TIDMAMN
RNS Number : 5074D
Asset Management Investment Co.PLC
02 December 2009
For immediate release 3 December 2009
ASSET MANAGEMENT INVESTMENT COMPANY PLC
FINAL RESULTS FOR THE YEAR TO 30 SEPTEMBER 2009
Asset Management Investment Company PLC ('AMIC'), the specialist investor in the
global asset management industry, announces its results for the year to 30
September 2009.
Highlights
* Net assets GBP13.7 million (30 September 2008 GBP23.6 million)
* Gearing Nil (30 September 2008 9%)
* NAV per share 75.12p (30 September 2008 125.46p)
* Pre-tax revenue profit GBP1.87 million (30 September 2008 GBP1.79 million)
* Final dividend 4.5p net per share (2008 4.5p net per share)
* Dividend for the year 7.0p net per share (2008 6.5p per share)
* Capital distribution of 27p per share in February 2009
Chairman's statement
The dislocation in credit markets which commenced in August 2007 and to which I
referred in my statement which accompanied the annual report for 2008 introduced
a period of economic recession and great uncertainty and turbulence in all
financial markets. Many well known names in the sector either disappeared or had
to accept radical financial restructuring. These conditions to some extent are
still present, but at the end of 2009 it is now possible to have some degree of
optimism that the worst has passed and we are seeing the beginning of the hoped
for economic recovery.
Your Company's investment portfolio inevitably was not immune from the general
financial sector problems through the difficult period, during which the
valuation of investments had to be lowered to reflect the reduced level of
assets under management by investee companies. However, the period also
reflected the improved conditions, particularly the strong performance of world
stock markets, since March 2009. The markets through 2008 anticipated world
recession and possible deflation and depression, but this has been replaced by
the anticipation of recovery and better times ahead. However, despite the
strong stock market recovery this year there are still many who believe in the
real danger of a second dip into a further period of recession and there can be
no room for complacency.
Investment portfolio
Your company holds two quoted investments, City of London Investment Group plc
and Integrated Asset Management plc. City of London invests in emerging markets
through the medium of international closed-end companies and the company and the
price of its shares have benefitted greatly this year through good investment
management performance and the general strength in emerging markets. The level
of assets under management has seen a strong recovery, which is being reflected
in revenue flows and it is expected in due course will benefit the dividends
received by your Company. Integrated Asset Management in September completed a
transaction by which the company sold the bulk of its funds under management to
its largest shareholder, the German private bank Sal. Oppenheim, in exchange for
a cash consideration and the cancellation of the 28% of the equity held by Sal.
Oppenheim. The company now has healthy cash balances, the ownership of an
institutional broker and modest residue of funds under management. The directors
of Integrated Asset Management have under review a number of options for the
future of the company.
Inevitably weakness in the Japanese stock markets in the course of the year had
an impact on the valuation of your Company's investment in IFDC Group S.A.
However, there has been a significant recovery in the level of assets under
management and your Board remain confident in the future prospects for the
business. International Foreign Exchange Concepts Holdings, Inc, an investment
manager specialising in the foreign exchange markets, in October 2008 exercised
its option to buy back the equity held by your Company and AMIC now holds a $5m
note repayable in June 2011 which is a major contributor to revenue. Lombardia
Capital Partners, located in California, who are managers of large cap, mid cap
and small cap equity portfolios invested in the United States stock markets,
have also seen their assets under management recover with better markets and a
consistently excellent investment management performance to almost $2 billion,
the highest level during the period of your company's investment.
Two exits from investments were completed in the course of the year.
MMCM Holdings Inc. was sold back to its management for a nominal amount, and
Columbus Financial Services Limited was dissolved. Both investments had been
held at a nil valuation for a number of years. The second payment of $0.54
million due following the disposal of your Company's interest in Hillview
Capital Advisors Inc., a private wealth management company located in New York
City, which was sold to the management of Hillview in December 2007, was
received earlier than anticipated in September 2009 and your company has a
continuing participation in the revenues of Hillview in respect of the years
2009, 2010 and 2011.
