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PMI Premier Miton Group Plc

53.50
0.50 (0.94%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Premier Miton Group Plc LSE:PMI London Ordinary Share GB00BZB2KR63 ORD 0.02P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.50 0.94% 53.50 53.00 54.00 53.50 52.50 52.50 406,203 15:46:50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Investment Advice 74.45M 3.68M 0.0233 22.96 84.48M

Premier Miton Group PLC Half Year Results (0888B)

31/05/2023 7:00am

UK Regulatory


Premier Miton (LSE:PMI)
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TIDMPMI

RNS Number : 0888B

Premier Miton Group PLC

31 May 2023

PREMIER MITON GROUP PLC

HALF YEAR RESULTS FOR THE SIX MONTHSED 31 MARCH 2023

Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'), the AIM quoted fund management group, today announces its half year results for the six months ended 31 March 2023 (the 'Period').

Highlights

   --    GBP11.0 billion closing Assets under Management (2) ('AuM') (2022 HY: GBP12.8 billion) 
   --    Net outflows of GBP32 million in the Period (2022 HY: GBP401 million outflows) 

-- Continued inflows into fixed income strategies of GBP399 million in the Period (2022 HY: GBP138 million inflows)

   --    76% of funds above median investment performance since launch or tenure (3)  (2022 HY: 80%) 
   --    Adjusted profit before tax (1,2) of GBP7.9 million (2022 HY: GBP14.6 million) 
   --    Profit before tax of GBP2.4 million (2022 HY: GBP9.9 million) 
   --    Proposed interim dividend of 3.0 pence per share (2022 interim: 3.7 pence per share) 
   --    Successful launch of Premier Miton Emerging Markets Sustainable Fund on 21 April 2023 

-- Continued focus on distribution capabilities to service our existing and new client base, and positioning for inflows when market and sentiment conditions turn positive again, by showcasing the depth and breadth of our investment talent across asset classes

   --    GBP11.0 billion closing AuM at 30 April 2023 

Notes

(1) Adjusted profit before tax is calculated before the deduction of taxation, amortisation, share-based payments, merger related costs and exceptional items.

(2) These are Alternative Performance Measures ('APMs').

(3) At 31 March 2023. Based on Investment Association sector classifications where applicable, with data sourced from FE Analytics FinXL using the main representative post-RDR share class, based on a total return, UK Sterling basis. All data is as at 31 March 2023 and the performance period relates to when the fund launched or the assumed tenure of the fund manager(s). Performance for investment trusts is calculated on Net Asset Value ('NAV'), ranked against the relevant Morningstar category for each investment trust.

Mike O'Shea, Chief Executive Officer of Premier Miton Group, commented:

"Although this has been a tougher period for investors, we remain convinced that the work we have done in building a diversified active manager that can offer products across equities, fixed income and multi-asset will bear fruit in the long term.

At times of market stress there are substantial opportunities for genuinely active managers who have the courage of their convictions to run differentiated, long-term, and focussed portfolios by taking an agile and positive role in the capital allocation process.

Our long term investment performance record is good, we have a strong distribution and marketing capability, a strong balance sheet and an operational platform that can handle many times the current level of assets we manage. As confidence returns to markets and to investors, we are well placed to return to growth."

S

For further information, please contact:

 
 Premier Miton Group plc 
  Mike O'Shea, Chief Executive Officer            01483 306 090 
 Investec Bank plc (Nominated Adviser and 
  Broker) 
  Bruce Garrow / Ben Griffiths / Virginia Bull 
  / Harry Hargreaves                              020 7260 1000 
                                                 -------------- 
 Edelman Smithfield Consultants (Financial 
  PR)                                             07785 275665/ 
  John Kiely / Latika Shah                         07950 671948 
                                                 -------------- 
 
 

www.premiermiton.com

About Premier Miton

Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include equity, fixed income, multi-asset and absolute return.

LEI Number: 213800LK2M4CLJ4H2V85

Chairman's Statement

The political and financial turmoil in the UK in late 2022 has revealed with brutal clarity some deep problems affecting the structure of the UK savings market, especially for longer term savings and access to capital and investment support in public markets. A healthy, successful and efficiently functioning capital market is vital for the UK's strategic and business interests. I am pleased to see there are many initiatives now under way to identify what can be done to create better conditions for the future. Well thought through changes will also, if implemented soon, provide us with a much more attractive environment for our business and, more importantly, for our clients. We will continue to do what we can to encourage positive and well implemented changes and to successfully navigate these testing times.

I met several of our shareholders following the announcement of our results for 2022 to discuss their thoughts and views on our business, and to listen to the issues that they raise. I value these exchanges and am always impressed by the care and attention they give to their investment. Their focus and issues are varied and I appreciate the support of our shareholders for the business we are building, and the recognition that we are seeking to do our very best for all stakeholders in these challenging times for our industry.

During the period we again held a Board strategy day to review our markets, our industry, our ambitions, plans and resources, taking a clear look at what we can do to improve our business. While I am sure that we are working as hard as we can, with discipline and focus, and that there are always things that can be improved or adjusted, we are to a great extent dependent on the overall market environment improving.

We are continuing with our ambitious organic growth plans, and I am pleased that good progress is being made here especially in our overall client, distribution and marketing initiatives.

We have also been active in reviewing several strategic ideas which have the potential to materially advance our

business, contributing to shareholder value. We have an experienced team and focussed approach as to how we assess these strategic ideas and we will need to continue to apply this focus as the industry is going through a period of potentially deep change.

I continue to be impressed by the hard work and dedication of our people. We all feel that the responsibility of looking after other people's savings is something to be proud of and we seek to do to the best of our abilities. Businesses like ours which have a strong and healthy culture should be able to prosper relative to others and I believe this is happening. Of course, it isn't easy and the leadership group has a clear focus on managing Premier Miton to achieve our purpose, while remembering that, essentially, the business of business is business! From this, other positive things can flow.

Our financial performance has been broadly flat over the period, with AuM standing at GBP11 billion at period end and adjusted profit before tax of GBP7.9 million.

These are challenging and, we believe, unusual times for the whole UK asset management market, affecting savings flows and investment market levels and performance. The Board is confident that we have a well-considered and coherent strategy supported by a business model and resources that promote long term shareholder value creation and growth. We recognise that we need to navigate these times with great care and that our management team must actively and confidently manage the business to position us for success. This means we closely examine and make decisions on the mix, focus and financial management of all our activities.

