Financial and Business Highlights
Strong investment performance, with 80% of assets under management (AUM) outperforming objectives over the one and three-year periods to 31 December 2013
Underlying earnings per share (EPS) increased 25.7% to 8.8p (2012: 7.0p)
Consumer and Institutional net inflows of £1.3bn (2012: net outflows £1.9bn)
Cost reductions achieved in line with plan
Underlying operating margin strengthened to 36.9% in 2013 (2012: 29.2%)
AUM of £82.1bn (31 December 2012: £95.2bn); £20.3bn of Strategic Partner outflows during 2013
Reduction in net debt to £76.0m (31 December 2012: £97.3m)
|
Financial Summary |
Year ended 31 December 2013 |
Year ended 31 December 2012 |
|
Assets under management |
£82.1bn |
£95.2bn |
|
Net revenue |
£241.2m |
£243.5m |
|
Underlying operating profit |
£89.0m |
£71.1m |
|
Underlying operating margin |
36.9% |
29.2% |
|
Group underlying profit before tax |
£69.2m |
£51.9m |
|
Statutory profit after tax |
£10.2m |
£2.6m |
|
Basic earnings/(loss) per Ordinary Share |
1.5p |
(0.1p) |
|
Underlying earnings per Ordinary Share |
8.8p |
7.0p |
|
|
|
|
|
Interim dividend paid |
1.0p |
1.0p |
|
Second interim dividend for 2013 - payable in May 2014 |
2.0p |
- |
|
Proposed final dividend |
- |
2.0p |
|
Total dividend per Ordinary Share |
3.0p |
3.0p |
Richard Wilson, Chief Executive said:
"I am pleased to report an encouraging set of results for the Group, reflecting strong investment performance and substantial improvements to net fund flows in our Consumer and Institutional business. We have also made good progress in delivering on our objective to reduce our cost base and we remain on track to meet our targets.
While 2013 has been a year of progress, we also acknowledge the financial headwinds that still face our business. The withdrawal of assets from Strategic Partners will continue to impact upon revenues, while the development of our Consumer and Institutional business will take time and investment. However, we will continue to put our customers at the centre of everything we do, delivering strong investment performance, client service and innovative solutions. Ultimately it is this that will support the Company's ambitious growth plans."
Kieran Poynter, Chairman said:
"The Board of your Company recognises the progress that has been made in 2013 towards its strategic goals, but also the challenges that it faces in the future. The proposed transaction with BMO provides shareholders with an attractive premium against the medium-term standalone prospects and valuation of your Company and the Board has unanimously recommended that shareholders vote in favour of the acquisition."
