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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 | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 70.00 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
RNS Number:1655Y Asset Management Investment Co.PLC 12 June 2007 For immediate release Tuesday 12 June 2007 ASSET MANAGEMENT INVESTMENT COMPANY PLC INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2007 Asset Management Investment Company PLC ('AMIC'), the specialist investor in the global asset management industry, announces its results for the six months to 31 March 2007. Highlights * Net assets #29.3 million (31 March 2006 #18.9 million) * Gearing 19% (31 March 2006 58%) * NAV per share 137.54p (31 March 2006 89.15p) * Pre-tax revenue profit #888,000 (31 March 2006 #818,000) * 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 I am pleased to report continuing encouraging progress by your Company since my last statement with the Annual Report for 2006. In a favourable operating environment for the asset management industry the majority of the investments in the portfolio have performed very satisfactorily, and this has been reflected in a rising share price, an increased net asset value per share and a narrowing of the discount at which the ordinary shares trade. The current share price of 114.50p has not been achieved since July 2002, at the start of the last bear market, and the net asset value of 137.18p is close to the highest level since September 2002. Corporate developments As reported in my statement with the Annual Report for the year to 30 September 2006, at an 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 enhance this objective. 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 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. Provided the discount at which the ordinary shares trade makes it in the interests of shareholders for the Company to buy back its ordinary shares, your Board is ready to use the powers granted to them in October 2006 and renewed at the Annual General Meeting in March 2007. So far the Company has not had the opportunity of buying any significant lines of stock other than a modest repurchase of 1.27% of the equity in November 2006. Investment portfolio Your Company holds two quoted investments, both listed on AIM. City of London Investment Group has made significant progress since its listing in April 2006 and now has $3.8 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 valued at #4.8 million compared with a cost of #0.9 million. Integrated Asset Management, which is a manager of funds of hedge funds, has made an excellent start to 2007, following a significant increase of its assets under management in 2006 to $1.5 billion. FX Concepts continues to be the largest investment in the portfolio. The company has close to $13 billion under management and its revenues for the year to 31 May 2007 are again ahead of the level which ensures that AMIC will receive the maximum revenue of $1,425,000 from its note. The next largest investment, IFDC Group S.A., a manager of funds invested in the Japanese stock market, also continues to perform well and is a major contributor to our revenue. Principal Investment Holdings, located in Sevenoaks, Kent performed strongly in 2006, and now has #1 billion under management. Lombardia Capital Partners in Pasadena, California has made very encouraging progress in developing its business and now has $1.5 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 felt that it was appropriate to restore value to the convertible note and the common shares held by your Company. Hillview Capital Management in New York has also made reasonable progress and now manages assets of $820 million. As reported in my last statement, Financial Management Advisors in Los Angeles in December 2006 received an unfavourable judgement in a significant litigation and is continuing to explore possible solutions to the problems affecting the company. Financial results Consolidated profit after tax for the period was #647,000 compared with #671,000 at the previous half year. The investment income was #1.1m compared with #0.9m at the previous half year. 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. A substantial part of the revenue received by the Company is received in the second half, and the Directors are confident that in the absence of unforeseen circumstances the total revenue for the year to 30 September 2007 will not be less than #2.4m and the distributable revenue will not be less than #1.5m. A charge of #205,000 has been reflected in the Consolidated Income Statement, being the movement in the equity-based derivative for the redemption premium payable to Investec Bank on the date the last loan facility is settled in full, equal to 5% of the increase in market capitalisation of the LSE listed ordinary shares of the Company from 13 September 2006, the date of funding. The Company will pay an interim dividend of 1.5p net per share (2006: 1.5p) on 15 August 2007 to shareholders on the register at 20 July 2007. 