5th May 2009 07:00
Aberdeen Asset Management plc
Interim Results for six months to 31 March 2009
Operational Highlights
Previously announced cost savings of £77m proceeding on schedule; further efficiencies of £20 million to be implemented
Solid balance sheet; new banking facilities agreed to mid-2011
First closing of Credit Suisse acquisition completed on 30 April; final closing remains on schedule for 30 June 2009
|
Financial highlights |
March 2009 |
March 2008 |
|
Revenue |
£192.2m |
£201.5m |
|
Pre-tax profit |
||
|
(before exceptional items & amortisation of intangibles) |
£33.0m |
£47.3m |
|
(after exceptional items & amortisation of intangibles) |
£17.9m |
£32.5m |
|
Diluted earnings per share |
||
|
(before exceptional items & amortisation of intangibles) |
2.43p |
4.71p |
|
(after exceptional items & amortisation of intangibles) |
0.52p |
3.07p |
|
Dividend per share |
2.8p |
2.8p |
|
Gross new business - funded |
£5.4bn |
£10.8bn |
|
- awarded but not yet funded |
£2.6bn |
£2.0bn |
|
Net new business |
(£8.5bn) |
£0.5bn |
|
Assets under management at period end |
£96.3bn |
£107.3bn |
Commenting on the results, Martin Gilbert, Chief Executive of Aberdeen Asset Management, said: "Aberdeen is well placed to succeed in current market conditions, which we expect will remain challenging for some time to come. We have a broad spread of activities, a strong balance sheet and a relentless focus on costs. Taken together, these give us a significant advantage over some of our competitors and we remain interested in taking advantage of any suitable expansion opportunities that may present themselves in the downturn. Meanwhile our acquisition of the Credit Suisse business is proceeding on schedule and once complete will further strengthen our global network."
Contacts
For further information, please contact:
Aberdeen Asset Management PLC
Martin Gilbert 020 7463 6000
Bill Rattray
Maitland
Neil Bennett 020 7379 5151
Tom Roberts
Chairman's Statement
Over the six month period ended 31 March 2009, Aberdeen Asset Management has maintained a resolute approach to the difficult financial environment. We have achieved both healthy levels of new business and our targeted cost savings, whilst the acquisition of certain assets and businesses of the traditional asset management business of Credit Suisse is proceeding on schedule.
The financial crisis continues to weigh heavily on the global economy and markets. De-leveraging across the developed world has impacted both credit and equity markets and we expect it will be some time before the effects of the fiscal stimuli take effect and countries begin to emerge from recession. In common with other asset management houses, the Group's revenues have been adversely affected by sharply declining and volatile markets, and currency exchange rates.
Despite these challenges, the Group's diversified business model and the breadth and scale of its client and asset base provides considerable resilience. In addition, since the current downturn began, we have focussed on our cost base. We have previously announced some £77 million of gross annualised cost reductions which, net of consequent income loss, will deliver £60 million of net annualised savings, with £50 million expected to benefit the current financial year. Implementation of these savings, is proceeding on schedule, with a net benefit of £20 million in the first half year and a further £30 million due to be completed during the second half. In light of the continuing market weakness we have identified a further £20 million of annualised cost savings which will be implemented during the remainder of 2009. We expect the full benefit of this latest phase to be reflected in the financial year to 30 September 2010.
Meanwhile the acquisition of certain of Credit Suisse's traditional asset management businesses, announced at the end of 2008 is on track and this transaction will considerably strengthen Aberdeen's position as a major global asset manager, providing significant potential for growth. The business and capital alliance with Mitsubishi UFJ Trust & Banking Corporation (MUTB) which we announced in October 2008 will also provide advantageous new distribution opportunities in the Japanese institutional market once conditions become more favourable.
The Group achieved profit before taxation of £17.9 million (2008: £ 32.5 million). Underlying profit, stated before exceptional items and amortisation of intangible assets, was £33.0 million (2008: £47.3 million). This represents underlying earnings per share, on a diluted basis of 2.43p (2008: 4.71p). The Board has decided to pay an interim dividend of 2.8 pence per share, unchanged from the equivalent payment last year. This interim dividend will be paid on 18 June 2009 to qualifying shareholders on the register at 15 May 2009.
The Group's balance sheet and financing remains robust and we have agreed new bank facilities through to mid- 2011. Shortly before the end of the first half year we announced the conversion into ordinary shares of £36.1 million of convertible preference shares, for which we paid the holders a small premium. With regard to regulatory capital, we continue to maintain a substantial surplus over the required levels and the Group now has a waiver from the requirements of consolidated supervision through to February 2014.
Review of operations
Despite the challenging markets, the Group continues to benefit from its globally diversified client base and investment capabilities and has attracted healthy levels of new business, principally into equity mandates.
However, the first half has been characterised by higher redemptions than this time last year as investors have reduced exposure to risk assets. The majority of the outflows have been experienced within the fixed income business where performance has underperformed benchmark, principally due to the unprecedented widening of credit spreads.
Analysis of these flows is provided in the tables below and it is encouraging to note that the average fee rate of 47 basis points on inflows exceeds the average fee of 29 basis points given up on outflows during the period.
