4th Dec 2006 07:02
Aberdeen Asset Management PLC04 December 2006 ABERDEEN ASSET MANAGEMENT PLC FINAL RESULTS FOR YEAR TO 30 SEPTEMBER 2006 Aberdeen Asset Management has today announced its final results for the year to30 September 2006. HIGHLIGHTS • Record new business of £5 billion added during the year • Further £1 billion of new business awarded but not funded at 30 September • New mandates totalling £1.5 billion won since the year-end • Integration of ex-Deutsche Asset Management business on track for completion by March 2007 • DeAM asset retention has exceeded expectations • 92% increase in full year dividend • Additional balance sheet strength from US$125 million subordinated debt issue FINANCIAL HIGHLIGHTS 2006 2005 Revenue £302.1m £156.1m --------------------Pre-tax profitBefore exceptional items and amortisation of intangibles £79.0m £24.8m After exceptional items and amortisation of intangibles £53.8m £31.6m -------------------Diluted earnings per share Before exceptional items and amortisation of intangibles 8.83p 4.60p*After exceptional items and amortisation of intangibles 6.27p 6.64p* ------------------Total dividend per share 4.4p 3.0p* ------------------Net new business Funded £5.0bn £3.1bn ------------------Awarded but not funded at year end £1.0bn £0.5bn ------------------Assets under management at the year-end £73.2bn £59.7bn ------------------- * adjusted for the effects of the rights issue in September 2005 and adoption of IFRS. Martin Gilbert, Chief Executive of Aberdeen Asset Management commented: "These excellent results reflect the successful integration of the DeutscheAsset Management businesses and the record new business that we have won duringthe year. I am particularly pleased that this new business generation hasoccurred across a range of the Group's operations. Aberdeen is a now a globalasset management business with significant capability in the major asset classes of equities, fixed income and property with excellent prospects for thecoming year." For further information Neil BennettMaitland 020 7379 5151 Chairman's Statement I am pleased to report on a highly successful year for Aberdeen Asset Management in 2006. The Group's focus has been on integrating the businesses acquired from Deutsche Asset Management ("DeAM") in 2005 and continuing to generate substantial levels of net new business. Our success in both these areas is reflected in record profits. The integration of the DeAM businesses is well advanced and we remain on trackto complete this exercise, which involves migration of all back officeadministration functions to our third party administrator, by 31 March 2007. The ex-DeAM businesses have already proved to be an excellent fit and we aredelighted with the manner in which all staff have worked to deliver a successful operation. Client retention in the London and Philadelphia fixed income businesses was in excess of 95%, which is a very creditable achievementon the part of the respective teams. Retention of equity and multi-asset clients has also exceeded our initial expectations, with approximately 50% of assets and revenues retained at 30 June 2006. As a result, the contingent deferred consideration for this element of the business was crystallised at £24.6 million. The Group's assets under management at 30 September 2006 totalled £73.2 billion. We attracted a record £5.0 billion of net new business during the year as a whole and have continued to achieve strong new business inflows since the year-end. We are particularly pleased that this new business generation has occurred across a broad spread of the Group's operations. Results and dividend The financial results for the year to 30 September 2006 include the UK elementof the DeAM businesses for the full year and the Philadelphia element for the 10 month period from 1 December 2005. The Group's underlying profit, which wedefine as profit before taxation, exceptional items and amortisation ofintangible assets, was £79.0 million compared to £24.8 million in 2005. Thisrepresents underlying earnings per share, on a diluted basis, of 8.83p, anincrease of 92% on last year (adjusted for the effects of the rights issue inSeptember 2005). After accounting for exceptional items and amortisation, wereport a pre-tax profit of £53.8 million, compared to £31.6 million in 2005. The Board is recommending a final dividend of 2.4p per share making a totalpayment for the year of 4.4p per share, an increase of 46.7% on the totalpayment for 2005 of 3.0p per share (adjusted for the effects of the rightsissue). Financials Revenue has increased by 93% to £302.1 million. A significant element of thisincrease arises from the addition of the