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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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Asset Man Inv | LSE:AMN | London | Ordinary Share | GB0000580653 | ORD 25P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 70.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
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0 | 0 | N/A | 0 |
RNS Number:6045J Asset Management Investment Co.PLC 11 December 2007 For immediate release Tuesday 11 December 2007 ASSET MANAGEMENT INVESTMENT COMPANY PLC FINAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2007 Asset Management Investment Company PLC ('AMIC'), the specialist investor in the global asset management industry, announces its results for the year to 30 September 2007. Highlights * Net assets £27.61 million (30 September 2006 £27.12 million) * Gearing 17% (30 September 2006 27%) * NAV per share 133.76p (30 September 2006 127.27p) * Pre-tax revenue profit £2.08 million (30 September 2006 £2.43 million) * Final dividend 4.0p net per share (2006 3.5p net per share) * Interim dividend 1.5p net per share (2006 1.5p net per share) * Special interim dividends of 2.0p net per share each paid on 20 October 2006 and 20 April 2007 * Repayment of zero dividend preference shares * Proposals for the future of the Company approved by shareholders Chairman's statement The favourable operating environment for the asset management industry, on which I commented in my statement with the results for the first six months of the year, continued through much of the second half. The market turmoil resulting from the subprime lending crisis in the United States commenced in August, but has had little effect on the companies in the AMIC portfolio, other than short-term volatility in the level of assets under management. There has been little overall impact on valuations or on the income which your company receives from these investments, other than as a result of the weakness of the United States dollar. I am therefore able to report that your Company has made encouraging progress throughout the year. The majority of the investments in the portfolio have performed very satisfactorily, and this has been reflected in a rising share price and an increased net asset value per share, the current net asset value of 144.39p being close to the highest level since February 2002. Corporate developments At the Extraordinary General Meeting held on 20 October 2006 the virtually unanimous approval of shareholders was obtained for the continuation of the Company and the adoption of an investment strategy of gradually realising the investment portfolio and returning cash to shareholders. Your Board continues to consider all options for the future of the Company which will contribute to this objective, while remaining open to any alternative ideas which will enhance shareholder value. Two significant income receipts resulted in your Directors declaring special interim dividends of 2.0p each for payment in October 2006 and April 2007. Your Directors do not believe that these income receipts will be recurring, but will consider the payment of special interim dividends if other exceptional income is received. None is anticipated at the present time. In January 2007 your Board negotiated with FX Concepts the early payment of the next tranche of $4 million due in July 2007 in terms of the agreement regarding the disposal of the convertible rights on the loan note held by your Company. This reduced the amount due on the US$ term facility from Investec Bank (UK) Limited to $8 million, which will be fully repaid from the final two tranches due to be received from FX Concepts in July 2008 and July 2009. The discount to net asset value at which the ordinary shares trade had narrowed significantly at the half-year stage but has widened since the equity market downturn to a level which your Board consider does not reflect the quality of the underlying investments. In the course of the year a total of 840,000 ordinary shares were bought back for cancellation at a cost of £918,000 and your Board continues to be prepared to use the powers granted to them in October 2006 and renewed at the Annual General Meeting in March 2007 for further buybacks. This is always on the proviso that the necessary combination is available of an appropriate level of discount, the availability of shares and windows of opportunity in the market is available. Investment portfolio Both AIM-listed investments held by your Company made progress during the year. City of London Investment Group has been helped by the strong performance in the emerging markets and currently has $4.7 billion under management. In February 2007 your Company participated in a placing of ordinary shares in City of London and sold 750,000 shares for a total of £1,893,374. The balance of 1,781,275 shares is now valued at £6.1 million compared with a cost of £0.9 million. Integrated Asset Management, which is a manager of funds of hedge funds, recently made another significant acquisition which