Ashmore Regulatory News (ASHM)

12 Sep 2007 07:02

Ashmore Group PLC12 September 2007 Press release Ashmore Group plc 12 September 2007 PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2007 Ashmore Group plc, one of the world's leading emerging market investmentmanagers, today announces its audited results for the year ended 30 June 2007. Financial highlights • Assets under management of US$31.6 billion at 30 June 2007, up US$11.5 billion, 57% in the year • Net management fees of £126.4 million, 61% higher than for the year ended 30 June 2006 • Performance fees of £20.4 million (£54.2 million for the year ended 30 June 2006) • Profit before tax of £131.4 million, up 26% (a 36% increase at constant exchange rates, see note below) • Basic eps of 13.7p (2006: 10.8p) and diluted eps of 12.9p (2006: 10.4p) • A final dividend of 6.7p per share will be paid on 7 December 2007, giving a total dividend for the year of 9.0p. Note: The increase in profit before tax at constant exchange rates is calculated by restating the prior year at the current year's average US$/£ exchange rate. Commenting on the results Mark Coombs, Chief Executive Officer Ashmore Groupplc, said: "During the year we continued to make significant advances towards our strategicgoal to be the leading emerging markets investment manager. These resultsclearly demonstrate the progress we have made in the year, enhancing ourlong-term track record. The Group is well placed to continue its growth momentuminto the 2008 financial year". Analyst/investors briefing There will be a presentation for analysts at 09.30 on 12 September at theoffices of Goldman Sachs at Peterborough Court, 133 Fleet Street, London EC4A2BB. There will be a conference call for US based analysts and investors at14.00 London time, 09.00 US Eastern time. Dial in details are available uponrequest from Penrose Financial on the number below. A copy of the presentationwill be made available on the Group's website at www.ashmoregroup.com. Contacts For further information, please contact: Ashmore Group plc +44 20 7557 4100Jim Pettigrew +44 20 7557 4157Chief Operating and Financial Officer Penrose Financial +44 20 7786 4888Gay Collins +44 7798 626 282 Ashmore Group plc Results overview The 2007 financial year represented another successful stage in the developmentof the Group. Significant year-on-year increases in assets under management(AuM), revenue, profit and eps were reported, exceeding the financial targetsthe Group set itself at the beginning of the financial year. The key driver of profit growth in the year was the substantial (61%) increasein net management fees, which was achieved across the Group's investment themes.Net management fees by theme, net of distribution costs, are set out in thetable below. Year ended Year ended 30 June 30 June Increase against prior year 2007 2006Investment theme £m £m £m %__________________________________________________________________________________________________ Global US$ 71.9 52.2 19.7 38Local currency 21.4 11.3 10.1 89Special situations 25.9 11.9 14.0 118Equity 7.2 3.1 4.1 132__________________________________________________________________________________________________ Group net management fees 126.4 78.5 47.9 61__________________________________________________________________________________________________ As well as the growth in absolute levels of net management fees, the Group's netmanagement fee margin increased to 93 basis points in the financial year to 30June 2007 from 83 basis points in the prior year. Performance fees were £20.4 million in the year ended 30 June 2007 compared to£54.2 million in the prior year. This was predominately due to a reduction inthe performance fee delivered by EMLIP (the Group's US$5 billion global US$fund) for which investment performance was ahead of the peer group and relevantbenchmarks, but in line with its hurdle rate. In the previous year, investmentperformance for EMLIP was in excess of the hurdle rate. Other revenue was substantially up on the prior year at £13.0 million (2006:£2.9 million) reflecting a higher level of transaction based corporate financefees generated in the year. The Group continues to manage its cost base in an efficient and effectivemanner. Against the backdrop of substantial AuM and revenue growth, the Groupcontinues to invest to support the future growth of the business. There were a number of one-off costs in the year to 30 June 2006: professionalfees associated with the Company's IPO (£2.0 million) and a share-based paymentscharge in respect of the change from a cash to equity-settled basis (£4.9million). Excluding these items and the costs of the Group's administrationbusiness (£0.4 million), which was disposed of in December 2005, costs increasedby £4.5 million, a 13% increase in the year. As part of the process ofsupporting the growth of the business, the Group's headcount increased by 41%,from 49 at 30 June 2006 to 69 at 30 June 2007. During the