Liberty International plc (Libint, LBT) chairman Donald Gordon has confirmed that he will be stepping down in June next year.

He sprung the announcement while unveiling the UK property group's results for the past financial year ended December 2003 which showed another period of strong growth in headline property investment income, profits, earnings and dividends per share for the group - with pre-tax profit up 20% for the year from 86.6 million sterling to 104.2 million sterling.

"After a career in the business world now spanning nearly 50 years, I have decided the time is nearing when it will be appropriate for me to step down as Chairman of Liberty International, my one remaining public company chairmanship, and I intend to do so no later than my 75th birthday on 24 June 2005, the day which also marks Liberty International's 25th anniversary," Gordon said.

"We are now engaged in the process of determining who should be my successor as chairman and an announcement will be made in due course during this year to enable a sensible handing-over process to be implemented," he added.

Turning to the group's performance for the past year, Gordon said: I am delighted to report another year of strong growth in headline property investment income, profits, earnings and dividends per share.

With an overall like-for-like GBP 357 million (8.4%) revaluation surplus, our property assets now exceed GBP 5 billion and net asset value per share has reached 906p.

"We have a powerful financial position, with shareholders' funds of GBP 2.9 billion, the debt to assets ratio reduced to 39% and a significant development pipeline of around GBP 1.3 billion to maintain the strong momentum of our market-leading regional shopping centre and retail property business."

Including exceptionals, the group, which is listed on the FTSE 100 and has a secondary listing in South Africa where it originated, initially as a life assurer, reported pre-tax profit of 110 million sterling compared with 103.8 million sterling the previous year.

Property investment income for the 12 months rose to 245.4 million sterling from 224.1 million sterling.

The final dividend was increased to 13.25 pence from 12.5 pence for a total pay out of 25 pence, up from 23.75 pence.

Earnings per share growth at 7.3%, however, was somewhat lower, as the group's capital base was enlarged by the issue of 28 million shares in November 2002, which raised 157 million sterling in equity.

The company said its potential but as yet uncommitted development programme could amount to as much as 850 mln stg at Capital Shopping Centres.

This includes extensions and improvements to existing shopping centres and new  projects such as St David's 2, Cardiff, and the redevelopment of the Westgate Centre, Oxford.

The equivalent figure for the other commercial and retail activities of Capital & Counties in the UK and USA is approximately 150 mln stg.

Gordon said the substantial investor appetite currently in evidence for quality UK property is hardly surprising, when property yields are compared with yields available on alternative asset classes such as bonds or equities, and augurs well for the continued health of the UK property investment market given a stable economic environment.

Looking ahead, Gordon stated: "After a year of outstanding financial results, with high-quality assets and a powerful capital base, I have considerable confidence in the long-term prospects of the group, in which - along with my family - I have a substantial shareholding of over 21%, and have no doubts about its ability to remain at the forefront of the UK property industry and the leader in its sector for a prolonged period."

He added: "With 175 million customer visits per annum, our shopping centres continue to be a popular attraction for the UK public, providing a vibrant environment, choice, comparison, variety and a pleasurable social experience core to modern lifestyles."

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