has increased its assets under management to approximately $2.5 billion. The recent volatility in stock markets has, however, resulted in a weakening of its share price despite the considerable expansion of its business. IFDC Group S.A., a manager of funds invested in the Japanese stock market, is now the largest investment in the portfolio. The company continues to perform well and is a major contributor to our revenue. FX Concepts had an excellent year to 31 May 2007 during which revenues exceeded $104 million. The company now has close to $14 billion under management and after six months its revenues for the year to 31 May 2008 are ahead of the level which ensures that AMIC will receive the maximum revenue return of $1,425,000 on its note. Principal Investment Holdings, located in Sevenoaks, Kent performed strongly in 2006, and now has approximately £1 billion under management. Lombardia Capital Partners in Pasadena, California has made very encouraging progress in developing its business and now has $1.7 billion under management in a range of large, medium and small cap products. The problems inherited from the previous management are gradually being resolved, and your Board has restored value to both the common shares and the convertible note held by your Company. As previously reported to shareholders, Financial Management Advisors in December 2006 received an unfavourable judgement in a significant litigation and is continuing to explore possible solutions to the difficult financial situation which has resulted. In view of the uncertainties associated with the future of this company, your Board considered it appropriate to make a full provision against the value of the investment. Financial results Revenue profit before tax for the year was £2,080,000 (2006: £2,431,000), a decrease of 14%. Profit after taxation decreased by 12% to £1,656,000 (2006: £1,892,000) and revenue return per ordinary share decreased by 12% to 7.83p (2006: 8.88p). As mentioned in the Interim Report this performance was achieved despite a lower capital base following the repayment of the zero dividend preference shares and unfavourable foreign exchange rates due to the strengthening of the pound against the United States dollar and the resultant effects on the revenue of the Company. As previously announced your Board is recommending payment of a final dividend of 4.0p net per share (2006: 3.5p net per share), which together with the interim dividend of 1.5p net per share (2006: 1.5p net per share) paid on 15 August 2007 will make a total payment of 5.5p net per share (2006: 5.0p net per share). This excludes the special dividends of 2.0p net per share paid on 20 October 2006 and 20 April 2007 respectively, referred to above. The final dividend will be proposed at the Annual General Meeting on 5 February 2008 for payment on 8 February 2008 to shareholders on the register at the close of business on 11 January 2008. Outlook World stock markets have made considerable progress since the recovery from the last bear market began in the spring of 2003 and this has been reflected in the performance of the investment portfolio. Looking ahead, there are now greater uncertainties present in world financial markets, resulting from the crisis in subprime loans and collateralised debt obligations, which will probably take a considerable time to resolve and continue to have an adverse effect on confidence in the financial sector. The climate for the asset management industry may therefore be less benign than has been enjoyed in recent years, but against this more uncertain background your Board is satisfied that the majority of the investments in the AMIC portfolio are soundly based to produce a satisfactory performance relative to their peer groups. The companies have a wide range of investment management strategies and have little exposure to the principal problem areas of the financial markets, and your Board and management will continue to work closely with them in order to maximise value for shareholders. Charles Wilkinson Chairman 11 December 2007 CONSOLIDATED INCOME STATEMENT for the year ended 30 September 2007 Year ended Year ended 30-Sep-07 30-Sep-06 Note Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Gains on on assets at fair value - 2,578 2,578 - 9,973 9,973 Investment income 2,424 - 2,424 2,597 - 2,597 Administration expenses (214) (645) (859) (266) (803) (1,069) Exceptional administration expenses - - - (172) (516) (688) Profit before finance costs and taxation 2,210 1,933 4,143 2,159 8,654 10,813 Interest payable (154) (460) (614) (176) (528) (704) Movement on loan redemption derivative (63) (188) (251) - - - Interest receivable 87 - 87 448 - 448 Zero dividend preference shares - - - - (1,860) (1,860) Profit on ordinary activities before taxation 2,080 1,285 3,365 2,431 6,266 8,697 Taxation (424) 291 (133) (539) 539 - Profit for the period 1,656 1,576 3,232 1,892 6,805 8,697 Earnings per share Return per ordinary share (basic) 5 7.83p 7.46p 15.29p 8.88p 31.96p 40.84p Return per ordinary share (diluted) 5 7.83p 7.46p 15.29p 8.88p 