Your Board continues to take a cautious and prudent approach to the valuation of
the investments in the portfolio, notwithstanding the recovery both in equity
markets generally and the assets under management in the companies in which AMIC
is invested.
Corporate developments
In September 2008 your Company announced that it had received notification from
FX Concepts, Inc. of its intention to exercise the call option which it held in
respect of the ordinary shares of FX Concepts Inc held by AMIC. Following
receipt of the sterling amount of the consideration of approximately GBP5.7
million in October 2008 your Board consulted with major shareholders and its
advisers to determine the most appropriate method for returning the proceeds of
this sale to Shareholders in accordance with the strategy approved by
Shareholders in October 2006. On 21 November 2008 a circular was sent to
Shareholders detailing the arrangements for the return of 27p per share in cash,
which was duly completed on 15 February 2009.
Your Company will continue the programme of buying back ordinary shares for
cancellation as and when reasonable lines of shares are available at levels of
discount which make such buy-backs of advantage to shareholders. Between 1
October 2008 and 30 September 2009 642,500 ordinary shares were bought back and
cancelled at a cost of GBP0.32 million, equal to 3.38 % of the ordinary share
capital in issue at the start of the financial year.
Financial results
Revenue profit before tax and minority interests for the year was GBP1.87
million (2008: GBP1.79 million), an increase of 4.47%. Profit after taxation
increased by 9.39% to GBP1.50 million (2008: GBP1.37 million) and revenue return
per ordinary share increased by 15.66% to 8.05p (2008: 6.96p). Your Board is
recommending payment of a final dividend of 4.5p net per share (2008: 4.5p net
per share), which, together with the interim dividend of 2.5p net per share
(2008: 2.0p net per share) paid on 14 August 2009, will make a total payment of
7.0p net per share (2008: 6.5p net per share). The final dividend will be
proposed at the Annual General Meeting on 4 February 2010 for payment on 9
February 2010 to shareholders on the register at the close of business on 15
January 2010. At 30 September 2009 gearing (being the proportion of interest
bearing debt to total assets) stood at Nil (30 September 2008: 9.54 %).
Outlook
The major economic and financial problems throughout the world still persist and
the impact of the credit crunch is likely to be felt for a considerable time to
come. However, there are signs that the worst of the crisis is over and
hopefully 2010 will confirm this. Provided the current level of stock markets is
maintained the current year should be an easier one for the asset management
industry, with improved revenue flow and a more receptive marketing environment.
Your Board believes that the companies in which AMIC is invested are all well
positioned to benefit from better market conditions and able to continue to
survive in the event that there is a further downturn.
Your Board have the future of the Company and its management under regular view,
with particular regard to the continuing reduction in total assets as
investments are realised and cash returned to shareholders.
Charles Wilkinson
Chairman
3 December 2009
+-------------------------------------------------------------------------------------------------------+
| INCOME STATEMENT |
| for the |
| year |
| ended |
| 30 |
| September |
| 2009 |
| Year ended Year ended |
| 30-Sep-09 30-Sep-08 |
| Revenue Capital Total Revenue Capital Total |
| Notes GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 |
| Gain or - (4,039) (4,039) - (1,212) (1,212) |
| loss on |
| investments |
| held at |
| fair value |
| through |
| profit or |
| loss |
| Investment 2,020 - 2,020 2,109 - 2,109 |
| income |
| Administration (200) (601) (801) (287) (860) (1,147) |
