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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Polar Capital Holdings Plc | LSE:POLR | London | Ordinary Share | GB00B1GCLT25 | ORD 2.5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 3.00 | 0.57% | 532.00 | 525.00 | 527.00 | 530.00 | 523.00 | 523.00 | 197,702 | 16:35:05 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Investment Advice | 182.88M | 35.61M | 0.3533 | 14.89 | 530.16M |
From Apr 2019 to Apr 2024
TIDMPOLR
RNS Number : 2563R
Polar Capital Holdings PLC
08 December 2016
Polar Capital Holdings plc ("Polar Capital" or "the Group")
Interim results for six months ended 30 September 2016
Summary of Results
Financial
Hot Features
Premium
-- Assets under Management ("AUM") at 30 September 2016 were GBP7.7bn/$9.9bn (31 March 2016: GBP7.3bn/$10.4bn) - fund outflows of GBP763m offset by market and currency movements of GBP1.1bn
-- Core operating profit, excluding performance fees, GBP9.2m (30 September 2015: GBP12.4m)
-- Operating profit before share-based payments GBP11.2m (30 September 2015: GBP13.3m)
-- Pre-tax profit GBP9.1m (30 September 2015: GBP11.7m)
-- Basic earnings per share 7.40p (30 September 2015: 10.44p) and adjusted* diluted earnings per share 9.33p (30 September 2015: 11.46p)
-- Interim dividend per ordinary share of 5.5p declared (2015: 5.5p) to be paid in January 2017
-- Shareholders' funds GBP65.4m (30 September 2015: GBP69.7m) including cash and investments of GBP71.8m (30 September 2015: GBP75.1m)
* Adjusted to exclude cost of share-based payments
Corporate
-- Our UK Value long-only UCITS fund will be launched at the end of January
Current Trading
-- AUM at 30 November 2016 were GBP8.1bn/$10.2bn
Tim Woolley, Chief Executive Officer, commented:
"This was certainly a challenging period to navigate with considerable uncertainty leading up to the EU referendum and considerable volatility in markets after the result. Long-only equity funds in general experienced large net redemptions over the period and we were not immune from such industry conditions. Despite the overall challenging market conditions, a number of our funds including Biotechnology, Insurance, Global Alpha, European Income ex UK, Global Convertible Bond and UK Absolute did see net inflows over the period.
Our fund inflows have picked up markedly since the US election but it remains too early to suggest this is a reversal of the difficult industry conditions that we experienced through the first seven months of our financial year.
Overall we have become somewhat more positive on the outlook for our business over the second half of the financial year. We also expect to maintain the dividend for the current financial year."
For further information please contact: Polar Capital Tim Woolley (CEO) John Mansell (COO) +44 (0)20 7227 2700 Canaccord Genuity - Nomad and Joint Broker Simon Bridges (QE) Andrew Buchanan Kit Stephenson +44 (0)20 7523 8000 Peel Hunt - Joint Broker +44 (0) 20 7418 Guy Wiehahn 8893 Camarco Ed Gascoigne-Pees Georgia Edmonds +44 (0)20 3757 4984 --------------------------- --------------------
Assets Under Management (AUM)
AUM split by strategy
30 September 31 March
2016 2016
------------- -------------------- ------------ ---------------------
$bn GBPbn % $bn GBPbn %
Long only 8.84 6.81 88.9% Long only 9.38 6.53 89.9%
Alternative 1.10 0.85 11.1% Alternative 1.05 0.73 10.1%
------------- -------- ---------- ------------ --------- ----------
$9.94bn GBP7.66bn $10.43bn GBP7.26bn
------------- -------- ---------- ------------ --------- ----------
AUM split by Business Unit
(in chronological order)
30 September 31 March
2016 2016
--------------- -------------------- -------------- ---------------------
$bn GBPbn % $bn GBPbn %
--------------- -------- ---------- -------------- --------- ----------
Technology 2.31 1.78 23.2% Technology 1.98 1.38 19.0%
Japan 1.40 1.09 14.2% Japan 2.18 1.51 20.9%
European 0.44 0.34 4.4% European 0.55 0.38 5.3%
Healthcare 1.34 1.03 13.5% Healthcare 1.32 0.92 12.6%
Financials 1.12 0.86 11.3% Financials 1.05 0.73 10.1%
Emerging Emerging
Markets 0.54 0.41 5.4% Markets 0.51 0.36 4.9%
Convertibles 0.57 0.44 5.7% Convertibles 0.45 0.31 4.3%
North America 1.95 1.50 19.6% North America 2.20 1.53 21.0%
Global Alpha 0.11 0.09 1.1% Global Alpha 0.10 0.07 1.0%
UK Absolute UK Absolute
Equity 0.09 0.07 0.9% Equity 0.05 0.04 0.5%
European European
Income 0.07 0.05 0.7% Income 0.04 0.03 0.4%
--------------- -------- ---------- -------------- --------- ----------
$9.94bn GBP7.66bn $10.43bn GBP7.26bn
--------------- -------- ---------- -------------- --------- ----------
Chief Executive's Statement
Profit before tax fell 22% to GBP9.1m for the first six months of this financial year compared to the same period last year whilst adjusted diluted earnings per share fell 19% to 9.33p. The fall in profits reflects the fall in the average AUM over the period. The breakdown of the profit before tax figure is set out below.