ex-DeAM businesses but the net newbusiness inflows across the Group's activities have also been a major factor inthis improvement. Operating expenses have risen at a lower rate, with the result that the Group's operating profit before exceptional items and amortisation has increased by 132% to £81.3 million. Operating margin has also improved across the Group, with the investment management division delivering an increase in the underlying margin from 26.5% to 29.4% and the property division improving from 13.0% to 16.9%. The balance sheet was strengthened considerably by the rights issue proceedswhich were used to finance the DeAM acquisition and we also issued, in July2006, US$125 million of subordinated debt which is treated as tier 2 capital for regulatory purposes and thus adds additional flexibility to our capitalstructure. The Group's net interest cost has also been substantially reduced,from £10.2 million in 2005 to only £2.2 million in 2006, as a result of theseissues. New business We have continued to deliver superior investment performance across a wide range of asset classes and this is reflected in strong inflows of new business.Net new business won during the year, including mandates awarded but not fundedat the year-end, totalled £6.0 billion, of which £5.0 billion was included inassets under management ("AUM") at the year-end, as follows: Funded in Yet to Total new period fund awards £m £m £mOpen-end funds 1,030 - 1,030Segregated account mandates 2,882 573 3,455Closed-end funds 18 23 41 ---------------------------Total fund management division 3,930 596 4,526Property division 1,053 414 1,467 ---------------------------Group total 4,983 1,010 5,993 --------------------------- New mandates totalling a further £1.5 billion have been won since the year-endand the funding of these will happen over the next few months. Corporate activity We completed the US element of the DeAM acquisition in December 2005 (the UKelement having been completed on the final day of the 2005 financial year). We sold our investment in New Star Asset Management for cash consideration of£14.6 million, generating a gain of £8.6 million and we received furtherdeferred consideration totalling £7.8 million from disposals made in previousyears. We also sold our UK private client business, based in Aberdeen andGlasgow, to Brewin Dolphin for cash consideration of £3.6 million as thisbusiness no longer fitted the Group's strategy. Business development Formative to the Group's success is the consistent delivery of strong investment performance and it is pleasing to note that this has been achieved across all our investment disciplines. In equities we have continued to see strong demand from institutional investorsfor our Asian and global emerging markets products, with the latter seeingnotable interest from US investors. We launched a new closed end fund, the Asian Income Fund, to take advantage of the growing level of dividend payments in the Asia Pacific markets and, more recently, we were appointed to manage a UK investment trust, the Aberdeen All Asia Investment Trust. Equally strongperformance in our global equity and UK equity products has been key to thehigher than expected retention of ex-DeAM equity and multi-asset clients and wehave also seen encouraging levels of new business in these disciplines. As a result of the continuing expansion of our Asia Pacific operations,reflecting the very strong flows of new business into the area, we have recently opened a business development office in Tokyo which we expect in due course to convert to a full service office. We have also opened an institutional business development office in Luxembourg, to act as the hub for servicing our growing number of European clients, and we continue to invest in our product development and client servicing capability in the US. The addition of the ex-DeAM US business has provided the opportunity to transfer the management of our US equity portfolios from the UK to our Philadelphia office, consistent with our policy of locating our teams close to the markets in which they invest. In fixed income, new business flows have exceeded expectations with mandate wins in core-plus products, an area where we are seeing increasing demand. Another important development has been in liability driven investment ("LDI") where we have been awarded mandates by UK, European and US clients. Some of these wins have been via the range of pooled funds which we launched during theyear to enable us to offer an LDI capability to a wider range of investors. Our property management division, headquartered in Stockholm, continues toexpand its operations with a wider presence in