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Liberty Holdings Ltd (LBH) is a group of companies offering a wide range of solutions in the financial services industry, including long-term insurance, investments and asset management, health risk business, and administration services.
Liberty Life was listed on the JSE in 1962 with assets just exceeding R 1m with Guardian Royal Exchange (GRE) acquiring a 75% controlling interest in 1964. Liberty Holdings was formed in 1968 to consolidate GRE’s South African operations, and the Group managed various further acquisitions over the years.
Company Structure
The Retail SA division includes Liberty’s core life insurance business, tasked with developing, marketing and distributing insurance products to individuals across SA, and LibFin, which forms part of the group’s risk management structure and manages market, credit and liquidity risk originating in the life insurance business.
The Institutional and Asset Management division has three components:
• STANLIB is an asset management business. As on 30 June, STANLIB’s total assets under management and administration stood at R 468bn.
• Liberty Properties develops and manages direct property assets across the retail and commercial sectors. These properties are used in many of Liberty’s products and policies.
• Liberty Corporate provides pension, provident, investment and risk solutions for groups of company employees. This division is also responsible for the administration of retirement funds and the provision of financial advice and intermediary services.
The Growth division includes those operations expected to grow much faster than Liberty’s core operations:
• Liberty Africa provides distribution for Liberty’s insurance, asset management, property, and health products on the continent. The division has established a footprint in 15 African countries, with expansion into West Africa one of the goals for 2013.
• Liberty Health provides health insurance through the Liberty Blue product, with about one million lives in Africa now serviced by the business unit.
• Direct Financial Services was launched in November 2010 and includes three operations, of which the life insurer Frank.Net is the most significant.
Latest Financial Results
Liberty released its interim results for the six months ended 30 June 2013 during August, and the market showed its concern with the slow growth in some areas when the share price dropped 3% on the same day.
Basic EPS and BEE normalised HEPS increased by only 6%, while BEE normalised operating earnings increased by 31% and BEE normalised Return on Equity stayed more or less constant at 22%. The interim dividend increased by 10% to 212 cents. Direct Financial Services and Liberty Health are still loss-making while Liberty builds up scale to leverage the investment in systems and processes.
Although these figures have obviously disappointed shareholders, these losses have decreased significantly compared to the same period last year.
The bulk of Liberty’s earnings came from the retail life insurance business, where earnings increased by 34%. Net cash inflows were strong at R 2.2bn, and the new business margin for the Retail SA business showed significant improvement from 1.7% to 2.0%.
The other major source of earnings was STANLIB, where earnings increased by 22%. Net inflows for the first six months amounted to R 9bn.
Current Valuation
Liberty is very attractively valued, trading on a PE ratio of 9 compared to the ALSI’s 18.3 and offering an attractive DY of 4.7% (2.8% for the ALSI).
Liberty is included in Seed’s Model Share Portfolios on the basis of the attractive current valuation and the potential upside in streamlining existing operations and achieving economies of scale within its Africa operations. Seed’s Model Share Portfolios are suitable for investors, with a minimum of R 1m to invest, through personal accounts at a stock broker.
The Seed Equity Fund, a smart beta unit trust that blends value and momentum portfolios, also has an allocation to Liberty. The share is a top 10 holding and has both value and momentum attributes. The unit trust is available to smaller investors – for more information please contact us.
Kind regards,
Cor van Deventer
www.seedinvestments.co.za
info@seedinvestments.co.za
021 914 4966
![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnews_images_sn%252F1295339089.jpg "Gold bars are displayed at South Africa's Rand Refinery in Germiston") Gold rose 1 percent on
Tuesday, to its highest price in more than three months, as
investors sought safe havens from rising geopolitical tension,
with an attack by Western powers on Syria seen possible within
days.