year the number ofinvestment professionals within the Group increased from 17 to 25, continuingthe process of building the next generation of Ashmore investment professionals. The largest component of the cost base is variable compensation (includingshare- based payments) which was 18.4% of profit before tax, interest andvariable compensation for the year ended 30 June 2007 (2006: 24.3%). In order toprovide greater flexibility, in future years, the intention is to pay up to 25%of the Group's profit before tax, interest and variable compensation as variablecompensation, previously 20%-25 %. An operating profit margin of 76% was achieved in the financial year to 30 June2007 (70% in 2006), with the current year's margin benefiting from the lowervariable compensation ratio. The Group continues to plan the development of itsactivities as a relatively high margin investment management business. These results were achieved against the backdrop of a weaker US$/£ exchangerate. As the majority of the Group's revenue is denominated in US dollars, whilethe cost base is largely in sterling, this has impacted on the Group's reportedprofit. Reported profit before tax increased by £27.5 million, a 26% increaseover the prior year. After excluding the impact of US$/£ exchange ratemovements, at constant exchange rates, profit before tax increased by £34.1million, an increase of 36% in the year. Basic eps were 13.7p, an increase of 27 % on the prior year. Diluted eps were12.9p (2006: 10.4p). Operations and investment theme review The investment philosophy and process that has been in place at Ashmore for manyyears remains unchanged. Ashmore follows an active, value-driven and mainlytop-down investment approach. The Group also selects credits and certaininvestments through bottom-up analysis, particularly for those funds wherecorporate and special situations/distressed assets are more significant. As at 30 June 2007, the Group managed 41 funds/segregated accounts, diversifiedacross four investment themes. AuM increased by US$11.5 billion (57%) from US$20.1 billion at 30 June 2006 toUS$31.6 billion at 30 June 2007. Net subscriptions in the same period wereUS$8.3 billion (2006: US$7.9 billion), consisting of gross subscriptions ofUS$10.4 billion (2006: US$10.1 billion) and redemptions of US$2.1 billion (2006:US$2.2 billion). These gross flows exclude US$0.4 billion of intra-investmenttheme flows by the Group's multi-strategy fund. On a net subscriptions basisthere were US$4.3 billion of net inflows into existing funds and fund raisingsinto new products and funds of US$4.0 billion in the financial year. Investmentperformance contributed a total of US$3.2 billion. AuM as at AuM as at 30 June Net 30 June 2006 subscriptions Performance 2007Investment theme US$bn US$bn US$bn US$bn____________________________________________________________________________________________________ Global US$ 15.2 4.1 1.9 21.2Local currency 3.0 1.4 0.6 5.0Special situations 1.3 1.8 0.3 3.4Equity 0.6 1.0 0.4 2.0____________________________________________________________________________________________________ Total 20.1 8.3 3.2 31.6____________________________________________________________________________________________________ Global US$ The global US$ investment theme comprises US dollar and other hard currencydenominated instruments which may include derivatives, investing principally insovereign bonds but with a growing corporate debt element. AuM at 30 June 2007 were US$21.2 billion, an increase of US$6.0 billion (39%)from 30 June 2006. Net subscriptions in the year were US$4.1 billion,representing 49% of the Group's net inflows in the year. Performance contributedUS$1.9 billion. During the year, there were strong inflows into the theme's public open-endedfunds, with two new fund launches: a new structured product initially funded atUS$0.2 billion in the first half of the financial year and a new US$0.4 billionsegregated account in the second half. In November 2006, one small segregatedfund was merged into a public fund. While the global US$ investment theme continued to generally outperform therelevant benchmarks it has not been a particularly strong investment returnyear. Local currency The local currency investment theme comprises local currency and local currencydenominated debt instruments, principally sovereign in nature, and it mayinclude derivatives. AuM at 30 June 2007 were US$5.0 billion; an increase of US$2.0 billion (67%)from 30 June 2006.There has been strong demand for the Group's local currencyproducts with net subscriptions in the period of US$1.4 billion. As part of theprocess of accessing the increasing European appetite for the local currencytheme, a new targeted SICAV fund was launched in the first half of the financialyear and this was initially funded at US$0.1 billion. Theme performance in theperiod contributed US$0.6 billion. Generally, it has been a good investment performance year for the theme,assisted during