31.96p 40.84p The total column of this statement represents the Group's Income Statement, prepared in accordance with IFRS. The supplementary revenue and capital columns are both prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations. CONSOLIDATED GROUP BALANCE SHEET for the year ended 30 September 2007 30 September 2007 30 September 2006 Note Group Company Group Company £'000 £'000 £'000 £'000 Non-current assets 3 3 10 10 Property, plant and equipment Investments Fair value through profit or loss - Listed investments 6,964 6,964 6,994 6,994 - Unlisted investments 21,529 21,759 22,042 22,354 28,496 28,726 29,046 29,358 Current assets Receivables 3,669 3,669 7,809 7,798 Cash and cash equivalents 1,424 1,399 3,123 3,123 Total assets 33,589 33,794 39,978 40,279 Current liabilities Payables (196) (390) (635) (803) Bank loans (1,963) (1,963) (2,137) (2,137) Zero dividend preference shares - - (2,024) (2,024) (2,159) (2,353) (4,796) (4,964) Total assets less current liabilities 31,430 31,441 35,182 35,315 Non-current liabilities Bank loans (3,567) (3,567) (8,064) (8,064) Loan Redemption Derivative (251) (251) - - Net assets 27,612 27,623 27,118 27,251 Equity Ordinary share capital 5,186 5,186 5,396 5,396 Special Reserve 6,438 6,438 9,380 9,380 Capital Redemption Reserve 8,330 8,330 7,107 7,107 Other capital reserves 5,766 5,470 3,179 2,995 Retained earnings 1,960 2,267 2,227 2,544 Own share reserve (68) (68) (171) (171) Total equity 27,612 27,623 27,118 27,251 Allocation of shareholders' funds Net asset value per ordinary 25p share (basic) 4 133.76p 133.82p 127.27p 127.89p Net asset value per ordinary 25p share (diluted) 4 133.76p 133.82p 127.27p 127.89p CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 30 September 2007 Group Share Special Capital Redemption Own shares Other Retained Total capital Reserve Reserve capital earnings reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 Net assets at 5,396 9,380 7,107 (171) 3,179 2,227 27,118 30 September 2006 Cancellation (210) (918) 210 - - - (918) of Ordinary shares Cancellation - (2,024) 1,013 - 1,011 - - of ZDP shares Profit for - - - - 1,576 1,656 3,232 the period Ordinary - - - - - (1,923) (1,923) dividend paid Movement in - - - 103 - - 103 own shares Net assets at 5,186 6,438 8,330 (68) 5,766 1,960 27,612 30 September 2007 Company Share Special Capital Redemption Own shares Other Retained Total capital Reserve Reserve capital earnings reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 Net assets at 5,396 9,380 7,107 (171) 2,995 2,544 27,251 30 September 2006 Cancellation (210) (918) 210 - - - (918) of ordinary shares Cancellation - (2,024) 1,013 - 1,011 - - of ZDP shares Profit for - - - - 1,464 1,646 3,110 the period Ordinary - - - - - (1,923) (1,923) dividend paid Movement in - - - 103 - - 103 own shares Net assets at 5,186 6,438 8,330 (68) 5,470 2,267 27,623 30 September 2007 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the year ended 30 September 2006 Group Share Share Special Capital Own Other Other Retained Total capital Premium Reserve Redemption shares equity capital earnings Reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Net assets at 5,396 23,588 - - (171) 33 (10,727) 1,307 19,426 30 September 2005 Transfer to - (23,588) 23,588 - - - - - - special reserve Cancellation - - (14,208) 7,107 - - 7,101 - - of shares Profit for - - - - - (33) 6,805 1,892 8,664 the period Ordinary - - - - - - - (972) (972) dividend paid Net assets at 5,396 - 9,380 7,107 (171) - 3,179 2,227 27,118 30 September 2006 Company Share Share Special Capital Own Other Other Retained Total capital Premium Reserve Redemption shares equity capital earnings Reserve reserve reserve £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Net assets at 5,396 23,588 - - (171) 33 (11,192) 1,624 19,278 30 September 2005 Transfer to - (23,588) 23,588 - - - - - - special reserve Cancellation - (14,208) 7,107 7,101 - - of shares Profit for - - - - - (33) 7,086 1,892 8,945 the period Ordinary - - - - - - - (972) (972) dividend paid Net assets at 5,396 - 9,380 7,107 (171) - 2,995 2,544 27,251 30 September 2006 CASH FLOW STATEMENT 30 SEPTEMBER 2007 for the year ended 30 September 2007 30-Sep-07 30-Sep-06 Group Company Group Company £'000 £'000 £'000 £'000 Net income from operations before tax 3,365 3,240 8,697 9,236 Depreciation 7 7 5 5 (Increase)/decrease in receivables 4,140 4,129 27 27 Increase/(decrease) in other (572) (546) 259 296 payables (Gains)/losses on investments held at fair (2,578) (2,493) (9,973) (10,227) value through profit and loss (Gains)/loss on derivative 251 251 Receipt from EBT scheme 103 103 - - Appropriation in respect of zero dividend - - 1,860 1,860 preference shares Cash generated by operations 4,716 4,691 875 1,197 Taxes refunded - - - - Net cashflow from operating activities 4,716 4,691 875 1,197 Investing activities Purchase of investments (2) (2) (475) (475) Sale of investments 2,656 2,656 13,722 13,437 Net cash inflow from investing activities 2,654 2,654 13,247 12,962 Net cash inflow from investing activities 7,370 7,345 14,122 14,159 Financing activities Repurchase of ZDP shares (2,024) (2,024) (14,276) (14,276) Repurchase of ordinary shares (918) (918) - - Repayment of loan (4,671) (4,671) (365) (378) Equity dividend paid (1,923) (1,923) (972) (972) Net cash outflow from financing (9,536) (9,536) (15,613) (15,626) Increase/(decrease) in cash (2,166) (2,191) (1,491) (1,467) Effect of foreign exchange rate changes 467 467 (724) (724) Changes in cash and cash equivalents (1,699) (1,724) (2,215) (2,191) Cash and cash equivalents at beginning of 3,123 3,123 5,338 5,314 period Cash and cash equivalents at end of period 1,424 1,399 3,123 3,123 Asset Management Investment Company PLC Notes to the Financial Statements: 1. Accounting policies a. Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), comprising standards and interpretations issued by the International Accounting Standards Board ("IASB") as adopted by the European Union and in accordance with Companies Act 1985. The Consolidated financial Statements are presented in pounds sterling, rounded to the nearest thousand. The financial statements are prepared under the historic cost convention except for measurement at fair value of investments. The financial statements have been prepared on an ongoing basis. The principal accounting policies adopted are set out below. Where presentational guidance set out in the Statement of Recommended Practice ("the SORP") for investment trusts issued by the Association of Investment Companies ("the AIC") in December 2005 is consistent with the requirements of IFRS, the directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. b. Valuation of investments Investments are classified as financial assets at fair value through profit or loss. (i) Listed investments are initially recognised on purchase at trade date and measured at fair value. Subsequent to initial recognition, all listed investments are measured at fair value. (ii) Unlisted investments are valued by the Directors at fair value having regard to the International Private Equity and Venture Capital Valuation Guidelines. Where fair values cannot be reliably measured, they are valued at cost less impairment. When a valuation is undertaken consideration is given to the most recent information available, including the latest trading figures, performance against forecast, management's view of prospects and the price of any transaction in the security. Realisable value in the short term could differ materially from the amount at which these investments are included in the financial statements. (iii) Changes in the fair value of all held-at-fair-value assets are taken to the Income Statement (iv) Investments are de-recognised at the trade date of disposal. On disposal, realised gains and losses are recognised in the Income Statement. c. Presentation of Consolidated Income Statement In order to better reflect the activities of an investment trust company, and in accordance with guidance issued by the Association of Investment Companies (' AIC'), supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement. In accordance with the Company's status as a UK investment company under section 266 of the Companies Act 1985, net capital returns may not be distributed by way of dividend. Additionally, the net revenue is the measure the directors believe appropriate in assessing the Group's compliance with certain requirements set out in section 842 of the Income and Corporation Taxes Act 1988. d. Income Dividends receivable on equity shares are recognised as revenue for the year on an ex-dividend basis. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Income from fixed interest debt securities is recognised using the effective interest rate method. Bank deposit interest is accounted for on an accruals basis. e. Expenses All expenses and interest payable are accounted for on an accruals basis. Expenses are charged to the capital column of the Income Statement (net of tax) where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect all expenses have been allocated 75 per cent to the capital column of the Income Statement and 25 per cent to the revenue column of the Income Statement, in line with the Board's relative expected long-term returns in the form of capital gains and income respectively from the investment portfolio of the group. f. Taxation The charge for taxation is based on taxable profits for the period. Deferred taxation is provided on all taxable temporary differences that have originated but not reversed by the balance sheet date, other than those differences regarded as permanent. Any liability to deferred tax is provided at the average rate of tax expected to apply, based on tax law that had been enacted or substantially enacted by the balance sheet date. A deferred tax asset is recognised only to the extent that it is considered probable that sufficient taxable profits will be available to allow the deferred tax benefits of that asset to be utilised. g. Foreign currency For the purposes of the consolidated accounts, the results and financial position of each entity are expressed in pounds