| expenses |
| |
| Profit/(loss) 1,820 (4,640) (2,820) 1,822 (2,072) (250) |
| before |
| finance costs |
| and taxation |
| Interest (19) (55) (74) (75) (226) (301) |
| payable |
| Fair 39 118 157 (11) (34) (45) |
| value |
| movement |
| on loan |
| redemption |
| derivative |
| Interest 30 - 30 54 - 54 |
| receivable |
| Profit/(loss) on 1,870 (4,577) (2,707) 1,790 (2,332) (542) |
| ordinary |
| activities before |
| taxation |
| Taxation (368) 179 (189) (417) 229 (188) |
| Profit/(loss) 1,502 (4,398) (2,896) 1,373 (2,103) (730) |
| for the year |
| |
| Earnings |
| per |
| share |
| Return 3 8.05p (23.56p) (15.51p) 6.96p (10.66p) (3.7p) |
| per |
| ordinary |
| share |
| (basic) |
| Return 3 8.05p (23.56p) (15.51p) 6.96p (10.66p) (3.7p) |
| per |
| ordinary |
| share |
| (diluted) |
| The total column of this statement represents the Income Statement, prepared in |
| accordance with International Financial Reporting Standards. The supplementary |
| revenue and capital columns are both prepared under guidance published by the |
| Association of Investment Companies. All items in the above statement derive from |
| continuing operations. |
| BALANCE SHEET |
| as at 30 September 2009 |
| 30 30 |
| September September |
| 2009 2008 |
| Notes GBP'000 GBP'000 GBP'000 GBP'000 |
| Non-current assets 4 2 |
| Property, plant and equipment |
| Investments |
| Fair value through profit or |
| loss |
| - Listed investments 4,549 3,765 |
| - Unlisted investments 8,219 13,319 |
| 12,768 17,084 |
| 12,772 17,086 |
| Current assets |
| Investment - 5,614 |
| Receivables 1,134 2,675 |
| Cash and cash equivalents 303 1,233 |
| 1,437 9,522 |
| Total assets 14,209 26,608 |
| Current liabilities |
| Payables (275) (400) |
| Bank loans - (2,244) |
| Loan redemption derivative (137) (295) |
| (412) (2,939) |
| Net assets 13,797 23,669 |
| Equity |
| Ordinary share capital 4,591 4,752 |
| Special Reserve 7,435 4,433 |
| Capital Redemption Reserve 180 8,764 |
| Other capital reserves (1,031) 3,367 |
| Retained earnings 2,618 2,430 |
| Own share reserve 4 (77) |
| Total equity 13,797 23,669 |
| Allocation of shareholders' |
| funds |
| Net asset value per ordinary |
| 25p share (basic) 4 75.12p 125.46p |
| Net asset value per ordinary |
| 25p share (diluted) 4 75.12p 125.46p |
| STATEMENT OF CHANGES IN |
| EQUITY |
| For the year ended 30 |
| September 2009 |
| Share Special Capital Own Other Retained Total |
| Capital Reserve Redemption Share capital earnings |
| Reserve Reserve reserve |
| GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 |
| Net assets as at 30 5,186 6,438 8,330 (68) 5,470 2,267 27,623 |
| September 2007 |
| Profit/(loss) for the year - - - - (2,103) 1,373 (730) |
| Total recognised income and 5,186 6,438 8,330 (68) 3,367 3,640 26,893 |
| expenses |
| for the period |
| Cancellation of ordinary (434) (2,005) 434 - - - (2,005) |
| shares |
| Ordinary dividends paid - - - - - (1,210) (1,210) |
| Movement in own shares - - - (9) - - (9) |
| Net assets as at 30 4,752 4,433 8,764 (77) 3,367 2,430 23,669 |
| September 2008 |
| Profit/(Loss) for the year - - - - (4,398) 1,502 (2,896) |
| Total recognised income and 4,752 4,433 8,764 (77) (1,031) 3,932 20,773 |
| expenses |
| for the period |
| Cancellation of capital - 8,764 (8,764) - - - - |
| redemption |
| Cancellation of ordinary (161) (324) 161 - - - (324) |
| shares |
| Cancellation of non-voting (19) (5,132) 19 - - - (5,132) |
| B & C shares |
| Cost associated with - (287) - - - - (287) |
| cancellation of B & C |
| shares |
| Bonus issue B and C shares 19 (19) - - - - - |
| Ordinary dividends paid - - - - - (1,314) (1,314) |
| Movement in own shares - - - 81 - - 81 |
| Net assets as at 30 4,591 7,435 180 4 (1,031) 2,618 13,797 |
| September 2009 |
| CASH FLOW STATEMENT |
| for the year ended 30 September |
| 2009 |
| 30 30 September |
| September 2008 |
| 2009 |
| GBP'000 GBP'000 GBP'000 GBP'000 |