Continental Europe and thesuccessful launch during 2006 of a number of new funds, including the first, and largest, European fund of funds, Pan-Nordic and European balanced funds, and a first closing of an Asian fund of property funds. In the UK we are in the process of taking over the last remaining floor of ourCheapside building where we will now be the sole occupants. We have also takenadditional space in Aberdeen and are currently planning an office move for ourEdinburgh business. Outlook The Group now has significant scale in fixed income and in equities as well as a strong property management division. There are excellent opportunities to grow from this base across all divisions and to achieve significant synergies once the integration process is complete. With the economic climate seemingly set fair, we look forward to the future with confidence. On behalf of the Board, I would like to thank all of our staff for their loyalty and their continued hard work and also our clients and shareholders for their continued support. I would also like to thank all my colleagues on the board for their incisive contributions throughout the year. Charles IrbyChairman Group Income Statement For the year ended 30 September 2006 2006 2005 Notes £'000 £'000Revenue 2 302,124 156,124 Operating costs (228,792) (123,215)Exceptional integration costs 4 (33,282) -Amortisation of intangible assets (8,958) -Exceptional (charge) release of provision 5 (236) 2,600 -------------------Operating expenses (271,268) (120,615) ------------------- Exceptional gains on investments 6 18,381 8,868Gains on investments and other income 6 7,925 2,179 -----------------Other operating income 6 26,306 11,047 ----------------- Share of results of associates - (12) ------------------ Operating profit before: 81,257 35,076Exceptional gains and charges (15,137) 11,468Amortisation of intangible assets (8,958) - -----------------Operating profit 57,162 46,544 ----------------- Finance revenue 11,608 1,098Finance costs (13,823) (11,325)Exceptional finance costs (1,100) (4,670) -----------------Net finance costs 8 (3,315) (14,897) -----------------Profit before exceptional items, amortisation and taxation 79,042 24,849Exceptional items and amortisation before taxation (25,195) 6,798 ------------------Profit before taxation 53,847 31,647 -----------------Tax on profit before exceptional items and amortisation (17,404) (5,368)Tax on exceptional items 7,429 (501) -----------------Tax expense 9 (9,975) (5,869) ----------------- Profit for the year 43,872 25,778 ----------------- Attributable to: Equity shareholders 43,872 25,689Minority interests - 89 ----------------- 43,872 25,778 ----------------- Memo - dividends paid during the year 10 28,110 10,045 -----------------Earnings per share Basic 11 6.41p 6.68pDiluted 11 6.27p 6.64p All items dealt with in arriving at the profits stated above relate to continuing operations Group Statement of Recognised Income and ExpenseFor the year ended 30 September 2006 2006 2005 £'000 £'000Net actuarial loss on defined benefit pension schemes (6,835) (5,968)Translation of foreign currency net investments (5,882) 189Movement in fair value of available for sale investments 7,365 -Tax on items taken directly to equity 2,324 1,137 ---------------Net expense recognised directly in equity (3,028) (4,642)Profit for the financial period 43,872 25,778 ----------------Total recognised income and expense for the period 40,844 21,136 ----------------Attributable to: Equity holders of the parent 40,844 21,047Minority interest - 89 ----------------Total recognised income and expense for the period 40,844 21,136 ---------------- Impact of change in accounting policy at beginning of period on: - Retained earnings 84 -- Available for sale reserve 8,565 -- Other reserves 3,052 - Group Balance Sheet As at 30 September 2006 Group 2006 2005 (as restated) Notes £'000 £'000ASSETS Non-current assets Intangible assets 553,565 468,322Property, plant and equipment 9,351 8,172Other investments 13,818 27,947Deferred tax assets 11,022 8,932Other receivables 1,038 4,324 -----------------Total non-current assets 588,794 517,697 -----------------Current assets Financial investments 1,412,579 2,554,983Stock 264 2,317Trade and other receivables 132,635 142,640Other investments 33,541 20,977Cash and cash equivalents 50,497 97,016Assets classified as available for sale 7,000 - -------------------Total current assets 1,636,516 2,817,933 ------------------- Total assets 2,225,310 3,335,630 ------------------- Equity Called up share capital 70,605 68,502Share premium account 286,277 261,040Other reserves 224,514 219,994Retained loss (131,301) (119,239) -----------------Total