sterling, which is the functional currency of the Company and the presentational currency of the Group. Sterling is the functional currency because it is the currency of the primary economic environment in which the Group operates. Transactions recorded in overseas currencies during the year are translated into sterling at the appropriate daily exchange rates. Assets and liabilities denominated in overseas currencies at the balance sheet date are translated into sterling at the exchange rates ruling at that date. Exchange differences are dealt with in the capital column of the Income Statement or revenue column of the Income Statement depending on the nature of the transaction. h. Cash and cash equivalents Cash and cash equivalents comprise cash in hand and money held by the Company's bankers on fixed term deposit. i Property, plant and equipment Depreciation is provided on a straight-line basis on all property, plant and equipment at rates calculated to write off each asset over its expected useful life as follows: Office equipment - over 3 years Fixtures and fittings - over 6 years j. Bank borrowings Interest-bearing bank loans and overdrafts are recorded as the proceeds are received, net of direct issue costs. Finance charges, including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the Income Statement using the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise. k. Financial instruments The ordinary shares are classified as equity share capital l. Dividends payable Dividends to shareholders are recognised as a liability in the financial statements from the date on which they are legally distributable. m. Going concern and valuation of investments Whilst the Company's Articles of Association previously contained a provision that the company had a fixed duration to 27 October 2006, on 20 October 2006 the shareholders voted to continue the Company and the Company adopted a new investment objective requiring the Company to effect an orderly realisation of its investment portfolio. Therefore, the financial statements have been prepared on a going concern basis. n. Pension costs Contributions made by the Company to personal pension plans held by the employees are charged to the Income Statement as incurred. 2. Dividends An interim dividend of 1.5p was paid on 15 August 2007 to the shareholders on the register on 20 July 2007. A special interim dividend of 2.0p was paid on 20 April 2007 to the shareholders on the register on 30 March 2007. A final dividend of 4.0p will be proposed at the next Annual General Meeting. 3. Return per share Basic returns per ordinary share are calculated on the basis of retained net revenue after taxation divided by the weighted average number of shares in issue during the period being 20,642,632 (30 September 2006: 21,307,632) following adjustments for shares held in an Employee Benefit Trust and All Employee Share Ownership Plan. 4. Net asset value The net asset value per ordinary share for the Group is based on a net asset value of £27,612,000 (30 September 2006 - £27,118,000) and on 20,642,632 (30 September 2006 - 21,307,632) ordinary shares in issue at year-end. The basic net asset value per ordinary share as at 30 September 2007 is calculated on the basis of net assets attributable to equity shareholders divided by the number of shares that would be in issue following adjustment for shares held in Employee Benefit Trust (100,000) and All Employee Share Ownership Plan (2,794). 5. Earnings per share The earnings per ordinary share is based on the net profit after taxation of £ 1,656,000 (2006 - £ 1,892,000) and on 21,148,413 (2006 - 21,307,632) being the weighted average number of ordinary shares in issue during the year following for adjustments of shares held in an Employee Benefit Trust and All Share Employee Share Ownership Plan. 2007 2006 £000 £000 £000 £000 £000 £000 Revenue Capital Total Revenue Capital Total Profit/(loss) for the period 1,656 1,576 3,232 1,892 6,805 8,697 Earnings per share Return per ordinary share (basic) 7.83p 7.46p 15.29p 8.88p 31.96p 40.84p 6. Basis of preparation The financial information set out above does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The statutory accounts for 2007 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies following the Annual General Meeting. Copies of the Annual Report for 2007 will be posted to shareholders on 10th January 2008. The information for the year ended 30 September 2006 has been extracted from the latest published audited accounts. The audited accounts for the year ended 30 September 2006 have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under either section 237(2) or (3) of the Companies Act 1985. For further information please contact: George Robb Managing Director and Chief Investment Officer Tel: 020 7618 9041 E-mail: grobb@amicplc.com Bharat Bhagani Company Secretary Tel: 020 7618 9044 E-mail: bbhagani@amicplc.com This information is provided by RNS The company news service from the London Stock Exchange END FR EAPAEFAKXFFE
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