26th Jul 2007 07:00
Investec PLC26 July 2007 Investec Limited Investec plcIncorporated in the Republic of South Africa Incorporated in England and WalesRegistration number 1925/002833/06 Registration number 3633621JSE share code: INL JSE share code: INPISIN: ZAE000081949 ISIN: GB00B17BBQ50 As part of the dual listed company ("DLC") structure, Investec plc and InvestecLimited notify both the London Stock Exchange and the JSE Limited of matterswhich are required to be disclosed under the Disclosure and Listing Rules of theUnited Kingdom Listing Authority (the "UKLA") and/or the JSE ListingRequirements. Accordingly we advise of the following: Investec plc - Interim Management Statement This is the first Interim Management Statement issued by Investec in accordancewith the new EU Transparency Directive and revised UK Listing Authority rules.Unless stated otherwise, key trends and figures highlighted below refer to thethree months ended 30 June 2007 and the corresponding period last year. OverviewOperating fundamentals across the group have largely continued the trends asreported at the year end results announcement on 17 May 2007. Markets havetightened to some extent; however, there has been a fair amount of activity inour core activities and geographies, the result of which is that the majority ofour businesses have continued to perform well. Our strategy for the business is unchanged. Maintaining a balanced businessmodel remains an important focus, particularly in the context of a more volatileoperating environment. In this regard, our advances and third party assets undermanagement have continued to grow, which has supported solid growth in netinterest income, fees and commissions. Since our year-end loans and advanceshave grown by 8.1% to £11.0 billion and third party assets under management haveincreased by 1.8% to £57.1 billion (the numbers reported by Rensburg Sheppardsplc at 31 March 2007 have not however, been adjusted). If one excludes thenumbers for Rensburg Sheppards plc third party assets under management haveincreased by 2.4% to £42.7 billion. Our balance sheet and capital adequacy ratios remain strong and there have beenno significant changes in the financial position of the group since thepublication of the report and accounts in respect of the year ended 31 March2007. Significant transactions The group has announced the following significant transactions during theperiod: • The recommended acquisition of the entire issued and to be issued share capital of Kensington Group plc by Investec plc to be implemented by way of a scheme of arrangement under section 425 of the Companies Act. • The disposal of Investec Property Group Limited's property fund management business and property administration business as a going concern to Growthpoint Properties Limited (referred to herein as "The Growthpoint transaction"). Details with respect to these transactions and their impact on the financial andoperating performance of Investec were made publicly available on 30 May 2007and can be found on our website at www.investec.com Further to these announcements, on 25 June 2007 Kensington Group plc despatched to its shareholders a circular (containing the terms of the acquisition). On 18July 2007 at the Court Meeting and the EGM, a resolution to approve the schemewas passed by the requisite majority of Kensington Group plc shareholders. The Growthpoint transaction is still subject to a number of regulatoryapprovals. Outlook The outlook for our business remains unchanged. The increase in scale and marketpenetration that we have achieved across all our geographies should continue tosupport the operating results of our businesses as expressed in localcurrencies. We have seen the momentum continue in the majority of our businessesand whilst financial market conditions remain volatile we would expect todeliver on our stated growth and financial return objectives. Future announcementsAs in prior years we will be holding a pre-close briefing in September, detailsof which will be posted on our website nearer the time. On behalf of the board Hugh Herman (Chairman), Stephen Koseff (Chief Executive Officer) and BernardKantor (Managing Director) Notes: 1. Please note that matters highlighted above may contain forward looking statements which are subject to various risks and uncertainties and other factors, including, but not limited to: - the further development of standards and interpretations under International Financial Reporting Standards (IFRS) applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS. - domestic and global economic and business conditions. - market related risks. • A number of these factors are beyond the Company's control. • These factors may cause the Company's actual future results, performance or achievements in the markets in which it operates to differ from those expressed or implied. • Any forward looking statements made are based on the knowledge of the Company at today's date. 2. Our reporting currency is Pounds Sterling. Certain of our operations are conducted by entities outside the UK. The results of operations and the financial condition of our individual companies are reported in the local currencies in which they are domiciled, including Rands, Australian Dollars and Euros. These results are then translated into Pounds Sterling at the applicable foreign currency exchange rates for inclusion in our combined consolidated financial statements. In the case of the income statement, the weighted average rate for the relevant period is applied and, in the case of the balance sheet, the relevant closing rate is used. The following table sets out the movements in certain relevant exchange rates against Pounds Sterling over the period: +----------------+------------------+--------------------+-------------------+| | 30 June 2007 | 31 March 2007 | 30 June 2006 |+----------------+---------+--------+----------+---------+----------+--------+|Currency per |Period |Average |Period end|Average |Period end|Average ||£1.00 |end | | | | | |+----------------+---------+--------+----------+---------+----------+--------+|South African | 14.12| 14.10| 14.20| 13.38| 13.21| 11.82||Rand | | | | | | |+----------------+---------+--------+----------+---------+----------+--------+|Australian | 2.36| 2.38| 2.42| 2.47| 2.48| 2.44||Dollar | | | | | | |+----------------+---------+--------+----------+---------+----------+--------+|Euro | 1.49| 1.48| 1.47| 1.47| 1.45| 1.45|+----------------+---------+--------+----------+---------+----------+--------+ Timetable:Year end: 31 March 2007Pre-close briefing: 20 September 2007Half-year end: 30 September 2007Release of interim results: 15 November 2007 For further information please contact:Investec Investor RelationsUK: +44 (0) 207 597 5546South Africa: +27 (0) 11 286 [email protected] About InvestecInvestec is an international specialist banking group that provides a diverserange of financial products and services to a niche client base in threeprincipal markets, the United Kingdom, South Africa and Australia as wellas certain other countries. The group was established in 1974 and currently hasapproximately 5 000 permanent employees. Investec focuses on delivering distinctive profitable solutions for its clientsin five core areas of activity namely, Private Client Activities, CapitalMarkets, Investment Banking, Asset Management and Property Activities. In July 2002 the Investec group implemented a dual listed company structure withlistings on the London and Johannesburg Stock Exchanges. The combined group'scurrent market capitalisation is approximately £4 bn. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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