equity attributable to equity holders of the parent 450,095 430,297 ----------------- Liabilities Non-current liabilities Interest bearing loans and borrowings 90,192 51,330Other creditors 1,998 277Provisions 500 4,781Pension deficit 32,255 30,034Deferred tax liabilities 24,380 27,882 -----------------Total non-current liabilities 149,325 114,304 ----------------- Current liabilities Investment contract liabilities 1,412,579 2,554,983Interest bearing loans and borrowings 50,551 591Trade and other payables 143,849 207,001Provisions 2,109 19,478Deferred income 2,188 1,576Current tax payable 14,614 7,400 -------------------Total current liabilities 1,625,890 2,791,029 -------------------Total liabilities 1,775,215 2,905,333 ------------------- Total equity and liabilities 2,225,310 3,335,630 ------------------- Consolidated Statement of Cash Flows For the year ended 30 September 2006 Group 2006 2005 Notes £'000 £'000Core cashflow from operating activities 45,886 33,321Effects of short-term timing differences on unittrust settlements 6,681 995 ---------------- 52,567 34,316Split capital settlement costs paid (15,836) (50,491)Other exceptional costs paid (33,282) (1,329) ----------------Net cash from (used in) operating activities 7 3,449 (17,504) ----------------Cash flows from investing activities Proceeds from sale of investments 73,451 41,205Proceeds from sale of property, plant and equipment 173 27Disposal of subsidiaries, net of cash disposed of 4,824 3,012Disposal of private client business 2,946 -Acquisition of subsidiaries, net of cash acquired (71,441) (79,224)Acquisition of intangible assets (74,934) -Acquisition of property, plant & equipment (3,619) (2,492)Acquisition of investments (43,913) (13,989) -----------------Net cash used in investing activities (112,513) (51,461) -----------------Cash flows from financing activities Issue of ordinary share capital 870 219,180Issue of preference share capital 3 76,443Issue of convertible bonds - 25,584Issue of subordinated loan notes 66,153 -Purchase of own shares (3,024) -New borrowings 25,000 -Repayment of borrowings (475) (155,770)Dividends paid (28,110) (10,044) ----------------Net cash from financing activities 60,417 155,393 ----------------Net (decrease) increase in cash and cash equivalents (48,647) 86,428Cash and cash equivalents at 1 October 97,016 (23,672)Non-cash movement - 35,000Effect of exchange rate fluctuations on cash held (249) (740) ----------------Cash and cash equivalents at 30 September 48,120 97,016 ---------------- Notes to the Accounts 1. Preparation in accordance with IFRS This preliminary announcement of results sets out information which will be more fully covered in the Annual Report for the year to 30 September 2006, which is the first set of audited financial statements prepared in accordance with International Financial Reporting Standards as adopted in the EU ("IFRS").An explanation of how the transition from UK GAAP to IFRS has affected the Group's financial position, financial performance and cash flows was set out inthe Group's IFRS transition statement issued on 28 March 2006, which will be incorporated in the Annual Report but is not repeated in this preliminary announcement. The Board has chosen to make certain voluntary disclosures in addition to the requirements of IFRS to enable investors to achieve a proper understanding of the financial statements. These additional disclosures involve identifying items that arise outwith the Group's normal business activities and which are sufficiently material to warrant separate disclosure. The Board has elected to use the term "exceptional" in referring to such items. 2. Revenue 2006 2005 £'000 £'000Turnover 300,307 156,124Net fair value gains on assets at fair value through income 1,817 - -------------------Total revenue 302,124 156,124 ------------------- 3. Segment reporting The Group's primary business segments, based on the Group's management and reporting structure, are the investment management division and the property management division. The results, analysed by these two business segments, are shown below. Investment Property Group management asset total management Year to 30 September 2006 £'000 £'000 £'000 Turnover 240,105 60,202 300,307 Net fair value gains on assets at fair value through income 1,817 - 1,817 ------------------------------- Revenue 241,922 60,202 302,124 ------------------------------- Operating costs (177,241) (51,551) (228,792) Integration costs (33,282) - (33,282) Amortisation of intangible assets (8,958) - (8,958) Exceptional charge (236) - (236) ------------------------------- Operating expenses (219,717) (51,551) (271,268) ------------------------------- Exceptional