The Group's AuM at 31 March 2009 decreased by 13% to £96.3 billion. The decrease arose as follows:
|
£bn |
% |
|
|
At 30 September 2008 |
111.1 |
|
|
Net new business flows for the period |
(8.5) |
-7.6% |
|
Expiry of fixed term mandates |
(2.8) |
-2.5% |
|
Business terminated as part of cost reduction programme |
(3.0) |
-2.7% |
|
Market appreciation and performance |
(16.1) |
-14.5% |
|
Exchange rate movements |
15.6 |
+14.0% |
|
At 31 March 2009 |
96.3 |
-13.3% |
Gross new business inflows for the period totalled £5.4 billion (2008: £10.8 billion) and these flows are included in assets under management at 31 March 2009. A further £2.6 billion of mandates were awarded but not funded at this date. Gross outflows totalled £13.8 billion (2008: £10.4 billion).
The composition of the new business flows is summarised in the following table.
|
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|
Further details of the activities in each of our three main asset classes is set out below. |
Equities
Investment performance in equities remains strong, with the Group's core disciplines of global equities, global emerging markets, Asia Pacific and US all performing consistently ahead of their respective benchmarks. As a result, considerable success has been achieved through new business wins especially into global and global emerging market equities where we are seeing good demand from investors. We are particularly pleased that our global equities strategy is gaining traction within the consultant community.
Fixed Income
Fixed income performance, particularly US credit, has been adversely affected by de-leveraging and illiquidity. The Group has had an overweight position in credit relative to bonds and this has been impacted by the wide spreads despite the high quality investments.
In February, we announced that we will strengthen the management team in this area with the appointment of Paul Griffiths as Global Head of Fixed Income. Paul, who currently occupies the equivalent role within Credit Suisse's asset management division, will join Aberdeen following completion of the second closing of our acquisition with Credit Suisse and has vast experience and knowledge of managing a global fixed income operation.
We continue to believe that there are attractive investment opportunities in credit, particularly in high quality corporate debt and we have seen some slight narrowing of credit spreads during the latest quarter. This has enabled us to reclaim some performance against benchmark and we believe that this theme will continue, albeit slowly, as investors regain confidence in credit markets. The outflows for the first half year include the expiry of some fixed term mandates and have been exacerbated by some corporate activity and portfolio rebalancing by some of our clients. We expect that the rate of outflows will begin to slow during the second half and into 2010.
Property
Both Goodman Property Investors and DEGI are now fully integrated into the enlarged property division and considerably strengthen Aberdeen's product offering especially into the UK and Europe. The outsourcing of the low margin facilities management business and sale of the Belgian property subsidiary, together with the cost efficiencies implemented during the latter part of 2008, will in due course increase the division's operating margin. Offsetting this in the short term are lower revenues as a consequence of reduced transaction fees. Whilst property has not been immune to the downturn and the falls in the UK commercial property market have been well flagged, we expect to see some good asset growth in the medium term, albeit we remain cautious for 2009.
Corporate activity
The acquisition of certain assets and businesses of Credit Suisse's traditional asset management business is well underway and completion of the first closing, involving the Asia Pacific (ex Japan) business, was completed on 30 April 2009. This element of the business had AuM of CHF11.5 billion (£7.2 billion) at 31 March 2009. The second and final closing of the transaction remains on track for completion at end June 2009.
The Group has an excellent track record of integrating businesses with a clear global operating model and experienced integration team. Although Credit Suisse is a multi-jurisdictional transaction with a number of office locations, we regard it as a large but manageable transaction where the focus is on capacity planning rather than the significant systems development required following the acquisition of various businesses from Deutsche Asset Management in 2005.
Outlook
We expect the challenging market conditions to continue for the rest of 2009, until such time as de-leveraging by investors is completed and the various government stimulus packages encourage a return of confidence and loosening of credit. The Group's priorities for the remainder of the financial year are to integrate the Credit Suisse business, continue to manage the cost base efficiently and to deliver superior and consistent investment performance. The market cycle is currently at a stage where attractive acquisition opportunities are likely to arise and we are well placed to benefit from industry consolidation.