| Net income from operations before (2,707) (542) |
| tax |
| Depreciation 2 1 |
| Decrease in receivables 1,541 994 |
| (Decrease)/increase (143) 140 |
| in payables |
| Losses on investments held at fair 4,039 1,212 |
| value through profit and loss |
| (Gains)/loss on (158) 44 |
| derivative |
| Net payment to EBT 81 (9) |
| scheme |
| Cash generated by 2,655 1,840 |
| operations |
| Taxation (171) (103) |
| Investing |
| activities |
| Sale of 5,704 4,157 |
| investments |
| Purchase of (2) - |
| tangible fixed |
| assets |
| Net cash inflow from investing 5,702 4,157 |
| activities |
| Net cash inflow before financing 8,186 6,100 |
| Financing |
| activities |
| Repurchase of (5,743) (2,005) |
| ordinary shares |
| Repayment of (2,244) (4,286) |
| loan |
| Drawdown of - 1,000 |
| loan |
| Equity dividend (1,314) (1,210) |
| paid |
| Net cash outflow from financing (9,301) (6,501) |
| Decrease in cash (1,115) (401) |
| Effect of foreign exchange rate 185 235 |
| changes |
| |
| Changes in cash and cash (930) (166) |
| equivalents |
| Cash and cash equivalents at 1,233 1,399 |
| beginning of period |
| Cash and cash equivalents at end 303 1,233 |
| of period |
| |
+-------------------------------------------------------------------------------------------------------+
Asset Management Investment Company PLC
Notes to the Financial Statements:
1.Accounting policies
Basis of preparation
The financial information has been prepared in accordance with International
Financial Reporting Standards ("IFRS"), comprising standards and interpretations
issued by the International Accounting Standards Board ("IASB") as adopted by
the European Union and in accordance with Companies Act 2006. The financial
information is presented in pounds sterling, rounded to the nearest thousand.
The financial information is prepared under the historic cost convention except
for measurement at fair value of investments. The financial information has been
prepared using accounting policies consistent with those applied in the annual
report for the year ended 30 September 2008. Where presentational guidance set
out in the Statement of Recommended Practice ("the SORP") for investment trusts
issued by the Association of Investment Companies ("the AIC") in January 2009 is
consistent with the requirements of IFRS, the directors have sought to prepare
the financial statements on a basis compliant with the recommendations of the
SORP.
Following the dissolution of the remaining subsidiary, in the previous financial
year only the Company financial statements have been presented this year and
only the Company comparatives have been included.
2.Dividends
An interim dividend of 2.5p per share was paid on 14 August 2009 to the
shareholders on the register on 25 July
2008. A final dividend of 4.5p will be proposed at the next Annual
General Meeting.
3.Return per share
Basic returns per ordinary share are calculated on the basis of retained
net revenue after taxation of GBP1,502,000
(30 September 2008:
GBP1,373,000) divided by weighted average number of shares in issue during
the period being 18,668,628 (30 September 2008: 19,865,833) following
adjustments for shares held in
an Employee Benefit Trust.
4. Net asset value
The net asset value per ordinary share for the Company is based on a net asset
value of GBP13,797,000 (30 September
2008: 23,669,000) and on 18,365,833 (30 September 2008: 18,865,833)
ordinary shares in issue at year-end.
The basic net asset value per ordinary share as at 30 September 2009 is
calculated on the basis of net assets attributable
to equity
shareholders divided by the number of shares that would in issue following
adjustment for shares held in
Employee Benefit Trust 2009: Nil
(2008:142,500).
5. Principal Risks and Uncertainties
Market price risk
The Company's investment portfolio is exposed to uncertainty about future prices
of investments held in its portfolio.