gains on investments 18,381 - 18,381 Gains on investments and other income 6,429 1,496 7,925 ------------------------------ Other operating income 24,810 1,496 26,306 ------------------------------ Operating profit (before exceptional items and amortisation of intangibles) 71,110 10,147 81,257 ------------------------------ Operating profit (after exceptional items and amortisation of intangibles) 47,015 10,147 57,162 ------------------------------ Investment Property Group management asset total management Year to 30 September 2005 £'000 £'000 £'000 Revenue 109,979 46,145 156,124 ------------------------------- Operating costs (83,046) (40,169) (123,215) Exceptional release of provision 2,600 - 2,600 ------------------------------ Operating expenses (80,446) (40,169) (120,615) ------------------------------ Exceptional gains on investments 8,868 - 8,868 Gains on investments and other income 2,179 - 2,179 ------------------------------ Other operating income 11,047 - 11,047 ------------------------------ Share of results of associates (12) (12) ------------------------------ Operating profit (before exceptional items and amortisation of intangibles) 29,100 5,976 35,076 ------------------------------ Operating profit (after exceptional items and amortisation of intangibles) 40,568 5,976 46,544 ------------------------------ 4. Exceptional integration costs On 30 September 2005 the Company completed the acquisition of certain fund management businesses of Deutsche Bank AG. These businesses consisted of the London fixed interest business, the OEIC business and the equities/multi assets business. On 1 December 2005 the second and final stage for the acquisition was completed when the Philadelphia fixed income contracts were acquired. During the year substantial integration costs have been incurred in combining these acquired businesses with the existing business of the Group. These integration costs comprise charges in respect of a transitional servicesagreement with the vendor to ensure that both people and systems are transferred in a controlled manner; set-up costs in respect of the migration of the back office data and systems to the Group's third party administrator; and costs of retaining duplicate staffing for a transitional period to ensurea smooth migration of data. 2006 2005 £'000 £'000 Transitional service costs from vendor 11,190 - Set-up costs in respect of back office data and systems 7,579 - Duplicate staff costs, redundancy and third party integration costs 12,130 - Amortisation of staff retention costs 2,383 - ----------------- 33,282 - ----------------- 5. Exceptional (charge) release of provision 2006 2005 £'000 £'000 Release of provision for Uplift Plan to eligible investors in Aberdeen Progressive Growth Unit Trust (note 12) 7,264 2,600 Payment in relation to defence of proceedings by Real Estate Opportunities (note 13) (7,500) - ---------------- (236) 2,600 ---------------- 6. Other operating income 2006 2005 £'000 £'000 Other operating income comprises the following items: Gains on disposal of significant investments 15,355 12,484 Gains (losses) on disposal of subsidiaries and contracts 3,026 (3,616) ----------------- Exceptional gains 18,381 8,868 ----------------- Gains on disposal of other investments 5,729 1,163 Other income 2,196 1,016 ---------------- 7,925 2,179 ---------------- 26,306 11,047 ----------------- The gains on disposal of significant investments in 2006 comprises gains realised on (i) the disposal of the Group's investment in New Star Asset Management PLC which was sold on 11 November 2005 and (ii) contingent deferred consideration received in respect of the sale of the Group's investment in Lombard International Assurance SA which was sold in October 2004. This gain includes the transfer of £8.6 million from the available for sale reserve. The gains on disposal of subsidiaries and contracts comprises a gain of £2,946,000 on the sale of the Group's UK private client business, and net deferred proceeds received in the current year in respect of disposals completed in previous years. The Board considers that these two categories of gains are outwith the course of the Group's normal business and sufficiently material that they should be disclosed separately to enable a proper understanding of the financial statements, and has therefore chosen to disclose these items as exceptional gains. Gains on disposal of other investments includes £3,807,000 of deferred consideration received from the sale, in October 2003, of Asset Value InvestorsLimited. These proceeds form an element of a wider transaction, the substance of which was to retain an interest in an ongoing revenue stream until 30 September 2006. 