most of the year by the relative strength of local currenciesagainst the US dollar. The local currency markets continue to deepen, withgradually improving liquidity and the extension of duration. Special situations (distressed debt/private equity) The special situations (distressed debt/private equity) theme comprisesinvestments in debt and/or equity or other instruments focussing on situationsusually involving specialist corporate investments and/or projects and includingdistressed assets or distressed sellers of assets, often incorporatingrestructuring, reorganisations and /or a private equity approach. AuM at 30 June 2007 were US$3.4 billion, an increase of US$2.1 billion (162%).Net subscriptions were US$1.8 billion, with performance contributing US$0.3billion. Included within net subscriptions is the Group's GSSF 3 fund which was launchedin August 2006. This represented US$1.4 billion of the total net subscriptionsin the period and as at 6 September 2007 it is 100% drawn down. A new privateequity fund investing in Turkey was launched in the second half of the financialyear initially funded at US$0.1 billion. It has been another positive year from the perspectives of investmentperformance, deal opportunities and realisations. The Group's network continuesto source an attractive pipeline of deals. Equity The equity investment theme comprises public equity and equity-relatedsecurities. The instruments invested in by the funds can include equities,convertibles, warrants and equity derivatives. AuM at 30 June 2007 were US$2.0 billion, an increase of US$1.4 billion (233%)from 30 June 2006. Net subscriptions were US$1.0 billion, with performancecontributing US$0.4 billion. Net subscriptions benefited by US$0.8 billion as a result of two new segregatedfunds that were launched in the first half of the financial year. There were twosmall lower margin segregated funds that were closed in the second half of thefinancial year (US$0.2 billion in total). It was a good year from an investment return point of view. The theme continuesto be characterised by the relative movement of global liquidity from USequities to emerging market equities. Multi-strategy funds Net subscriptions into the Group's multi-strategy funds, where Ashmore is makingthe asset allocation decision across the Group's investment themes, were US$1.8billion and represented 22% of the Group's total net subscriptions in the yearof US$8.3 billion. This includes a new fund launched in April 2007 for theJapanese retail market which raised US$1.0 billion. Diversification of product offering There were eight new fund launches during the year and, after taking account oftwo small segregated account closures and one fund merger, by 30 June 2007 theGroup was managing 41 funds /segregated accounts. These funds are spread acrossthe Group's four investment themes, highlighting the diversification of theGroup's AuM. The global dollar debt theme represented 67% of the Group's AuM inJune 2007, compared to 76% in June 2006. Furthermore, the Group's AuM isdiversified by type of account: 52% of AuM is in Ashmore sponsored funds, 32% insegregated accounts, 10% white label and 6% in structured products. As at 30 June 2007, 64% of funds by AuM can generate performance fees (2006:57%). These funds, totalling 22 in number (2006: 17), are spread across theGroup's investment themes. Only 46% of AuM can make use of leverage and, where afund can use leverage, it is usually restricted to a maximum of 50% of a fund'sAuM, and never more than 75%. Typically a fund's leverage capacity is not fullyutilised. Investor profile There is a broad range of investors in the funds managed by the Group. The funds which Ashmore manages remain predominately sourced from institutionalinvestors, including pension plans, government agencies, financial institutionsand corporates. As at 30 June 2007, 85% of the Group's AuM was institutional(2006: 89%), and 15% (2006: 11%) was high net worth individuals /retail. Theincrease in high net worth individuals/retail reflects, in part, the new fundlaunched in the year targeting Japanese retail investors. The investor profilewithin the institutional segment showed an increase in the proportion ofgovernment investors (up from 9% to 12%) and a decline in bank investors (22% to17%). Public pension plan investors increased from 16% to 18% while theproportion of corporate pension investors reduced from 22% to 16%. The geographic profile of the Group's investors remains diversified. During theyear there was strong asset gathering in Europe, including a number ofsignificant mandate wins in the UK. Cash flow and balance sheet The Group has strong cash generative characteristics as demonstrated by the£85.3 million increase in the Group's cash balances during the year to £218.0million as at 30 June 2007. The needs for a strong balance sheet remain: tosupport regulatory capital requirements, to meet the commercial demands ofcurrent and prospective