BIL turns in interim profit

By Phil Boeyen, ShareChat Business News Editor

Tuesday 19th March 2002

Singapore-based BIL International (NZSE: BRY) has reported a US$5.1 million interim profit, appointed a new CEO and announced its intention to delist from the ASX.

The company, formerly Brierley Investments Limited, says the profit for the six months ended December compares with a US$20 million loss for the same period the previous year.

Although the company made an operating loss of US$3.2 million before income tax, minority interests and extraordinary items, the final tally was lifted by US$9 million in income from associated companies. Income tax was just US$700,000 compared with US$8 million the year before.

BIL reports its investment activities showed handsome gains, with two Australian investments, Coates Hire and SPC, showing increases in market value of over 50% by the end of the first half. Both investments have since been sold for returns of 70% and 54% respectively.

The stake in Fraser & Neave has also increased in value, rising around 25% over the average entry price as at 18 March 2002.

CEO Greg Terry says with the company's stablilisation and the simplification of its asset portfolio and financing structure, he has decided to step down as chief executive from the end of March. He will be replaced by Arun Amarsi, currently executive director of operations.

"Going forward, BIL will be more simple to manage and BIL's overheads will be reduced further," Mr Terry says.

"BIL has a strong balance sheet. Its major investment, Thistle Hotels is a valuable asset with significant opportunity to grow and capture value.

"Profitability for BIL in the 2002 financial year will depend in part upon the profitability of Thistle and in part upon the profitability of the company's investment activities and therefore upon developments in global stock markets."

The company says it will record an equity accounted gain of US$27 million on the recently announced sale of 37 hotels by UK-based Thistle. The investment in the hotel company represents US$702 million of BIL's total assets of US$1.158 billion.

BIL has also announced that it will delist from the Australian Stock Exchange from the start of July after changes to requirements for Foreign Exempt listings.

"As of 1 July 2002, ASX proposes to change the requirements for entities listed in the Foreign Exempt Category such that entities in this category will be required to have both A$2 billion of net assets and A$200 million profit after tax in each of the previous three years," the company says.

"With these changes, BIL will no longer be able to meet the listing criteria and will therefore delist from the ASX on 1 July 2002."

The company says a detailed announcement on the delisting will be made in the coming weeks.

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