7. Analysis of consolidated cash flows 2006 2005 £'000 £'000 Reconciliation of profit after tax to operating cash flow Profit after tax 43,872 25,778 Depreciation charges 2,294 3,448 Amortisation and impairment of intangible assets 9,847 608 Revaluation of investments (1,817) - Gain on disposal of investments (20,224) (11,052) Share based element of remuneration 6,163 964 Share of results of associated undertakings - 12 Net finance costs 3,315 14,897 Income tax expense 9,975 5,869 ----------------- 53,425 40,524 Decrease in provisions (26,752) (5,707) Decrease in stock 2,110 247 Decrease (increase) in trade and other receivables 13,703 (3,762) Decrease in trade and other payables (32,037) (36,187) ------------------ Net cash inflow (outflow) from operating activities 10,449 (4,885) Net finance costs paid (334) (11,498) Corporation tax paid (6,666) (1,121) ----------------- Net cash from (used in) operating activities 3,449 (17,504) ----------------- 8. Net finance costs 2006 2005 £'000 £'000 Interest on 5.875% Convertible Bonds 2007 1,469 4,864 Interest on 4.5% Convertible Bonds 2010 1,196 660 Interest on 7.2% Convertible Subordinated Loan Notes 1,124 134 Interest on term loans - 3,710 Interest on unsecured guaranteed loan notes 51 72 Interest on overdrafts 9,580 1,230 ----------------- 13,420 10,670 Amortisation of issue costs on Convertible Bonds 403 655 ------------------ Recurring finance costs 13,823 11,325 ------------------ Unwinding of discount on Progressive Growth Uplift Plan Provision 1,100 3,000 Write off of bond expenses and repayment premium - 1,670 ----------------- Exceptional finance costs 1,100 4,670 ----------------- Total finance costs 14,923 15,995 Finance revenue - interest income (11,608) (1,098) ------------------ Net finance costs 3,315 14,897 ------------------ The provision for the cost of the Uplift Plan to eligible investors in AberdeenProgressive Growth Unit Trust is shown at note 12. The payments to eligible investors have been made over the period to October 2006. In accordance with the provisions of IAS37 Provisions, Contingent Liabilities and Contingent Assets, provision for the potential cost was made on the basis of the present value of the best estimate of the cost to the Group. The charge shown above represents the unwinding of the discount during the period to 30 September 2006 9.Tax expense 2006 2005 £'000 £'000Tax charge on profit before exceptional items and amortisation of intangible assets 17,404 5,368Tax (credit) charge on exceptional items and amortisation of intangible assets arising in the year (5,429) 501Release of surplus provision for tax on exceptional gains arising in prior years (2,000) - ----------------- 9,975 5,869 ----------------- 10. Dividends 2006 2005 £'000 £'000Dividends on redeemable preference shares:Dividend paid 30 June 5,397 - -----------------Ordinary dividends Declared and paid during the year Dividends paid on ordinary shares: Final dividend for 2005 - 1.584p (2004 - second interim 1.287p) 9,899 5,321Interim dividend for 2006 - 2.00p (2005 - 1.416p) 12,814 4,724 ------------------ 22,713 10,045 ------------------ Total dividends paid during the year 28,110 10,045 ------------------ Proposed for approval at the Annual General Meeting (not recognised as a liability at 30 September 2006) Dividends on ordinary shares: Final dividend for 2006 - 2.4p (2005 -1.584p) 15,027 9,500 ------------------ The proposed final dividend of 2.4 pence per ordinary share will be paid on 31 January 2007 to qualifying shareholders on the register at close on 15 December 2006. The total ordinary dividend of 4.4p per share will trigger an adjustment to the subscription price applying to the warrants which form part of the 6.75%Convertible Preference Share Units issued in June 2005. Assuming approval ofthe final dividend payment at the forthcoming Annual General Meeting, the subscription price will reduce from 99p per ordinary share to 98p per ordinary share. 