|
Group Income Statement For the six months to 31 March 2009 |
|
|||
|
6 mths to |
6 mths to |
Year to |
||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Revenue |
2 |
192,176 |
201,474 |
430,086 |
|
Operating costs |
(154,860) |
(153,898) |
(330,794) |
|
|
Exceptional costs |
3 |
(6,700) |
(9,625) |
(25,002) |
|
Amortisation of intangible assets |
(8,424) |
(5,192) |
(13,785) |
|
|
Operating expenses |
(169,984) |
(168,715) |
(369,581) |
|
|
Exceptional gains |
- |
- |
4,129 |
|
|
Gains on investments and other income |
983 |
372 |
724 |
|
|
Other operating income |
4 |
983 |
372 |
4,853 |
|
Operating profit before: |
38,299 |
47,948 |
100,016 |
|
|
Exceptional gains and charges |
(6,700) |
(9,625) |
(20,873) |
|
|
Amortisation of intangible assets |
(8,424) |
(5,192) |
(13,785) |
|
|
Operating profit |
23,175 |
33,131 |
65,358 |
|
|
Finance revenue |
939 |
3,199 |
5,697 |
|
|
Finance costs |
(6,203) |
(3,808) |
(10,598) |
|
|
Net finance costs |
(5,264) |
(609) |
(4,901) |
|
|
Profit before exceptional items, amortisation and taxation |
33,035 |
47,339 |
95,115 |
|
|
Exceptional items and amortisation before taxation |
(15,124) |
(14,817) |
(34,658) |
|
|
Profit before taxation |
17,911 |
32,522 |
60,457 |
|
|
Tax expense before exceptional items and amortisation |
(5,248) |
(8,276) |
(16,491) |
|
|
Tax on exceptional items |
2,563 |
3,233 |
2,881 |
|
|
Tax expense |
6 |
(2,685) |
(5,043) |
(13,610) |
|
Profit after taxation before exceptional items and amortisation |
27,787 |
39,063 |
78,624 |
|
|
Exceptional items and amortisation after taxation |
(12,561) |
(11,584) |
(31,777) |
|
|
Profit for the year |
15,226 |
27,479 |
46,847 |
|
|
Attributable to: |
||||
|
Equity shareholders of the Company |
7,236 |
21,992 |
35,216 |
|
|
Other equity holders |
7,990 |
5,487 |
11,631 |
|
|
15,226 |
27,479 |
46,847 |
||
|
Earnings per share |
||||
|
Basic |
8 |
0.52p |
3.21p |
4.57p |
|
Diluted |
8 |
0.52p |
3.07p |
4.52p |
|
Underlying earnings per share |
||||
|
Basic |
8 |
2.44p |
5.14p |
9.45p |
|
Diluted |
8 |
2.43p |
4.71p |
9.01p |
|
Group Statement of Recognised Income and Expense |
||||
|
For the six months to 31 March 2009 |
||||
|
6 mths to |
6 mths to |
Year to |
||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Net actuarial gain on defined benefit pension schemes |
- |
- |
7,223 |
|
|
Translation of foreign currency net investments |
4,795 |
4,256 |
(1,425) |
|
|
Movement in fair value of available for sale investments |
(869) |
(71) |
(4,992) |
|
|
Tax on items taken directly to equity |
243 |
(236) |
(1,269) |
|
|
Net income (expense) recognised directly in equity |
14 |
4,169 |
3,949 |
(463) |
|
Profit for the period |
15,226 |
27,479 |
46,847 |
|
|
Total recognised income and expense for the period |
19,395 |
31,428 |
46,384 |
|
|
Attributable to: Equity shareholders of the Company Other equity holders |
11,405 7,990 |
25,941 5,487 |
34,753 11,631 |
|
|
Group Balance Sheet |
||||
|
As at 31 March 2009 |
||||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Assets |
||||
|
Non-current assets |
||||
|
Intangible assets |
9 |
856,042 |
705,340 |
828,461 |
|
Property, plant and equipment |
16,602 |
24,712 |
15,661 |
|
|
Other investments |
10 |
58,700 |
41,072 |
50,335 |
|
Pension surplus |
17 |
6,587 |
- |
5,481 |
|
Deferred tax assets |
27,324 |
23,283 |
24,109 |
|
|
Trade and other receivables |
5,943 |
13,982 |
8,898 |
|
|
Total non-current assets |
971,198 |
808,389 |
932,945 |
|
|
Current assets |
||||
|
Stock of units and shares |
11 |
345 |
520 |
268 |
|
Financial investments |
12 |
984,027 |
1,213,171 |
1,131,060 |
|
Trade and other receivables |
178,564 |
163,851 |
191,558 |
|
|
Other investments |
10 |
9,214 |
41,025 |
15,441 |
|
Cash and cash equivalents |
34,712 |
53,456 |
82,161 |
|
|
Assets classified as held for sale |
13 |
16,573 |
- |
17,596 |
|
Total current assets |
1,223,435 |
1,472,023 |
1,438,084 |
|
|
Total assets |
2,194,633 |
2,280,412 |
2,371,029 |
|
|
Equity |
||||
|
Called up share capital |
80,298 |
73,111 |
79,691 |
|
|
Share premium account |
406,817 |
307,545 |
396,010 |
|
|
Other reserves |
213,059 |
226,468 |
216,876 |
|
|
Retained loss |
(153,653) |
(151,263) |
(147,216) |
|
|
Total equity attributable to equity holders of the parent |
14 |
546,521 |
455,861 |
545,361 |
|
Attributable to other equity holders - perpetual capital securities |
198,302 |
197,662 |
197,942 |
|
|
Total equity |
744,823 |
653,523 |
743,303 |
|
|
Liabilities |
||||
|
Non-current liabilities |
||||
|
Interest bearing loans and borrowings |
15 |
216,217 |
175,468 |
172,340 |
|
Other creditors |
3,325 |
1,912 |