It represents the potential
loss the company might suffer through holding market positions in the face of
price
movements. The Investment Manager constantly monitors the price
of listed investments held by the Company on a
real-time basis. The
Investment manager reports to the Board on the unlisted investments and
constantly monitors
their carrying values.
Liquidity risk
Liquidity risk arises as the investment portfolio will comprise mainly unlisted
securities, which represent a potential delay
for realisation. This
risk is managed by the holding of cash balances to meet payments in the
foreseeable future.
Credit risk exposure
This is the risk of failure of the counterparty to a transaction to
discharge its obligations under that transaction that
could result
in the company suffering a loss. The amount of cash at Bank GBP303,000 (2008:
GBP1,233,000) and debtors
GBP1,134,000 (2008: GBP2,675,000)
represent the maximum exposure to credit risk at 30 September 2009. Most of
the debtors
are receivables from investee companies and of
this amount GBP729,000 has been received after year-end.
Foreign Currency risk
The Board has identified three principal areas where foreign currency risk could
impact the Company:
Movements in exchange rates affect the value of investments
Movement in exchange rates affect the income received
Movement in exchange rates affect the value of bank borrowings and
interest payments
Foreign currency risk arises as the income and capital value of the Company's
investments can be affected by
exchange rate movements as some of the
Company's assets and income are denominated in currencies other
than
sterling which is the Company's reporting currency. As at 30 September 2009, the
Company had no open
forward contracts. The Company may use
short term forward currency contracts to manage capital requirements.
Market share price risk
The Company's share price can trade at a discount to its underlying net asset
value which is not a factor the Company is
able to control. Some
influence over the discount may exercised by the use of the buy- back of shares
in the market by
the Company.
Regulatory risk
The Company operates in a regulatory environment and faces a number of
regulatory risks. Any breach of regulations,
such as Section 842 of the Income and Corporation Taxes Act, the UKLA
Listing Rules among other things could lead to
detrimental
outcomes. The Audit Committee monitors compliance with regulations by reviewing
internal control reports
from both internally and externally.
6. Basis of preparation
The financial information set out above does not constitute statutory financial
statements as defined in section
435 Companies Act 2006.
The statutory accounts for 2009 will be finalised on the basis of the
financial information presented by the Directors in this
announcement and will be delivered to the Registrar of Companies following the
Annual General Meeting.
The information for the year ended 30 September 2008 has been extracted
from the latest published audited accounts. The
audited accounts
for the year ended 30 September 2008 have been filed with the Registrar of
Companies. The report of the
auditors on those accounts contained
no qualification or statement under either section 237(2) or (3) of the
Companies
Act 1985.
7. Related Party Transactions
Please refer to the information given in the Directors Remuneration Report of
the Company's Annual Report for the year
ended 30 September 2009
which will be published shortly. The compensation given to the Company's key
management
personnel is mentioned therein.
The terms of the agreement between the Company and the Managing Director
is also set out in the Directors
Remuneration Report.
There have been no other related party transactions requiring disclosure.
8. Responsibility Statement
We confirm to the best of our knowledge:
In accordance with Disclosure and Transparency Rules we confirm, in
respect of the Annual Report for the year ended
30 September 2009
of which this statement is an extract, that to the best of our knowledge:
* the financial statements have been prepared in accordance with the International
Financial Reporting Standards ("IFRS") as adopted by the European Union.
* the Annual Report, to be published shortly includes a fair review of the
information required by the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the financial year and
description of principal risks and uncertainties.
By Order of the Board
Bharat Bhagani
Company Secretary
3 December 2009
Copies of the Annual financial Report will be posted to shareholders during
January 2010 and will be available from the registered office at 32 Ludgate
Hill, London EC4M 7DR. The Annual financial report will also be available on the
Company website at www.amicplc.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAAAAEFNNFAE
Asset Management Investment (LSE:AMN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Asset Management Investment (LSE:AMN)
Historical Stock Chart
From Jul 2023 to Jul 2024