U.S. Defense Secretary Chuck Hagel said U.S. forces in the
region are "ready to g Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=http%253A%252F%252Fwww.sharenet.co.za%252Fimages%252Fprofile%252Frainbow_chickens.gif) Revenue for the year shot up to R10.1 billion (2012: R7.9 billion). Operating profit dropped to R166 million (2012: R414.2 million), while profit for the year attributable to equity holders of the company slumped to R26.5 million (2012: R266.8 million). Furthermore, headline earnings per sha Full story |
 Western powers could attack
Syria within days, envoys from the United States and its allies
have told rebels fighting President Bashar al-Assad, sources who
attended the meeting told Reuters on Tuesday. Full story  Prime Minister David Cameron
recalled parliament to debate Britain's response to a suspected
chemical weapons attack in Syria, after his spokesman said plans
were being drawn up for possible military action. Full story  Tunisia's Islamist Prime Minister
Ali Larayedh said on Tuesday he was ready to step aside for a
caretaker cabinet to hold new elections, but would not create a
power vacuum while the country faced serious security and
economic challenges. Full story |
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Markets |
The possibility of Western
military action against the Syrian government pushed oil prices
to a six-month high and sent equities worldwide substantially
lower on. . . Full story |
European stocks suffered their
biggest daily drop in two months on Tuesday as the threat of a
military strike against Syria prompted investors. . . Full story |
U.S. stocks fell on Tuesday as
geopolitical tensions flared on the possibility of an impending
military strike against Syrian President Bashar al-Assad's
forces in. . . Full story |
Financials and miners dragged
Britain's FTSE 100 lower on Tuesday as tensions in Syria and
prospects of stimulus withdrawal by the U.S. Federal. . . Full story | |||
U.S. stocks dropped at the open
on Tuesday after Western powers told the Syrian opposition to
expect a strike against President Bashar al-Assad's. . . Full story |
U.S. stock index futures fell
further on Tuesday after Western powers told the Syrian
opposition to expect a strike against President Bashar
al-Assad's forces. . . Full story |
Investment in Spanish and Italian
stocks has surged on the back of improved economic data,
trumping a Spanish party funding scandal and the. . . Full story |
European stocks dropped on Tuesday
as unease about the threat of a U.S.-led military strike against
Syria prompted some investors to cash in. . . Full story | ||||
SA Business |
South Africa has the space to manage its budget deficit and attract enough inflows to fund its yawning current account shortfall,. . . Full story |
South Africa on Tuesday raised its forecast of maize output for 2013 to 11.513 million tonnes from 11.394 million tonnes in. . . Full story |
South African stocks hit record highs for the third straight trading session on Tuesday, edging up as the weaker rand currency. . . Full story |
South Africa's rand extended losses against the dollar on Tuesday, weighed down by worsening labour strife that threatens to hurt growth. . . Full story | |||
South Africa's petrol
station and car dealership workers on Tuesday announced a strike
for higher wages next week, signalling more labour disruption to
a. . . Full story | South Africa's economic growth accelerated at a solid but slower-than-expected pace in the second quarter, driven by manufacturing, but with simmering. . . Full story | As many 72,000 workers at South Africa's petrol stations and car dealerships will go on strike for higher wages from next. . . Full story | South Africa's Treasury sold a total 2.35 billion rand of its 2031, 2037 and government bonds on Tuesday.. . . Full story |
The U.S. Federal Reserve must
consider when and how fast it unwinds its economic stimulus to
avoid harming emerging markets, although the impact on China
could be more limited compared with some other countries,. . . Full story | South Africa's Richards Bay Coal Terminal was on track to export more than 70 million tonnes of coal this year, up from 68.3 million tonnes the previous year, a senior official. . . Full story | A year ago, militant South African miners affiliated to upstart union AMCU were marching with spears, clubs and knives in often violent wildcat strikes and protests against management bosses.. . . Full story |
Company News |
Shareholders are hereby advised of the resignation of Ms Matsotso Vuso as an independent non-executive director of the company with immediate effect. As a result thereof, Ms Matsoso Vuso also resigns and is withdrawn as a member of the RBPlat Audit. . . Full story |
