5th Mar 2020 13:40
(Alliance News) - Hong Kong-based conglomerate Jardine Matheson Holdings Ltd reported on Thursday a resilient performance in a tough market.
Jardine Matheson also warned on the effect coronavirus will have on 2020 performance, and also said it has once again split roles of executive chair and managing director.
Jardine Matheson has interests across property, retailing, luxury hotels, motoring, engineering, construction, insurance, and transport, with most operations situated in China and south-east Asia.
The company posted revenue for 2019 of USD40.92 billion, down 4% year-on-year. Including associates and joint ventures, revenue rose 12% to USD103.08 billion.
Pretax profit was broadly flat at USD5.44 billion, while the underlying figure fell by 4% to USD4.68 billion.
Jardine Matheson has declared a final dividend of USD1.28 per share, taking the year's total to USD1.72, up 1% on the year before.
"2019 was a challenging year, but the group has a long track record of resilience and delivered an encouraging performance in difficult conditions," said Executive Chair & Managing Director Ben Keswick.
Challenges, Jardine Matheson said, included the US-China trade war, dampened consumer sentiment in a number of markets, lower commodity prices, as well as social unrest in Hong Kong.
Looking ahead, Keswick commented: "The 2020 performance of the group's businesses in Greater China is being materially impacted by the ongoing COVID-19 outbreak and results for the remainder of the year will depend on the duration, geographic extent and impact of the outbreak and the measures taken to control it.
"Longer term, however, we remain confident in the market fundamentals that drive Asia's growth. The board also remains confident that the group's strong balance sheet, liquidity and clear strategic priorities will position Jardine Matheson well for strong long-term growth."
Turning to the executive team, the roles of executive chair and managing director, currently held by Ben Keswick, are to be split. He has held them since December 2018.
Keswick will remain as executive chair, but Finance Director John Witt is to take up the role of managing director. Witt joined Jardine Matheson in 1993 and has held a number of senior roles across the company.
Graham Baker, currently the finance chief at FTSE 100 medical devices maker Smith & Nephew PLC, will become finance director on June 1.
Keswick commented: "I am confident that these appointments will strengthen and enhance the effectiveness of the group's leadership as we respond to the challenges and opportunities we face in positioning Jardine Matheson for continuing long term success."
Shares in Jardine Matheson were untraded on Thursday, last quoted at USD62.50 each.
By George Collard; [email protected]
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