CCAP.L Regulatory News (CCAP)

12 Jan 2010 07:00



12 January 2010 

Charlemagne Capital Announces Unaudited Revenues and Assets under Management and Advice ("AuM") for the year ended 31 December 2009

Charlemagne Capital Limited ("Charlemagne" or the "Group") today issues a trading update for year ended 31 December 2009 in advance of the preliminary results announcement scheduled for 11 March 2010.

Key figures for the 12 months ended 31 December 2009

AuM was US$3.1 billion, an increase of 40%.

Net management fees in the second half of 2009 were 24% higher than those for the first half.

Net management fees for the year were US$18.8 million, a decrease of 52%.

Net performance fees were US$4.1 million, an increase of 11%. 

Total revenue was US$23.8 million, a decrease of 46%.

Additional non recurring income of US$1.2 million, net of applicable costs, was recorded in 2009 in relation to a private equity vehicle. 

Key Financial Items for the year ended 31 December 2009

The key financial items and AuM for the financial year which ended on 31 December 2009 are set out below. Values in relation to 2009 are unaudited and may be subject to adjustment during the audit process.

Unaudited revenue numbers for the year 

In accordance with the Group's accounting policy, accrued fund performance fees are not recognised by the Group until they crystallise either at the year end of the relevant fund or on redemption. As at 31 December 2009, there were accruing, but uncrystallised, performance fees of US$0.2 million (2008: US$ nil).

Actual performance fees crystallised in 2009 were US$3.2 million earned on the OCCO range and US$0.9 million from long only funds.

As reported above, additional non recurring income of US$1.2 million, net of applicable costs, was recorded in 2009 in relation to a private equity vehicle. Subject to the clearance of certain contingent matters, a further amount of US$3.7 million is expected to be received by way of performance fees, net of applicable costs, on this vehicle in the first quarter of 2010. As in 2005, when the bulk of the income from this vehicle was recognised, this income will be treated as non-operational in the Group's published figures in order not to distort regular income trends.

As at 31 December 2009, the Group had unaudited net assets of approximately US$27 million (2008: US$25 million) and cash balances of approximately US$22 million (2008: US$28 million). 

The Group remains profitable and cash flow generative. 

The Directors have adopted a dividend and capital return policy that seeks to reflect the long-term earnings and cash flow potential of the Group. Buying back shares for cancellation is one of the mechanisms by which the Group seeks to manage its capital structure and return surplus capital to shareholders. During the year to 31 December 2009, the Group repurchased and cancelled shares representing 0.15% of the company's issued share capital as at the beginning of the year, at a total cost of US$0.1 million. 

Group AuM as at 4 January 2010(i)

The table below shows the distribution of the Group's AuM across it product ranges as at 4 January 2009 and the movements experienced during 2010.

(i) Data is reported as at the first business day of the following period in order to capture all subscription and redemption orders placed during the period but not processed until the next dealing date for the funds concerned. AuM data is net of any crossholdings and is unaudited and may be subject to adjustment during the audit process.

(ii) "Fund Wind Ups & Reorganisations" reflects significant movements between categories at the request of the investing institutions comprising two main transactions; transfers totalling US$12m to Magna and US$ 20m into a segregated account (Institutional Mandates) for one of the Group's institutional clients funded by monies arising from the liquidation of one of the Group's OCCO funds.

(iii) The percentage for net performance is calculated based upon the average AuM for the year.

Summary 

Emerging markets continued their recovery in the second half of 2009 leading to further significant increases in asset values. For its part, the Group believes that the longer term fundamentals for emerging markets are as strong as ever, despite the rise in asset values in 2009, and hopes to see returning subscription flows in the coming year.

Charlemagne remains well-capitalised, has a flexible and lean operational base and continues to invest in strengthening and building the business. In the absence of unforeseen circumstances, it is intended that both a second ordinary and a special dividend will be declared in respect of 2009. Further details will be provided in the final results announcement. 

Results presentation

It is intended that there will be an analyst presentation on 11 March 2010 to discuss the results for 2009.

Enquiries:

This announcement is not for publication or distribution to persons in the United States of America, its territories or possessions or to any US person (within the meaning of Regulation S of the US Securities Act of 1933, as amended). Neither this announcement nor any copy of it may be taken or transmitted into Australia, Canada or Japan or to Canadian persons or to any securities analyst or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian or Japanese securities law. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes should inform themselves about and observe any such restrictions.

This announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of the Group. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Nothing in this announcement should be construed as a profit forecast.

This statement is aimed at providing estimates regarding revenue and trading conditions experienced by Charlemagne Capital Limited in the year ended 31 December 2009. The unaudited data contained in this statement are currently provisional and all such data are subject to change and may differ materially from the final numbers that are expected to be reported on 11 March 2010. This statement is produced in order to provide greater disclosure to investors and potential investors of currently expected outcomes, and to ensure that they all receive equal access to the same information at the same time.