The business is fundamentally cash generative and has operational gearing which should allow for improved profit and cash creation as markets and savings flows improve and our financial results recover. We know it is important to manage our capital resources prudently, not just to cover our regulatory capital requirements but also to maintain a strong balance sheet which allows us to navigate more difficult times, to be agile, invest for future growth, and, critically, to focus leadership energies on creating a valuable business.

We have a clearly stated dividend policy of paying a total annual dividend in a range of 50-65% of adjusted profit after tax, in line with our peer group. Our dividend payments are a key part of our overall approach to generate shareholder value and we intend to keep to this policy over time. However, reflecting the inherent strengths of our business and our overall approach to capital management, we are willing to exceed this policy if appropriate to do so and within the bounds of prudence. Indeed, we did so for the dividend for the last financial year. I should say that we are highly reluctant to pay an uncovered dividend except in exceptional circumstances, specifically these would include where both the market and business outlook are obviously both clearer and brighter. And shareholders will understand that paying an uncovered dividend for an extended period of time is neither prudent nor a sustainable policy.

We will consider the position more closely at year end, reflecting business results and outlook, and overall trading and market conditions, conscious that there is plenty of potential for a range of developments to affect our business. We are always mindful of the reasonable near-term income expectations of shareholders and a need to balance these with longer term interests of the business as a whole. We are also confident that we have a high quality, attractively positioned and well managed business and that in due course markets, investment flows and business performance will recover. However, it is not clear when this will be. Accordingly we have decided to pay an interim dividend of 3.0p equal to approximately 68% of interim adjusted EPS of 4.4p and we believe that this reflects all these matters in the round. In the current market conditions, our shareholders ought not to infer that the split between interim and final dividend will be consistent with prior years.

The political, economic and social outlook is still clouded with challenges, yet there is a huge need for good management of long term savings and we believe there is a valuable and significant role for genuinely active investment management, in both retail and institutional markets. With our breadth of product, our strong performance and experienced teams, we are well placed to continue building a successful business in the interests of all our stakeholders.

Robert Colthorpe

Chairman

30 May 2023

Chief Executive Officer's Statement

The current financial year has seen a recovery in equity and fixed income markets after the difficult period experienced in the last financial year. Despite this, we have seen a continuation of the more challenging environment for the UK's long term savings industry.

Investors appear to have been shaken by the events of 2022 and are reluctant to commit to new investments. This has been reflected in industry data which continues to show large outflows from actively managed funds - particularly in areas like UK equities and European equities - during the six months. There has, however, been an uptick in demand for fixed income strategies where we are well placed to serve our clients.

It is some comfort that our own performance is slightly better than the wider industry with net outflows from our funds of GBP32 million in total over the six months. Whilst it is disappointing that our strong investment performance record has not allowed us able to make more positive headway, this must be set against the overall industry backdrop.

Business performance

At the end of March 2023 Assets under Management ('AuM') stood at GBP11.0 billion representing an increase of 4% on the beginning of the year. Average AuM stood at GBP11.2 billion for the period, which is 17% lower than in the previous period. The drop in AuM has been driven by falling markets during 2022 and a reluctance on the part of investors to invest during market turbulence and the continuation of uncertain macro-conditions.

The net management fee margin (the retained revenue margin of the firm after deducting the costs of OCF caps, direct research costs and any enhanced fee arrangements) was 62.5bps compared with 65.1bps last year.

The adjusted operating margin decreased from 33% to 23% reflecting the lower level of AuM and our continuing strategic investment in the fixed cost base of the business via new fund management teams and the launch of new funds, which in turn will enhance the Group's long term growth profile.

Over the six months, the group generated GBP7.9 million of adjusted profit before tax for the year and had a closing cash position of GBP31.5 million.

Investment flows

For the first half of the current financial year, we saw inflows into our largest US equity strategy although these were more than offset by outflows from our European and UK equity strategies.

In total, our equity strategies had GBP360 million of outflow during the period. Our fixed income strategies saw net inflows of GBP380 million during the six months mainly driven by flows into our Strategic and Corporate bond funds. We also saw small inflows into our segregated fixed income mandates. In multi-asset, we continued to see good levels of interest in our Diversified funds, although continued outflow from our multi-manager and macro-thematic funds meant that in total we saw GBP69 million of outflow across our multi-asset strategies.

Investment performance

Across our equity strategies we invest across the market capitalisation with a number of our strategies often favouring mid and smaller capitalisation stocks. This is because we believe that these companies will deliver strong long term returns for our investors. There are periods, however, when these sectors of the market perform less well relative to the very largest companies. We have been through just such a period in the last six months or so and this has impacted our very short-term performance. We expect this to reverse in our favour in due course.

It is pleasing to note that our longer-term numbers remain attractive across our equity, fixed income and multi-asset strategies with 83% of our assets under management (where a sector comparison is appropriate) performing ahead of median since manager inception.

Fund range

We have made no significant changes to our portfolio of funds during the last six months. We have been preparing, however, for the launch of a new Global Emerging Markets Sustainable fund that will be managed by Fiona Manning and William Scholes who joined us from abdrn in the second half of last year.

We believe that a product investing in the fast-growing emerging markets will be attractive to investors, particularly with Fiona and Will's strong investment process that focuses on identifying companies offering exposure to sustainable growth themes and a positive influence on society and the environment, as identified through a material alignment to the UN Sustainable Development Goals. In the longer term it will also help to further diversify the asset mix within Premier Miton, increasing our exposure to global equites alongside our existing global sustainable, global smaller companies and global infrastructure funds.

Distribution

During the last six months we were delighted to welcome Jonathan Willcocks to the team as Head of Global Distribution. Jonathan brings a wealth of experience to Premier Miton gained during his time in a similar role at M&G and before that with MFS, abrdn, Prolific and Hambros.

Since joining he has created a unified distribution and marketing team that can bring our full product range of equity, fixed income and multi-asset funds into our key markets of wealth manager, independent adviser and institutional fund buyers.

Strategy

Looking forwards we have a well-diversified product offering that is managed by experienced and talented investment managers. We cover around 82% of the key demand pools in terms of assets under management within the UK market according to Investment Association data. This means that there is a sizeable market for us take our products to and to capture increased market share within. We know that investors will continue to seek out strategies where they believe managers can add long term value over and above investing in a simple index strategy. And we know that our managers have demonstrated an ability to deliver this for investors over the long term.

Our distribution team has been restructured and reinvigorated and can cover the key fund buyer markets in the UK. As and when market sentiment improves and fund buyers return, we are confident of growing our business organically once more. We are also mindful of the opportunities that exist outside our home market and continue to investigate ways in which our funds and our services can be brought to a wider audience in Europe and beyond.

