Wednesday 9 October 2013

LTAT breaks income record, members get 16% dividend



KUALA LUMPUR: Lembaga Tabung Angkatan Tentera (LTAT) has recorded its highest ever income since its establishment, posting a whopping RM907.4mil unaudited total income for the financial year ended Dec 31, 2012 (FY12) on the back of unit Boustead Group's diversified businesses' strong performances.

On the back of this sterling performance, the Armed Forces Superannuation Fund has declared a huge dividend payout of 16%.
According to Defence Minister Datuk Seri Dr Ahmad Zahid Hamidi, the profit reflected a 5.5% increase against FY11.
“As a result of this significant achievement, members will receive total dividends and bonuses at a rate of 16%, amounting to an RM759.3mil payout, 1% higher than the 15% in FY11.
“The main driver of growth for LTAT is the Boustead Group that has diversified businesses in plantations, property development, heavy engineering, trading and manufacturing, as well as financial services,” he told reporters after announcing the fund's latest financial results.
The FY12 payout comprises 7% in dividends, a 1% bonus and an 8% special bonus in the form of unit trusts, reflecting a jump of 11.6% in total payout against the previous year.
The average yearly dividends and bonuses paid for LTAT members since its establishment 40 years ago stands at 11%. Dividend payouts over the past decade had averaged 14%, while the five-year average payout was 15%.
LTAT's total assets rose by 10% to RM8.8bil while member contributions stood at RM7.8bil last year compared with RM7.1bil in 2011.
“I am pleased that LTAT has recorded such a sterling result, particularly when economic conditions are volatile and uncertain.
“Over the last 40 years, LTAT has never failed its most important stakeholder; serving members of the Armed Forces,” he said.
Ahmad Zahid said for this year, the fund would be targeting to breach the RM1bil mark in earnings, which would also be reflected in the divided payout. He said the payout would at least be maintained if not bettered.
Boustead Heavy Industries Corp Bhd (BHIC), which is involved in shipbuilding activities for the Royal Malaysian Navy (RMN), is expected to fare better in terms of bottomline this year.
“We also hope that crude palm oil prices will improve this year,” he said.
LTAT chief executive officer and Boustead Holdings Bhd deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddinadded that LTAT had quite a diversified investment portfolio that benefited from the dividend payments from Boustead, Affin Holdings Bhd, property and plantations as well as trading in the stock market.
Zooming into the details, Lodin said Boustead's shipbuilding business that recorded a loss last year was set to make a comeback this year, with more orders of second-generation patrol vessels or littoral combat ships (LCS) from the RMN.
Boustead Naval Shipyard, a 20.77%-owned subsidiary of BHIC, has been awarded an RM9bil contract from the Government to design, build and deliver six LCS.
Apart from that, Ahmad Zahid added that the Cochrane development had obtained development approval from the Cabinet and a few agreements had been signed with anchor tenants, which were multinational companies.
“We have also garnered a lot of interest from local corporate players,” he revealed.
One of the biggest developments in the Cochrane area would be IKEA from Sweden. Boustead Holdings has acquired 5.19ha of freehold land in Jalan Cochrane, Kuala Lumpur, from LTAT.
On another note pertaining to Affin's intention of acquiring standalone investment banker Hwang-DBS (M) Bhd, Ahmad Zahid said they were still in preliminary stages of discussion, subject to approval from Bank Negara.
It has been reported that Affin, with the highest bid of RM1.4bil, was the frontrunner of the deal ahead of other contenders like Alliance Finance Group BhdAMMB Holdings Bhd and K&N Kenanga Holdings Bhd.
Besides Boustead Holdings and BHIC, in which LTAT holds a 59.7% and 73.15% stake, respectively, LTAT also has a 35.2% direct stake in Affin, a 54.74% stake in Pharmaniaga Bhd and 9.12% in DKSH Holdings Malaysia Bhd.
In terms of landbank, the fund owns more than 60.71ha of land in Bukit Jalil.
- The Star

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