11,970 |
|
|
Provisions |
- |
500 |
- |
|
|
Pension deficit |
17 |
16,827 |
16,450 |
17,376 |
|
Deferred tax liabilities |
61,963 |
34,279 |
60,930 |
|
|
Total non-current liabilities |
298,332 |
228,609 |
262,616 |
|
|
Current liabilities |
||||
|
Investment contract liabilities |
12 |
984,027 |
1,213,171 |
1,131,060 |
|
Interest bearing loans and borrowings |
15 |
39,424 |
28,448 |
46,529 |
|
Trade and other payables |
116,004 |
139,402 |
169,269 |
|
|
Provisions |
1,303 |
2,376 |
2,000 |
|
|
Deferred income |
1,291 |
1,780 |
1,588 |
|
|
Current tax payable |
9,429 |
13,103 |
14,664 |
|
|
Total current liabilities |
1,151,478 |
1,398,280 |
1,365,110 |
|
|
Total liabilities |
1,449,810 |
1,626,889 |
1,627,726 |
|
|
Total equity and liabilities |
2,194,633 |
2,280,412 |
2,371,029 |
|
|
Summary Group Cash Flow Statement |
||||
|
For the six months to 31 March 2009 |
||||
|
6 mths to |
6 mths to |
Year to |
||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
Notes |
£'000 |
£'000 |
£'000 |
|
|
Core cashflow from operating activities |
(15,536) |
21,210 |
82,174 |
|
|
Effects of short-term timing differences on unit trust settlements |
1,399 |
2,530 |
(3,314) |
|
|
(14,137) |
23,740 |
78,860 |
||
|
Other non-recurring costs paid |
(6,700) |
(1,125) |
(14,358) |
|
|
Net cash (used in) generated from operating activities |
5 |
(20,837) |
22,615 |
64,502 |
|
Cash flows from investing activities |
||||
|
Proceeds from sale of investments |
15,528 |
5,245 |
19,877 |
|
|
Proceeds from sale of property, plant and equipment |
713 |
- |
17,161 |
|
|
Acquisition of subsidiaries, net of cash acquired |
- |
(87,161) |
(195,741) |
|
|
Acquisition of intangible assets |
(1,704) |
(467) |
(2,433) |
|
|
Acquisition of property, plant & equipment |
(2,389) |
(1,231) |
(2,959) |
|
|
Acquisition of investments |
(14,242) |
(34,179) |
(37,031) |
|
|
Net cash used in investing activities |
(2,094) |
(117,793) |
(201,126) |
|
|
Cash flows from financing activities |
||||
|
Issue of ordinary share capital |
516 |
161 |
95,206 |
|
|
Premium paid on conversion of preference shares |
(1,082) |
- |
- |
|
|
Purchase of own shares |
(327) |
- |
- |
|
|
New borrowings |
29,641 |
90,559 |
98,582 |
|
|
Repayment of borrowings |
(26,878) |
- |
(373) |
|
|
Dividends paid and coupon payments |
(30,699) |
(26,266) |
(54,959) |
|
|
Net cash (used in) generated from financing activities |
(28,829) |
64,454 |
138,456 |
|
|
Net (decrease) increase in cash and cash equivalents |
(51,760) |
(30,724) |
1,832 |
|
|
Cash and cash equivalents at 1 October |
82,161 |
80,680 |
80,680 |
|
|
Effect of exchange rate fluctuations on cash and cash equivalents |
4,311 |
3,500 |
(351) |
|
|
Cash and cash equivalents at end of period |
34,712 |
53,456 |
82,161 |
|
|
Notes |
|||
|
1. Basis of preparation |
|||
|
This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed set of financial statements has been prepared using the accounting policies and presentation applied in the preparation of the Company's published consolidated financial statements for the year ended 30 September 2008. The preparation of the Interim financial statements requires management to make estimates and assumptions that affect the reported income and expense, assets and liabilities and disclosure of contingencies at the date of the interim financial statements. Although these estimates and assumptions are based on management's best judgement at the date of the interim financial statements, actual results may differ from these estimates. The interim financial statements, which are in a condensed format, do not include all the information and disclosures required in the Group's annual report, and should be read in conjunction with the Group's annual report for the year ended 30 September 2008. The comparative figures for the financial year ended 30 September 2008 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. |
|||
|
2. Segmental information |
|||
|
Segment information is presented in respect of the Group's business segments. The primary business segments, based on the Group's management and reporting structure, are the investment management division and the property asset management division. The results, analysed by these two business segments, are shown below. |
|||
|
Investment management |
Property asset management |
Group total |
|
|
Six months to 31 March 2009 |
£'000 |
£'000 |
£'000 |
|
Turnover |
136,316 |
55,587 |
191,903 |
|
Net fair value gain on assets at fair value through income |
257 |
16 |
273 |
|
Revenue |
136,573 |
55,603 |
192,176 |
|
Operating costs |
(108,009) |
(46,851) |
(154,860) |
|