investors, and the development needs of the business,including seeding of new funds/initiatives. As part of the process of developingits presence in local emerging markets, a certain proportion of the Group'scapital resources may be utilised for such purposes. The Group's policy remains that, should the Group accumulate cash which issurplus to that required to meet its continuing obligations and to fund futuregrowth, consideration will be given to returning surplus cash and capital toshareholders in an appropriate manner. As at 30 June 2007, total equity was £196.0 million compared to £96.6 million at30 June 2006. There is no debt on the Group's balance sheet. Dividend As a result of the highly cash generative nature of the business, subject toshareholder approval, a final dividend of 6.7p per share is proposed to be paidon 7 December 2007 to shareholders on the register on 9 November 2007, theex-dividend date being 7 November 2007. An interim dividend for the six-monthperiod to 31 December 2006 of 2.3p was paid on 27 April 2007. This would resultin a full-year dividend of 9.0p. The Company's intention is for its dividendpolicy to be progressive. US$/£ exchange rate The results for the year ended 30 June 2007 were achieved against the backdropof a weaker US$/£ exchange rate. As the majority of the Group's revenue isdenominated in US dollars and its costs in sterling, this has impacted on theGroup's reported profit. Reported profit before tax increased by £27.5 million,a 26% increase over the prior year. In constant exchange rate terms, profitbefore tax increased by 36%. This was after restating the prior year figures atthe current year's average US$/£ exchange rate (2007 US$/£ 1.95; 2006 US$/£1.78).This resulted in the following restatements to the prior year numbers:lower net revenue in sterling terms (£11.4 million), net hedging gains excluded(£0.9 million), and a notional reworking of the variable compensation cost toreflect the above items (a £3.0 million reduction). In the current year, £2.7million of net hedging gains were excluded. On this basis, the net impact of themovement in the US$/£ exchange rate on the reported increase in profit beforetax in the year of £27.5 million was £6.6 million. Taxation The vast majority of the Group's profit is subject to UK taxation and typicallythe Group has a limited number of non-tax deductible expenses. Consequently theGroup's effective tax rate has historically tracked close to the 30% UKstatutory tax rate. The introduction of a 28% corporation tax rate from 1 April2008 will have a small beneficial impact on the Group's effective corporationtax rate in the financial year to 30 June 2008, with the full-year benefit inthe following financial year. There is a £14.4 million deferred tax asset on the Group's balance sheet at 30June 2007. This is largely due to cash tax deductions which will arise over thenext seven or so years in respect of share price appreciation on share-basedpayments awards. Strategy The Group's strategy is to be the leading emerging markets investment manager bymaintaining a market-leading investment track record, delivering growth andenhancing diversification of earnings, facilitating such controlled growth anddeveloping further the Ashmore brand and business model. These results demonstrate very clearly the progress that the Group has made inthe year towards its strategic objectives. Substantial growth in AuM, revenueand profit has been achieved while progress continues in diversifying theGroup's AuM by investment theme, geography, fund structure, risk/return profile,duration and investor type (institutional/high net worth individuals/retail andwithin institutional). The Group continues to research new opportunities to diversify further and tocontinue to grow the Group's investment themes and earnings streams, and toaccess the growing domestic capital pools within selected emerging markets. Thismay result in the Group using a proportion of its resources as seed capital fornew fund launches/initiatives. Annual performance fees for August 2007 fund year ends Annual performance fees (unaudited) for the funds with year ends at 31 August2007 (EMLIP, LCD and ARD) were £17.6 million (2006: £0.3 million) and these willbe recognised within revenue in the six months to 31 December 2007. Outlook The Group remains focused on delivering long-term investment out-performance,generating net management fee income through the attraction of net subscriptionsacross its investment themes and developing the Ashmore brand and businessmodel. Despite continuing market volatility, trading conditions across the Group'sinvestment themes during the last quarter of the 2007 financial year and intothe start of the 2008 financial year remain satisfactory. The Group continues tobelieve that strong macro-economic, demographic and political factors, togetherwith enhanced liquidity, index weighting and credit worthiness in the Group'smarkets will continue to underpin