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London Pacific Group (BEK)

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Thursday 14 November, 2002

London Pacific Group

3rd Quarter Results

London Pacific Group Ld
14 November 2002


FOR IMMEDIATE RELEASE                                         November 14, 2002


                          London Pacific Group Limited
                               Financial Results
                             For the Quarter Ended
                               September 30, 2002


London, November 14, 2002 - London Pacific Group Limited (OTCBB: LDPGY, London:
LPG) (the 'Group') today reported a consolidated net loss for the three months
ended September 30, 2002 of $50.2 million, or $0.99 per diluted share and $9.88
per diluted ADR, compared with a net loss of $144.4 million, or $2.85 per
diluted share and $28.47 per diluted ADR, for the third quarter of 2001.  For
the third quarter of 2002, the consolidated net loss from continuing operations
of the Group was $11.6 million, or $0.23 per diluted share and $2.29 per diluted
ADR, compared with a net loss from continuing operations of $107.4 million, or
$2.12 per diluted share and $21.16 per diluted ADR, for the same period in 2001.

For the nine months ended September 30, 2002, the Group's consolidated net loss
was $189.6 million, or $3.73 per diluted share and $37.35 per diluted ADR,
compared with a net loss of $295.3 million, or $5.78 per diluted share and
$57.83 per diluted ADR, for the same period in 2001. For the nine months ended
September 30, 2002, the consolidated net loss from continuing operations of the
Group was $46.3 million, or $0.91 per diluted share and $9.12 per diluted ADR,
compared with a net loss from continuing operations of $229.7 million, or $4.50
per diluted share and $44.99 per diluted ADR, for the same period in 2001.  (ADR
amounts have been restated to reflect the one-for-ten reverse split in June
2002.)

A $38.5 million loss was recognized in the third quarter resulting from the
disposition of the Group's investment in U.S. based London Pacific Life &
Annuity Company (LPLA), including a $10.6 million loss previously taken directly
against shareholders' equity.  The loss was due to the continued decline in the
level of LPLA's capital, which resulted in the North Carolina Department of
Insurance taking control of LPLA in early August.

London Pacific Assurance Limited (LPAL) continues to service its remaining
policyholders after a substantial reduction in the level of LPAL's policyholder
liabilities due to surrenders.  Despite difficult market conditions, London
Pacific Advisors (LPA) signed up a major institution during the third quarter
and the number of wrap clients at Berkeley Capital Management (BCM) remained
constant.  However, both companies were affected adversely by further declines
in stock markets during the quarter.  The Group faces a number of uncertainties,
including the need to complete the final due diligence and documentation for a
revised bank facility.  The focus of the Group's operations will be to seek to
grow the client base at LPA and BCM while managing costs carefully and to
develop the venture capital activity at Berkeley International Capital
Corporation (BICC).

                                   *****


• Because the Group no longer exercises control over LPLA, LPLA's assets
and liabilities have been deconsolidated.  A $38.5 million loss was recognized
in the third quarter resulting from the disposition of LPLA.

• The developments at LPLA in the U.S. resulted in a substantial level of
surrender activity at LPAL. Policyholder liabilities declined during the quarter
from $140.2 million at June 30, 2002 to $40.6 million at September 30, 2002.
The expenses for the quarter included a $1.7 million write-off related to the
balance of deferred policy acquisition costs brought forward from the previous
quarter, largely representing past commissions paid to financial intermediaries.

• LPAL's investment portfolio includes three private equity technology
investments totaling $10.7 million at September 30, 2002 after taking an
adjustment of $4.5 million to the carrying value of one of these investments,
which management believes is temporary.

• Net realized and unrealized investment losses amounted to $7.5 million
for the third quarter due primarily to a continued decline in the value of
listed technology holdings.  The most significant public technology stocks held
by Group operating companies at the end of the third quarter were Packeteer
(2,101,475 shares valued at $6.3 million) and New Focus (1,640,346 shares valued
at $4.4 million).

• The book value per share and book value per ADR were $0.65 and $6.51,
respectively, as of September 30, 2002.  These book value per share and ADR
computations exclude shares held by the employee benefit trusts and the related
cost of those shares.

• Assets under management, consulting or administration were over $3.0
billion at September 30, 2002.  After excluding LPLA's assets at June 30, 2002,
assets under management, consulting or administration decreased by approximately
$645 million during the third quarter due primarily to the impact of declining
stock market values.

• The Group's financial results continue to cause covenant breaches in the
Group's bank facility. During the quarter ended September 30, 2002, the Group
repaid $22.0 million to the bank in a permanent reduction of the facility down
to $23.0 million.  The remaining balance includes $10.7 million in the form of
letters of credit and guarantees provided on behalf of certain former investee
companies.  While there is no assurance that a new definitive agreement will be
signed, the bank has approved the terms of a new pay-down facility subject to
final due diligence and documentation.

