14th Feb 2008 10:00
Investec PLC14 February 2008 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 14 February 2008 This Interim Management Statement is issued by Investec in accordance with theUK Listing Authority's Disclosure and Transparency rules. Unless statedotherwise, this statement relates to the period from 1 April 2007 to 31 December2007. Overview of operating fundamentals Operating fundamentals across the group for the period ended 31 December 2007continued the trends reported for the 6 months ended 30 September 2007. Thegroup's South African and Australian operations performed strongly whilst thegroup's UK operations posted results moderately behind the comparative period inthe prior year. Since 31 March 2007 core loans and advances grew by 34.5% to£13.4 billion, customer deposits grew by 25.4% to £11.8 billion and third partyassets under management increased by 7.9% to £60.5 billion supporting solidgrowth in net interest income, fees and commissions. Although trading conditions have weakened in all three core geographies since 31December 2007 we do expect to deliver growth in adjusted EPS for the year ended31 March 2008. The group assesses its performance against five key growth and financial returnobjectives (namely EPS growth, ROE, dividend cover, cost to income and capitaladequacy ratios). We expect to meet all these targets in the current financialyear other than our stated earnings per share objective (i.e. growth in adjustedEPS of 10% in excess of the UK retail price index). As a result of disciplined risk and capital management the group's balancesheet, capital adequacy ratios and asset quality have remained sound. As at 31December 2007 the capital adequacy of Investec plc (applying UK FinancialServices Authority rules to its capital base) was 16.5% and the capital adequacyof Investec Limited (applying South African Reserve Bank rules to its capitalbase) was 13.6%. Additional information We have made good progress on the integration of the Kensington Group into ourCapital Markets division. An assessment of the carrying value of the goodwillarising on the acquisition will be performed in the ordinary course of ouryear-end audit process. Outlook The growth experienced in our markets over the last four to five years has comeunder pressure as a result of the volatility in global capital and creditmarkets. Our strategy is to consolidate our position and create additionaloperational efficiencies while continuing to grow in areas where opportunitiespresent themselves. We believe this approach coupled with our balanced businessmodel supports our sustainable growth objectives. As in prior years we will be holding a pre-close briefing in March at which wewill provide further detail on the performance of our businesses. 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 group's control. • These factors may cause the group'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 group 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: 31 December 2007 30 September 2007 31 March 2007 Currency per £1.00 Period Average Period Average Period Average end end end South African Rand 13.61 14.06 13.98 14.21 14.20 13.38 Australian Dollar 2.28 2.36 2.30 2.39 2.42 2.47 Euro 1.36 1.45 1.43 1.47 1.47 1.47 Timetable: Pre-close briefing: 20 March 2008Year end: 31 March 2008Release of year-end results: 15 May 2008 For further information please contact: Investec Investor RelationsUK: +44 (0) 207 597 5546South Africa: +27 (0) 11 286 [email protected] About Investec Investec 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 5 700 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 £2.6 bn. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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