long-term growth across emerging marketclasses. These factors, together with Ashmore's experience and expertise in emergingmarkets investment management, position the Group well to benefit from furtherdemand for emerging market investment management products and to continue itsgrowth momentum into the 2008 financial year. About Ashmore Group plc Ashmore is one of the world's leading emerging market investment managers with ahistory of consistently outperforming the market. Ashmore currently specialisesin a number of emerging market investment themes: dollar denominated debt, localcurrency and local currency debt, special situations incorporating distresseddebt / private equity, and public equity. More information is available on the Group's website www. ashmoregroup.com. Ashmore Group plcConsolidated income statementYear ended 30 June 2007 2007 2006 Notes £m £m_____________________________________________________________________________________________ Management fees 130.2 80.8Performance fees 20.4 54.2Other revenue 13.0 2.9_____________________________________________________________________________________________ Total revenue 163.6 137.9Less: Distribution costs (3.8) (2.3)_____________________________________________________________________________________________ Net revenue 159.8 135.6 Personnel expenses 2 (32.6) (34.4)Other expenses (5.5) (6.5)_____________________________________________________________________________________________ Operating profit 121.7 94.7 Gain on sale of business - 2.8Interest income 9.7 6.5Interest expense - (0.1)_____________________________________________________________________________________________ Profit before tax 131.4 103.9 Income tax expense (39.9) (32.3)_____________________________________________________________________________________________ Profit for the year 91.5 71.6 ============================================================================================= Attributable to: Equity holders of the parent 91.4 71.5Minority interest 0.1 0.1_____________________________________________________________________________________________ Profit for the year 91.5 71.6 ============================================================================================= Earnings per share: Basic 3 13.7p 10.8pDiluted 3 12.9p 10.4p Ashmore Group plcConsolidated balance sheet As at As at 30 June 30 June 2007 2006 Note £m £m______________________________________________________________________________________________ AssetsProperty, plant and equipment 0.2 0.2Intangible assets 4.1 4.1Other receivables 0.1 3.6Deferred tax asset 14.4 1.6______________________________________________________________________________________________ Total non-current assets 18.8 9.5______________________________________________________________________________________________ Trade and other receivables 27.2 20.0Derivative financial instruments 0.5 1.3Cash and cash equivalents 218.0 132.7 Total current assets 245.7 154.0 Total assets 264.5 163.5 EquityIssued capital 5 - -Share premium 0.3 0.3Retained earnings 195.6 96.3______________________________________________________________________________________________ Total equity attributable to equity holders of the parent 195.9 96.6 Minority interest 0.1 - ______________________________________________________________________________________________ Total equity 196.0 96.6______________________________________________________________________________________________ Liabilities Deferred tax liabilities - 0.1______________________________________________________________________________________________ Total non-current liabilities - 0.1______________________________________________________________________________________________ Current tax 15.7 18.0Derivative financial instruments - 0.1Trade and other payables 52.8 48.7______________________________________________________________________________________________ Total current liabilities 68.5 66.8______________________________________________________________________________________________ Total liabilities 68.5 66.9______________________________________________________________________________________________ Total equity and liabilities 264.5 163.5============================================================================================== Ashmore Group plcConsolidated statement of changes in equity Total equity attributable to equity Issued Share Retained holders of the Minority Total capital premium earnings parent interest equity £m £m £m £m £m £m_______________________________________________________________________________________________________ Balance at 1 July 2005 - 0.3 69.1 69.4 0.5 69.9 Profit for the year - - 71.5 71.5 0.1 71.6Share-based payments - - 10.7 10.7 - 10.7Disposal of business - - - - (0.6) (0.6)Dividends - - (55.0) (55.0) - (55.0)_______________________________________________________________________________________________________ Balance at 30 June 2006 - 0.3 96.3 