Jardine Strategic Hldgs Ltd Interim Management Statement (5478Y)
09 May 2019 - 9:33PM
UK Regulatory
TIDMJDS TIDMJAR
RNS Number : 5478Y
Jardine Strategic Hldgs Ltd
09 May 2019
9th May 2019
For immediate release
Jardine Strategic Holdings Limited
Interim Management Statement
Jardine Strategic Holdings Limited today publishes its Interim
Management Statement for the first quarter of 2019.
The Group performed steadily during the period, with overall
earnings slightly ahead of the comparable period in 2018. The
Group's balance sheet at 31st March 2019 remained strong, with
gearing unchanged since the end of 2018.
Of the Group's businesses held directly by Jardine Matheson,
Jardine Pacific experienced a slower start to the year, with a
lower contribution from its engineering and construction businesses
due to the timing of projects. This is expected to continue for the
rest of the first half. Jardine Restaurants, however, delivered
good profit growth. Jardine Motors saw its earnings increase
overall, benefitting from a strong contribution from its investment
in Zhongsheng, partially offset by lower profitability in Zung Fu
in mainland China and Hong Kong.
The offer for Jardine Lloyd Thompson by Marsh & McLennan
completed on 1st April 2019 and the Group has received net proceeds
of US$2.1 billion for the sale of its stake.
Within the businesses held by Jardine Strategic, Hongkong Land
saw positive rent reversions and occupancy levels remained high in
its office portfolios in Hong Kong and Singapore. The group's
property development activities in mainland China saw a slower rate
of both completions and contracted sales during the first quarter
than in the comparable period in 2018.
This trend is expected to continue in the second quarter, but
market sentiment remains stable and the pace of both completions
and contracted sales is expected to pick up in the second half of
the year. There were satisfactory levels of pre-sales at the
group's projects in Singapore and the rest of Southeast Asia.
Dairy Farm's results for the period were in line with the
comparable period in 2018, with four of the group's five formats
continuing to perform well despite mixed market conditions. There
was a strong performance from the Health and Beauty business as
well as from key associates Maxim's, Yonghui and Robinsons Retail,
which offset the continuing softness in the Food business. IKEA
continued to perform in line with expectations, although its
contribution to the group was impacted by higher pre-opening costs
than in the first quarter of 2018. Implementation of the group's
multi-year transformation plan is now in progress, with actions
being taken to improve performance over the medium term.
Mandarin Oriental's results for the quarter were higher than the
comparable period in 2018, with the London hotel continuing to
benefit from insurance coverage for loss of profits while its
guestrooms remained closed for repair. The Excelsior, Hong Kong
also performed well. There were, however, weaker performances at
the Paris and Washington D.C. hotels due to softer market
conditions. Results were also impacted by the partial closure of
the Bangkok hotel for renovation at the end of February. The
Excelsior, Hong Kong closed at the end of March and demolition work
has now commenced ahead of the planned construction of a mixed-use
commercial building. The closure will substantially reduce Mandarin
Oriental's underlying profit in 2019.
Jardine Cycle & Carriage delivered lower profits in the
first quarter of the year, with increased local currency earnings
from Astra - in particular its financial services and heavy
equipment, mining, construction and energy businesses - offset by a
lower contribution from the group's non-Astra interests. The
group's Direct Motor Interests saw higher profits but no dividend
was recognised from Vinamilk in the period, whereas the 2017 final
dividend was recognised in the comparable period last year.
Jardine Strategic is a holding company which takes long-term
strategic investments in multinational businesses, particularly
those with an Asian focus, and in other high quality companies with
existing or potential links with the Group. Its principal
attributable interests are in Jardine Matheson 58%, Hongkong Land
50%, Dairy Farm 78%, Mandarin Oriental 78% and Jardine Cycle &
Carriage 75%, which in turn has a 50% interest in Astra. It also
has a minority interest in Zhongsheng and Greatview Aseptic
Packaging. Jardine Strategic is 85% held by Jardine Matheson.
Jardine Strategic Holdings Limited is incorporated in Bermuda
and has a standard listing on the London Stock Exchange, with
secondary listings in Bermuda and Singapore. The Company's
interests are managed from Hong Kong by Jardine Matheson
Limited.
- end -
For further information, please contact:
Jardine Matheson Limited
Jonathan Lloyd (852) 2843 8223
Brunswick Group Limited
Karin Wong (852) 3512 5077
This and other Group announcements can be accessed through the
internet at www.jardines.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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