Exceptional costs |
(4,864) |
(1,836) |
(6,700) |
|
Amortisation of intangible assets |
(6,174) |
(2,250) |
(8,424) |
|
Operating expenses |
(119,047) |
(50,937) |
(169,984) |
|
Other operating income |
983 |
- |
983 |
|
Operating profit (before exceptional items and amortisation of intangibles) |
29,547 |
8,752 |
38,299 |
|
Operating profit (after exceptional items and amortisation of intangibles) |
18,509 |
4,666 |
23,175 |
|
Profit before tax |
14,586 |
3,325 |
17,911 |
|
Property |
|||
|
Investment |
asset |
Group |
|
|
management |
management |
total |
|
|
Six months to 31 March 2008 |
£'000 |
£'000 |
£'000 |
|
Turnover |
157,476 |
45,370 |
202,846 |
|
Net fair value losses on assets at fair value through income |
(1,372) |
- |
(1,372) |
|
Revenue |
156,104 |
45,370 |
201,474 |
|
Operating costs |
(113,676) |
(40,222) |
(153,898) |
|
Exceptional costs |
(3,125) |
(6,500) |
(9,625) |
|
Amortisation of intangible assets |
(5,192) |
- |
(5,192) |
|
Operating expenses |
(121,993) |
(46,722) |
(168,715) |
|
Other operating income |
372 |
- |
372 |
|
Operating profit (before exceptional items and amortisation of intangibles) |
42,800 |
5,148 |
47,948 |
|
Operating profit (loss) (after exceptional items and amortisation of intangibles) |
34,483 |
(1,352) |
33,131 |
|
Profit before tax |
32,265 |
257 |
32,522 |
|
Investment |
Property asset |
Group |
|
|
management |
management |
total |
|
|
Year to 30 September 2008 |
£'000 |
£'000 |
£'000 |
|
Turnover |
315,291 |
117,300 |
432,591 |
|
Net fair value gains on assets at fair value through income |
(2,505) |
- |
(2,505) |
|
Revenue |
312,786 |
117,300 |
430,086 |
|
Operating costs |
(229,704) |
(101,090) |
(330,794) |
|
Exceptional costs |
(11,094) |
(13,908) |
(25,002) |
|
Amortisation of intangible assets |
(11,940) |
(1,845) |
(13,785) |
|
Operating expenses |
(252,738) |
(116,843) |
(369,581) |
|
Exceptional gain on sale of property |
- |
4,129 |
4,129 |
|
Gains on investments and other income |
724 |
- |
724 |
|
Other operating income |
724 |
4,129 |
4,853 |
|
Operating profit (before exceptional items and amortisation of intangibles) |
83,806 |
16,210 |
100,016 |
|
Operating profit (after exceptional items and amortisation of intangibles) |
60,772 |
4,586 |
65,358 |
|
Profit before tax |
56,587 |
3,870 |
60,457 |
|
3. Exceptional costs |
|||
|
Exceptional costs incurred in the six months to 31 March 2009 related to integration costs for acquisitions completed in previous periods plus non-recurring costs, including redundancy costs, arising from the implementation of the cost reduction programmes announced by the Group. |
|||
|
6 mths to |
6 mths to |
Year to |
|
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Duplicate staff costs, redundancy costs and third party integration costs arising from acquisitions |
1,877 |
1,125 |
4,074 |
|
Redundancy and other non-recurring costs from implementation of the cost reduction programme |
4,823 |
- |
10,284 |
|
VAT expense on investment trusts |
- |
2,000 |
2,000 |
|
Exceptional impairment provision on property seed capital |
- |
6,500 |
8,644 |
|
Total exceptional costs |
6,700 |
9,625 |
25,002 |
|
4. Other operating income |
|||
|
6 mths to |
6 mths to |
Year to |
|
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
|
|
£'000 |
£'000 |
£'000 |
|
|
Other operating income comprises the following items: Exceptional gain on disposal of property Gain on disposal of other investments |
- 983 |
- 372 |
4,129 724 |
|
Other operating income |
983 |
372 |
4,853 |
|
The gain on disposal of other investments in the six months ended 31 March 2009 relates to the sale of an unlisted investment held by the Group. |
|||
|
5. Reconciliation of profit after tax to operating cash flow |
||||
|
6 mths to |
6 mths to |
Year to |
||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Profit after tax |
15,226 |
27,479 |
46,847 |
|
|
Depreciation charge |
2,117 |
1,737 |
3,815 |
|
|
Amortisation of intangible assets |
8,424 |
5,192 |
13,785 |
|
|
Fair value (gains) losses on investments |
(273) |
1,372 |
2,505 |
|
|
Impairment of investments |
- |
6,500 |
- |
|
|
Gain on disposal of investments and other assets |
(983) |
(372) |
(4,723) |
|
|
Share based element of remuneration |
10,805 |
4,068 |
14,716 |
|
|
Net finance costs |
5,264 |
609 |
4,901 |
|
|
Income tax expense |
2,685 |
5,043 |
13,610 |
|
|
43,265 |
51,628 |
95,456 |
||
|
(Decrease) increase in provisions |
(697) |
(151) |
1,500 |
|
|
(Increase) decrease in stock |
(77) |
17 |
269 |
|
|
Decrease (increase) in trade and other receivables |
15,949 |
20,241 |
(16,764) |
|
|
Decrease in short-term loans to property funds |