96.6 - 96.6 Profit for the year - - 91.4 91.4 0.1 91.5Share-based payments - - 6.5 6.5 - 6.5Current tax - - 4.2 4.2 - 4.2Deferred tax related to - - 11.6 11.6 - 11.6share-based paymentsSale of own shares held - - 1.1 1.1 - 1.1Dividends - - (15.5) (15.5) - (15.5)_______________________________________________________________________________________________________ Balance at 30 June 2007 - 0.3 195.6 195.9 0.1 196.0======================================================================================================= Ashmore Group plcConsolidated cash flow statementYear ended 30 June 2007 2007 2006 Note £m £m____________________________________________________________________________________________________ Operating activities Cash receipts from customers 164.6 151.7Cash paid to suppliers and employees (32.3) (34.7)____________________________________________________________________________________________________Cash generated from operations 132.3 117.0 Income taxes paid (39.2) (22.7)____________________________________________________________________________________________________ Net cash from operating activities 93.1 94.3____________________________________________________________________________________________________ Investing activitiesInterest received 9.5 6.1Dividends received - 1.4 Net proceeds from disposal of subsidiary - (0.2)Purchase of property, plant and equipment (0.1) -____________________________________________________________________________________________________ Net cash from investing activities 9.4 7.3____________________________________________________________________________________________________ Financing activities Dividends paid 4 (15.5) (55.0)___________________________________________________________________________________________________ Net cash used in financing activities (15.5) (55.0)___________________________________________________________________________________________________ Effect of exchange rate changes on cash and cash (1.7) (0.5)equivalents____________________________________________________________________________________________________ Net increase in cash and cash equivalents 85.3 46.1 Cash and cash equivalents at beginning of year 132.7 86.6____________________________________________________________________________________________________ Cash and cash equivalents at end of year 218.0 132.7==================================================================================================== Cash and cash equivalents comprise:Cash at bank and in hand as shown in balance sheet 218.0 132.7____________________________________________________________________________________________________ 218.0 132.7==================================================================================================== Notes to the Group financial statements 1) Basis of preparation and significant accounting policies In preparing the financial information in this statement the Group has appliedpolicies which are in accordance with IFRSs as adopted by the European Union at30 June 2007. The accounting policies applied in these financial statements areconsistent with those applied in the Group's prospectus, prior to listing on theLondon Stock Exchange on 12 October 2006, for the year ended 30 June 2006. Theprospectus is available on the Group's website. 2) Personnel expenses Number of employeesThe number of employees of the Group (including executive directors) during the reportingyears, analysed by category, was as follows: Average for the Average for year the ended year ended As at As at 30 June 30 June 30 June 30 June 2007 2006 2007 2006 Number Number Number Number_______________________________________________________________________________________________ Investment management 59 42 69 49Fund administration - 6 - -_______________________________________________________________________________________________ Total employees 59 48 69 49_______________________________________________________________________________________________ The fund administration employees in the above table relate to the employees ofInternational Administration (Guernsey) Limited which was sold on 30 December2005. Analysis of employee benefits expense Year ended Year ended 30 June 30 June 2007 2006 £m £m________________________________________________________________________________________________ Wages and salaries 3.8 3.0Share-based payments 5.7 6.8Performance related bonuses 21.7 23.6Social security costs 0.5 0.3Pension costs 0.2 0.2Other costs 0.7 0.5________________________________________________________________________________________________ Total employee benefits 32.6 34.4________________________________________________________________________________________________ 3) Earnings per share Basic earnings per share is calculated by dividing the profit for the yearattributable to equity holders of the parent by the weighted average number ofordinary shares in issue during