Old Mutual hit by Nedcor performance

Posted On Monday, 10 May 2004 02:00 Published by
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UK and South African-listed financial services group Old Mutual plc (OML) has reported a 13% decline in adjusted operating earnings per share (EPS) in sterling terms for the year to end-December 2003

By Lynn Bolin

UK and South African-listed financial services group Old Mutual plc (OML) has reported a 13% decline in adjusted operating earnings per share (EPS) in sterling terms for the year to end-December 2003, dented mainly by a poor performance from its 53%-held South African banking subsidiary Nedcor (NED) and the weaker dollar exchange rate in both rand and sterling terms.

In rand terms, adjusted operating EPS fell 31%. The group declared a final dividend of 3.1 pence per share, unchanged from a year earlier, bringing the total dividend for the year to 4.8 pence.

Reporting its final results on Monday, Old Mutual said its final adjusted operating EPS fell to 10 pence from 11.3 pence a year earlier, while in rand terms the equivalent figures were 123.8 cents versus 179 cents in 2002.

The results are in line with the I-Net Bridge consensus of nine investment analysts, which expected Old Mutual's headline earnings per share to come in at 121.7 cents, a 32% decline from the 179 cents recorded in 2002.

The range of earnings forecasts was from 116 cents to 131.4 cents per share.

Old Mutual said its calculation of "adjusted operating profit" represents the directors' view of the underlying performance of the Group.

For life assurance and general insurance businesses, adjusted operating profit is based on a long-term investment return and includes investment returns on own shares held within the policyholders' funds.

For banking business, adjusted operating profit excludes the loss on disposal of investment in Dimension Data Holdings, Nedcor restructuring and integration costs and the transitional impact of the change in credit provisioning methodology.

For all businesses, adjusted operating profit excludes goodwill amortisation and impairment.

I-Net Bridge 23 February 2004


Publisher: Inet Bridge
Source: Business Day

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