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. The companies in the portfolio are well positioned to continue to take advantage of these favourable operating conditions and your Directors view the future with confidence. Charles Wilkinson Chairman 12 June 2007 CONSOLIDATED INCOME STATEMENT (UNAUDITED) Six months ended Six months ended Year ended 31 March 2007 31 March 2006 30 September 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total Notes #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 Gains/(losses) on financial assets at fair - 3,452 3,452 - 836 836 - 9,973 9,973 value through profit or loss Investment income 1,112 - 1,112 903 - 903 2,597 - 2,597 Administration expenses (131) (394) (525) (127) (336) (463) (266) (803) (1,069) Exceptional administration expenses - - - - - - (172) (516) (688) Profit/(loss) before finance 981 3,058 4,039 776 500 1,276 2,159 8,654 10,813 costs and taxation Interest payable (90) (270) (360) (80) (240) (320) (176) (528) (704) Movement on the fair value of derivatives (51) (154) (205) - - - - - - Interest receivable 48 - 48 127 - 127 448 - 448 Other finance charges - - - (5) (15) (20) - - - Appropriation in respect of zero dividend preference shares - - - - (585) (585) - (1,860) (1,860) Profit/(loss) on ordinary activities 888 2,634 3,522 818 (340) 478 2,431 6,266 8,697 before taxation Taxation (241) 241 - (147) 147 - (539) 539 - Profit/(loss) for the period 647 2,875 3,522 671 (193) 478 1,892 6,805 8,697 Earnings per share Return per ordinary share (basic) 2 3.04p 13.50p 16.54p 3.16p (0.91p) 2.25p 8.88p 31.96p 40.84p Return per ordinary share (diluted) 2 3.04p 13.50p 16.54p 3.16p (0.91p) 2.25p 8.88p 31.96p 40.84p Return per zero dividend preference - - - - 7.20p 7.20p - - - share 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 STATEMENT OF CHANGE IN EQUITY (UNAUDITED) Share Share Special Capital Own Other Other Retained Total Capital Premium Reserve Redemption shares equity capital earnings Reserve reserve reserve For six months ended 31 March #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 2007 Net assets at 30 September 5,396 - 9,380 7,107 (171) - 3,179 2,227 27,118 2006 Profit for the period - - - - - - 2,875 647 3,522 Cancellation of ZDP shares - - (2,024) 1,013 - - 1011 - - Cancellation of ordinary (68) - - 68 - - (258) - (258) shares Ordinary dividend paid - - - - - - - (1,178) (1,178) Movement in own shares - - - - 103 - - - 103 Net assets at 31 March 2007 5,328 - 7,356 8,188 (68) - 6,807 1,696 29,307 Share Share Special Capital Own Other Other Retained Total Capital Premium Reserve Redemption shares equity capital earnings Reserve reserve reserve For the six months ended 31 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 March 2006 Net assets at 30 September 5,396 23,588 - - (171) 33 (11,058) 1,307 19,095 2005 Profit for the period - - - - - - (193) 671 478 Ordinary dividend paid - - - - - - - (648) (648) Net assets at 31 March 2006 5,396 23,588 - - (171) 33 (11,251) 1,330 18,925 Share Share Special Capital Own Other Other Retained Total Capital Premium Reserve Redemption shares equity capital earnings Reserve reserve reserve For the year ended 30 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 September 2006 Net assets at 30 September 5,396 23,588 - - (171) 33 (10,727) 1,307 19,426 2005 (restated) Profit for the year - - - - - (33) 6,805 1,892 8,664 Ordinary dividend paid - - - - - - - (972) (972) Transfer to Special Reserve - (23,588) 23,588 - - - - - - Cancellation of ZDP shares - - (14,208) 7,107 - - 7,101 - - Net assets at 30 September 5,396 - 9,380 7,107 (171) - 3,179 2,227 27,118 2006 CONSOLIDATED BALANCE SHEET (UNAUDITED) 31 March 2007 31 March 2006 30 September 2006 Notes #'000 #'000 #'000 #'000 #'000 #'000 Non-current assets 7 14 10 Property, plant and equipment Investments Fair value through profit or loss - Listed investments 7,550 2,672 6,994 - Unlisted investments 22,705 34,380 22,042 30,255 37,052 29,036 30,262 37,066 29,046 Current assets Receivables 3,778 203 7809 Cash and cash equivalents 2,408 8,341 3,123 6,186 8,544 10,932 Total assets 36,448 45,610 39,978 Current liabilities Payables (108) (364) (635) Bank loans - (11,367) (2,137) Zero dividend preference shares - (14,954) (2,024) (108) (26,685) (4,796) Total assets less current liabilities 36,340 18,925 35,182 Non-current liabilities Bank loans (6,828) - (8,064) Derivative financial instrument (205) - - Net assets 29,307 18,925 27,118 Equity Ordinary share capital 5,328 5,396 5,396 Special Reserve 7,356 - 9,380 Share premium account - 23,588 - Capital Redemption Reserve 8,188 - 7,107 Other capital reserves 6,807 (11,251) 3,179 Retained earnings 1,696 1,330 2,227 Other equity reserve - 33 - Own share reserve (68) (171) (171) Total equity 29,307 18,925 27,118 Allocation of