ANNOUNCEMENTS
Guoco Group Limited
The board of directors of Guoco Group Limited ("Guoco") announces that First Capital Corporation Ltd ("FCC"), whose shares are listed on The Stock Exchange of Singapore Limited, and of which Guoco holds approximately 54.28% of the issued share capital, made an announcement on 15 September 2000 in respect of its audited results for the year ended 30 June 2000. An abridged version of the aforesaid announcement is set out as follows (note: the expressions "Group", "Company" and "$" mean "FCC group", "FCC" and "Singapore dollars" respectively):
(Incorporated in the Republic of Singapore) FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT Full-year financial statement on consolidated results for the year ended 30 June 2000. These figures have been audited:
Group Company
2000 1999 2000 1999
$'000 $'000 $'000 $'000
Turnover 219,267 471,671 113,537 195,693
========== ========== ========== ==========
Investment income 8,739 18,430 60,257 135,555
Other income including
interest income 5,965 15,560 53,280 60,138
========== ========== ========== ==========
Operating profit/(loss) before
income tax, minority interests,
extraordinary items, interest
on borrowings, depreciation
and amortisation, foreign
exchange gain/(loss) and
exceptional items 58,634 (70,953) 112,379 193,990
Interest on borrowings (34,987) (30,345) (43,615) (38,447)
Depreciation and amortisation (4,039) (2,557) (1,481) (521)
Foreign exchange gain/(loss) 3,715 752 1,572 (4,792)
Exceptional items 81,165 (33,890) 43,124 (169,296)
---------- ---------- ---------- ----------
Operating profit/(loss) before
income tax, minority interests
and extraordinary items but
after interest on borrowings,
depreciation and amortisation,
foreign exchange gain/(loss)
and exceptional items 104,488 (136,993) 111,979 (19,066)
Losses derived from associated
companies (24,816) (29,625) - -
Less income tax (20,119) (22,616) (22,800) (43,086)
---------- ---------- ---------- ----------
Operating profit/(loss) after
tax before deducting minority
interests 59,553 (189,234) 89,179 (62,152)
Less minority interests (4,497) 9,855 - -
---------- ---------- ---------- ----------
Operating profit/(loss) after
tax attributable to members
of the company 55,056 (179,379) 89,179 (62,152)
Transfer to Capital Reserve 2,000 43 2,000 -
---------- ---------- ---------- ----------
Operating profit/(loss) after
tax and extraordinary items
attributable to members of
the company 55,056 (179,379) 89,179 (62,152)
========== ========== ========== ==========
Group Figures
2000 1999
Operating profit/(loss) after tax before
deducting minority interests as a percentage
of turnover 27.16% (40.12)%
Operating profit/(loss) after tax attributable
to members of the Company as a percentage of
issued capital and reserves at end of year 5.18% (14.29)%
Earnings per ordinary share for the year based
on the operating profit/(loss) after tax
attributable to members of the Company after
deducting any provision for preference
dividends:
Based on existing issued share capital 14.35 cents (61.48) cents
On a fully diluted basis 13.37 cents (56.36) cents
Earnings per share based on operating
profit/(loss) after tax and extraordinary
items attributable to members of the Company:
Based on existing issued share capital 14.35 cents (61.48) cents
On a fully diluted basis 13.37 cents (56.36) cents
Net tangible asset backing per ordinary share $2.76 $2.78
Bonds and Bank Loan Due 2002 cum Warrants - Alternative Accounting Treatment If International Accounting Standards No. 32 and No. 39 (which deal, among other things, with accounting for an issue of debts with detachable warrants) had been adopted when preparing the accounts, the profit after tax of the Group and of the Company would have been reduced by approximately $433,000, being adjustment for amortisation of deemed discount on the Bonds and Bank Loan. On the same basis, the net assets of the Group and of the Company would have been increased by approximately $867,000, being the allocated value of the warrants less amortisation of the deemed discount on the Bonds and Bank Loan.
Group Company
2000 1999 2000 1999
$'000 $'000 $'000 $'000
Sales reported for first
half year 97,223 320,250 72,512 69,211
Operating profit/(loss) after
tax before deducting minority
interests reported for first
half year 49,350 (47,535) 115,012 (8,608)
Sales reported for second
half year 122,044 151,421 41,025 126,482
Operating profit/(loss) after
tax before deducting minority
interests reported for second
half year 10,203 (141,699) (25,833) (53,544)
Amount of any adjustment for under or overprovision of tax in respect of prior years There was a write back of $3,387,000 tax provisions in respect of prior years for the Group. Amount of profits on any sale of investments and/or properties Sale of investments/properties $ Profit/(Loss) Sale of an investment in a subsidiary $59,207,000.00 Sale of a long-term investment by a subsidiary $15,088,000.00 Sale of investment properties by subsidiaries ($4,379,000.00) SEGMENTAL RESULTS
Group
Profit/(Loss)
Group Before Interest
Turnover & Tax
2000 1999 2000 1999
$'000 $'000 $'000 $'000
By Business Activity:
Property development and
investment 178,360 434,958 92,399 (118,872)
Fund management and
investment income 26,012 22,758 40,465 (3,176)
Insurance services 14,895 13,955 6,611 15,400
Associated companies - - (24,816) (29,625)
---------- ---------- ---------- ----------
219,267 471,671 114,659 (136,273)
========== ========== ========== ==========
By Geographical Location:
Singapore 216,971 469,753 110,177 (93,045)
Others 2,296 1,918 4,482 (43,228)
---------- ---------- ---------- ----------
219,267 471,671 114,659 (136,273)