And of course, having successfully completed the merger of Premier and Miton, we are open minded about the prospects to grow our business through further merger and acquisition activity should the opportunity present itself.

Closing

Although this has been a tougher period for our investors, as indeed it has for our shareholders, we remain convinced that the work we have done in building a diversified active manager that can offer products across equities, fixed income and multi-asset will bear fruit in the long term.

Our investment performance record is good, we have a strong distribution and marketing capability, a strong balance sheet and an operational platform that can handle many times the current level of assets we manage. As confidence returns to markets and to investors, we are well placed to return to growth.

Mike O'Shea

Chief Executive Officer

30 May 2023

Financial Review

Financial performance

Profit before tax for the period was GBP2.4 million (2022 HY: GBP9.9 million). The decrease in profitability is due to the lower average level of assets being managed by the Group when compared to the comparative period, detailed below.

Adjusted profit before tax *, which is stated before amortisation, share-based payments, merger related costs and exceptional costs decreased to GBP7.9 million (2022 HY: GBP14.6 million).

Adjusted profit and profit before tax

 
                                 Unaudited     Unaudited        Audited 
                                six months    six months        year to 
                               to 31 March   to 31 March   30 September 
                                      2023          2022           2022 
                                      GBPm          GBPm           GBPm 
----------------------------  ------------  ------------  ------------- 
Net revenue                           35.0          43.7           81.2 
Administrative expenses             (27.1)        (29.1)         (56.8) 
Adjusted profit before tax*            7.9          14.6           24.3 
----------------------------  ------------  ------------  ------------- 
Amortisation                         (2.4)         (2.4)          (4.8) 
Share-based payments                 (2.6)         (2.2)          (4.5) 
Merger related costs                     -             -          (0.1) 
Exceptional costs                    (0.5)             -              - 
----------------------------  ------------  ------------  ------------- 
Profit before tax                      2.4           9.9           14.9 
----------------------------  ------------  ------------  ------------- 
 

* Indicates Alternative Performance Measures ('APMs').

Assets under Management * ('AuM')

AuM at 31 March 2023 was GBP10,995 million (2022 HY: GBP12,847 million) representing a 4% increase from the opening position for the period of GBP10,565 million.

Despite this, the Group's average AuM decreased by 17% over the comparative period to GBP11,194 million (2022 HY: GBP13,453 million) reflecting the lower opening AuM position.

Whilst there were early signs of returning confidence amongst fund buyers in the latter stages of 2022 this did not follow through into 2023 and the banking shocks that unfolded towards the end of the period appear to have dented risk appetite.

The Group saw continued inflows into the fixed income, US equity and Diversified multi-asset funds and outflows from the European equity and UK equity funds which broadly reflects what the wider industry data is showing. The net outflows for the period were GBP32 million (2022 HY: GBP(401) million).

Movement in AuM by asset class

 
                         Opening                                    Closing 
                             AuM                                        AuM 
                       1 October   Half year  Market/ investment   31 March 
                            2022   net flows         performance       2023 
                            GBPm        GBPm                GBPm       GBPm 
--------------------  ----------  ----------  ------------------  --------- 
Equity funds               5,631       (360)                 366      5,637 
Multi-asset funds          3,263        (69)                  80      3,274 
Fixed income funds           750         380                 (2)      1,128 
Investment trusts            519         (2)                 (4)        513 
Segregated mandates          402          19                  22        443 
--------------------  ----------  ----------  ------------------  --------- 
Total                     10,565        (32)                 462     10,995 
--------------------  ----------  ----------  ------------------  --------- 
 

Net revenue

 
                                           Unaudited     Unaudited        Audited 
                                          six months    six months        year to 
                                         to 31 March   to 31 March   30 September 
                                                2023          2022           2022 
                                                GBPm          GBPm           GBPm 
--------------------------------------  ------------  ------------  ------------- 
Management fees                                 38.8          48.5           90.6 
Fees and commission expenses                   (3.9)         (4.8)          (9.1) 
--------------------------------------  ------------  ------------  ------------- 
Net management fees (1 *)                       34.9          43.7           81.5 
--------------------------------------  ------------  ------------  ------------- 
Other income/(loss)                              0.1             -          (0.3) 
--------------------------------------  ------------  ------------  ------------- 
Net revenue                                     35.0          43.7           81.2 
--------------------------------------  ------------  ------------  ------------- 
Average AuM (2) (*)                           11,194        13,453         12,615 
--------------------------------------  ------------  ------------  ------------- 
Net management fee margin (bps) (3 *)           62.5          65.1           64.6 
--------------------------------------  ------------  ------------  ------------- 
 
   1      Being management fee income less trail/rebate expenses 

2 Calculated using the daily AuM adjusted for the monthly closing AuM invested in other funds managed by the Group

3 Net management fee margin represents annualised net management fees divided by the average AuM

The Group's revenue represents management fees generated on the assets being managed by the Group. The net management fee margin for the period was 62.5 basis points. The decrease from the comparative period primarily reflects the change in the Group's product mix.

Net management fees decreased by 20% to GBP34.9 million (2022 HY: GBP43.7 million) reflecting the lower level of average AuM compared to the comparative period.

Administration expenses

Administration expenses for the period (excluding share-based payments) totalled GBP27.1 million (2022 HY: GBP29.1 million), a decrease of 7%.

Staff costs continue to be the largest component of administration expenses, consisting of both fixed and variable elements. The fixed staff costs, which includes salaries and associated National Insurance, employers' pension contributions and other indirect costs of employment increased to GBP10.9 million (2022 HY: GBP9.8 million). At the period end the Group had 167 full time staff including non-executive directors (2022 HY: 163).

Variable staff costs totalled GBP6.6 million (2022 HY: GBP9.5 million). Included within this are general discretionary bonuses, sales bonuses and bonuses in respect of the fund management teams, plus associated employers' national insurance. These costs move with the net revenues of the Group and the adjusted profit before tax.

Overheads and other costs were broadly flat at GBP9.1 million (2022 HY: GBP9.2 million).

Administration expenses

 
                                 Unaudited     Unaudited        Audited 
                                six months    six months        year to 
                               to 31 March   to 31 March   30 September 
                                      2023          2022           2022 
                                      GBPm          GBPm           GBPm 
----------------------------  ------------  ------------  ------------- 
Fixed staff costs                     10.9           9.8           20.4 
Variable staff costs                   6.6           9.5           17.3 
Overheads and other costs              9.1           9.2           17.9 
Depreciation - fixed assets            0.2           0.3            0.6 
Depreciation - leases                  0.3           0.3            0.6 
----------------------------  ------------  ------------  ------------- 
Administration expenses               27.1          29.1           56.8 
----------------------------  ------------  ------------  ------------- 
 

Exceptional costs

During the period the Group incurred exceptional costs totalling GBP0.5 million. These comprise of GBP0.25 million relating to restructuring of the Group's distribution activities and GBP0.25 million following the strategic review to cease development of the Group's online portal 'Connect'.

