(RNS) London Pacific Group - Interim Results
London Pacific Group - Interim Results
RNS No 3594n
LONDON PACIFIC GROUP LIMITED
2 August 1999
Interim Results
London Pacific Group Limited today announces its results for the six months
ended 30 June 1999.
* Profit before taxation increased to $59.1 million for the half (1998:
$19.2 million)
* Profit after taxation increased to $40.1 million for the half (1998: $14.5
million)
* Diluted earnings per share were 74.1 cents (1998 as restated: 25.4 cents)
or $2.96 per ADR (1998 as restated: $1.02)
* Net asset value at the end of the period was $413.3 million ($6.41 per
share or $25.64 per ADR)
* Interim dividend per share held at 11.0 cents (gross): 8.8 cents per share
(net) or 35.2 cents per ADR
London Pacific Group Limited invests in later-stage venture capital
companies in the US with a focus on Internet technologies. The Group's life
insurance company is the primary funding source for these investments.
When combined with the Group's investment management businesses, assets
under management or administration were $4.3 billion at 30 June 1999.
Profit before taxation increased 208% for the six months ended 30 June
1999 to $59.1 million. These strong results reflect the benefit of
initial public offerings for two investee companies in the first half
and the rise in value of another company that completed its public
offering last year. Listed equity investments are valued on the
balance sheet at their market value to provide shareholders with a
better picture of the Group's progress in its core business. This
mark to market valuation policy also enables the Group to hold
successful listed equities longer, without being constrained by the
need to sell investments in any given accounting period. These
venture capital gains, net of investment provisions, are central to
the Group's aim of growing earnings and capital as well as being able
to offer competitive products to its clients.
Sales of deferred annuities at London Pacific Life & Annuity Company
increased by 58% to $122 million. Many opportunities are opening up
to add new distribution in the retirement savings market due to the
consolidation of companies in the life insurance industry.
Recruitment of new agents was particularly encouraging with a net
increase of about 500 agents to approximately 2,500.
The Group's assets under management or administration increased by
approximately $400 million during the first half of 1999, including
the insurance business. Berkeley Capital Management has experienced
growing demand for its WRAP investment products which are sold through
19 brokerage firms and financial advisory companies. The Group's own
financial advisory firm, SAI Financial Advisors, is expanding nicely
due to the increased demand for fee based financial services in the
retail and institutional markets.
Berkeley International Capital Corporation originates and monitors the
venture capital investments. The market is highly competitive for new
deals but the response time of the experienced investment team is a
significant advantage in Silicon Valley. Four new investments were
made in the first seven months of the year for an aggregate amount of
$25 million.
The Group has made much progress in expanding its track record in the
venture capital market in the last few years, with another two IPOs
completed in July, as well as in enlarging the distribution channels
for its other investment products.
For further information, please contact:
London Pacific Group Limited
Ian Whitehead
Chief Financial Officer (USA) (916) 641 4220
Issued by
Citigate Dewe Rogerson
Sue Pemberton (UK) 0171 638 9571
The Company's 1999 interim report will be sent to shareholders during
August. Copies of this report may be obtained from the Company
Secretary at the registered office in Jersey.
The interim dividend will be paid on 19 August 1999 to shareholders on
the register on 13 August 1999, with the ex-dividend date on 9 August
1999. The interim dividend will be paid on 30 August 1999 to ADR
holders whose names are registered with the ADR Depositary on 13
August 1999, with the ex-dividend date on 11 August 1999.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the six months to 30 June 1999 and 1998 (unaudited)
1998
1999 Continuing Discontinued Total
Operations Operations
$'000 $'000 $'000 $'000
Net operating income
Investment 4,218 8,125 30 8,155
Venture capital (1) 2,813 3,076 - 3,076
Life insurance and annuities 53,386 14,674 - 14,674
Fund management and advisory
services (1) 687 335 (1,814) (1,479)
_______ _______ _______ _______
Total net operating income 61,104 26,210 (1,784) 24,426
Corporate expenses (2,028) (2,284) (38) (2,322)
_______ ______ _______ _______
Profit before exceptional item
and taxation 59,076 23,926 (1,822) 22,104
Exceptional item - (2,886) - (2,886)
_______ ______ _______ _______
Profit before taxation 59,076 21,040 (1,822) 19,218
______ _______
Taxation (18,962) (4,758)
_______ _______
Profit after taxation 40,114 14,460
Interim dividend declared (2)
(11.0 cents per share gross
1998 11.0 cents per share
gross) (4,408) (4,608)
_______ _______
Retained profit 35,706 9,852
_______ _______
Interim dividend declared per
ADR (3) (cents) 35.2 35.2
_______ ______ _______
1999 1998
_______ ______ _______ _______
Basic Diluted Basic Diluted
_______ _______ _______ _______
Earnings per share as previously
reported (cents) 26.8 23.5
Adjustments - change in accounting
standard (cents) 0.3 1.9
_______ _______
Earnings per share (1998 as
restated) (4) (cents) 81.2 74.1 27.1 25.4
_______ _______ _______ _______
Earnings per ADR (1998 as
restated) (4) ($) 3.25 2.96 1.08 1.02
_______ _______ _______ _______
(1) Certain prior year amounts have been reclassified to conform with
the current year's presentation.
(2) Payable on 19 August 1999 to shareholders on the register as of
13 August 1999, with an ex-dividend date of 9 August 1999.
(3) Payable on 30 August 1999 to ADR holders on the register as of 13
August 1999, with an ex-dividend date of 11 August 1999.
(4) Prior year comparatives have been restated due to the adoption of UK
Financial Reporting Standard No.14, "Earnings per Share".
LONDON PACIFIC GROUP
CONSOLIDATED BALANCE SHEET
at 30 June 1999 (unaudited)
1999
_________
$'000
Fixed assets
Investments 1,389,356
Own shares 50,962
Deferred policy acquisition costs 114,073
Tangible assets 1,716
Intangible assets 1,191
Other assets 1,381
_________
1,558,679
Current assets
Debtors 40,549
Deferred taxation 2,338
Listed equity investments 129,392
Cash held in escrow 7,175
Liquid resources 54,971
Cash 7,089
_________
241,514
_________
Creditors
Taxation payable 2,748
Dividend payable 4,408
Due to broker 5,263
Accounts payable and accrued 11,912
liabilities
_________
24,331
_________
Net current assets 217,183
_________
Total assets less current liabilities 1,775,862
Deferred taxation (36,124)
Long-term insurance reserves (1,325,510)
Other long-term liabilities (976)
_________
413,252
_________
Capital and reserves
Called up share capital 3,222
Share premium 45,852
Shares to be issued 1,589
Capital redemption reserve 952
Profit and loss account 361,637
_________
Shareholders' funds 413,252
_________
Net asset value per share $6.41
_________
Net asset value per ADR $25.64
_________
END
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