8 Nov 2018 09:20
8th November 2018
For immediate release
Jardine Strategic Holdings LimitedInterim Management StatementJardine Strategic Holdings Limited today publishes its Interim Management Statement for the third quarter of 2018.Overall, the Group performed steadily during the period, with year on year earnings growth in line with the half year. The Group's balance sheet at 30th September 2018 remained strong, with gearing little changed since the half year.Of the Group's businesses held through Jardine Matheson, Jardine Pacific saw reduced income for the period, with Jardine Restaurants facing challenging trading conditions and Transport Services recording lower earnings. Jardine Motors saw improved results overall for the period, due to a higher contribution from its mainland China businesses, while earnings in Hong Kong remained steady with stable new car sales. The UK business saw vehicle sales impacted by supply issues which resulted in lower profits.The offer for Jardine Lloyd Thompson by Marsh & McLennan Companies, Inc. announced in September has now been approved by shareholders. The transaction is expected to close in Spring 2019, subject to receipt of the relevant competition clearances and regulatory approvals.Within the businesses held directly by the Company, Hongkong Land saw positive rent reversions and high occupancy levels in its office portfolios in Hong Kong and Singapore. While its property development activities in mainland China saw lower contracted sales during the third quarter despite market sentiment remaining stable, these are expected to increase in the last quarter due to the timing of sales launches. In Singapore, market demand has moderated due to additional cooling measures introduced by the government. Dairy Farm's businesses produced mixed results in the period. Although there was a strong performance in Health and Beauty and good results from Home Furnishings and Restaurants, the performance of the Hong Kong Food business has softened and the Food businesses across Southeast Asia continue to face significant challenges. The group is also making substantial investments in technology, supply chain infrastructure, stores and people in order to improve the long-term performance of the business. Mandarin Oriental's overall results for the quarter were higher than the same period in 2017, despite the absence of earnings from Hotel Ritz, Madrid, which closed for restoration at the end of February.Jardine Cycle & Carriage's earnings rose, with revenue growth in most of Astra's businesses. Astra saw increased contributions from its heavy equipment, mining, construction and energy, financial services and automotive segments, which more than offset a lower contribution from agribusiness. There were also improvements in its Direct Motor Interests and Other Strategic Interests.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 84% 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.
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For further information, please contact:Jardine Matheson LimitedJonathan Lloyd (852) 2843 8223Brunswick Group LimitedKarin Wong (852) 3512 5077This and other Group announcements can be accessed through the internet at www.jardines.com.