Taxation for the year was $12.3 million, equivalent to 10.9% of Group pre-tax profit before provisions. The effective taxation rate was lower because the gain from the sale of the Cluny Hill bungalow plots is not subject to tax.

After accounting for minority interests, Group attributable result for the year was a profit of $88.6 million before provisions and a loss $366.5 million after provisions, compared with a profit of $122.1 million in the previous year. The higher profit contribution from the Group’s mostly full office buildings could not offset the shortfall from Property Trading.

Cash Flows
During 2001, the Group incurred $223.7 million in development expenditure. Purchases of fixed assets and additional investment in associated companies amounted to $224.5 million and repurchase of Floating Rate Notes was $28.5 million. A further $60.1 million was dividends to shareholders of the Company and minority shareholders of subsidiary companies .

Net cash generated from operating activities amounted to $30.2 million. Proceeds from progress billings and sale of fixed assets and investments were $257.3 million, and the net loan drawdown was $304.6 million.

The overall net cash inflow was $57.2 million, represented mainly by increase of short-term deposits. In 2000, there was a net cash inflow of $200.7 million.

Dividend
A final dividend of 6% (3.0 cents per share) less tax at 24.5% amounting to $16 million on the existing issued share capital, has been proposed for the financial year ended 31 December 2001. For 2000, a dividend of 6% (3.0 per cents per share) less tax of $16 million was declared and paid.

Financial Condition at End-2001
At 31 December 2001, share capital and reserves totalled $1.6 billion, which was 28.2% lower than that at end-2000. As mentioned earlier, this decline was primarily due to to the property provisions and downward revaluation adjustments made during the year. Net borrowings at $2.4 billion represented 128% of total shareholders’ funds (including minority interests). The corresponding proportion was 83% a year ago.