The Company’s paid-up share capital was increased by $0.1 million from the issue of new shares arising from the exercise of share options, and total reserves fell by $635.3 million on account of the above-mentioned provisions and adjustments.

As a result, net tangible assets backing per share was $2.28, a decrease of 28.3% from the previous year’s figure of $3.18.

Net borrowings at end-2000 amounted to $2.1 billion. The increase of $0.3 billion during the year was the result of the cash flows explained above.

Five-Year Profit Record
For 1997, whilst Group’s profit before tax showed a decline, attributable profit improved by 3% over 1996 to $104.7 million. These results included the partial sale of Prudential Tower, the disposal of 30% shareholding in a property subsidiary and shop units at Heritage Court and Bukit Timah Plaza.

In 1998, the Group reported an attributable loss of $350.6 million. Profit contributions from continuing businesses, partial sale of Prudential Tower and the sale of an office building in Australia were insufficient to cover the provisions made for two leasehold residential developments and the Group’s freehold landbank.

The Group made a turnaround in 1999 and recorded a profit before extraordinary items of $78.7 million. This result included the initial profit from the Villa Verde project and a further profit contribution from Pebble Bay. Attributable profit was $152.3 million after including extraordinary gains of $73.6 million from the unwinding of the Group’s investments in three related companies.

Further progress was made in 2000. Group’s pre-tax profit reached $158.9 million, and attributable profit was $120.6 million. These results included the profit from Villa Verde and Pebble Bay, the maiden profit contributions from Caribbean at Keppel Bay and Freesia Woods condominium projects.

In 2001, the Group incurred an attributable loss of $366.5 million. High earnings from Group’s office buildings and profit from the sale of Cluny Hill bungalow plots were insufficient to cover the provisions made for trading projects and landbank.