28th Jul 2005 07:03
Legal & General Group PLC28 July 2005 Part 3Legal & General Group Plc P1Consolidated Income Statement - IFRS BasisSix months ended 30 June 2005-------------------------------------------------------------------------------- Full year Notes 30.6.05 30.6.04 2004 Restated Restated £m £m £mProfit from continuing operationsLife and pensions 1 241 210 488Institutional fund management 44 32 69General insurance 4 17 32Other operational income 10 13 22 ------- ------- -------Operating profit 299 272 611Variation from longer term investment return 50 (26) 37Shareholder retained capital (SRC) movement 2 116 (150) (20)Property income attributable to minority interests 11 8 32 ------- ------- -------Profit from continuing operations before tax 476 104 660Tax 3 (120) (30) (182) ------- ------- -------Profit from continuing operations after tax 356 74 478Profit from discontinued operations 4 13 2 5 ------- ------- -------Profit on ordinary activities after tax 369 76 483Profit attributable to minority interests (11) (8) (32) ------- ------- -------Profit attributable to equity holders 358 68 451--------------------------------------------------------------------------------Earnings per share 5 p p pBased on operating profit from continuing operations after tax 3.18 3.01 6.71Based on profit attributable to equity holders 5.53 1.05 6.96 Diluted earnings per share 5Based on operating profit from continuing operations after tax 3.15 3.00 6.63Based on profit attributable to equity holders 5.38 1.05 6.87--------------------------------------------------------------------------------This financial information was approved by the Board on 27 July 2005. The results for the six months to 30 June 2005 and 30 June 2004 are unaudited,but have been subject to a review by the independent auditors and constitutenon-statutory accounts within the meaning of Section 240 of the Companies Act1985. They have been prepared on a basis which is consistent with the restatedfinancial information from UK GAAP to IFRS for the year ended 31 December 2004published on 24 May 2005. The published 31 December 2004 financial information includes an independent auditors' report which is unqualified. The original results for the year ended 2004 published on 24 February 2005 have been filed with the Registrar of Companies and include an independent auditors' report which is unqualified and does not contain a statement under either Sections 237(2) or 237 (3) of the Companies Act 1985. ================================================================================ Legal & General Group Plc P2Consolidated Balance Sheet - IFRS BasisSix months ended 30 June 2005-------------------------------------------------------------------------------- Notes At 30.6.05 At 30.6.04 At 31.12.04 Restated RestatedAssets £m £m £mInvestments 163,963 130,731 147,761Other assets 6,104 6,337 5,112Non-current assets held for sale - 649 733 --------- --------- --------- 170,067 137,717 153,606 ========= ========= =========Equity and liabilitiesShareholders' equity 6 3,793 3,398 3,671Minority interests 215 167 214Subordinated borrowings 801 394 394Technical provisions 159,777 128,975 144,569Senior borrowings 1,573 1,608 1,452Other creditors and provisions 3,908 2,612 2,672Non-current liabilities held for sale - 563 634 --------- --------- --------- 170,067 137,717 153,606 ========= ========= ========= ================================================================================ Legal & General Group Plc P3Notes to Financial Information - IFRS BasisSix months ended 30 June 2005--------------------------------------------------------------------------------1. Life and pensions operating profit Full year 30.6.05 30.6.04 2004 Restated Restated £m £m £mWith-profits business 32 33 67Non profit business 151 145 324 ------- ------- -------UK 183 178 391USA 27 25 58Netherlands 31 6 39France 0 1 0 ------- ------- ------- 241 210 488 ======= ======= ======= UK life and pensions operating profit is the accrued distributable transfer,grossed up at the corporate tax rate, and for non profit business is augmentedby the distribution in respect of the intra-group subordinated debt capital heldwithin the SRC. --------------------------------------------------------------------------------2. Movement in SRC Full year 30.6.05 30.6.04 2004 Restated Restated £m £m £mInvestment income 36 34 60Interest expense and charges (1) (1) (2)Realised investment gains 48 59 100Unrealised investment gains/(losses) 46 (26) 51 ------- ------- -------Investment return on SRC 129 66 209Net capital released from/(invested in) non profit business 138 (71) 95Distribution of operating profit from non profit business (151) (145) (324) ------- ------- -------SRC movement before tax 116 (150) (20) ======= ======= ======= SRC