February 23,1998
RESORTS WORLD BHD
PRELIMINARY ANNOUNCEMENT
THE DIRECTORS OF RESORTS WORLD BHD ARE PLEASED TO ANNOUNCE THE AUDITED RESULTS OF THE GROUP AND OF THE COMPANY FOR THE YEAR ENDED 31ST DECEMBER 1997, TOGETHER WITH THE COMPARATIVE RESULTS FOR THE YEAR ENDED 31ST DECEMBER 1996 AS FOLLOWS:
| GROUP | COMPANY | GROUP | COMPANY | ||||
| 1997 RM mil | 1996 RM mil | 1997 RM mil | 1996 RM mil | + or - % | + or - % | ||
| 1.(a) | TURNOVER | 3,038.7 | 2,105.9 | 2,243.9 | 1,989.4 | +44 | +13 |
| (b) | INVESTMENT AND INTEREST INCOME | 74.6 | 78.0 | 30.1 | 15.7 | -4 | +92 |
| 2.(a) | PROFIT BEFORE TAXATION AND MINORITY
INTERESTS AND AFTER DEPRECIATION [see note (i) below] | 1,090.9 | 802.9 | 751.8 | 720.7 | +36 | +4 |
| (b) | TAXATION | (224.5) | (233.2) | (222.6) | (231.8) | -4 | -4 |
| (c) | PROFIT AFTER TAXATION BEFORE MINORITY INTERESTS | 866.4 | 569.7 | 529.2 | 488.9 | +52 | +8 |
| (d) | MINORITY INTERESTS | 0.9 | 0 | 0 | 0 | +>100 | 0 |
| (e) | PROFIT ATTRIBUTABLE TO MEMBERS OF THE COMPANY | 867.3 | 569.7 | 529.2 | 488.9 | +52 | +8 |
| Note: (i) | DEPRECIATION INCLUDING AMORTISATION | 119.8 | 113.2 | 111.5 | 106.4 | +6 | +5 |
| GROUP | COMPANY | |||||
| 1997 | 1996 | 1997 | 1996 | |||
| 3. | PROFIT [2(e) ABOVE] AS A PERCENTAGE OF TURNOVER [1(a)] ABOVE | 28.5% | 27.1% | 23.6% | 24.6% | |
| 4. | PROFIT [2(e) ABOVE] AS A PERCENTAGE OF ISSUED
CAPITAL AND RESERVES AT END OF YEAR | 24.7% | 20.4% | 17.8% | 18.8% | |
| 5. | EARNINGS IN SEN PER ORDINARY SHARE
OF 50 SEN EACH FOR THE YEAR BASED ON [2(e) ABOVE] | 79.4 SEN | 52.2 SEN | |||
| 6. | NET TANGIBLE ASSETS BACKING PER ORDINARY SHARE OF 50 SEN EACH | RM3.21 | RM2.56 | |||
| 7. | THE RESULTS OF THE GROUP AND OF THE COMPANY INCLUDE THE FOLLOWING EXCEPTIONAL ITEMS: |
| GROUP | COMPANY | ||||
| 1997 RM mil | 1996 RM mil | 1997 RM mil | 1996 RM mil | ||
| GOODWILL WRITTEN OFF | 24.2 | 0 | 0 | 0 | |
| PROFIT ARISING FROM THE SALE OF INVESTMENTS | 329.3 | 13.6 | 0 | 0 | |
APART FROM THE ABOVE, THE RESULTS OF THE GROUP AND OF THE COMPANY FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 1997 HAVE NOT BEEN AFFECTED BY ANY MATERIAL FACTORS AND ITEMS OF AN EXTRAORDINARY NATURE. IN THE OPINION OF THE DIRECTORS, NO SIGNIFICANT TREND OR EVENT HAS OCCURED BETWEEN 31ST DECEMBER 1997 AND THE DATE OF THIS REPORT WHICH WOULD AFFECT SUBSTANTIALLY THE RESULTS OF THE GROUP AND OF THE COMPANY. |