Share-based payments

The share-based payment charge for the period was GBP2.6 million (2022 HY: GBP2.2 million). Of this charge, GBP2.2 million related to nil cost contingent share rights ('NCCSR').

During the period 1,577,500 NCCSR awards were issued (2022 HY: 1,902,500).

On 13 January 2023, the Group granted 2,651,034 long-term incentive plan ('LTIP') awards (2022 HY: nil). The cost of the awards is the estimated fair value at the date of grant of the estimated entitlement to ordinary shares. At each reporting date the estimated number of ordinary shares that may be ultimately issued is assessed.

At 31 March 2023 the Group's Employee Benefit Trusts ('EBTs') held 11,469,161 ordinary shares representing 7.3% of the issued ordinary share capital (2022 HY: 12,692,553 shares). See note 12 for further detail.

Balance sheet, capital management and dividends

Total shareholders' equity as at 31 March 2023 was GBP121.4 million (2022 HY: GBP127.7 million). At the period end the cash balances of the Group totalled GBP31.5 million (2022 HY: GBP36.0 million). The Group has no external bank debt.

Dividends totalling GBP9.1 million were paid in the period (2022 HY: GBP9.3 million). The Board is recommending an interim dividend payment of 3.0p per share (2022 HY: 3.7p). The interim dividend will be paid on 4 August 2023 to shareholders on the register at the close of business on 7 July 2023.

The Group's dividend policy is to target an annual ordinary dividend pay-out of approximately 50 to 65% of profit after tax, adjusted for exceptional costs, merger related costs, share-based payments and amortisation.

Piers Harrison

Chief Financial Officer

30 May 2023

Alternative Performance Measures ('APMs')

 
APM             Unit  Definition                  Purpose 
Adjusted        GBP   Profit before interest,     Except for the noted costs, this 
 profit before         taxation, amortisation,     encompasses all operating expenses 
 tax                   share-based payments,       in the business, including fixed 
                       merger related costs        and variable staff cash costs. Provides 
                       and exceptional costs.      a proxy for cash generated and is 
                                                   the key measure of profitability 
                                                   for management decision making. 
                ----  --------------------------  ---------------------------------------- 
AuM             GBP   The value of external       Management fee income is calculated 
                       assets that are managed     based on the level of AuM managed. 
                       by the Group.               The AuM managed by the Group is used 
                                                   to measure the Group's relative size 
                                                   against the industry peer group. 
                ----  --------------------------  ---------------------------------------- 
Net management  GBP   The net management fee      Provides a consistent measure of 
 fee                   revenue of the Group.       the profitability of the Group and 
                       Calculated as gross         its ability to grow and retain clients, 
                       management fee income,      after removing amounts paid to third 
                       less the cost of OCF        parties. 
                       caps, direct research 
                       costs and any enhanced 
                       fee arrangements. 
                ----  --------------------------  ---------------------------------------- 
Net management  bps   Net management fees         A measure used to demonstrate the 
 fee margin            divided by average AuM.     blended fee rate earned from the 
                                                   AuM managed by the Group. A basis 
                                                   point ('bps') represents one hundredth 
                                                   of a percent, this measure is used 
                                                   within the asset management sector 
                                                   and provides comparability of the 
                                                   Group's net revenue generation. 
                ----  --------------------------  ---------------------------------------- 
Adjusted         p    Profit after tax excluding  Provides a clear measure to shareholders 
 earnings              amortisation, share-based   of the profitability of the Group 
 per share             payments, merger related    from its underlying operations. The 
 (basic)               costs and exceptional       exclusion of amortisation, share-based 
                       costs, divided by the       payments, merger related costs and 
                       weighted average number     exceptional items provides a consistent 
                       of shares in issue in       basis for comparability of results 
                       the period.                 period on period. 
                ----  --------------------------  ---------------------------------------- 
 

Unaudited Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2023

 
                                             Unaudited    Unaudited 
                                            six months   six months         Audited 
                                                    to           to         year to 
                                              31 March     31 March    30 September 
                                                  2023         2022            2022 
                                    Notes       GBP000       GBP000          GBP000 
----------------------------------  -----  -----------  -----------  -------------- 
Revenue                                 4       38,838       48,503          90,233 
Fees and commission expenses                   (3,868)      (4,789)         (9,062) 
----------------------------------  -----  -----------  -----------  -------------- 
Net revenue                                     34,970       43,714          81,171 
Administration expenses                       (27,067)     (29,140)        (56,818) 
Share-based payment expense            12      (2,581)      (2,240)         (4,505) 
Amortisation of intangible assets       8      (2,424)      (2,424)         (4,861) 
Merger related costs                    5         (25)         (25)            (51) 
Exceptional items                       5        (462)            -               - 
----------------------------------  -----  -----------  -----------  -------------- 
Operating profit                                 2,411        9,885          14,936 
Finance income/(expense)                             5          (7)            (23) 
----------------------------------  -----  -----------  -----------  -------------- 
Profit for the period before 
 taxation                                        2,416        9,878          14,913 
Taxation                                6        (776)      (4,062)         (5,346) 
----------------------------------  -----  -----------  -----------  -------------- 
Profit for the period after 
 taxation attributable to equity 
 holders of the parent                           1,640        5,816           9,567 
----------------------------------  -----  -----------  -----------  -------------- 
 
 
                                         Pence  pence  pence 
---------------------------------  ----  -----  -----  ----- 
Basic earnings per share           7(a)   1.12   3.97   6.54 
---------------------------------  ----  -----  -----  ----- 
Diluted basic earnings per share   7(a)   1.05   3.71   6.12 
---------------------------------  ----  -----  -----  ----- 
 

No other comprehensive income was recognised during 2023 or 2022. Therefore, the profit for the period is also the total comprehensive income.

All of the amounts relate to continuing operations.

