CTF Services Limited — Earnings Release 2004

Oct 15, 2004

Listed Company Information

Listed Company Information
NWS HOLDINGS<00659> - Results Announcement NWS Holdings Limited announced on 15/10/2004: (stock code: 00659 ) Year end date: 30/06/2004 Currency: HKD Auditors' Report: Unqualified (Restated) (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2003 from 01/07/2002 to 30/06/2004 to 30/06/2003 Note ('Million ) ('Million ) Turnover : 12,552.9 5,770 Profit/(Loss) from Operations : 547.8 656 Finance cost : (280.8) (194.1) Share of Profit/(Loss) of Associates : 493 317.3 Share of Profit/(Loss) of Jointly Controlled Entities : 1,127.5 591.8 Profit/(Loss) after Tax & MI : 1,538.2 1,193.2 % Change over Last Period : +29 % EPS/(LPS)-Basic (in dollars) : 0.86 1.36 -Diluted (in dollars) : 0.86 N/A Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 1,538.2 1,193.2 Final Dividend : $0.25 $0.2 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 01/12/2004 to 06/12/2004bdi. Payable Date : 15/12/2004 B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Basis of preparation and accounting policies The accounts have been prepared under the historical cost convention as modified by the revaluation of investment properties and investment securities, and in accordance with accounting principles generally accepted in Hong Kong and comply with accounting standards issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") (previously named the Hong Kong Society of Accountants). In the current year, the Group adopted the revised Statement of Standard Accounting Practice ("SSAP") 12 Income Taxes issued by the HKICPA which is effective for accounting periods commencing on or after 1 January 2003. On adoption of the revised SSAP 12, deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the accounts. Taxation rates enacted or substantively enacted by the balance sheet date are used to determine deferred taxation. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred taxation is provided on temporary differences arising on investments in subsidiary companies, associated companies and jointly controlled entities, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. In prior year, deferred taxation was accounted for at the current taxation rate in respect of timing differences between profit as computed for taxation purposes and profit as stated in the accounts to the extent that a liability or an asset was expected to be payable or recoverable in the foreseeable future. The adoption of SSAP 12 represents a change in accounting policy, which has been applied retrospectively so that the comparatives presented have been restated to conform to the changed policy. Opening equity at 1 July 2002 and 2003 have been reduced by HK$287.2 million and HK$307.4 million, respectively, which represent the unprovided net deferred tax liabilities. This change has resulted in an increase in deferred tax assets and deferred tax liabilities at 30 June 2003 by HK$19.0 million and HK$172.7 million, respectively. The profit for the year ended 30 June 2003 has been reduced by HK$20.2 million. In December 2003, the HKICPA further clarified that depreciation of toll roads should reflect the consumption of economic benefits from the associated assets and should be either time or usage based. On the basis that the recognition principles previously adopted by the Group under the sinking fund depreciation method was by reference to the economic usage of the assets, the Directors concluded that there is no material impact to the financial statements as a result of this further clarification from the HKICPA. 2. Operating profit Operating profit of the Group is arrived at after crediting and charging the following: For the year ended 30 June 2004 2003 HK$'m HK$'m Crediting:- Profit on disposal of subsidiary companies 395.6 27.1 Profit on disposal of a jointly controlled entity 13.1 - Gross rental income from investment properties 40.5 14.5 Less: Outgoings (10.6) (5.6) 29.9 8.9 ======= ======= Charging:- Cost of inventories sold 780.7 176.3 Depreciation 441.7 241.0 Operating lease rental expenses Land and buildings 87.4 45.4 Other equipment 55.9 16.0 Other charges Loss on disposal of a subsidiary company 3.3 - Loss on disposal of fixed assets 26.7 - Impairment loss on goodwill of an associated company 310.0 - Impairment loss on investment in a jointly controlled entity 29.0 - Impairment loss on fixed assets 36.4 74.8 405.4 74.8 ======== ======= 3. Earnings per share The calculation of basic earnings per share is based on profit of HK$1,538.2 million (2003: restated profit of HK$1,193.2 million less preference share dividend of HK$11.4 million) and the weighted average of 1,784.5 million (2003: 866.1 million) shares in issue during the year. The calculation of diluted earnings per share for the year ended 30 June 2004 is calculated based on 1,799.0 million shares which were the weighted average number of 1,784.5 million shares in issue during the year plus the weighted average of 14.4 million shares deemed to be issued at HK$3.725 and 0.1 million shares deemed to be issued at HK$6.93, if all outstanding share options had been exercised. The convertible bonds issued during the year would not have a dilutive effect. The calculation of diluted earnings per share for the year ended 30 June 2003 was not presented as the share options granted by the Company would not have a dilutive effect.