cash and half in Chase stock, was completed in August, generating a profit of US$767 million. Jardine Matheson's shareholders were given the option to benefit directly from this sale through a repurchase tender for some 20% of the Company's equity capital at a premium to market price. This offer, which was equally well received by accepting shareholders and by those who preferred to retain their shares for future appreciation, was partly funded by the issue of US$550 million bonds exchangeable into Chase stock. In addition, various other non-core businesses were disposed of profitably during the year. These non-recurring gains were partially offset by asset impairments and provisions of some US$56 million in Jardine Motors Group, US$35 million of asset impairments in Jardine Pacific and the Group's US$51 million share of a provision against Dairy Farm's Australian retail operations.
In accordance with the groupwide strategy for improving returns on equity, share repurchases were also implemented at Hongkong Land and Jardine Strategic, the companies respectively buying back 5% and 8% of their equity capital, the former by tender offer and the latter by open market transactions. In addition, Jardine Matheson and Jardine Strategic took advantage of opportunities to increase their stakes in most of the Group's principal listed companies.
Looking Ahead
In conclusion, Henry Keswick said, "The earnings per share growth which we were able to achieve in 2000 is expected to continue in the current year, as the prospects for the majority of our businesses remain positive. This will, however, be subject to business confidence being maintained, especially in the Asian economies where we chiefly operate.
"The breadth and depth of experience within the Jardine Matheson Group gives it a competitive advantage, particularly in Asia, which should ensure continued growth in our businesses and enhanced returns for shareholders over the long term."