- |
11,767 |
24,027 |
|
|
Decrease in trade and other payables |
(63,714) |
(51,527) |
(12,570) |
|
|
Net cash (outflow) inflow from operating activities |
(5,274) |
31,975 |
91,918 |
|
|
Net interest paid |
(5,704) |
(647) |
(5,146) |
|
|
Corporation tax paid |
(9,859) |
(8,713) |
(22,270) |
|
|
Net cash (used in) generated from operating activities |
(20,837) |
22,615 |
64,502 |
|
|
6. Tax expense |
||||
|
6 mths to |
6 mths to |
Year to |
||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Current tax expense |
5,731 |
3,681 |
24,497 |
|
|
Adjustments in respect of previous periods |
2 |
31 |
(3,412) |
|
|
Deferred tax (credit) expense |
(3,121) |
1,331 |
(6,966) |
|
|
Adjustments in respect of previous periods |
73 |
- |
(509) |
|
|
Total tax expense in income statement |
2,685 |
5,043 |
13,610 |
|
|
The tax charge for the six month period ended 31 March 2009 is calculated using the effective annual tax rate in each country of operation and applying these rates to the results of each country for the first six months of the year. |
||||
|
7. Dividends and coupon payments |
6 mths to |
6 mths to |
Year to |
|
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
||
|
£'000 |
£'000 |
£'000 |
||
|
Dividends on perpetual preference shares Dividend paid |
1,745 |
- |
5,395 |
|
|
Coupon payment in respect of perpetual capital securities (net of tax) Coupon payments made during the period |
7,731 |
5,453 |
11,461 |
|
|
Ordinary dividends Declared and paid during the year Dividends paid on ordinary shares: Final dividend for 2008 - 3.0p (2007 - final dividend 2.9p) Interim dividend for 2008 - 2.8p |
21,223 - |
18,451 - |
18,451 19,652 |
|
|
21,223 |
18,451 |
38,103 |
||
|
Total dividends and coupon payments paid during the period |
30,699 |
23,904 |
54,959 |
|
The dividend paid on perpetual preference shares in the period ended 31 March 2009 was in respect of the dividend accrued on preference shares which converted on 24 March 2009.
The interim ordinary dividend of 2.8p per share will be paid on 18 June 2009 to qualifying shareholders on the register at 15 May 2009.
8. 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 the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share amounts are calculated by dividing the net profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the potentially dilutive shares into ordinary shares.
Underlying earnings per share figures are calculated by adjusting the net profit to exclude exceptional items and amortisation of intangible assets.
The purpose of providing the underlying earnings per share is to allow readers of the accounts to clearly consider trends without the impact of exceptional and non-cash items.
|
IAS 33 |
Underlying |
|||||
|
6 mths to |
6 mths to |
Year to |
6 mths to |
6 mths to |
Year to |
|
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Basic earnings per share |
||||||
|
Profit for the financial period |
15,226 |
27,479 |
46,847 |
15,226 |
27,479 |
46,847 |
|
Dividends on perpetual preference shares |
(3,503) |
(2,697) |
(5,395) |
(3,503) |
(2,697) |
(5,395) |
|
Coupon payments in respect of perpetual capital securities (net of tax) |
(7,990) |
(5,487) |
(11,631) |
(7,990) |
(5,487) |
(11,631) |
|
Profit for the financial period, attributable to ordinary shareholders |
3,733 |
19,295 |
29,821 |
3,733 |
19,295 |
29,821 |
|
Amortisation of intangible assets net of attributable taxation |
7,033 |
4,654 |
12,285 |
|||
|
Exceptional integration costs, net of attributable taxation |
5,528 |
810 |
22,424 |
|||
|
Premium paid on conversion of preference shares |
1,082 |
- |
- |
|||
|
Exceptional VAT expense on investment trusts, net of attributable taxation |
- |
1,440 |
- |
|||
|
Exceptional impairment costs, net of attributable taxation |
- |
4,680 |
- |
|||
|
Exceptional gains on disposal of investments and property, net of attributable taxation |
- |
- |
(2,932) |
|||
|
Profit for the financial period - underlying basis |
17,376 |
30,879 |
61,598 |
|||
|
Weighted average number of shares |
712,514 |
600,433 |
652,149 |
712,514 |
600,433 |
652,149 |
|
Basic earnings per share |
0.52p |
3.21p |
4.57p |
2.44p |
5.14p |
9.45p |
|
Diluted earnings per share |
||||||
|
Profit for calculation of basic earnings per share, as above |
3,733 |
19,295 |
29,821 |
17,376 |
30,879 |
61,598 |
|
Add: interest on 2010 convertible bonds, net of attributable taxation |
- |
- |
- |
- |
101 |
170 |
|
Add: dividend on convertible preference share units |
- |
- |
- |
- |
2,697 |
5,395 |
|
Profit for calculation of diluted earnings per share |
3,733 |
19,295 |
29,821 |
17,376 |
