 CHALLENGER INTERNATIONAL LIMITED 2001-08-28 ASX-SIGNAL-G
HOMEX - Sydney
+++++++++++++++++++++++++
ANNUAL PROFIT ANNOUNCEMENT
The Directors of Challenger International are pleased to advise an
increase of 91% in profit after tax to $154.1 million ($80.6 million)
for the year to 30 June 2001 and a 118% increase in profit before tax
to $184.8 ($84.6m)
The focus over the past year has been on organic growth
within the
Group resulting in a 137% increase in revenue.
While growth has occurred across all segments of the Group there has
been particularly strong growth in Annuities, where Challenger Life
has maintained its top rating; the Howard Mortgage Trust which at
$1.5 billion is the largest commercial mortgage trust in Australia
and Synergy Master Trust which has grown to over $1 billion in funds
under management.
Challenger Life, a wholly owned subsidiary, has grown its inve
stment
in top quality properties with long term leases to good credits by
over $1 billion giving the company a total property portfolio of
$1.7bn. Two of the significant properties purchased were in the
United Kingdom within a kilometre of the Bank of England. Both these
have leases in excess of 15 years to top quality tenants. The rental
flows from these properties secure long term liabilities of the Life
company.
The purchase of the superannuation administration and master
trust of
CSA Consulting in October 2000 has added to Challenger's
Superannuation product Offering. Funds under a combination of
administration and management have grown strongly from $100m to
$600m.
Included in the profit after tax figure is an amount of $30 million
relating to the increase in the appraisal value of Challenger Life No
2. The directors received advice from the independent actuaries,
Ernst & Young and have adopted a conservative value.
Further product initia
tives will continue to deliver growth in the
coming year. These initiatives include the Challenger Cash Management
Trust, Challenger Global Choice, Challenger Boutique Choice, Galaxy
Master Trust and a new series of Bank Endowment Warrants with
Challenger as the issuer.
Since financial year end the company finalised its rights issue
raising $85 million which will be used largely to capitalise the UK
operations and it is expected that its life licence should be granted
during
the second half of this calendar year. With the purchase of
Neville James in December of last year, Challenger International has
already established a strong management and operational base in the
UK with an expanding sales force.
Directors are recommending a final dividend of 6.3 cents per share
(unfranked). This will make total dividends for the year 8.5 cents
per share which represents an increase of 24% over the previous year
(adjusted for bonus and rights issues). The
record date for the
dividend and election under the DRP is 6 September 2001.
D H Slatyer
COMPANY SECRETARY
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