========== ========== ========== ==========
BALANCE SHEET
Group Company
2000 1999 2000 1999
$'000 $'000 $'000 $'000
Fixed Assets 2,068 2,406 - -
Investment Properties 305,170 536,372 - -
Long-term Investments 185,007 89,301 - -
Interests in Subsidiaries - - 1,109,048 812,373
Interests in Associated
Companies 657,641 623,932 251,717 219,624
Amounts due from Minority
Shareholders of Subsidiaries 23,839 27,273 - -
Deferred Expenditure 3,999 3,126 3,745 1,416
Current Assets 1,793,530 1,689,014 57,214 137,289
Less: Current Liabilities 622,200 521,944 290,519 86,820
---------- ---------- ---------- ----------
Net Current
Assets/(Liabilities) 1,171,330 1,167,070 (233,305) 50,469
Less: Non-Current Liabilities
Amounts due to minority
shareholders of
subsidiaries 19,594 17,213 - -
Long-term bank loans 955,713 833,634 200,990 -
Long-term notes & bonds 245,000 288,014 245,000 288,014
Deferred taxation 447 4,296 - -
Deferred profit 19,500 - 19,500 -
---------- ---------- ---------- ----------
1,240,254 1,143,157 465,490 288,014
---------- ---------- ---------- ----------
1,108,800 1,306,323 665,715 795,868
========== ========== ========== ==========
Representing:
Share Capital & Reserves
Share Capital 368,955 363,569 368,955 363,569
Share Premium 192,474 397,826 192,474 397,826
Capital Reserve 8,774 9,331 - -
Exchange Translation Reserve 19,468 38,578 2,493 -
Investment Revaluation
Reserve 212,160 218,124 - -
Capital Redemption Reserve 3,083 1,083 3,000 1,000
Unappropriated Profit 257,682 226,485 98,793 33,473
---------- ---------- ---------- ----------
1,062,596 1,254,996 665,715 795,868
Minority Interests 46,204 51,327 - -
---------- ---------- ---------- ----------
1,108,800 1,306,323 665,715 795,868
========== ========== ========== ==========
REVIEW OF THE PERFORMANCE OF THE COMPANY AND ITS PRINCIPAL SUBSIDIARIES For the year ended 30 June 2000, the Group's turnover decreased by 54% to $219.3 million. The Group sold 153 units in Aquarius By The Park and 161 units in Sanctuary Green during the financial year compared to 639 units sold in the previous financial year. Turnover at the Company level decreased by 42% to $113.5 million primarily due to lower dividend income from its subsidiaries. Despite the lower turnover, the Group made an operating profit after tax of $55.1 million against a loss of $179.4 million in the previous financial year. The operating profit was mainly attributable to gains from its investment dealing activities, the sale of a subsidiary, Century Square Development Ltd ("CSD"), which owns the Century Square Shopping Mall and write back of provision for foreseeable losses on development projects. Other divestment of non-core assets during the financial year included the sale of its entire retail space in Kovan Centre, terraced factories in Paya Lebar and office units in Parkway Parade. As provisions were made for the Group's overseas investments, the Group's associated companies turned in a loss before tax of $24.8 million. The classification of exceptional items is a result of an early adoption of revised Singapore Statement of Accounting Standard No. 8 ("SAS 8"). In line with SAS 8, with effect from the financial year under review, the Group will treat the sale of long-term investments and provision for diminution in value of the long-term investments as "Exceptional Items". Previously the Group treated such items as "Extraordinary Items". Arising from the change of accounting policy, certain comparative figures in the previous financial year have been reclassified to allow comparability with current year's figures. The net tangible asset backing per share has decreased marginally from $2.78 as at 30 June 1999 to $2.76 as at 30 June 2000. CURRENT DEVELOPMENTS During the financial year under review, the Group completed the acquisitions of the Leonie Hill and Meyer Road sites. The Group also acquired a freehold site in Paya Lebar and a 40% interest in the freehold site at 6 Cuscaden Walk. The Group has launched The Gardens at Bishan and intends to launch the remaining units in Aquarius By The Park and Sanctuary Green in the later part of this year. Ladyhill, in which the Group has a 40% interest, will also be launched this year. COMMENTARY ON CURRENT YEAR PROSPECTS With the encouraging economic growth and sustained recovery in the residential property market, the Directors expect the Group's property development business to perform satisfactorily in the current year. The Group will continue to provide quality housing and improve its business processes through information technology and e-business to enhance its product quality and marketability. In the present economic outlook and barring unforeseen circumstances, the Directors expect the Group to continue to be profitable for the current financial year. DIVIDEND (a) Present Period
Name of Proposed Ordinary Preference Preference
Dividend (First and Final)
Dividend Type Cash Cash Cash
Dividend Rate 7% per ordinary 7% per preference 5% per preference
share less tax share less tax share less tax
Par value of
shares $1.00 $0.01 $0.01
Tax Rate 25.5% 25.5%/26% 26%
(b) Previous Corresponding Period
Name of Proposed Ordinary Preference Preference
Dividend (First and Final)
Dividend Type Cash Cash Cash
Dividend Rate 5% per ordinary 7% per preference 5% per preference
share less tax share less tax share less tax
Par value of
shares $1.00 $0.01 $0.01
Tax Rate 26% 26% 26%
(c) Total Annual Dividend
2000 1999
$ $
Ordinary 19,481,000 13,373,000
Preference 2,378,000 8,393,000
---------- ----------
Total: 21,859,000 21,766,000
========== ==========
15 September 2000 |
By Order Of The Board
Doris W. N. Wong
Company Secretary
Hong Kong, 15 September 2000
< < Back to Announcements