33,677 |
67,163 |
|
Weighted average number of shares (000's) |
||||||
|
For basic earnings per share |
712,514 |
600,433 |
652,149 |
712,514 |
600,433 |
652,149 |
|
Dilutive effect of 2010 convertible bonds |
- |
- |
- |
- |
2,793 |
2,793 |
|
Dilutive effect of convertible preference share units |
- |
- |
- |
- |
82,395 |
82,395 |
|
Dilutive effect of LTIP awards |
2,042 |
26,217 |
5,745 |
2,042 |
26,217 |
5,745 |
|
Dilutive effect of exercisable share options |
1,413 |
2,730 |
2,202 |
1,413 |
2,730 |
2,202 |
|
715,969 |
629,380 |
660,096 |
715,969 |
714,568 |
745,284 |
|
|
Diluted earnings per share |
0.52p |
3.07p |
4.52p |
2.43p |
4.71p |
9.01p |
|
9. Intangible assets |
|||||||||||||||||||
|
31 Mar |
31 Mar |
30 Sept |
|||||||||||||||||
|
2009 |
2008 |
2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Intangible assets |
310,300 |
197,287 |
291,856 |
||||||||||||||||
|
Goodwill |
545,742 |
508,053 |
536,605 |
||||||||||||||||
|
856,042 |
705,340 |
828,461 |
|||||||||||||||||
|
10. Other investments |
|||||||||||||||||||
|
31 Mar |
31 Mar |
30 Sept |
|||||||||||||||||
|
2009 |
2008 |
2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Non-current assets Non-current investments |
58,700 |
41,072 |
50,335 |
||||||||||||||||
|
Current assets |
|||||||||||||||||||
|
Listed equities - held for trading |
850 |
27,986 |
846 |
||||||||||||||||
|
Liquid investments of life and pensions subsidiary |
8,364 |
13,039 |
14,595 |
||||||||||||||||
|
9,214 |
41,025 |
15,441 |
|||||||||||||||||
|
11. Stock of units and shares |
|||||||||||||||||||
|
31 Mar |
31 Mar |
30 Sept |
|||||||||||||||||
|
2009 |
2008 |
2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Units and shares in managed funds |
345 |
520 |
268 |
||||||||||||||||
|
12. Other financial investments / investment contract liabilities |
|||||||||||||||||||
|
These balances represent unit linked business carried out by the Group's life and pensions subsidiary. The assets represent investments held to meet contracted liabilities.
|
|||||||||||||||||||
|
13. Assets classified as held for sale |
|||||||||||||||||||
|
31 Mar |
31 Mar |
30 Sept |
|||||||||||||||||
|
2009 |
2008 |
2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Seed capital investments |
16,573 |
- |
17,596 |
||||||||||||||||
|
The Group has injected seed capital into two funds with the expectation that these will be disposed of as soon as practicable. The Group holds more than 50 per cent of the beneficial and voting rights attached to the holdings and technically controls the funds. As the Group is committed to the disposal of its entire investment in these funds they have not been consolidated and are classified as held for sale. 14. Statement of changes in equity |
|||||||||||||||||||
|
6 mths to |
6 mths to |
Year to |
|||||||||||||||||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Profit for the period |
15,226 |
27,479 |
46,847 |
||||||||||||||||
|
Other recognised income and expense |
4,169 |
3,949 |
(463) |
||||||||||||||||
|
Dividends paid |
(30,699) |
(23,904) |
(54,959) |
||||||||||||||||
|
Issue of ordinary share capital |
3,428 |
22,203 |
117,248 |
||||||||||||||||
|
Premium paid on conversion of preference shares |
(1,082) |
- |
- |
||||||||||||||||
|
Purchase of own shares |
(327) |
- |
- |
||||||||||||||||
|
Share based payments |
10,805 |
4,068 |
14,716 |
||||||||||||||||
|
Movement on coupon outstanding on perpetual capital securities |
(360) |
(34) |
(128) |
||||||||||||||||
|
Net additions to shareholders' funds |
1,160 |
33,761 |
123,261 |
||||||||||||||||
|
Opening shareholders' funds |
545,361 |
422,100 |
422,100 |
||||||||||||||||
|
Closing shareholders' funds |
546,521 |
455,861 |
545,361 |
||||||||||||||||
|
During the period the holders of 39,932 convertible preference share units and warrants opted to convert these securities resulting in the issue of 42,354,199 ordinary shares. |
|||||||||||||||||||
|
15. Interest bearing loans and borrowings |
|||||||||||||||||||
|
31 Mar 2009 |
31 Mar 2008 |
30 Sept 2008 |
|||||||||||||||||
|
Non-current liabilities |
£'000 |
£'000 |
£'000 |
||||||||||||||||
|
Amount drawn under bank revolving credit facility |
100,000 |
110,431 |
100,000 |
||||||||||||||||
|
Amount drawn under bank credit facility |
29,641 |
- |
- |
||||||||||||||||
|
7.2% Subordinated notes 2016 |
86,576 |
62,210 |
69,470 |
||||||||||||||||
|
4.5% Convertible bonds 2010 |
- |
2,827 |
2,870 |
||||||||||||||||
|
216,217 |
175,468 |
172,340 |
|||||||||||||||||
|
Current liabilities |
|||||||||||||||||||
|
Amount drawn under bank revolving credit facility |
39,424 |
28,075 |
