6th Dec 2006 07:01
Premier Asset Management PLC06 December 2006 Premier Asset Management PLC Final Results for the year ended 30th September 2006 Highlights • Turnover up 82% to £15,723,000 from £8,637,000 • Funds under management as at 30th November 2006 in excess of £1.5 billion compared to £1.1 billion at the same time last year • Profit before tax and amortisation of £1,257,000 compared to a profit before tax, amortisation and exceptional items of £356,000 for the previous year, representing an increase of 253% year on year • Net new business written during the year to September 2006 of £262 million compared to £107 million for the previous year • Dividend declared of 1.5p for the year ended 30th September 2006 Enquiries: 01483 306090 Mike O'Shea Chief Executive Premier Asset Management PLC Chairman's Statement Introduction I am delighted to report that the past year has seen your Company's bestperformance for many years. As at 30th November 2006 funds under management hadrisen to £1.5 billion as compared to £1.1 billion at the same time last year, arise of 36%. While improving equity markets have played a part in thisexpansion, the strong sales growth throughout the year has been the majorcontributor to this increase. We have achieved the first stage of our mostimportant strategic objective; building scale with sustainable revenue andprofits. Financials Your Board is very pleased to be able to report that during the course of theyear, turnover increased by 82% to £15.72 million, as compared to £8.64 millionin the previous year. This increase has enabled your Company to generate aprofit before amortisation, tax and staff bonuses of £1.81 million. After theallocation of bonuses, the profit before tax and amortisation was £1.257 millionwhich represents a 253% increase on last year's comparable figure, which beforeexceptional items was £0.356 million. These profit figures translate intomargins based on turnover of 8.0% for the year under review and 4.1% for theprevious year and produce basic earnings per share after tax and beforeamortisation of 8.35p as compared to 3.66p for the same period last year; a riseof 128%. Sales During the course of the year, sales have been strong across each of yourCompany's main business lines. Net new business totalled £262 million; anincrease of 145% on last year's figure of £107 million. Once again, third-party sales have formed the major part of this year's sales.However, it is also pleasing to note that sales of Premier's own open-endedfunds have been progressing well. During the year, gross sales ofPremier-branded funds reached £57 million as compared to £36 million for thesame period last year. Your Board has recently approved the expansion of the Premier sales andmarketing team to take advantage of the opportunities that are being identified.The sales and marketing team now numbers nineteen, nine of which representPremier around the UK. Taken together with the strengthening of the fundmanagement and operations teams, this represents a significant financialinvestment for future growth. Corporate Activity As set out in my previous report to shareholders, activity in the second half ofthe year under review was duly focused on concluding the integration ofacquisitions made in previous months. I am pleased to report that theintegration of the BFS business is now complete, and good progress is being madeon our development plans both within the private client business and on theadministration side. Elsewhere, the acquisition of the Absolute Growth Fund from AXA Framlington andthe integration of the funds acquired from Solus have progressed well, with fundmergers and conversions either completed or in progress. I am also grateful tothe Board of Premier Absolute Growth and Income Trust for their confidence inappointing Premier to manage their portfolio. Finally, I can confirm that your Company is continuing to monitor acquisitionopportunities where there is scope to enhance existing business lines or tocreate new ones. Notwithstanding this, management's primary focus remains on theorganic development of the existing business lines and maintaining sales growth. Dividend In previous reports to shareholders, I have made reference to the introductionof a dividend as and when your Board was confident that the improvement intrading and profitability had become sustainable. After due consideration, webelieve that this year's retained profit of £522,681 should form the basis forthe commencement of a dividend. I am therefore pleased to announce that yourCompany will be paying a dividend of 1.5p for the year ended 30th September 2006and, in the absence of unforeseen circumstances, your Board anticipatesincreasing this dividend in future years. Future Your Board is excited about the prospects for each of the business lines.Clearly, as with any asset management business, there are risks with revenuesbeing linked to the general level of equity markets. However, in the absence ofa major equity market correction, we anticipate further success in building thefunds under management. This will involve the Premier team continuing to work closely with its businesspartners on the third-party funds, with the advisers who recommendPremier-branded products and services and with the directors of the investmenttrusts whose portfolios are entrusted to our care. Staff and Colleagues As always, my colleagues and I are indebted to the staff - both long-standingand new - at Premier for all their commitment and efforts throughout the year. Roger Wood Chairman 5th December 2006 Consolidated Profit and Loss AccountFor the year ended 30th September 2006 Continuing operations Acquisitions Total Total 2006 2006 2006 2005 Notes £ £ £ £ Turnover 12,134,032 3,588,541 15,722,573 8,636,818 Operating expenses ----------- ---------- ----------- ----------Amortisation (554,092) (179,989) (734,081) (242,163)Other operatingexpenses (11,472,195) (3,236,657) (14,708,852) (8,424,653)Exceptional items - - - (462,032) ----------- ---------- ----------- ----------Total operatingexpenses (12,026,287) (3,416,646) (15,442,933) (9,128,848)--------------------------------------------------------------------------------Operatingprofit/(loss) 107,745 171,895 279,640 (492,030) ----------- ---------- Share of profitof associate 70,904 -Net interestreceivable 172,137 143,511-------------------------------------------------------------------------------- Profit/(loss) onordinaryactivities before taxation 522,681 (348,519) Tax onprofit/(loss) onordinaryactivities (43,463) 125,000-------------------------------------------------------------------------------- Profit/(loss) onordinaryactivities after taxation for the financial year 479,218 (223,519) Earnings/(loss) per share - basic 2 3.30 (1.70)-------------------------------------------------------------------------------- - diluted 2 3.04 (1.69)-------------------------------------------------------------------------------- Consolidated Balance SheetAt 30 September 2006 Restated 2006 2006 2005 2005 £ £ £ £Fixed AssetsIntangible assets - Goodwill 2,689,533 2,091,688 - Other 4,323,148 2,531,314-------------------------------------------------------------------------------- 7,012,681 4,623,002Tangible assets 411,095 309,003Investments in associate 44,654 43,500-------------------------------------------------------------------------------- 7,468,430 4,975,505Current Assets Investments 306,682 135,827 Debtors 9,423,227 5,297,859 Cash 7,121,287 3,551,341-------------------------------------------------------------------------------- 16,851,196 8,985,027 Creditors: Amounts falling due within one year (16,519,032) (8,456,748)-------------------------------------------------------------------------------- Net Current assets 332,164 528,279--------------------------------------------------------------------------------Total assets less current liabilities 7,800,594 5,503,784-------------------------------------------------------------------------------- Called up share capital 1,465,521 1,316,669Share premium account 2,295,735 686,646Capital redemption reserve 830,000 830,000Profit and loss account 3,209,338 2,670,469--------------------------------------------------------------------------------Shareholders' funds 7,800,594 5,503,784-------------------------------------------------------------------------------- Reconciliation of Movement in Shareholders' FundsFor the year ended 30th September 2006 Called up Share Capital Profit share premium redemption & loss capital account reserve account Total £ £ £ £ £The GroupAt 1st October 2005 1,316,669 686,646 830,000 2,810,731 5,644,046Prior yearadjustment - - - (140,262) (140,262)--------------------------------------------------------------------------------Adjusted openingreserves 1,316,669 686,646 830,000 2,670,469 5,503,784Shares issued duringthe year 148,852 1,541,912 - - 1,690,764Shares issued out oftreasury - 67,177 - 59,651 126,828Retained profit forthe year - - - 479,218 479,218--------------------------------------------------------------------------------At 30th September2006 1,465,521 2,295,735 830,000 3,209,338 7,800,594-------------------------------------------------------------------------------- Consolidated Cash Flow Statement For the year ended 30th September 2006 2006 2006 2005 2005 £ £ £ £Net cash inflow from operating activities 4,232,613 943,542 Profit distribution received from associate 70,904 - Returns on investmentsand servicing of finance Interest received 287,789 158,897 Interest paid (115,652) (15,386) Net cash inflow from returns oninvestments and servicing of finance 172,137 143,511 Taxation UK corporation tax paid - - Capital expenditure and financialinvestment Purchase of tangible fixed assets (245,656) (50,444) Purchase of current asset investments (170,855) (94,718) Purchase of intangible fixed assets (1,449,386) (701,723) Investment in associate (82,298) (137,570) Sale of tangible fixed assets 2,450 1,475 Sale of current asset investments - 49,000 Net cash outflow from capitalexpenditure and financial investment (1,945,745) (933,980) Acquisitions and disposals Purchase of subsidiary undertaking (100) - Net cash outflow from acquisitionsand disposals (100) - Financing Repurchase of shares in treasury - (447,279) Issue of shares (net of expenses) 24,424 34,010 Bank loan 1,356,516 658,864 Net cash inflow from financing 1,380,940 245,595 Increase in cash 3,910,749 398,668 Notes 1. Basis of preparation This preliminary statement, which has been agreed with the auditors, wasapproved by the Board on 5th December 2006. It is not the Company's statutoryaccounts. The statutory accounts for the year ended 30th September 2005 havebeen delivered to the Registrar of Companies and received an audit report whichwas unqualified, did not include a reference to any matters to which theauditors drew attention by way of emphasis without qualifying the report and didnot contain statements under section 237(2) and (3) of the Companies Act 1985.The statutory accounts for the financial year ended 30th September 2006 have notyet been approved, audited or filed. 2. Earnings Per Share The calculation of earnings per share has been made in accordance with FRS22'Earnings Per Share'. Earnings 2006 Per share Earnings 2005 Per share £ Weighted Amount £ Weighted Amount Average No pence Average No pence of shares of sharesAttributableprofit/ (loss) 479,218 14,537,945 3.30 (223,519) 13,134,814 (1.70) Amortisation 734,081 - 5.05 242,163 - 1.84 Exceptionalitems - - - 462,032 - 3.52 Adjustedearnings per share 1,213,299 14,537,945 8.35 480,676 13,134,814 3.66 Share options - 1,235,865 - - 104,007 - Diluted earningsper share 479,218 15,773,810 3.04 (223,519) 13,238,821 (1.69) Amortisation 734,081 - 4.65 242,163 - 1.83 ExceptionalItems - - - 462,032 - 3.49 Dilutedadjustedearnings per share 1,213,299 15,773,810 7.69 480,676 13,238,821 3.63 Supplementary earnings per share figures excluding amortisation and exceptionalitems have been presented as the directors consider that these supplementaryfigures provide a useful additional indication of performance. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PAM.L