Six months Six months
to to
30 September 30 September
2016 2015
------------------------------------- -------------- --------------
Net core operating profit GBP9.2m GBP12.4m
Finance income GBP2.0m GBP0.9m
------------------------------------- -------------- --------------
Operating profit before share-based GBP11.2m GBP13.3m
payments and tax
Share-based payments GBP(2.1)m GBP(1.6)m
------------------------------------- -------------- --------------
Profit before tax GBP9.1m GBP11.7m
------------------------------------- -------------- --------------
Adjusted diluted earnings
per share (non-GAAP measure) 9.33p 11.46p
------------------------------------- -------------- --------------
This was certainly a challenging period to navigate with considerable uncertainty leading up to the EU referendum and considerable volatility in markets after the result. Long-only equity funds in general experienced large net redemptions over the period and we were not immune from such industry conditions. We had significant redemptions from our Japan and North America UCITS funds and from our Forager hedge fund. Net outflows across all our funds for the six months totalled GBP763m. Although our AUM increased over the period in sterling terms from GBP7.26bn to GBP7.66bn, this was due to market and currency movements of GBP1.1bn more than offsetting the aforementioned outflows. In dollar terms our AUM fell over the period from $10.43bn to $9.94bn.
Despite the overall challenging market conditions, a number of our funds did see inflows over the period. On the UCITS long only funds side we had net inflows into Biotechnology, Insurance, Global Alpha and European Income ex UK. On the Alternative side we actually experienced overall net inflows, with flows into our two absolute UCITS funds, Global Convertible Bond and UK Absolute, more than offsetting outflows on the Cayman hedge funds.
Since the end of our financial half-year the US presidential election has been decided and, as with Brexit, the pollsters were surprised and the intelligentsia were shocked at the outcome. It is too early to understand fully the implications of a Trump presidency but it would appear to be more positive for equities than bonds, with lower taxes and less regulation benefitting business. The bond market though will have to accommodate a potentially large increase in US government borrowing which will be required to fund the substantial increase in infrastructure spending Trump seems genuinely committed to delivering. The main concern now though is whether Trump's pre-election rhetoric on trade and protectionism will be enacted or, as seems more likely, will prove to have been 'election rhetoric' and his administration will in reality take a more pragmatic approach.
Our fund inflows have picked up markedly since the US election with inflows into a wide range of funds but notably Healthcare Opportunities, Biotechnology, Healthcare Blue Chip, North America, Insurance and Income Opportunities. It is though too early to suggest this is a reversal of the difficult industry conditions that we experienced through the first seven months of our financial year.
There remains the possibility of further redemptions on our Japan fund although performance has picked up markedly over the last three months and market conditions are turning decidedly more favourable to the team's style.
We will have further redemptions of around $62m on the hedge fund side this quarter as we have decided to close our ALVA hedge fund strategy at the end of December. The Global Convertible team wishes to focus on its successful UCITS product, the Global Convertible Bond fund, which has grown rapidly over the last eighteen months.
Our UK Value long only UCITS fund will be launched at the end of January. The fund will be managed by Georgina Hamilton and she will be joined by George Godber in April. Whilst the fund will not materially impact results for the current financial year, we believe the team has the potential to make a significant contribution in fiscal 2018 and beyond.
Overall we have become somewhat more positive on the outlook for our business over the second half of the financial year. We also expect to maintain the dividend for the current financial year.
Tim Woolley
Chief Executive 7 December 2016
Interim Consolidated Statement of Profit or Loss
For the six months to 30 September 2016
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
------------------------------------ ---------------- ----------------
Revenue 33,637 39,862
Finance income/ (expense) 2,068 879
------------------------------------ ---------------- ----------------
Gross income 35,705 40,741
Commissions and fees payable (2,999) (3,971)
------------------------------------ ---------------- ----------------
Net income 32,706 36,770
Operating costs before share-based
payments (21,462) (23,481)
------------------------------------ ---------------- ----------------
Operating profit before share-based
payments and tax 11,244 13,289
Share-based payments (2,107) (1,597)
------------------------------------ ---------------- ----------------
Profit for the period before
tax 9,137 11,692
Taxation (2,460) (2,474)
------------------------------------ ---------------- ----------------
Profit for the period attributable
to ordinary shareholders 6,677 9,218
------------------------------------ ---------------- ----------------
Basic earnings per ordinary
share 7.40p 10.44p
Diluted basic earnings per ordinary
share 7.09p 9.77p
Adjusted basic earnings per
ordinary share (Non GAAP measure) 9.74p 12.25p
Adjusted diluted earnings per
ordinary share (Non GAAP measure) 9.33p 11.46p
------------------------------------ ---------------- ----------------
All of the items in the above statements are derived from continuing operations.
Interim Consolidated Statement of Other Comprehensive Income
For the six months to 30 September 2016
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
---------------------------------------- ---------------- ----------------
Profit for the period attributable
to ordinary shareholders 6,677 9,218
Other comprehensive income -
items that may be reclassified
to income statement in subsequent
periods (net of tax):
Net movement on the fair valuation
of cash flow hedges (582) 650
Exchange differences on translation
of foreign operations 30 (3)
---------------------------------------- ---------------- ----------------
Other comprehensive income for
the period, net of tax (552) 647
---------------------------------------- ---------------- ----------------
Total comprehensive income for
the period, net of tax, attributable
to ordinary shareholders 6,125 9,865
---------------------------------------- ---------------- ----------------
Interim Consolidated Balance Sheet
As at 30 September 2016
(Audited)
(Unaudited) 31 March
30 September
2016 2016
GBP'000 GBP'000
--------------------------------- ------------- ---------
Non-current assets
Property, plant and equipment 2,637 2,862
Deferred tax assets 2,700 3,654
--------------------------------- ------------- ---------
Total non-current assets 5,337 6,516
--------------------------------- ------------- ---------
Current assets
Assets at fair value through
profit or loss 27,943 33,293
Assets held for sale 11,626 6,835
Trade and other receivables 9,338 7,984
Cash and cash equivalents 32,181 48,762
Total current assets 81,088 96,874
--------------------------------- ------------- ---------
Total assets 86,425 103,390
--------------------------------- ------------- ---------
Non-current liabilities
Provisions and other liabilities 2,248 2,132
Deferred tax liabilities 112 124
--------------------------------- ------------- ---------
Total non-current liabilities 2,360 2,256
--------------------------------- ------------- ---------
Current liabilities
Trade and other payables 12,761 21,235
Other financial liabilities 3,782 2,966
Current tax liabilities 2,136 1,332
--------------------------------- ------------- ---------
Total current liabilities 18,679 25,533
--------------------------------- ------------- ---------
Total liabilities 21,039 27,789
--------------------------------- ------------- ---------
Net assets 65,386 75,601
--------------------------------- ------------- ---------
Capital and reserves
Issued share capital 2,283 2,280
Share premium 18,657 18,509
Investment in own shares (878) (878)
Capital and other reserves 5,434 6,897
Retained earnings 39,890 48,793
--------------------------------- ------------- ---------
Total equity - attributable to
ordinary shareholders 65,386 75,601
--------------------------------- ------------- ---------
Interim Consolidated Statement of Changes in Equity
For the six months to 30 September 2016
Issued
share Share Investment Capital Other Retained Total
capital premium in own shares reserves reserves earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 31 March
2016 (audited) 2,280 18,509 (878) 123 6,774 48,793 75,601
Profit for the
period - - - - - 6,677 6,677
Other comprehensive
income - - - - (552) - (552)
--------------------- --------- -------- -------------- --------- --------- --------- --------
Total comprehensive
income - - - - (552) 6,677 6,125
Issue of shares
against options 3 148 - - - (104) 47
Dividends paid - - - - - (17,583) (17,583)
Share-based payment - - - - - 2,107 2,107
Current tax in
respect of employee
share options - - - - 45 - 45
Deferred tax in
respect of employee
share options - - - - (956) - (956)
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 30 September
2016 (unaudited) 2,283 18,657 (878) 123 5,311 39,890 65,386
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 31 March
2015 (audited) 2,232 16,715 (962) 133 6,532 50,581 75,231
Profit for the
period - - - - - 9,218 9,218
Other comprehensive
income - - - - 647 - 647
--------------------- ----- ------ ----- --- ----- -------- --------