46,529 |
||||||||||||||||
|
Unsecured guaranteed loan notes 2003 - 2008 |
- |
373 |
- |
||||||||||||||||
|
39,424 |
28,448 |
46,529 |
|||||||||||||||||
|
On 20 March 2009 the holders of £3.0 million 4.5% Convertible bonds 2010 opted to convert the notes held into ordinary shares which resulted in the issue of 2,793,036 ordinary shares. |
|||||||||||||||||||
|
16. Analysis of changes in net debt |
At |
Other |
At |
||||||||||||||||
|
1 Oct |
Cash |
non cash |
Exchange |
31 Mar |
|||||||||||||||
|
2008 |
Flow |
changes |
Movement |
2009 |
|||||||||||||||
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|||||||||||||||
|
Cash at bank and in hand |
82,161 |
(51,760) |
- |
4,311 |
34,712 |
||||||||||||||
|
Debt due within one year |
(46,529) |
7,105 |
- |
- |
(39,424) |
||||||||||||||
|
Debt due after more than one year |
(169,470) |
(9,868) |
(27) |
(36,852) |
(216,217) |
||||||||||||||
|
Convertible debt due after more than one year |
(2,870) |
- |
2,870 |
- |
- |
||||||||||||||
|
Total debt |
(218,869) |
(2,763) |
2,843 |
(36,852) |
(255,641) |
||||||||||||||
|
Net debt |
(136,708) |
(54,523) |
2,843 |
(32,541) |
(220,929) |
||||||||||||||
|
Net gearing |
18.4% |
29.7% |
|||||||||||||||||
|
17. Net pension deficit |
|||||||||||||||||||
|
The Group's principal form of pension provision is by way of three defined contribution schemes operated world-wide. The Group also operates four legacy defined benefit schemes, three in the UK and one in Germany. All four defined benefit schemes are closed to new membership and to future service accrual.
The actuarial valuations of the defined benefit pension schemes referred to above were updated to 30 September 2008 by the respective independent actuaries using the projected unit method. Contributions to the schemes since 30 September 2008 have been set off against the scheme deficits. |
|||||||||||||||||||
|
31 Mar |
31 Mar |
30 Sept |
|||||||||||||||||
|
2009 |
2008 |
2008 |
|||||||||||||||||
|
£'000 |
£'000 |
£'000 |
|||||||||||||||||
|
Surplus in scheme at end of period |
6,587 |
- |
5,481 |
||||||||||||||||
|
Deficits in schemes at end of period |
(16,827) |
(16,450) |
(17,376) |
||||||||||||||||
|
Net deficit in schemes at end of period |
(10,240) |
(16,450) |
(11,895) |
||||||||||||||||
|
18. Post balance sheet events |
|||||||||||||||||||
|
On 31 December 2008 the Group announced that it had entered into an agreement with Credit Suisse Group AG ('Credit Suisse') to acquire certain fund management assets and businesses, subject to shareholder approval and certain regulatory approvals. Shareholder approval for the acquisition was gained at a General Meeting held on 17 April 2009. Under the terms of the acquisition, and subject to all relevant conditions being satisfied, the acquisition will be completed in two stages. The first closing which was in relation to the Asia Pacific target business was completed on 30 April 2009. Final closing (being the completion of the Rest of the World target business) is expected to take place on or around 30 June 2009. The consideration for the acquisition will be satisfied by the issue to Credit Suisse of a maximum of 240 million new ordinary shares in Aberdeen. The actual number of new ordinary shares to be issued to Credit Suisse will depend on the run rate revenues delivered at the two closing dates. The assets under management subject of the acquisition were £40 billion as at 30 November 2008, with associated run-rate revenues of approximately £118 million per annum. |
|||||||||||||||||||
|
|
|
|
Assets under management |
|||
|
March |
September |
March |
|
|
2009 |
2008 |
2008 |
|
|
£m |
£m |
£m |
|
|
By type of mandate: |
|||
|
Institutional mandates |
70,098 |
84,013 |
79,120 |
|
Open end funds (excluding property funds) |
8,347 |
9,998 |
11,068 |
|
Closed end funds (excluding property funds) |
4,765 |
5,253 |
5,702 |
|
Property funds |
13,051 |
11,870 |
11,398 |
|
96,261 |
111,134 |
107,288 |
|
|
By Mandate Type |
|||
|
Fixed Income |
38,842 |
46,950 |
47,963 |
|
Equities |
28,640 |
32,582 |
35,598 |
|
Property |
23,207 |
25,385 |
17,175 |
|
Multi Asset |
5,572 |
6,217 |
6,552 |
|
96,261 |
111,134 |
107,288 |
|
|
OVERALL NEW BUSINESS FLOWS - 6 MONTHS TO 31 MARCH 2009 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
NEW BUSINESS FLOWS - 6 MONTHS TO 31 MARCH 2009 - EQUITIES |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
NEW BUSINESS FLOWS - 6 MONTHS TO 31 MARCH 2009 - FIXED INCOME |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Note: figures in the tables above may appear not to add due to rounding differences |
Related Shares:
ADN.L