Unaudited Condensed Consolidated Statement of Changes in Equity

for the six months ended 31 March 2023

 
                                                            Employee      Capital 
                                           Share    Merger   Benefit   redemption   Retained 
                                         capital   reserve     Trust      reserve   earnings     Total 
                                 Notes    GBP000    GBP000    GBP000       GBP000     GBP000    GBP000 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
At 1 October 2022                             60    94,312  (16,744)        4,532     44,604   126,764 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
Profit for the period                          -         -         -            -      1,640     1,640 
Purchase of own shares held 
 by an EBT                       12(c)         -         -     (381)            -          -     (381) 
Exercise of options                            -         -     1,617            -    (1,617)         - 
Share-based payment expense         12         -         -         -            -      2,581     2,581 
Other amounts direct to equity                 -         -         -            -       (17)      (17) 
Deferred tax direct to equity                  -         -         -            -        (9)       (9) 
Equity dividends paid                3         -         -         -            -    (9,147)   (9,147) 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
At 31 March 2023 (Unaudited 
 half year)                                   60    94,312  (15,508)        4,532     38,035   121,431 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
 
At 1 October 2021                             60    94,312  (15,790)        4,532     49,110   132,224 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
Profit for the period                          -         -         -            -      5,816     5,816 
Purchase of own shares held 
 by an EBT                       12(c)         -         -   (3,222)            -          -   (3,222) 
Exercise of options                            -         -       393            -      (393)         - 
Share-based payment expense         12         -         -         -            -      2,240     2,240 
Deferred tax direct to equity                  -         -         -            -      (103)     (103) 
Equity dividends paid                3         -         -         -            -    (9,269)   (9,269) 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
At 31 March 2022 (Unaudited 
 half year)                                   60    94,312  (18,619)        4,532     47,401   127,686 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
 
At 1 October 2021                             60    94,312  (15,790)        4,532     49,110   132,224 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
Profit for the year                            -         -         -            -      9,567     9,567 
Purchase of own shares held 
 by an EBT                                     -         -   (4,492)            -          -   (4,492) 
Exercise of options                            -         -     3,538            -    (3,538)         - 
Share-based payment expense                    -         -         -            -      4,505     4,505 
Deferred tax direct to equity                  -         -         -            -      (344)     (344) 
Equity dividends paid                          -         -         -            -   (14,696)  (14,696) 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
At 30 September 2022 (Audited)                60    94,312  (16,744)        4,532     44,604   126,764 
-------------------------------  -----  --------  --------  --------  -----------  ---------  -------- 
 

Unaudited Condensed Consolidated Statement of Financial Position

as at 31 March 2023

 
                                                Unaudited  Unaudited        Audited 
                                                 31 March   31 March   30 September 
                                                     2023       2022           2022 
                                         Notes     GBP000     GBP000         GBP000 
---------------------------------------  -----  ---------  ---------  ------------- 
Non-current assets 
Goodwill                                     8     70,688     70,688         70,688 
Intangible assets                            8     20,092     24,953         22,516 
Other investments                                     100        100            100 
Property and equipment                                488      1,561          1,192 
Right-of-use assets                                   646      1,411            908 
Deferred tax asset                                  1,757      2,431          1,928 
Finance lease receivables                               1          -             77 
Trade and other receivables                           563        803          1,081 
---------------------------------------  -----  ---------  ---------  ------------- 
                                                   94,335    101,947         98,490 
---------------------------------------  -----  ---------  ---------  ------------- 
Current assets 
Financial assets at fair value through 
 profit and loss                                    1,171      3,458          2,089 
Finance lease receivables                             176          -            197 
Trade and other receivables                       167,513    114,395        136,052 
Cash and cash equivalents                    9     31,520     36,038         45,764 
---------------------------------------  -----  ---------  ---------  ------------- 
                                                  200,380    153,891        184,102 
---------------------------------------  -----  ---------  ---------  ------------- 
Total assets                                      294,715    255,838        282,592 
---------------------------------------  -----  ---------  ---------  ------------- 
 
Current liabilities 
Trade and other payables                        (167,250)  (120,241)      (148,820) 
Lease liabilities                                   (651)      (868)          (887) 
---------------------------------------  -----  ---------  ---------  ------------- 
                                                (167,901)  (121,109)      (149,707) 
---------------------------------------  -----  ---------  ---------  ------------- 
Non-current liabilities 
Provisions                                  10      (374)      (374)          (374) 
Deferred tax liability                            (4,950)    (5,958)        (5,485) 
Lease liabilities                                    (59)      (711)          (262) 
---------------------------------------  -----  ---------  ---------  ------------- 
Total liabilities                               (173,284)  (128,152)      (155,828) 
---------------------------------------  -----  ---------  ---------  ------------- 
Net assets                                        121,431    127,686        126,764 
---------------------------------------  -----  ---------  ---------  ------------- 
 
Equity 
Share capital                               11         60         60             60 
Merger reserve                                     94,312     94,312         94,312 
Own shares held by an Employee Benefit 
 Trust                                   12(c)   (15,508)   (18,619)       (16,744) 
Capital redemption reserve                          4,532      4,532          4,532 
Retained earnings                                  38,035     47,401         44,604 
---------------------------------------  -----  ---------  ---------  ------------- 
Total equity shareholders' funds                  121,431    127,686        126,764 
---------------------------------------  -----  ---------  ---------  ------------- 
 

Unaudited Condensed Consolidated Statement of Cash Flows

for the six months ended 31 March 2023

 
                                                               Unaudited    Unaudited 
                                                              six months   six months         Audited 
                                                                      to           to         year to 
                                                                31 March     31 March    30 September 
                                                                    2023         2022            2022 
                                                      Notes       GBP000       GBP000          GBP000 
Cash flows from operating activities: 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Profit after taxation                                              1,640        5,816           9,567 
Adjustments to reconcile profit to net cash 
 flow from operating activities: 
- Tax on continuing operations                            6          776        4,062           5,346 
- Finance (income)/expense                                           (5)            7              23 
- Interest payable on leases                                          18           34              60 
- Depreciation - fixed assets                                        220          282             580 
- Depreciation - leases                                              263          337             621 
- Gain on derecognition of right-of-use asset                          -            -           (115) 
- Receivable for the net investment in sub-lease                       -            -             334 
- (Gain)/loss on revaluation of financial assets 
 at fair value through profit and loss                              (98)           18             345 
- Loss on disposal of property and equipment                         500            -             171 
- Amortisation of intangible assets                       8        2,424        2,424           4,861 
- Share-based payment expense                            12        2,581        2,240           4,505 
-(Increase)/decrease in trade and other receivables             (30,650)       32,157          10,800 
- Increase/(decrease) in trade and other payables                 18,430     (42,980)        (14,403) 
Cash generated from operations                                   (3,901)        4,397          22,695 
Income tax paid                                                  (1,363)      (3,008)         (5,352) 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Net cash flow from operating activities                          (5,264)        1,389          17,343 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Cash flows from investing activities: 
Interest received/(paid)                                               5          (7)            (23) 
Acquisition of assets at fair value through 
 profit and loss                                                       -         (55)            (85) 
Proceeds from disposal of assets at fair value 
 through profit and loss                                           1,016          107           1,180 
Purchase of property and equipment                                  (16)        (106)           (207) 
Net cash flow from investing activities                            1,005         (61)             865 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Cash flows from financing activities: 
Lease payments                                                     (457)        (474)           (931) 
Purchase of own shares held by an EBT                 12(c)        (381)      (3,222)         (4,492) 
Equity dividends paid                                     3      (9,147)      (9,269)        (14,696) 
Net cash flow from financing activities                          (9,985)     (12,965)        (20,119) 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Decrease in cash and cash equivalents                           (14,244)     (11,637)         (1,911) 
Opening cash and cash equivalents                                 45,764       47,675          47,675 
----------------------------------------------------  -----  -----------  -----------  -------------- 
Closing cash and cash equivalents                         9       31,520       36,038          45,764 
----------------------------------------------------  -----  -----------  -----------  -------------- 
 