Resgen has moved to tidy up the ownership of its shareholding in Waterberg One Coal (Pty) Ltd. (WOC). Currently WOC is owned 70% by Resource Generation and 30% by Lukale Mining Company (Pty) Ltd. (Lukale). Following the agreed transaction, WOC will. . . Full story | |||||
Company Results | Revenue grew 20% to R1.0 billion (R864.1 million) whilst operating profit increased by 2% to R92.5 million (R90.4 million). Profit attributable. . . Full story | Revenue was up by 14.9% to R153.4 billion (R133.5 billion). Gross income rose by 11.3% to R30.4 billion (R27.3 billion) 291. . . Full story | Revenue for the year increased by 8% to R10.3 billion (2012: R9.5 billion). Operating profit shot up by 11% to R1.9. . . Full story | Revenue for the interim period rose 4% to R881.7 million (R850.4 million). EBITDA went up by 7% to R135.8 million (R126.6. . . Full story |
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Click here for the Sharenet Spot Price page
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 27/08/2013 | 139 | 208 | 62 | 409 | 191,641,460 | R12,250,141,148 | 149499 | 1801213 |
| 26/08/2013 | 247 | 93 | 81 | 421 | 135,298,492 | R6,958,444,213 | 88353 | 596604 |
| 23/08/2013 | 188 | 160 | 70 | 418 | 178,063,064 | R11,165,452,975 | 124397 | 1219484 |
| 22/08/2013 | 187 | 166 | 56 | 409 | 227,289,312 | R13,260,572,033 | 152092 | 1588383 |
| 21/08/2013 | 162 | 180 | 66 | 408 | 161,890,814 | R10,995,796,806 | 112542 | 1301493 |
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| Date | Time | Headline |
| 27/08/2013 | 17:47 | JOHN DANIEL HOLDINGS LIMITED - Updated Trading Statement |
| 27/08/2013 | 17:25 | OLD MUTUAL PLC - Notification of Transactions of Directors/Persons Discharging M... |
| 27/08/2013 | 17:15 | RAINBOW CHICKEN LIMITED - Abridged consolidated audited results for the year end... |
| 27/08/2013 | 17:07 | KAP INDUSTRIAL HOLDINGS LIMITED - Dealing in securities by a director of a major... |
| 27/08/2013 | 16:45 | MASTER DRILLING GROUP LTD - Interim Results for the period ended 30 June 2013 |
| 27/08/2013 | 16:40 | STELLA VISTA TECHNOLOGIES LIMITED - Appointment of Independent Non-Executive Dir... |
| 27/08/2013 | 16:37 | DATACENTRIX HOLDINGS LIMITED - Acquisition of eNetworks |
| 27/08/2013 | 16:18 | COUNTRY BIRD HOLDINGS LIMITED - Appointment of Acting Financial Director |
| 27/08/2013 | 16:14 | GLOBAL ASSET MANAGEMENT LTD - Disclosure of the Acquisition and Disposal of Secu... |
| 27/08/2013 | 16:12 | SOUTH OCEAN HOLDINGS LIMITED - Share Dealings in Securities by Directors Associa... |
| 27/08/2013 | 16:00 | ROYAL BAFOKENG PLATINUM LIMITED - Resignation of Independent Non-Executive Direc... |
| 27/08/2013 | 16:00 | COUNTRY BIRD HOLDINGS LIMITED - Audited results for the year ended 30 June 2013 |
| 27/08/2013 | 16:00 | SUPER GROUP LIMITED - Dealings in securities by directors, group company secreta... |
| 27/08/2013 | 15:50 | INDWA INVESTMENTS LIMITED - Listing of New Financial Instrument - INA347 |
| 27/08/2013 | 15:44 | FIRSTRAND BANK LIMITED - Listing of New Financial Instrument - FRS96 |
| 27/08/2013 | 15:38 | INDWA INVESTMENTS LIMITED - Listing of New Finanncial Instrument - IN04Q |
| 27/08/2013 | 15:27 | IVUZI INVESTMENTS LIMITED - Full Capital Redemption - IVA335 and IV01E |
| 27/08/2013 | 15:22 | GOGLOBAL PROPERTIES LIMITED - No change statement and notice of annual general m... |
| 27/08/2013 | 14:48 | WILDERNESS HOLDINGS LIMITED - Appointment of company secretary |
| 27/08/2013 | 14:15 | ITALTILE LIMITED - Dealing in securities by a director |
| 27/08/2013 | 13:58 | GOLD FIELDS LIMITED - Disclosure of Beneficial Interests Securities |
| 27/08/2013 | 13:52 | RAUBEX GROUP LIMITED - No change statement and notice of annual general meeting |
| 27/08/2013 | 12:57 | GROUP FIVE LIMITED - Dealing in securities by a director of a major subsidiary |
| 27/08/2013 | 12:55 | INGUZA INVESTMENTS (RF) LIMITED - Full Capital Redemption - ING198 and ING175 |
| 27/08/2013 | 12:35 | W G WEARNE LIMITED - Designated Adviser dealing in securities |
| 27/08/2013 | 12:30 | JSE LIMITED - Gen - General - Update Announcement |
| 27/08/2013 | 11:48 | ARROWHEAD PROPERTIES LIMITED - TRP121: Notification of the acquisition or dispo... |
| 27/08/2013 | 10:55 | IMBALIE BEAUTY LIMITED - Results of Annual General Meeting |
| 27/08/2013 | 10:47 | INVESTEC BANK LIMITED - Breached Barrier 2 Day VWAP- GRTIHB |
| 27/08/2013 | 10:15 | NUTRITIONAL HOLDINGS LIMITED - Dealings in Securities by Directors of the Compan... |
| 27/08/2013 | 10:00 | FONEWORX HOLDINGS LIMITED - Voluntary Announcement |
| 27/08/2013 | 10:00 | ILIAD AFRICA LIMITED - Unaudited Interim Results for the six months ended 30 Jun... |
| 27/08/2013 | 07:15 | BRIMSTONE INVESTMENT CORPORATION LD - Unaudited Results for the Six Months ended... |
| 27/08/2013 | 07:05 | RESOURCE GENERATION LIMITED - Increase in shareholding in Waterberg One Coal |
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