PAM.L Regulatory News (PAM)

21 May 2007 07:01

Premier Asset Management PLC21 May 2007 Premier Asset Management PLC Interim results for the six month period ended 31st March 2007 Highlights • Turnover up 44% to £10.14 million (2006 - £7.04 million) • Profit before tax and amortisation up 92% to £1,009,249 (2006 - £525,432) • Basic EPS before tax and amortisation up 60% to 5.81p (2006 - 3.64p) • Fund management fees of £9.23 million representing 91% of turnover (2006 - £5.72 million representing 81% of turnover) • Funds under management as at 31st March 2007 up to £1.77 billion from £1.46 billion as at 30th September 2006 and from £1.33 billion as at 31st March 2006 • Net new business up 40% to £155 million (2006 - £110 million) Enquiries: 01483 306090Premier Asset Management plcMike O'SheaChief Executive Chairman's Statement Period to 31st March 2007 I am very pleased to report that your Company has continued to make goodprogress over the last six months. This is most clearly demonstrated by thehigher level of turnover, which grew to £10.1 million as compared to £7.0million for the same period last year (an increase of 44%). From this furtherexpansion, your Company was able to generate a profit before taxation andamortisation of £1.01 million, which compares well with the £0.5 million for thefirst six months of the last financial year (an increase of 92%). Based on theseprofit figures, the basic earnings per share after tax and before amortisationwas 6.16p, as compared to 3.64p for the same period last year (an increase of69%). Your Company's sound progress is also well illustrated by the level of fundsunder management. This has grown by 33% in the year ending March 31st, risingfrom £1.33 billion to £1.77 billion during that time. In respect of thisexpansion, it has been particularly encouraging to see that the main growthdriver over the last six months has again been sales of the Company's ownopen-ended funds and those that it operates for third-party businesses. Duringthe half-year period, net new business totalled £155 million across the range ofopen-ended funds and discretionary portfolios, as compared to last year's figureof £110 million, a rise of 40%. Progress within the three key business divisions of Managed Investment Services,Third-Party Services and Specialist Funds continues to exceed our earlierexpectations. To date, there has been no evidence that recent stock marketvolatility is dampening investor enthusiasm for our products, although thereremains a risk that a prolonged period of equity market weakness would have anadverse impact. Overall, however, your Board remains optimistic on the outlookfor the remainder of this year and beyond. Looking forward, we will remain focused on promoting the existing fund rangethrough our own sales team and through our ongoing work with our partners in thethird-party funds business. This will involve continued promotion of ourmulti-manager offerings across the UK Independent Financial Adviser market, aswell as further work with our third-party fund partners. I am also hopeful thatour sustained strong investment returns for many of our specialist funds willallow us to attract further assets under management within this area. As mentioned in my last report to shareholders, we are continuing to seeksuitable acquisition opportunities that will add value or scale to our existingbusiness divisions. At the same time, maintaining and managing the organicgrowth of the business and continuing to grow your Company's assets undermanagement remain key targets for the Board and for the executive team. Once again I would like to extend my personal thanks to the team at Premier fortheir hard work. Roger WoodChairman21st May 2007 Consolidated Profit and Loss AccountFor the six month period ended 31st March 2007 Six months to Six months to Notes 31st March 2007 31st March 2006 £ £---------------------------------------------------------------------------------------------Turnover 2 10,143,899 7,042,806 Operating expenses ------------ ------------ Amortisation (464,374) (284,349) Other operating expenses (9,271,803) (6,622,910) ------------ ------------Total operating expenses (9,736,177) (6,907,259)---------------------------------------------------------------------------------------------Operating profit 407,722 135,547 Share of profit from associate 18,605 41,654 Net interest receivable 118,548 63,882---------------------------------------------------------------------------------------------Profit on ordinary activities before taxation 544,875 241,083 Tax on profit on ordinary activities (74,582) ----------------------------------------------------------------------------------------------Profit on ordinary activities after taxation 470,293 241,083 Dividends (228,041) ----------------------------------------------------------------------------------------------Retained profit for the period 242,252 241,083---------------------------------------------------------------------------------------------Earnings per share - basic 3 3.10 1.67 - diluted 3 2.82 1.58--------------------------------------------------------------------------------------------- Consolidated Balance SheetAs at 31st March 2007 31st March 30th September 2007 2007 2006 2006 £ £ £ £------------------------------------------------------------------------------------------------------------------------Fixed assetsIntangible fixed assets 3,875,198 4,323,148Goodwill 2,672,405 2,689,533Tangible fixed assets 512,404 411,095Investment in associate 43,501 44,654Investment in joint venture 21,610 ------------------------------------------------------------------------------------------------------------------------- 7,125,118 7,468,430Current assetsInvestments 200,971 306,682Debtors 11,652,514 9,423,227Cash 11,200,892 7,121,287------------------------------------------------------------------------------------------------------------------------ 23,054,377 16,851,196 Creditors: Amounts falling due within one year (21,734,341) (16,519,032)------------------------------------------------------------------------------------------------------------------------Net current assets 1,320,036 332,164------------------------------------------------------------------------------------------------------------------------Total