• LPA signed a contract with another major institution during the quarter.
To date, service contracts have been signed with 11 major institutions and
additional contracts are under negotiation.  The strategic relationship with
SunGard involves a substantial joint marketing initiative in the U.S.

• BCM's core product, Income Equity, which represents approximately 73% of
BCM's total assets under management, outperformed the S&P 500 during the first
nine months of 2002.  However, sales of this product could not offset the
decline in the market value of the accounts during the period.  BCM seeks to add
an additional wrap product during the fourth quarter of 2002 with the objective
of boosting BCM's assets under management in the future.

• BICC plans to re-emphasize its venture capital business.


                                     *****

Statements contained herein which are not historical facts are forward-looking
statements that involve a number of risks and uncertainties that could cause the
actual results of the future events described in such forward-looking statements
to differ materially from those anticipated in such forward-looking statements.
Factors that could cause or contribute to deviations from the forward-looking
statements include, but are not limited to, (i) variations in demand for the
Group's products and services, (ii) the success of new products and services
provided by the Group, (iii) significant changes in net cash flows in or out of
the Group's businesses, (iv) fluctuations in the performance of debt and equity
markets worldwide, (v) the enactment of adverse state, federal or foreign
regulation or changes in government policy or regulation (including accounting
standards) affecting the Group's operations, (vi) the effect of economic
conditions and interest rates in the U.S., the U.K. or internationally, (vii)
the ability of the Group's subsidiaries to compete in their respective
businesses, (viii) the ability of the Group to attract and retain key personnel,
and (ix) actions by governmental authorities that regulate the Group's
businesses, including insurance commissions.  The Group undertakes no obligation
to update any forward-looking statements, whether as a result of new
information, future developments or otherwise.

Please address any enquiries to:


Ian Whitehead                             Jersey                 (0)1534 607700
Chief Financial Officer
London Pacific Group Limited




Form 10-Q for the quarterly period ended September 30, 2002

A copy of the above document will be submitted to the U.K. Listing Authority by
November 15, 2002, and will be available for inspection at the U.K. Listing
Authority's Document Viewing Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS

Tel: 020 7676 1000



London Pacific Group Limited
Condensed Consolidated Statements of Income
Under U.S. GAAP (unaudited)
In thousands, except per share and per ADR amounts
                                                        Three Months Ended     Nine Months Ended
                                                          September 30,          September 30,
Continuing operations:                                      2002    2001(1)       2002      2001(1)

Revenues:
Investment income                                         $1,343     $2,453     $5,982       $6,401
Insurance policy charges                                   1,207         21      1,152           21
Financial advisory services, asset management and
other fee income (2)                                       4,886      8,526     19,715       26,823
Net realized investment gains (losses)                   (2,065)        457    (1,740)       36,537
Change in net unrealized investment gains and
losses on trading securities                             (5,403)  (106,022)   (31,276)    (258,976)

                                                            (32)   (94,565)    (6,167)    (189,194)

Expenses:
Interest credited on insurance policyholder accounts       1,423      1,804      5,495        4,392
Amortization of deferred policy acquisition costs          1,689        311      2,952          604
Operating expenses                                         8,418     11,176     28,286       33,926
Goodwill amortization and write-offs                           7         57          7          172
Interest expense                                             231        481        839        1,846

                                                          11,768     13,829     37,579       40,940

Income (loss) from continuing operations before
income taxes                                            (11,800)  (108,394)   (43,746)    (230,134)
Income tax expense (benefit)                               (181)    (1,024)      2,511        (385)

Income (loss) from continuing operations                (11,619)  (107,370)   (46,257)    (229,749)

Discontinued operations:
Income (loss) from discontinued operations, net of
income tax expense (benefit) of $0, $(20,032),
$(7,730) and $(35,338), respectively                           -   (37,075)  (104,762)     (65,539)
Loss on disposal of discontinued operations, net
of income tax benefit of $0                             (38,532)          -   (38,532)            -
Income (loss) on discontinued operations                (38,532)   (37,075)  (143,294)     (65,539)

Net income (loss)                                      $(50,151) $(144,445) $(189,551)   $(295,288)

Basic and diluted earnings (loss) per share:
Continuing operations                                   $ (0.23)   $ (2.12)   $ (0.91)      $(4.50)
Discontinued operations                                   (0.76)     (0.73)     (2.82)       (1.28)

                                                        $ (0.99)   $ (2.85)   $ (3.73)      $(5.78)

Basic and diluted earnings (loss) per ADR: (3)
Continuing operations                                   $ (2.29)  $ (21.16)   $ (9.12)     $(44.99)
Discontinued operations                                   (7.59)     (7.31)    (28.23)      (12.84)

                                                        $ (9.88)   $(28.47)  $ (37.35)     $(57.83)


(1)  Reclassifications have been made related to discontinued operations.

