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CHALLENGER LIMITED — Interim / Quarterly Report 2020
Feb 10, 2020
64641_rns_2020-02-10_0f1227f0-7acb-4273-84f9-e1c06a70e37c.pdf
Interim / Quarterly Report
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Challenger Limited 2020 Interim Financial Report
Under ASX Listing Rule 4.2A.3 for the six months ended 31 December 2019
Current period
Prior corresponding period (PCP)
1 July 2019 to 31 December 2019 1 July 2018 to 31 December 2018
| 31 Dec | 31 Dec | |||
|---|---|---|---|---|
| 2019 | 2018 | Change | Change | |
| Results for announcement to the market | $m | $m | $m | % |
| Revenue from ordinary activities | 1,222.2 | 893.5 | 328.7 | 36.8 |
| Profit from ordinary activities after tax attributable to equity holders | 220.4 | 6.1 | 214.3 | large |
| Netprofit for theperiod attributable to equityholders1 | 220.4 | 6.1 | 214.3 | large |
1 Share of profit of associates is $12.8m (pcp $11.7m).
The net profit for the period attributable to equity holders was higher than the PCP mainly due to improved investment experience. Refer to the operating and financial review in the 2020 Interim Financial Report for a full description of the matters relating to the net profit for the period.
Normalised net profit after tax, management’s preferred measure of profit which excludes the impact of investment experience, for the six months ended 31 December 2019 decreased by 4.2% to $191.4 million (PCP: $199.8 million). Refer to Note 3 Segment information in the 2020 Interim Financial Report for a definition of normalised net profit after tax and the reconciliation to the statutory profit for the period.
| 31 Dec | 31 Dec | ||
|---|---|---|---|
| 2019 | 2018 | Change | |
| Dividend information | Cents | Cents | % |
| Interimper ordinaryshare – 100% franked(2019 interim: 100% franked) | 17.5 | 17.5 | - |
| 31 Dec | 31 Dec | ||
| 2019 | 2018 | Change | |
| $m | $m | % | |
| Dividendsproposed(not recognised as a liabilityat 31 December) | 106.7 | 106.4 | 0.3 |
The Challenger Limited Board will continue the Dividend Reinvestment Plan (DRP). The dividend will be paid on 24 March 2020. For any reinvestment of this dividend, the Board has determined that new shares will be issued to fulfil DRP requirements. The new shares will not be issued at a discount to the prevailing Challenger share price. There is no conduit foreign income for this dividend.
2020 Interim dividend dates
| dividend. 2020 Interim dividend dates |
|||
|---|---|---|---|
| Ex-dividend date | 25 | February | 2020 |
| Record date | 26 | February | 2020 |
| Final Dividend Reinvestment Plan election date | 27 | February | 2020 |
| Payment date | 24 March | 2020 | |
| Ownership interest | |||
| 31 Dec | 31 Dec | ||
| Details of associates and joint ventures | 2019 | 2018 | |
| Alphinity Investment Management Pty Ltd | 30% | 30% | |
| Ardea Investment Management Pty Ltd | 30% | 30% | |
| Ares Australia Management Pty Ltd | 35% | - | |
| Avenir Capital Pty Ltd | 40% | 40% | |
| Bentham Asset Management Pty Ltd | 49% | 49% | |
| Eiger Capital Pty Ltd | 40% | - | |
| Greencape Capital Pty Ltd | 48% | 50% | |
| Lennox Capital Partners Pty Ltd | 40% | 40% | |
| Merlon Capital Partners Pty Ltd | 30% | 30% | |
| Novaport Capital Pty Ltd | 49% | 49% | |
| Resonance Asset Management Ltd1 | - | - | |
| Wavestone Capital Pty Ltd | 33% | 33% | |
| Whitehelm Capital Pty Ltd | 30% | 30% | |
| WyeTree Asset Management Ltd | 49% | 49% |
1 Challenger holds a board position and is deemed to have significant influence.
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Challenger Limited 2020 Interim Financial Report
Challenger Limited 2020 Interim Financial Report
| 31 Dec | 31 Dec | |
|---|---|---|
| 2019 | 2018 | |
| Net tangible assetsper security | $m | $m |
| Net assets | 3,743.8 | 3,403.1 |
| Less: | ||
| - intangible assets | 21.7 | 23.3 |
| - goodwill | 580.3 | 571.6 |
| - Right of use asset | 34.4 | - |
| Non-controllinginterests | 28.0 | 15.2 |
| Net tangible asset | 3,079.4 | 2,793.0 |
| Ordinary shares (number – million) | 607.6 | 605.4 |
| Net tangible assetsper security ($) | 5.07 | 4.61 |
Other disclosure requirements
Additional ASX Appendix 4D (Listing Rule 4.2A.3) disclosures can be found in the 2020 Interim Financial Report lodged separately from this document. This document should be read in conjunction with the 2020 Interim Financial Report and any public announcements made in the period by the group in accordance with the continuous disclosure requirements of the Corporations Act 2001 and ASX Listing Rules.
This interim financial report under ASX Listing Rule 4.2A.3 covers Challenger Limited and its controlled entities, and is based on the separately lodged consolidated financial statements and financial report which have been reviewed by Ernst & Young.
| Cross reference index for other disclosures included in 2020 Interim Report | Page/Reference |
|---|---|
| Review of operations | 11 |
| Statement of comprehensive income | 20 |
| Statement of financial position | 21 |
| Statement of cash flows | 23 |
| Details of entities over which control was gained or lost during the | |
| period (for which there was a material effect) | 45 |
| Outlook for the 2020 financial year | 15 |
| Accounting standards used for foreign entities | International Financial Reporting Standards |
| Auditor’s review report | 48 |
Authorisation
==> picture [111 x 46] intentionally omitted <==
Michael Vardanega Company Secretary Sydney 10 February 2020
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Challenger Limited 2020 Interim Financial Report