Total comprehensive
income - - - - 647 9,218 9,865
Issue of shares
against options 15 - 72 - - (15) 72
Dividends paid - - - - - (17,188) (17,188) Share-based payment - - - - - 1,597 1,597 Current tax in - - - - - - - respect of employee share options Deferred tax in respect of employee share options - - - - 95 - 95 --------------------- ----- ------ ----- --- ----- -------- -------- As at 30 September 2015 (unaudited) 2,247 16,715 (890) 133 7,274 44,193 69,672 --------------------- ----- ------ ----- --- ----- -------- --------
Interim Consolidated Cash Flow Statement
For the six months to 30 September 2016
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
--------------------------------------- ---------------- ----------------
Operating activities
Cash (used) /generated from operations (449) 2,282
Tax paid (1,447) (2,576)
--------------------------------------- ---------------- ----------------
Net cash flow from operating
activities (1,896) (294)
--------------------------------------- ---------------- ----------------
Investing activities
Interest received and similar
income 19 9
Purchase of property, plant and
equipment (28) (322)
Purchase of assets at fair value
through profit or loss - (9)
Disposal of assets at fair value
through profit or loss 9,975 -
Purchase of assets held for sale (3,836) (6)
Cash flows related to derivatives (3,277) 1,483
--------------------------------------- ---------------- ----------------
Net cash flow from investing
activities 2,853 1,155
--------------------------------------- ---------------- ----------------
Financing activities
Dividends paid (17,583) (17,188)
Issue of ordinary shares 45 -
Receipts in relation to investments
in own shares - 72
--------------------------------------- ---------------- ----------------
Net cash flow from financing
activities (17,538) (17,116)
--------------------------------------- ---------------- ----------------
Net decrease in cash and cash
equivalents (16,581) (16,255)
Cash and cash equivalents at
start of period 48,762 41,385
--------------------------------------- ---------------- ----------------
Cash and cash equivalents at
end of period 32,181 25,130
--------------------------------------- ---------------- ----------------
Notes to the Unaudited Interim Consolidated Financial Statements
For the six months to 30 September 2016
1. General Information, Basis of Preparation and Accounting Policies
Polar Capital Holdings plc ("the Company") is a public limited Company registered in England and Wales.
The unaudited interim condensed consolidated financial statements to 30 September 2016 have been prepared in accordance with IAS 34: Interim Financial Reporting.
The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 March 2016 which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and the Companies Act 2006 applicable to companies reporting under IFRS.
The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial statements are consistent with those used in the preparation of the Group's annual financial statements for the year ended 31 March 2016.
2. Revenue
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
---------------------------- ---------------- ----------------
Investment management fees 34,609 40,374
Investment advisory fees 42 -
Investment performance fees - 42
Loss on hedging (1,014) (554)
---------------------------- ---------------- ----------------
33,637 39,862
---------------------------- ---------------- ----------------
3 Profit on Ordinary Activities Before Taxation
3.1) This is stated after charging:
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
-------------------------------- ---------------- ----------------
Staff costs 15,075 17,405
Depreciation 253 197
Operating lease rentals - land
& buildings 654 637
Operating lease rentals - other 860 642
3.2) Auditors' remuneration:
Audit of group financial statements 27 24
Other fees
- local statutory audits of
subsidiaries 20 18
- GIPS Review 11 11
- internal controls review 25 24
- tax advisory services 17 2
------------------------------------
4. Taxation
The tax charge for the six months ended 30 September 2016 includes a charge for share-based payment costs of GBP440,000 (September 2015: GBP160,000) that were not deductible for tax purposes. Under UK tax legislation the Group is only allowed a deduction for share-based payment costs when options are exercised by employees. When compared to the comparative period, the smaller number of option exercises in 2016 and the lower Group share price has resulted in a higher proportion of the accounting share-based payment cost being disallowed for tax purposes during the current period.
5. Dividends
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
-------------- ---------------- ----------------
Dividend paid 17,583 17,188
-------------- ---------------- ----------------
6. Earnings Per Ordinary Share
The calculation of basic earnings per ordinary share is based on the profit for the period of GBP6,676,500 (September 2015: profit GBP9,217,800) and on 90,177,700 (September 2015: 88,255,362) ordinary shares, being the weighted number of ordinary shares.
The calculation of diluted basic earnings per ordinary share is based on the profit for the period of GBP6,676,500 (September 2015: profit GBP9,217,800) and 94,180,600 (September 2015: 94,356,332) ordinary shares, being the weighted average number of ordinary shares allowing for all options of 4,002,900 (September 2015: 5,683,882) which are dilutive as well as shares granted under a crystallisation event but not yet issued of nil (September 2015: 417,088).