(2)  Includes amounts of $0, $2,930, $3,632 and $8,676 for revenues earned from
discontinued operations for the three months ended September 30, 2002 and 2001
and the nine months ended September 30, 2002 and 2001, respectively.

(3) ADR amounts have been restated to reflect the one-for-ten reverse split in
June 2002.





London Pacific Group Limited
Condensed Consolidated Balance Sheets
Under U.S. GAAP (unaudited)
In thousands, except share amounts
                                                                        September 30,    December 31,
                                                                                 2002      2001 (1)

Assets:

Investments (principally of life insurance subsidiary):
Fixed maturities:
Available-for-sale, at fair value (amortized cost: $33,812 and
$116,853
as of September 30, 2002 and December 31, 2001, respectively)                 $33,736        $117,701
Held-to-maturity, at amortized cost (fair value: $180 and $871
as of September 30, 2002 and December 31, 2001, respectively)                     180             871
Equity securities:
Trading, at fair value (cost: $32,261 and $64,175 as of September 30,
2002
and December 31, 2001, respectively)                                           13,190          67,617
Available-for-sale, at fair value (cost: $18,405 and $17,297 as of
September 30, 2002 and December 31, 2001, respectively)                        12,030          15,303

Total investments                                                              59,136         201,492

Cash and cash equivalents                                                      18,110          61,317
Accrued investment income                                                       1,392           3,214
Deferred policy acquisition costs                                                   -           3,113
Other assets                                                                   11,319          12,684
Total assets of discontinued operations                                             -       2,254,508

Total assets                                                                  $89,957      $2,536,328

Liabilities:
Life insurance policy liabilities                                             $40,580        $131,831
Notes payable                                                                  12,314          36,874
Accounts payable, accruals and other liabilities                                4,037           9,988
Total liabilities of discontinued operations                                        -       2,135,982

Total liabilities                                                              56,931       2,314,675

Commitments and contingencies

Shareholders' equity:
Ordinary shares, $0.05 par value per share: 86,400,000 shares
authorized;
64,439,073 shares issued and outstanding as of September 30, 2002 and
December 31, 2001                                                               3,222           3,222
Additional paid-in capital                                                     68,364          68,346
Retained earnings                                                              32,007         223,590
Employee benefit trusts, at cost (13,684,881 and 13,698,181 shares as
of
September 30, 2002 and December 31, 2001,  respectively)                     (63,571)        (63,599)
Accumulated other comprehensive income (loss)                                 (6,996)         (9,906)

Total shareholders' equity                                                     33,026         221,653

Total liabilities and shareholders' equity                                    $89,957      $2,536,328


(1)  Reclassifications have been made related to discontinued operations.



London Pacific Group Limited
Condensed Consolidated Statements of Cash Flows
Under U.S. GAAP (unaudited)
In thousands
                                                                                Nine Months Ended
                                                                                   September 30,
                                                                                 2002           2001

Net cash flows provided by continuing operations                              $22,280        $31,514

Net cash flows provided by (used in) discontinued operations                 (18,412)       (26,468)

Net cash provided by operating activities                                       3,868          5,046

Cash flows from investing activities:
Purchases of held-to-maturity fixed maturity securities                       (2,828)        (1,950)
Purchases of available-for-sale fixed maturity securities                     (7,209)       (64,636)
Purchases of available-for-sale equity securities                                   -       (16,000)
Proceeds from redemption of held-to-maturity fixed maturity securities            568          1,733
Proceeds from sale of available-for-sale fixed maturity securities             93,256            411
Proceeds from sale of available-for-sale equity securities                          -         13,670
Capital expenditures                                                            (728)          (849)

Net cash provided by (used in) investing activities                            83,059       (67,621)

Cash flows from financing activities:
Insurance policyholder contract deposits                                        6,827         65,317
Insurance policyholder benefits paid                                        (110,620)        (2,066)
Issuance of Ordinary Shares                                                         -              3
Purchases of Ordinary Shares by the employee benefit trusts                         -        (6,005)
Proceeds from disposal of shares by the employee benefit trusts                    43            440
Dividends paid                                                                (2,032)       (11,802)
Proceeds from issuance of notes payable                                         2,440          1,318
Repayment of notes payable                                                   (27,000)              -

Net cash provided by (used in) financing activities                         (130,342)         47,205

Net increase (decrease) in cash and cash equivalents                         (43,415)       (15,370)

Cash and cash equivalents at beginning of period (1)                           61,317         80,395
Foreign currency translation adjustment                                           208           (22)

Cash and cash equivalents at end of period (1)                                $18,110       $ 65,003


(1)  Amounts are for continuing operations only.


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