Notes to the Unaudited Condensed Consolidated Financial Statements

for the six months ended 31 March 2023

1. Basis of accounting

These interim unaudited Condensed Consolidated Financial Statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared on the basis of the accounting policies as set out in the Group's Annual Report for the year ended 30 September 2022.

The interim unaudited Condensed Consolidated Financial Statements to 31 March 2023 have been prepared in accordance with

IAS 34 'Interim Financial Reporting' and the Listing Rules of the Financial Conduct Authority.

Premier Miton Group plc (the 'Group') is the Parent Company of a group of companies which provide a range of investment management services in the United Kingdom and Channel Islands.

The Group's 2022 Annual Report is prepared in accordance with International Financial Reporting Standards ('IFRS') as adopted by the United Kingdom, and is available on the Premier Miton Group plc website (www.premiermiton.com).

The Group has considerable financial resources and ongoing investment management contracts. As a consequence, the Directors believe that the Group demonstrates the financial resilience required to manage its business risks successfully. The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months after the date the interim financial statements are signed. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the interim unaudited Condensed Consolidated Financial Statements. The Directors note that the Group has no external borrowings and maintains significant levels of cash reserves. The Group has conducted financial modelling at materially lower levels of AuM with the business remaining cash generative. The Directors have also reviewed and examined the financial stress testing inherent in the Internal Capital Adequacy and Risk Assessment ('ICARA').

These interim unaudited Condensed Consolidated Financial Statements were approved and authorised for issue by the Board acting through a duly authorised committee of the Board of Directors on 30 May 2023.

The full-year accounts to 30 September 2022 were approved by the Board of Directors on 1 December 2022 and have been delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. The figures for the six months ended 31 March 2023 and the six months ended 31 March 2022 have not been audited.

The interim unaudited Condensed Consolidated Financial Statements are presented in Sterling and all values are rounded to the nearest thousand pounds (GBP000) except where otherwise indicated.

Forward looking statements

These interim unaudited Condensed Consolidated Financial Statements are made by the Directors in good faith based on information available to them at the time of their approval of the accounts. Forward looking statements should be treated with caution due to the inherent uncertainties, including economic, regulatory and business risk factors underlying any such statement. The Directors undertake no obligation to update any forward looking statement whether as a result of new information, future events or otherwise. The interim unaudited Condensed Consolidated Financial Statements have been prepared to provide information to the Group's shareholders and should not be relied upon by any other party or for any other purpose.

2. Segmental reporting

The Group has only one business operating segment, asset management for reporting and control purposes.

IFRS 8 'Operating Segments' requires disclosures to reflect the information which the Group's management uses for evaluating performance and the allocation of resources. The Group is managed as a single asset management business and as such, there are no additional operating segments to disclose. Under IFRS 8, the Group is also required to make disclosures by geographical segments. As Group operations are solely in the UK and Channel Islands, there are no additional geographical segments to disclose.

3. Dividend

The final dividend for the year ended 30 September 2022 of 6.3p per share was paid on 10 February 2023 resulting in a distribution of GBP9,147,109. This is reflected in the unaudited Condensed Consolidated Statement of Changes in Equity (2022 HY: GBP9,268,748).

4. Revenue

Revenue recognised in the unaudited Condensed Consolidated Statement of Comprehensive Income is analysed as follows:

 
                         Unaudited     Unaudited         Audited 
                        six months    six months         year to 
                       to 31 March   to 31 March    30 September 
                              2023          2022            2022 
                            GBP000        GBP000          GBP000 
--------------------  ------------  ------------  -------------- 
Management fees             38,737        48,516          90,570 
Commissions                      2             2               4 
Other income/(loss)             99          (15)           (341) 
--------------------  ------------  ------------  -------------- 
Total revenue               38,838        48,503          90,233 
--------------------  ------------  ------------  -------------- 
 

All revenue is derived from the United Kingdom and Channel Islands.

5. Exceptional items and merger related costs

Recognised in arriving at operating profit from continuing operations:

 
                                          Unaudited 
                             Unaudited   six months        Audited 
                            six months        to 31        year to 
                           to 31 March        March   30 September 
                                  2023         2022           2022 
                                GBP000       GBP000         GBP000 
------------------------  ------------  -----------  ------------- 
Restructuring                      212            -              - 
Closure of connect                 250            -              - 
------------------------  ------------  -----------  ------------- 
Total exceptional costs            462            -              - 
------------------------  ------------  -----------  ------------- 
 
 
Merger related costs         25  25  51 
Total merger related costs   25  25  51 
--------------------------- 
 

Exceptional items are those items of income or expenditure that are considered significant in size and/or nature to merit separate disclosure and which are non-recurring.

GBP211,185 of employment related redundancy costs were incurred arising from the restructuring of the Group's distribution activities undertaken in the period (2022 HY: GBPnil).

Exceptional items, net of associated income were incurred in relation to the cessation of the development of the Group's online portal 'Connect'. This resulted in net expenditure of GBP250,000.

There were GBP25,496 of merger related legal and professional costs in the period (2022 HY: GBP25,496).

6. Taxation

 
                                                                      Unaudited 
                                                         Unaudited   six months        Audited 
                                                        six months        to 31        year to 
                                                       to 31 March        March   30 September 
                                                              2023         2022           2022 
                                                            GBP000       GBP000         GBP000 
----------------------------------------------------  ------------  -----------  ------------- 
Corporation tax charge                                       1,150        2,708          4,203 
Deferred tax liability arising on historic business 
 combination                                                     -        2,066          2,066 
Deferred tax credit                                          (374)        (712)          (923) 
----------------------------------------------------  ------------  -----------  ------------- 
Tax charge reported in the unaudited Condensed 
 Consolidated Statement of Comprehensive Income                776        4,062          5,346 
----------------------------------------------------  ------------  -----------  ------------- 
 

In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate will increase to 25% from

19%. This was subsequently enacted on 24 May 2021. The deferred tax balances included within the Consolidated Financial Statements have been calculated with reference to the rate of 25% to the relevant balances from 1 April 2023.