11. Earnings per share The calculations of earnings per share are based on the following profits and numbers of shares. Basic earnings per share amounts are calculated by dividing net profit for theperiod attributable to ordinary equity holders of the parent by the weighted average number of Ordinary Shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit for the period attributable to ordinary equity holders of the parent by the weighted average number of Ordinary Shares outstanding during the year plus the weighted average number of Ordinary Shares that would be issued on the conversion of all the dilutive potential Ordinary Shares into Ordinary Shares. IAS33 Underlying 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Profit attributable to shareholders 43,872 25,689 43,872 25,689 Dividends on redeemable preference shares (5,397) (1,350) (5,397) (1,350) ------------------------------------ Profit for the financial year - IAS 33 basis 38,475 24,339 38,475 24,339 ---------------- Amortisation of intangible assets 8,070 - Exceptional gains on disposal of investments, net of attributable taxation (14,867) (8,868) Exceptional integration costs, net of attributable taxation 23,298 - Exceptional finance costs, net of attributable taxation 1,100 4,169 Exceptional (charge) release of provisions, net of attributable taxation 165 (2,600) ---------------- Profit for the financial year - underlying basis 56,241 17,040 ---------------- Weighted average number of shares (000's) 600,085 364,289 600,085 364,289 ------------------------------------- Basic earnings per share 6.41p 6.68p 9.37p 4.68p ------------------------------------- Diluted earnings per share Profit for calculation of basic earnings per share, as above 38,475 24,339 56,241 17,040 Add: interest on 2010 convertible bonds, net of attributable taxation 837 N/A 837 462 Add: dividend on convertible preference share units N/A N/A 5,397 - Dilutive effect of exercisable share options - - - - ------------------------------------ Profit for calculation of diluted earnings per share 39,312 24,339 62,475 17,502 ------------------------------------ Weighted average number of shares (000's) For basic earnings per share 600,085 364,289 600,085 364,289 Dilutive effect of 2010 convertible bonds 24,737 N/A 24,737 14,029 Dilutive effect of convertible preference share units N/A N/A 80,733 - Dilutive effect of exercisable share options 2,282 2,362 2,282 2,362 ------------------------------------- 627,104 366,651 707,837 380,680 ------------------------------------- Diluted earnings per share 6.27p 6.64p 8.83p 4.60p ------------------------------------- 12. Provision for Uplift Plan 2006 2005 £'000 £'000 At 1 October 2005 - non-current liabilities 4,631 23,709 - current liabilities 19,478 15,491 ---------------- 24,109 39,200 Utilised (15,836) (15,491) Released in year (7,264) (2,600) Unwinding of discount 1,100 3,000 ---------------- At 30 September 2006 2,109 24,109 ---------------- Non-current - 4,631 Current 2,109 19,478 ---------------- 2,109 24,109 ---------------- The final payments to participating investors were made in early October 2006. In the Board's opinion, the provision at 30 September 2006 is sufficient to cover the final payments made in October plus any remaining exposure to claims made by investors who elected not to participate in the Uplift Package. 13. Contingent liabilities On 28 June 2005, proceedings were issued in the High Court in London against Aberdeen Asset Management PLC and Aberdeen Asset Managers Jersey Limited (together "the Aberdeen parties") and a non-Aberdeen party by Real Estate Opportunities Limited ("REO"). In 2003, the board of REO announced, with regard to the Aberdeen parties, that REO had terminated its management contract with immediate effect and indicated that it held the Aberdeen parties liable for damages in respect of losses incurred on its income portfolio. The Aberdeen parties do not accept the validity of REO's termination without notice. The Aberdeen parties believe that the claim is without merit and will vigorously defend the proceedings and counterclaim for their accrued fees and the fees relating to the 12 months' notice period provided for in the management contract. 14. The financial information set out above does not constitute the company's statutory accounts for the years ended 30 September 2006 or 2005. Statutory accounts for 2005, which were prepared under UK GAAP have been delivered to the Registrar of Companies. The auditors have reported on the 2005 accounts; their report was unqualified and did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The statutory accounts for 2006, which are being prepared under accounting standards adopted by the EU, will be finalised on the basis of the financial information presented by the directors in this preliminary announcement and will be delivered to the Registrar of Companies in due course. Assets under Management 2006 2005By principal asset class £m £mFixed income 38,126 22,302Equities 28,456 31,911Property 6,588 5,526 -------------------- 73,170 59,739 --------------------By mandate type Fixed income 35,315 19,942Equities 24,122 21,736Multi-asset 6,700 11,801Property 6,588 5,526Private equity and other 445 734 -------------------- 73,170 59,739 -------------------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ADN.L