the year. Diluted earnings per share is calculated as for basic earnings per share with afurther adjustment to the weighted average number of ordinary shares to reflectthe effects of all dilutive potential ordinary shares. There is no difference between the profit for the year attributable to equityholders of the parent used in the basic and diluted earnings per sharecalculations. Reconciliation of the figures used in calculating basic and diluted earnings pershare: Year ended Year ended 30 June 30 June 2007 2006________________________________________________________________________________________________Weighted average number of ordinary shares used in calculation of basic earnings per share 667,467,808 660,200,000Effect of dilutive potential ordinary shares - share options 38,827,815 26,859,915________________________________________________________________________________________________ Weighted average number of ordinary shares used in calculation of diluted earnings per share 706,295,623 687,059,915________________________________________________________________________________________________ 4) Dividends An analysis of dividends paid is as follows: Group and Company Year ended Year ended 30 June 30 June 2007 2006_______________________________________________________________________________________________ Interim dividend £15.5m £55.0m Dividend per share 2.30p 8.33p_______________________________________________________________________________________________ Dividends are recognised in the accounts in the year in which they are paid, orin the case of a final dividend when approved by the shareholders. On 12 September 2007 the board proposed a final dividend of 6.7p per share forthe year ended 30 June 2007. This has not been recognised as a liability of theGroup at the year end as it has not yet been approved by shareholders. Based onthe number of shares in issue at the year end which qualify to receive adividend, the total amount payable would be £44.7m. 5) Share capital Group and Company(a) Share capital authorised As at As at As at As at 30 June 30 June 30 June 30 June 2007 2007 2006 2006 Number of Nominal value Number of Nominal value shares £'000 shares £'000 _______________________________________________________________________________________________ Ordinary shares of 0.01p each 900,000,000 90 900,000,000 90_______________________________________________________________________________________________ (b) Share capital issuedAllotted, called up and fully paid equityshares: As at As at As at As at 30 June 30 June 30 June 30 June 2007 2007 2006 2006 Number of Nominal value Number of Nominal value shares £'000 shares £'000 _______________________________________________________________________________________________ Ordinary shares of 0.01p each 708,925,000 70 708,925,000 70_______________________________________________________________________________________________ All the above ordinary shares represent equity of the Company and rank paripassu in respect of participation and voting rights. At 30 June 2006 there were 46,225,000 options in issue with contingent rights tothe allotment of ordinary shares of 0.01p in the Company. The exercise periodfor these options ranges from December 2005 to April 2016 and the allotmentprice ranges from 0.52p to 24.24p. At 30 June 2007 there were 38,152,921 options in issue with contingent rights tothe allotment of ordinary shares of 0.01p in the Company. The exercise periodfor these options ranges from December 2005 to December 2016 and the allotmentprice ranges from 0.52p to 170.0p. There are also restricted share awards issuedunder the Ashmore First Discretionary Share Option Scheme totalling 2,009,522shares that have a release date in November 2011. 6) Own shares The Ashmore 2004 Employee Benefit Trust (EBT) was established to encourage andfacilitate the acquisition and holding of shares in the Company by the employeesof the Company with a view to facilitating the recruitment and motivation of theemployees of the Company. As at the period end, the EBT owned 38,725,000 (June2006: 48,725,000) ordinary shares of 0.01p with a nominal value of £3,872.50(June 2006: £4,872.50) and shareholders' funds are reduced by £5.9m (June 2006:£4.8m) in this respect. It is the intention to make these shares available toemployees by way of sale through the share option scheme. 7) Exchange rates The only foreign exchange rate which has a material impact on the reporting ofthe Group's results is the US dollar. Closing rate Closing rate Average rate Average rate as at as at year ended year ended 30 June 2007 30 June 2006 30 June 2007 30 June 2006_______________________________________________________________________________________________ US dollar 2.0088 1.8484 1.9466 1.7806_______________________________________________________________________________________________ This information is provided by RNS The company news service from the London Stock Exchange