7. Earnings per share

Basic earnings per share is calculated by dividing the profit for the period attributable to ordinary equity shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period.

The weighted average of issued ordinary share capital of the Company is reduced by the weighted average number of shares held by the Group's Employee Benefit Trusts ('EBTs'). Dividend waivers are in place over shares held in the Group's EBTs.

In calculating diluted earnings per share, IAS 33 'Earnings Per Share' requires that the profit is divided by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares during the period.

(a) Reported earnings per share

Reported basic and diluted earnings per share has been calculated as follows:

 
                                                                      Unaudited 
                                                         Unaudited   six months        Audited 
                                                        six months        to 31        year to 
                                                       to 31 March        March   30 September 
                                                              2023         2022           2022 
                                                            GBP000       GBP000         GBP000 
----------------------------------------------------  ------------  -----------  ------------- 
Profit attributable to ordinary equity shareholders 
 of the Parent Company for basic earnings                    1,640        5,816          9,567 
 
                                                            No.000       No.000         No.000 
Issued ordinary shares at 1 October                        157,913      157,913        157,913 
 -Effect of own shares held by an EBT                     (12,111)     (11,571)       (11,677) 
Weighted average shares in issue                           145,802      146,342        146,236 
----------------------------------------------------  ------------  -----------  ------------- 
 -Effect of movement in share options                       10,936       10,259         10,184 
----------------------------------------------------  ------------  -----------  ------------- 
Weighted average shares in issue - diluted                 156,738      156,601        156,420 
----------------------------------------------------  ------------  -----------  ------------- 
Basic earnings per share (pence)                              1.12         3.97           6.54 
Diluted earnings per share (pence)                            1.05         3.71           6.12 
----------------------------------------------------  ------------  -----------  ------------- 
 

(b) Adjusted earnings per share

Adjusted earnings per share is based on adjusted profit after tax, where adjusted profit is stated after charging interest but before share-based payments, amortisation, merger related costs and exceptional items.

Adjusted profit for calculating adjusted earnings per share:

 
                                                                Unaudited 
                                                   Unaudited   six months        Audited 
                                                  six months        to 31        year to 
                                                 to 31 March        March   30 September 
                                                        2023         2022           2022 
                                                      GBP000       GBP000         GBP000 
----------------------------------------------  ------------  -----------  ------------- 
Profit before taxation                                 2,416        9,878         14,913 
Add back: 
 -Share-based payment expense                          2,581        2,240          4,505 
 -Amortisation of intangible assets                    2,424        2,424          4,861 
 -Merger related costs                                    25           25             51 
 -Exceptional items                                      462            -              - 
----------------------------------------------  ------------  -----------  ------------- 
Adjusted profit before tax                             7,908       14,567         24,330 
----------------------------------------------  ------------  -----------  ------------- 
Taxation: 
 -Tax in the unaudited Consolidated Statement 
  of Comprehensive Income                              (776)      (4,062)        (5,346) 
 -Tax effect of adjustments                            (697)        1,344          1,176 
----------------------------------------------  ------------  -----------  ------------- 
Adjusted Profit after tax for the calculation 
 of adjusted earnings per share                        6,435       11,849         20,160 
----------------------------------------------  ------------  -----------  ------------- 
 

Adjusted earnings per share was as follows using the number of shares calculated at note 7(a):

 
                                                Unaudited 
                                   Unaudited   six months        Audited 
                               six months to           to        year to 
                                    31 March     31 March   30 September 
                                        2023         2022           2022 
                                       pence        pence          pence 
----------------------------  --------------  -----------  ------------- 
Adjusted earnings per share             4.41         8.10          13.79 
Diluted adjusted earnings 
 per share                              4.11         7.57          12.89 
----------------------------  --------------  -----------  ------------- 
 

8. Goodwill and other intangible assets

Cost amortisation and net book value of intangible assets are as follows:

 
                                                 Unaudited 
                                    Unaudited   six months         Audited 
                                six months to           to         year to 
                                     31 March     31 March    30 September 
                                         2023         2022            2022 
Goodwill                               GBP000       GBP000          GBP000 
-----------------------------  --------------  -----------  -------------- 
Cost: 
At 1 October                           77,927       77,927          77,927 
Additions                                   -            -               - 
-----------------------------  --------------  -----------  -------------- 
At 31 March/30 September               77,927       77,927          77,927 
-----------------------------  --------------  -----------  -------------- 
 
Amortisation and impairment: 
At 1 October                            7,239        7,239           7,239 
Amortisation during the                                  -               - 
 period                                     - 
-----------------------------  --------------  -----------  -------------- 
At 31 March/30 September                7,239        7,239           7,239 
-----------------------------  --------------  -----------  -------------- 
 
Carrying amount: 
-----------------------------  --------------  -----------  -------------- 
At 31 March/30 September               70,688       70,688          70,688 
-----------------------------  --------------  -----------  -------------- 
 
 
                                             Unaudited 
                                Unaudited   six months         Audited 
                            six months to           to         year to 
                                 31 March     31 March    30 September 
                                     2023         2022            2022 
Other intangible assets            GBP000       GBP000          GBP000 
-------------------------  --------------  -----------  -------------- 
Cost: 
At 1 October                       81,025       81,025          81,025 
Additions                               -            -               - 
-------------------------  --------------  -----------  -------------- 
At 31 March/30 September           81,025       81,025          81,025 
-------------------------  --------------  -----------  -------------- 
 
Accumulated amortisation 
 and impairment: 
At 1 October                       58,509       53,648          53,648 
Amortisation during the 
 period                             2,424        2,424           4,861 
-------------------------  --------------  -----------  -------------- 
At 31 March/30 September           60,933       56,072          58,509 
-------------------------  --------------  -----------  -------------- 
 
Carrying amount: 
-------------------------  --------------  -----------  -------------- 
At 31 March/30 September           20,092       24,953          22,516 
-------------------------  --------------  -----------  -------------- 
 

Other intangible assets relate to the investment management agreements acquired in business combinations between the funds to which they were the investment manager and the value arising from the underlying client relationships.