The calculation of adjusted basic earnings per ordinary share is based on a profit for the period of GBP6,676,500 (September 2015: profit of GBP9,217,800) but adjusted for the share-based payments charge of GBP2,107,700, (September 2015: share base payments charge of GBP1,597,500) and on 90,177,700 (September 2015: 88,255,362) ordinary shares, being the weighted number of ordinary shares.
The calculation of adjusted diluted earnings per ordinary share is based on a profit for the period of GBP6,676,500 (September 2015: GBP9,217,800) but adjusted for the share-based payments charge of GBP2,107,700, (September 2015: share base payments charge of: GBP1,597,500) and 94,180,600 (September 2015: 94,356,332) ordinary shares being the weighted average number of ordinary shares allowing for all options of 4,002,900 (September 2015: 5,683,882 ) which are dilutive as well as shares granted under a crystallisation event but not yet issued of nil (September 2015: 417,088).
7. Notes to the Cash Flow Statement
Reconciliation of profit before taxation to cash generated from operations
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2016 2015
GBP'000 GBP'000
-------------------------------------- ---------------- ----------------
Cash flows from operating activities
Profit on ordinary activities
before tax 9,137 11,692
Adjustments for:
Interest received (19) (9)
Depreciation of property, plant
and equipment 253 197
Increase in trade and other
receivables (1,354) (297)
Decrease in trade and other
payables (8,474) (9,645)
(Gain)/ loss on financial assets
at fair value through profit
or loss (4,624) 2,480
Increase in non-current provisions
and other liabilities 116 -
Loss/ (gain) on financial instruments
at fair value through profit
or loss 3,364 (2,954)
Gain on assets held for sale (955) (779)
Share-based payment 2,107 1,597
-------------------------------------- ---------------- ----------------
Cash (used)/ generated from
operations (449) 2,282
-------------------------------------- ---------------- ----------------
8. Related Party Transactions
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not included in this note.
B J D Ashford-Russell is a member of Polar Capital LLP and a director of the Polar Capital Technology Trust plc (the Trust). Polar Capital LLP is the appointed investment manager of the Trust. The total fees received by the Group as investment manager of the Trust were GBP4,290,300 (September 2015: GBP3,912,500). The amounts receivable at period end in this respect were GBP1,628,000 (March 2016: GBP1,319,000).
At the end of the period, the Group had an outstanding loan due of GBP877,700 (March 2016: GBP877,700) from the Polar Capital Employee Benefit Trust, which was set up in 2002 to hold ordinary shares in Polar Capital Holdings plc for the benefit of employees.
9. The Publication of Non-Statutory Accounts
The financial information contained in this unaudited half year report does not constitute statutory accounts as defined in S434 of the Companies Act 2006. The financial information for the six months ended 30 September 2016 and 2015 has not been audited. The information for the year ended 31 March 2016 has been extracted from the latest published audited accounts, which have been filed with the Registrar of Companies. The audited accounts filed with the Registrar of Companies contain a report of the independent auditor dated 23 June 2016. The report of the independent auditor on those financial statements contained no qualification or statement under S498 of the Companies Act 2006.
Directors
T H Bartlam Non-executive Chairman
T J Woolley Chief Executive Officer
J B Mansell Chief Operating Officer, Finance
Director
H G C Aldous Non-executive Director, Chairman
of Audit Committee
B J D Ashford-Russell Non-executive Director
G V Bumeder Non-executive Director
J M B Cayzer-Colvin Non-executive Director
M W Thomas Non-executive Director, Chairman
of Remuneration Committee
Company No.
4235369
Registered Office
16 Palace Street
London, SW1E 5JD
Tel: 020 7227 2700
Company Secretary
Neil Taylor
Dividend
A first interim dividend of 5.5p per share has been declared for the year to 31 March 2017. This will be paid on 13 January 2017 to shareholders on the register on 30 December 2016. The shares will trade ex-dividend from 29 December 2016.
Remuneration Code
Disclosure of the group's Remuneration Code will be made alongside its Pillar 3 disclosure which is available on the Company's website.
Half Year Report
The Half Year report will be posted to shareholders in late December 2016. Copies of this announcement and of the Half Year report will be available from the Secretary at the Registered Office, 16 Palace Street, London SW1E 5JD and from the Company's website at www.polarcapital.co.uk
Neither the contents of the Company's website nor the contents of any website accessible from the hyperlinks on the Company's website (or any other website) is incorporated into or forms part of this announcement.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFITFTLDIIR
(END) Dow Jones Newswires
December 08, 2016 02:00 ET (07:00 GMT)
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