Liberty Positive About Prospects

Liberty Holdings dropped profits in 2009 But they are very positive about their 2010 results.

Although Liberty Holdings experienced a turbulent 2009 due to economic pressure, the company noted in a statement this week that it was positive about 2010 results.

Liberty Holdings, a wealth management and insurance group, pays out its shareholders through capital reduction, which is slightly different to a dividend.

The bottom line is, however, that shareholders still receive money for their shares held in the group. The group managed to retain its dividend of 291c per share, despite the rocky market.

Speaking in a statement this week, the Chief Executive Officer of Liberty Holdigns, Bruce Hemphill said: "The economic outlook for 2010 is positive as the global economy emerges from recession."

"However," he continued, "there is still some uncertainty about economic development in certain developed economies."

Earnings for Liberty Holdings slumped R740 million in 2008 to only R47 million in 2009.

Nevertheless, the optimism continued in Hemphill's statement.

"The capital base has been strengthened, the balance sheet has been significantly derisked, and necessary corrective actions have been taken on persistency," he said.

"In this context, the board has decided that an appropriate balance is achieved by declaring an unchanged cash distribution."

There had been concerns that dividend payouts would have been cut as a result of the poor results for 2009.

Announcing plans to grow Liberty's core insurance business locally, Hemphill said: "We believe that this, together with the impact of corrective actions taken at Stanlib, growth in Liberty Africa, the development of Liberty Health and the positive economic climate positions the group favourably for the future."