The Group has determined that it has a single cash-generating unit ('CGU') for the purpose of assessing the carrying value of goodwill. Impairment testing is performed at least annually whereby the recoverable amount of the goodwill is analysed via the value-in-use method and compared to the respective carrying value. During the period no impairment was identified.

9. Cash and cash equivalents

 
                             Unaudited    Unaudited 
                            six months   six months         Audited 
                                    to           to         year to 
                              31 March     31 March    30 September 
                                  2023         2022            2022 
                                GBP000       GBP000          GBP000 
-------------------------  -----------  -----------  -------------- 
Cash at bank and in hand        31,520       36,038          45,764 
-------------------------  -----------  -----------  -------------- 
 

10. Provisions

 
                               GBP000 
-----------------------------  ------ 
At 1 October 2022                 374 
Disposals                           - 
-----------------------------  ------ 
At 31 March 2023 (Unaudited)      374 
-----------------------------  ------ 
 
Current                             - 
Non-current                       374 
-----------------------------  ------ 
                                  374 
-----------------------------  ------ 
 
 
At 1 October 2021                                               389 
Additions                                                      (15) 
-------------------------------------------------------------  ---- 
At 31 March 2022 (Unaudited) and 30 September 2022 (Audited)    374 
-------------------------------------------------------------  ---- 
 

Provisions relate to dilapidations for the offices at 6th Floor, Paternoster House, London, the lease on this property runs to 28 November 2028 and the provision for dilapidations has been disclosed as non-current.

11. Share capital

 
                                                                   Ordinary 
                                                                     shares  Deferred 
Allotted, called up and fully paid:                              0.02 pence    shares 
 Number of shares                                               each Number    Number 
-------------------------------------------------------------  ------------  -------- 
At 1 October 2022                                               157,913,035         1 
Issued                                                                    -         - 
-------------------------------------------------------------  ------------  -------- 
At 31 March 2023 (Unaudited)                                    157,913,035         1 
-------------------------------------------------------------  ------------  -------- 
 
At 1 October 2021                                               157,913,035         1 
Issued                                                                    -         - 
-------------------------------------------------------------  ------------  -------- 
At 31 March 2022 (Unaudited) and 30 September 2022 (Audited)    157,913,035         1 
-------------------------------------------------------------  ------------  -------- 
 
 
                                                 Ordinary shares  Deferred 
Allotted, called up and fully paid:              0.02 pence each    shares    Total 
 Value of shares                                          GBP000    GBP000   GBP000 
----------------------------------------------  ----------------  --------  ------- 
At 1 October 2022                                             31        29       60 
Issued                                                         -         -        - 
----------------------------------------------  ----------------  --------  ------- 
At 31 March 2023 (Unaudited)                                  31        29       60 
----------------------------------------------  ----------------  --------  ------- 
 
At 1 October 2021                                             31        29       60 
Issued                                                         -         -        - 
----------------------------------------------  ----------------  --------  ------- 
At 31 March 2022 (Unaudited) and 30 September 
 2022 (Audited)                                               31        29       60 
----------------------------------------------  ----------------  --------  ------- 
 

12. Share-based payment

The total expense recognised for share-based payments in respect of employee services received during the period to 31 March 2023 was GBP2,580,666 (2022 HY: GBP2,240,420), of which GBP2,208,196 related to nil cost contingent share rights (2022 HY: GBP2,176,867).

(a) Nil cost contingent share rights ('NCCSRs')

During the period, 1,577,500 (2022 HY: 1,902,500) NCCSRs over ordinary shares of 0.02p in the Company were granted to 19

employees (2022 HY: 32 employees). Of the total award, nil (2022 HY: 375,000) NCCSRs were awarded to Executive Directors. The awards will be satisfied from the Group's EBTs.

The share-based payment expense is calculated in accordance with the fair value of the NCCSRs on the date of grant. The price per right at the date of grant was GBP1.045 on 14 December 2022, resulting in a fair value of GBP1,648,488 to be expensed over the relevant vesting period of between two to five years.

The key features of the awards include: automatic vesting at the relevant anniversary date with the delivery of the shares to the

participant within 30 days of the relevant vesting date.

During the period, 1,251,668 NCCSRs over ordinary shares of 0.02p in the Company were exercised by 14 employees. Of the total, 150,000 were exercised by an Executive Director.

After the period end 2,016,661 NCCSRs over ordinary shares of 0.02p in the Company that vested on 14 April 2023, were exercised by 37 employees. Of the total, 400,000 were exercised by an Executive Director.

(b) Long-Term Incentive Plan ('LTIP')

On 13 January 2023 the Group granted 2,651,034 LTIP awards (2022 HY: nil). Of the total award, 811,541 were awarded to Executive Directors.

Vesting of awards is subject to continued employment and performance conditions based on Total Shareholder Return ('TSR'), Earnings Per Share ('EPS'), fund performance and other operational conditions, all measured over a three-year performance period.

The cost of the awards is the estimated fair value at the date of grant of the estimated entitlement to ordinary shares of 0.02p in the Company. At 13 January 2023 the cost was estimated at GBP797,961 and is to be expensed over the vesting period of three year. At each reporting date the estimated number of ordinary shares that may be ultimately issues is assessed.

The fair value of the LTIP awards was estimated using a Monte Carlo Simulation ('MCS') and the prepaid forward share price, adjusting the loss of dividends over the vesting period. The following table lists the inputs to the model used for the period ended 31 March 2023.

 
                                                  13 January 
                                                     2023 
Dividend yield (%)                                   2.24 
Nominal risk-free rate (%)                           3.27 
Expected share price volatility (%)                 40.00 
Discount for lack of marketability ('DLOM') (%)     12.00 
Share price (GBP)                                    1.19 
Performance period (months)                           36 
Holding period post vesting (months)                  24 
 

(c) Employee Benefit Trusts ('EBTs')

Premier Miton Group plc established an EBT on 25 July 2016 to purchase ordinary shares in the Company to satisfy share awards to certain employees.

During the period, 364,525 (2022 HY: 1,902,500) shares were acquired and held by the Group's EBTs at a cost of GBP380,804 (2022 HY: GBP3,222,043).

At 31 March 2023, 11,469,161 (2022 HY: 12,692,553) shares are held by the Group's EBTs.

At 31 March 2023, the cost of the shares held by the EBTs of GBP15,508,385 (2022 HY: GBP18,619,283) has been disclosed as own shares held by an EBT in the unaudited Condensed Consolidated Statement of Changes in Equity and the unaudited Condensed Consolidated Statement of Financial Position.

13. Subsequent events post balance sheet

At 30 May 2023, there were no subsequent events to report.

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