shareholders' funds Net asset value per ordinary 25p share (basic) 3 137.54p 89.15p 127.27 Net asset value per ordinary 25p share (diluted) 3 137.54p 89.15p 127.27 Net asset value per zero dividend preference share - 191.75p - CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) Six months ended Six months ended Year ended 31 March 2007 31 March 2006 30 September 2006 #'000 #'000 #'000 #'000 #'000 #'000 Net income from operations before tax 3,522 478 8,697 Depreciation 3 1 5 (Increase)/decrease in receivables 4,032 (12) 27 Increase/(decrease) in payables (527) (6) 259 (Gains)/losses on investments held at (3,452) (836) (9,973) fair value through profit and loss (Gain)/loss on derivative 205 - - Other finance charges - 20 - Receipt from EBT scheme 103 - - Appropriation in respect of zero - 585 1,860 dividend preference shares Cash generated by operations 3,886 230 875 Net cashflow from operating activities 3,886 230 875 Investing activities Purchase of investments (1) (200) (475) Sale of investments 2,122 3,918 13,722 Net cash inflow from investment activities 2,121 3,718 13,247 Net cash inflow before financing 6,007 3,948 14,122 Financing activities Purchase of shares (2,284) - (14,276) Repayment of loan (3,373) (365) (365) Equity dividend paid (1,178) (648) (972) Net cash outflow from financing (6,835) (1,013) (15,613) Increase/(decrease) in cash (828) 2,935 (1,491) Effect of foreign exchange rate changes 113 68 (724) Changes in cash and cash equivalents (715) 3,003 (2,215) Cash and cash equivalents at beginning of period 3,123 5,338 5,338 Cash and cash equivalents at end of period 2,408 8,341 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 approved by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee of the IASB ("IFRIC") that remain in effect, to the extent that they have been adopted by the European Union. 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. They are valued at cost unless subsequent financing or other circumstances indicate a different valuation is appropriate. 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 Consolidated 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. g. 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. h. 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. i. Cash and cash equivalents Cash and cash equivalents comprise cash in hand and money held by the Company's bankers on fixed term deposit. j 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 k. 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. l. Capital instruments The ordinary shares are classified as equity share capital whilst the zero dividend preference shares are classified as a debt instrument and included within liabilities. The cost of providing for the accrued premium payable on the zero dividend preference shares is recognised in the capital column of the Income Statement and included as part of finance costs. m. Dividends payable Dividends are recognised from the date on which they are paid. n. 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. o. Pension costs Contributions made by the Company to personal pension plans held by the employees are charged to the Income Statement as incurred. 2. Earnings per share The earnings per ordinary share are based on the profit (loss) after taxation #647,000 (2006 - #671,000) and on 21,307,632 (2006 - 21,228,665) being the weighted number of ordinary shares in issue during period, following adjustments for shares held in the All Share Employee Share Ownership Plan. (Unaudited) (Unaudited) (Audited) Half year ended 31 March Half year ended 31 March Year ended 30 September 2007 2006 2006 Revenue Capital Total Revenue Capital Total Revenue Capital Total #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 #'000 Profit/(loss) for the period 647 2,875 3,522 671 (193) 478 1,892 6,805 8,697 Earnings per share Return per ordinary share 3.04p 13.50p 16.54p 3.16p (0.91p) 2.25p 8.88p 31.96p 40.84p (basic) 3. Net asset value The net asset value per ordinary share for the Group at 31 March 2007 is based on a net asset value of #29,307,000 (2006 - #18,925,000) and on 21,307,632 (31 March 2006 - 21,228,665) ordinary shares in issue at year-end as noted above. 4. Transaction costs Half year ended 31 March 2007 Half year ended 31 March 2006 Year ended 30 September 2006 #000 #000 #000 Purchases 1 - - Sales 19 1 1 5. Special Dividend No provision has been made for the special dividend of 2p per share paid to shareholders on 20 April 2007 in these interim financial statements because under IFRS, the special dividend is not recognised until paid to shareholders. 6. Basis of preparation The financial information contained in this interim report does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the half years ended 31 March 2007 and 31 March 2006 has not been audited. 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 IR UAOBRBORNAAR
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