| 8. | GROUP | COMPANY | GROUP | COMPANY | ||||
| 1997 RM mil | 1996 RM mil | 1997 RM mil | 1996 RM mil | +
or - % | +
or - % | |||
| (a) | PROFIT [2(e) ABOVE] REPORTED FOR FIRST HALF YEAR | 282.2 | 312.8 | 253.6 | 273.4 | -10 | -7 | |
| (b) | PROFIT [2(e) ABOVE] REPORTED FOR SECOND HALF YEAR | 585.1 | 256.9 | 275.6 | 215.5 | + >100% | +28 | |
| 9. | TAXATION FOR THE YEAR INCLUDES DEFERRED TAX CHARGE OF RM9.9 MILLION (1996 : DEFERRED TAX CREDIT OF RM1.8 MILLION) FOR THE GROUP AND RM10.6 MILLION (1996 : DEFERRED TAX CREDIT RM1.7 MILLION) FOR THE COMPANY. THERE IS NO MATERIAL ADJUSTMENT FOR UNDER-PROVISION FOR TAXATION RELATING TO PRIOR YEARS (1996 : RM4.2 MILLION) FOR THE GROUP AND (1996 : RM4.4 MILLION) FOR THE COMPANY. |
| 10. | THE RESULTS DO NOT INCLUDE ANY PRE-ACQUISITION PROFITS. |
| 11. | SINCE THE PAYMENT OF THE INTERIM DIVIDEND FOR THE YEAR ENDED 31ST DECEMBER, 1997 TO THE DATE OF THIS REPORT, THE COMPANY DID NOT MAKE ANY RIGHTS, BONUS AND/OR OTHER ISSUES OF EQUITY SHARES. |
| 12. | THE DIRECTORS ARE OF THE OPINION THAT THE CURRENT ECONOMIC CONDITIONS IN THE REGION MAY HAVE AN UNFAVOURABLE IMPACT ON THE RESULTS FOR THE CURRENT YEAR. |
| 13.(a) | A FINAL DIVIDEND OF 12 SEN LESS 28% TAX PER ORDINARY SHARE OF 50 SEN EACH IN RESPECT OF THE FINANCIAL YEAR ENDED 31ST DECEMBER 1997 HAS BEEN RECOMMENDED BY THE DIRECTORS FOR APPROVAL BY SHAREHOLDERS. THE ENTITLEMENT DATE AND THE DATE OF PAYMENT OF THE SAID FINAL DIVIDEND WILL BE DETERMINED BY THE DIRECTORS AT A LATER DATE. |
(b) | INTERIM DIVIDEND WAS 8.5 SEN LESS 30% TAX (NOW DEEMED AS 28%) PER ORDINARY SHARE. |
(c) | ANNUAL DIVIDEND PER ORDINARY SHARE OF 50 SEN EACH :- |
| 1997 (RM mil) | 1996 (RM mil) | ||
| INTERIM | 8.5 SEN LESS
30% TAX (NOW DEEMED AS 28%) | 8.5 SEN LESS 30% TAX | |
| FINAL | 12.0 SEN LESS 28% TAX | 12.0 SEN LESS 30% TAX (NOW DEEMED AS 28%) |
(d) | TOTAL ANNUAL NET DIVIDEND :- |
| 1997 RM mil | 1996 RM mil | ||
| INTERIM | 65.0 | 65.0 | |
| FINAL | 94.3 | 91.7 | |
| 159.3 | 156.7 |
(e) | CLOSURE OF BOOKS THE DATES OF CLOSURE OF THE SHARE TRANSFER BOOKS AND REGISTER OF MEMBERS FOR THE PURPOSE OF DETERMINING SHAREHOLDERS' ENTITLEMENT TO THE FINAL DIVIDEND WILL BE ANNOUNCED AT A LATER DATE. |