at 1 January 2,196 2,214 2,214SRC movement before tax 116 (150) (20)Tax (charge)/credit (18) 50 19SRC movement included in total recognised income and expense for the period 7 (2) (17) ------- ------- -------SRC at end of period 2,301 2,112 2,196 ======= ======= ======= SRC includes intra-group subordinated debt capital of £602m. ================================================================================ Legal & General Group Plc P4Notes to Financial Information - IFRS BasisSix months ended 30 June 2005--------------------------------------------------------------------------------3. Analysis of tax Full year Full year 30.6.05 30.6.05 30.6.04 30.6.04 2004 2004 Restated Restated Restated Restated Profit Tax Profit Tax Profit Tax before (charge)/ before (charge)/ before (charge)/ tax credit tax credit tax creditProfit from continuing £m £m £m £m £m £m operationsUK life and pensions 183 (55) 178 (53) 391 (117)International life and pensions 58 (23) 32 (12) 97 (33) ------- ------- ------- ------- ------- ------- 241 (78) 210 (65) 488 (150)Institutional fund management 44 (13) 32 (9) 69 (21)General insurance 4 (1) 17 (5) 32 (9)Other operational income 10 (1) 13 2 22 4 ------- ------- ------- ------- ------- -------Operating profit 299 (93) 272 (77) 611 (176)Variation from longer term investment return 50 (9) (26) (3) 37 (25)SRC movement 116 (18) (150) 50 (20) 19Property income attributable to minorities 11 - 8 - 32 - ------- ------- ------- ------- ------- -------Profit from continuing operations before tax / Tax 476 (120) 104 (30) 660 (182) ======= ======= ======= ======= ======= ======= In this IFRS information, only the element of total tax attributable to equityholders' profits is shown explicitly as tax, the balance being included withinexpenses. No deferred tax is provided at the incremental rate on the undeclared surplus inthe UK long term fund represented by the SRC on the grounds that, at the balancesheet date, no obligation to make a declaration of surplus exists and there isno expectation that such a declaration will occur. The maximum amount ofincremental tax which would crystallise on such a declaration of surplus at30.6.05 was £644m (30.6.04: £638m; 31.12.04: £619m). --------------------------------------------------------------------------------4. Sale of Gresham Insurance Company Limited On 3 February 2005 the Group announced that it had agreed in principle to sellits 90% stake in its subsidiary Gresham to Barclays Bank PLC subject to FSAapproval. The transaction completed on 31 March 2005 for a consideration of £85mof which £4m was paid in dividends by Gresham and the remaining in cash byBarclays. The transaction resulted in an exceptional profit before tax of £15m(£15m after tax). Full year 30.6.05 30.6.04 2004 Restated Restated £m £m £mPost tax results from discontinued operationsGresham profit to 31 March 2005 (2) 2 5Profit on disposal of Gresham 15 - - ------- ------- -------Profit from discontinued operations 13 2 5 ======= ======= ======= ================================================================================ Legal & General Group Plc P5Notes to Financial Information - IFRS BasisSix months ended 30 June 2005--------------------------------------------------------------------------------5. Earnings per share (EPS) Weighted Earnings average Profit/ per number (loss) share of shares £m p mSix months ended 30.6.05Operating profit from continuing operations after tax 206 3.18 6,477Variation from longer term investment return 41 0.64Change in SRC 98 1.51Profit from discontinued operations 13 0.20 ------- ------- -------Profit attributable to equity holders/EPS 358 5.53 6,477Net shares under options allocable for no further consideration - (0.03) 35Convertible bonds outstanding 8 (0.12) 285 ------- ------- -------Diluted profit attributable to equity holders/EPS 366 5.38 6,797 ======= ======= ======= Six months ended 30.6.04 (Restated)Operating profit from continuing operations after tax 195 3.01 6,478Variation from longer term investment return (29) (0.45)Change in SRC (100) (1.54)Profit from discontinued operations 2 0.03 ------- ------- -------Profit attributable to equity holders/EPS 68 1.05 6,478Net shares under options allocable for no further consideration - 0.00 24Convertible bonds outstanding * 12 - 285 ------- ------- -------Diluted profit attributable to equity holders/EPS 80 1.05 6,787 ======= ======= ======= Full year ended 31.12.04 (Restated)Operating profit from continuing operations after tax 435 6.71 6,479Variation from longer term investment return 12 0.19Change in SRC (1) (0.02)Profit from discontinued operations 5 0.08 ------- ------- -------Profit attributable to equity holders/EPS 451 6.96 6,479Net shares under options allocable for no further consideration - (0.03) 33Convertible bonds outstanding 16 (0.06) 285 ------- ------- -------Diluted profit attributable to equity holders/EPS 467 6.87 6,797 ======= ======= ======= * The shares associated with the convertible bond were antidilutive as they would have increased the net earnings per share and were therefore ignored,along with their associated revenue impact, when calculating the diluted earnings per share. ================================================================================ Legal & General Group Plc P6Notes to Financial Information - IFRS BasisSix months ended 30 June 2005--------------------------------------------------------------------------------6. Shareholders' equity Full year 30.6.05 30.6.04 2004 £m £m £m Restated RestatedAt 1 January 3,671 3,567 3,567Total recognised income and expense for the period 348 41 411Dividends (224) (216) (321)Movement in share based payment reserve 7 4 9Increase in share capital/premium 0 0 1Net (purchase)/allocation of treasury shares (9) 2 4 ------- ------- -------At end of period 3,793 3,398 3,671 ======= ======= ======= Comprising:Share capital 163 163 163Share premium 907 906 907Treasury reserve (36) (29) (27)Retained earnings and other reserves 2,759 2,358 2,628 ------- ------- ------- 3,793 3,398 3,671 ======= ======= ======= The number of fully paid ordinary shares of 2.5p in issue at the period end was6,506m (1H04: 6,505m; FY04: 6,506m). ================================================================================ Legal & General Group Plc P7Notes to Financial Information - IFRS BasisSix months ended 30 June 2005-------------------------------------------------------------------------------- 7. Segmental analysis of shareholders' equity At 30.6.05 At 30.6.04 At 31.12.04 Restated Restated £m £m £mSRC* 2,301 2,112 2,196Society shareholder capital** 2,049 1,877 1,973 ------- ------- -------Society shareholders' equity 4,350 3,989 4,169General insurance 161 227 247Netherlands 102 57 84France 60 61 64 ------- ------- -------Total Society shareholders' equity 4,673 4,334 4,564USA 537 460 488Institutional fund management 230 196 199Corporate funds*** (1,647) (1,592) (1,580) ------- ------- -------Shareholders' equity 3,793 3,398 3,671 ======= ======= ======= * Includes £602m of intra-group subordinated debt capital attributed to the SRC.** Represents surplus capital held outside the UK long term fund, including the rights issue proceeds.*** Includes the convertible debt of £501m (1H04: £486m; FY04: £493m) and £602m of senior debt which has been on lent to the UK long term fund. --------------------------------------------------------------------------------8. UK Long Term Fund At 30.6.05 At 30.6.04 At 31.12.04 Restated Restated £bn £bn £bnWith-profits business 27.8 25.3 26.8Non profit business 20.1 15.3 17.6Sub-fund 0.3 0.2 0.2SRC 2.3 2.1 2.2 ------- ------- -------Value of fund 50.5 42.9 46.8 ------- ------- ------- ================================================================================ Legal & General Group Plc P8Consolidated Cash Flow Statement - IFRS BasisSix months ended 30 June 2005-------------------------------------------------------------------------------- Full year 30.6.05 30.6.04 2004 Restated Restated £m £m £mProfit on ordinary activities after tax 369 76 483Non cash movements in net profit for the period (6,540) (314) (7,674)Net increase in operational assets (6,126) (10,463) (17,665)Net increase in operational liabilities 13,396 10,839 25,336 --------- --------- ---------Net cash flows from operating activities 1,099 138 480Cash flows from investing activitiesNet acquisition of property, plant and equipment (9) (2) (11)Net proceeds from disposal of Gresham 73 - - --------- --------- ---------Net cash flows from investing activities 64 (2) (11)Cash flows from financing activitiesDividends paid (224) (216) (321)Proceeds from issue of ordinary share capital 0 0 1Purchase of treasury shares (11) (1) (1)Increase in borrowings 493 59 373 --------- --------- ---------Net cash flows from financing activities 258 (158) 52 Net increase/(decrease) in cash and cash equivalents 1,421 (22) 521Exchange losses on cash and cash equivalents (3) (10) (2)Cash and cash equivalents at beginning of period 2,992 2,473 2,473 --------- --------- ---------Cash and cash equivalents at end of period 4,410 2,441 2,992 ========= ========= ========= Under IFRS, the Group's Consolidated Cash Flow Statement includes all cash andcash equivalent flows of the Group, including those relating to the UK long termfund. ================================================================================ This information is provided by RNS The company news service from the London Stock Exchange MORE TO FOLLOWRelated Shares:
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