assets less current liabilities 8,445,154 7,800,594------------------------------------------------------------------------------------------------------------------------Called up share capital 1,531,521 1,465,521Share premium account 2,744,202 2,295,735Capital redemption reserve 830,000 830,000Profit and loss account 3,339,431 3,209,338------------------------------------------------------------------------------------------------------------------------Shareholders' funds 8,445,154 7,800,594------------------------------------------------------------------------------------------------------------------------ Consolidated Cash Flow StatementFor the six month period ended 31st March 2007 31st March 31st March 2007 2007 2006 2006 £ £ £ £------------------------------------------------------------------------------------------------------------------------Net cash inflow from operating activities 3,711,400 1,914,427 Dividends received from associate 18,605 24,758 Returns on investments and servicing of finance Interest received 143,420 75,658 Interest paid (24,872) (11,776) Dividends paid to equity holders of the parent (228,041) - -----------------------------------------------------------------------------------------------------------------------Net cash (outflow)/inflow from returns on investments and servicing of finance (109,493) 63,882 TaxationUK corporation tax received 2,919 - Capital expenditure and financial investment Purchase of tangible fixed assets (167,137) (133,171) Purchase investments - (45,950) Purchase of intangible fixed assets - (965,504) Sale of tangible fixed assets - 2,350 Sale of investments 105,711 -------------------------------------------------------------------------------------------------------------------------Net cash outflow from capital expenditure and financial investment (61,426) (1,142,275) Financing Repurchase of shares in treasury (185,142) - Issue of shares (net of expenses) 587,452 24,424 Bank loan (2,015,380) 153,834------------------------------------------------------------------------------------------------------------------------Net cash (outflow)/inflow from financing (1,613,070) 178,258------------------------------------------------------------------------------------------------------------------------Increase in cash 1,948,935 1,039,050------------------------------------------------------------------------------------------------------------------------ Notes to the Interim Statement For the six month period ended 31st March 2007 1. Basis of Preparation These interim financial statements, which are unaudited, comply with relevant UKaccounting standards and should be read in conjunction with the Annual Reportand Accounts for the year ended 30th September 2006 which have been filed atCompanies House and which contain an unqualified audit report. The accountingpolicies have been applied on a consistent basis with those applied in 2006. 2. Turnover Analysis Turnover relates to commissions and fees receivable, and arose primarily in theUnited Kingdom. A split of turnover by geographical region and activity are asfollows: Geographical analysis Six Months to Six Months to 31st March 2007 31st March 2006--------------------------------------------------------------------------------United Kingdom 90.6% 97.4%Channel Islands 8.6% 0.0%Ireland 0.8% 2.5%North America 0.0% 0.1%-------------------------------------------------------------------------------- 100.0% 100.0%-------------------------------------------------------------------------------- Activity Analysis Six Months to Six Months to 31st March 2007 31st March 2006 £'000 £'000--------------------------------------------------------------------------------Fund Management Fees 8,594 5,112Initial Fund Commissions 631 983Private Client Fees 639 603Private Client Commissions 165 212Other 115 133-------------------------------------------------------------------------------- 10,144 7,043-------------------------------------------------------------------------------- Profit on ordinary activities before taxation and amortisation are calculated asfollows: Six Months to Six Months to 31st March 2007 31st March 2006 £'000 £'000--------------------------------------------------------------------------------Profit on ordinary activities 544,875 241,083 before taxationAmortisation 464,374 284,349-------------------------------------------------------------------------------- 1,009,249 525,432-------------------------------------------------------------------------------- 3. Earnings Per Share The calculation of earnings per share has been made in accordance with the FRS22 'Earnings Per Share'. Six months to 31st March 2007 Weighted Per share Earnings Average No Amount £ of shares pence--------------------------------------------------------------------------------Attributable profit 470,292 15,179,936 3.10Amortisation 464,374 - 3.06--------------------------------------------------------------------------------Adjusted earnings per share 934,666 15,179,936 6.16Share options - 1,491,706 0.00--------------------------------------------------------------------------------Diluted earnings per share 470,292 16,671,642 2.82Amortisation 464,374 - 2.79--------------------------------------------------------------------------------Diluted adjusted earnings per share 934,666 16,671,642 5.61-------------------------------------------------------------------------------- Six months to 31st March 2006 Weighted Per share Earnings Average No Amount £ of shares pence--------------------------------------------------------------------------------Attributable profit 241,083 14,428,214 1.67Amortisation 284,349 - 1.97--------------------------------------------------------------------------------Adjusted earnings per share 525,432 14,428,214 3.64Share options 860,295 0.00 0.00--------------------------------------------------------------------------------Diluted earnings per share 241,083 15,288,509 1.58Amortisation 284,349 - 1.86--------------------------------------------------------------------------------Diluted adjusted earnings per share 525,432 15,288,509 3.44-------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange