ABERDEEN ASSET MANAGEMENT PLC
INTERIM RESULTS TO 31 MARCH 2003
CHAIRMAN'S STATEMENT
Despite the continued bear market, the Group has made considerable advances
during the last six months, notably in the reduction of debt through disposals
and a continuing focus on the cost reduction programme that began in 2002. We
have taken meaningful steps to reduce the cost base to a level more compatible
with the current revenue base and market conditions, and this will continue to
be kept under review. Such reductions will become more evident at the year end,
once the effect of time lags become clearer, coupled with the expected
reduction of operating costs from the property division.
Profit before taxation for the period was £41.9 million, compared to £10.8
million for the equivalent period last year. This represents earnings per share
of 17.29p (2002: 2.71p). Excluding the effects of goodwill amortisation and
exceptional items, pre-tax profit was £5.6 million against £22.2 million for
the same period in 2002. Earnings per share on this basis were 2.01p (2002:
8.87p). Assets under management at 31 March 2003 were £20.0 billion (30
September 2002: £23.7 billion).
After the end of the half year period assets under management were reduced
further as a result of the termination of a closed end fund mandate by Real
Estate Opportunities Limited, from whom we will be pursuing compensation for
the early termination of the management contract.
The Board has decided to pay an interim dividend of 2.0p per share. This is
lower than the 3.85p per share paid at the interim stage in 2002, but is
consistent with the rebalancing of the total dividend for 2002 undertaken at
the year-end.
Business Strategy
Continued volatility and uncertainty remained the dominant themes in the period
to 31 March 2003. The global bear market is now three years old, the FTSE has
fallen some 45 per cent between March 2000 and March 2003 and, looking forward,
economic indicators do not yet predict an early recovery. We are addressing our
cost and operating structures and focusing on products and fund expertise where
we can successfully compete and add value over the medium-term. We are
strengthening our balance sheet by the disposal of non-core assets and are
concentrating on the delivery of superior asset management performance.
Asset Disposals and Financial Position
On 15 January 2003 the Group announced the sale of the management rights of six
UK retail funds assets to New Star Asset Management. The transaction was
completed on 21 February 2003, achieving proceeds of £86.8 million from the
£1.73 billion of assets which transferred to New Star. Last year, the Group
also announced the planned disposal of Aberdeen Property Investors
("API"). We are in advanced negotiations with a limited number of
interested parties for the sale of this division and we hope shortly to enter
into exclusive negotiations with one potential buyer. We expect a sale to be
completed before the end of June 2003.
The completion of the latter transaction will reduce the Group's assets under
management to approximately £13.5 billion, comprising approximately 60 per cent
equities and 40 per cent fixed income securities. The Group's net debt has
reduced from £234.4 million at 30 September 2002 to £174.0 million at 31 March
2003. This represents a reduction in the gearing ratio from 113% to 76% and
this will fall further after the API transaction.
Of the total net borrowings at 31 March 2003, bank term loans represent £51.0
million, compared to £122.7 million at 30 September 2002. This bank debt is now
provided by a single lender, Bank of Scotland, the previous banking syndicate
having been dissolved at 31 March 2003. As stated previously we do not intend
to make further significant disposals, but we do expect to make additional, but
much smaller, disposals during the year, in particular in areas of duplication
or in skills which do not reflect our strategic priorities.
Refined investment processes
We have aimed to increase the consistency within our investment process in
order to achieve strong performance and to differentiate our funds from our
competitors. We have streamlined and refocused our investment management teams,
adopting the very clear investment process developed in our Asian operation,
which is grounded on proprietary research and traditional valuation models. We
have now brought key disciplines and controls to a consistent standard across
all equity investment teams in the Group. The process consists of fundamental
analysis of companies and stocks, undertaken internally and with a detailed
audit trail. As a result, unconstrained portfolios under our management can
take very clear portfolio positions. Such portfolios, characterised by clear
and disciplined in-house research, should mark our funds as distinctive, as
well as meeting the highest standards demanded by investment consultants and
discretionary managers. A similar exercise is nearing completion in respect of
the fixed income division.
The sale of the management rights to New Star Asset Management included the
disposal of £1.2 billion of assets within three funds in the fixed income
sector. Two fixed income fund managers transferred to New Star as part of this
transaction, but our capability in this area is undiminished, with a team of
twenty four fund managers continuing to manage £5.3 billion of fixed income
assets. We are in the course of launching replacement funds to service the
significant assets managed on behalf of several institutional clients which did
not transfer to New Star. These funds, together with our existing offshore
funds, will continue to be marketed to institutions and professional investors.
UK and European open ended funds
The substantial retail outflows that were being experienced in the widely-held
UK funds in the last quarter of 2002 have effectively ceased following the sale
of management rights to New Star, and March 2003 has seen a return to net fund
inflows with very limited outflows overall. The experience in our Dublin and
Luxembourg domiciled funds, with assets of £845 million, has been much less
influenced by events in the UK and we have experienced net inflows overall,
albeit at subdued levels. Recent months have been characterised by interest in
our funds investing in the Asia-Pacific region, which are demonstrating very
strong performance. Fund inflows from continental Europe have been broadly
based, originating over the half-year from Italy, Switzerland and the Nordic
Region. More generally, our fund sales focus has shifted from retail to a much
more focussed universe of intermediaries, in particular discretionary fund
managers and fund-of-fund managers.
Investment Trusts
The Group manages or advises 12 conventional investment trusts, currently some
£1.3 billion of assets under management. Our funds overall have seen strong
relative performance over the period. In Standard & Poor's Fund Performance
Awards in February 2003, we won four awards, including "Best UK Investment
Trust Manager 2003". The Group won the top position in the larger
investment trust companies category for performance over one, three and five
years. Many investment trusts have found the bear market very taxing. Weakness
in the secondary market has meant that buy-backs across the sector are likely
to continue in the foreseeable future. We remain committed to supporting our
investment trust clients by way of dedicated teams and specialist expertise
devoted to this area of our business. The advent of Treasury Shares later in
the year is expected to provide another source of flexibility in enabling UK
investment trusts to manage their structures.
Split capital closed end funds
During the period the Group advised 13 split capital closed end funds listed on
the London Stock Exchange with assets of £1.0 billion. The Group continues to
be at the forefront of industry efforts, across a range of initiatives, to
improve transparency, best practice and investor communications. The Group
supports the UK's Treasury Select Committee's February recommendation that the
Financial Services Authority and Financial Ombudsman Service investigations are
completed quickly and continues to co-operate fully.
Shortly after the period end, the board of Real Estate Opportunities Limited
("REO") announced its intention to terminate Aberdeen's management
contract with immediate effect. We regret that extensive mediation over several
months with this company failed to resolve mutual concerns. We do not accept
the validity of REO's decision to terminate the contract without notice and we
will be taking appropriate action to recover all sums due to the Group under
the terms of the contract.
UK Private Equity
The Group's private equity division, Aberdeen Murray Johnstone Private Equity
("AMJPE") at the period end, had £480 million of assets under
management. In AMJPE's target market, activity levels are less dependent on the
stock market appetite for new issues. This has been reflected in a number of
very successful trade sales of investee companies during the period. The seven
regional offices have remained very active and are exploring a large variety of
transactions. The difficulties created by the tough economic environment and
the increasingly risk-averse approach of the banking market should lead to an
increased number of opportunities for our team. In addition, the falls in stock
market indices over the last three years have led to more realistic pricing
expectations.
Asia Pacific
Our Asian operations continue to perform well, with profits in line with
forecast thanks to tight cost management and the high allocation to fixed
income funds. However, weak equity markets and increasing risk aversion have
noticeably affected Singaporean retail fund volumes, with the climate for new
launches poor. We have maintained local brand marketing expenditure in
Singapore and, to a lesser extent, Hong Kong. Interest in our product range
from the institutional market globally has been high on the back of very strong
performance and process integrity. We have gained some new assets locally over
the period and we are participating in numerous tenders world-wide. As in the
UK, the alignment of our investment process in Sydney is paying off in terms of
performance and in enabling us to gain access to influential intermediaries.
North America
The Canadian and US markets continue to show interest in our specialist fund
management product range. Performance has been strong, particularly among our
bond funds. Aberdeen Asia-Pacific Income Fund, Inc., our largest closed-end
fund with assets of US$2.0 billion, was the top-performing fund for the year ended
31 December 2002, among the 340 U.S. closed-end bond funds reviewed by Lipper,
Inc. Lipper also ranked the Aberdeen Global Income Fund, Inc., which has assets
of US$132.6 million, the second best performing closed-end bond fund for the
same period. Net asset value total returns for these funds for the year 2002
were 25.5% and 21.9% respectively. The US operation has also seen encouraging
inflows of assets from a number of Chilean pension funds, and we now manage
assets on behalf of the four largest pension fund managers, representing about
80% of Chilean pension fund assets, among our clients.
Property
The UK commercial property market has been stable during the period overall,
showing a 1% rise, with Continental Europe and the Nordic Region performing
similarly. Aberdeen Property Investors ("API") experienced a steady
six months in all areas of its business, with assets under management at £5.9
billion (up 1.3 per cent since September 2002). Overall, the business is in
strong shape with both domestic and European successes. API has won several
small mandates and has been encouraged by its appointment by Ilmarinen, a
Finnish insurer, to advise on investing up to €750 million in Eurozone
countries. This consolidates API's position as the leading provider of
pan-European indirect investment management services to Nordic institutions.
Led by its Dutch office, API has also recently raised a further €70 million of
institutional capital for its Pan-European logistics fund, the C€logix Property
Fund.
Outlook
Following the Iraq war and now to some extent with the SARs threat in Asia, the
risk of decline in global economic activity in coming months has increased.
Longer-term we expect post war economic growth to recover only gradually
through the second half of 2003 and 2004. The outlook for all fund management
companies continues to be uncertain but we believe that the early and proactive
steps taken last year and in more recent months have placed the Group in a
healthy position with newly strengthened and defined investment processes in
place. Good performance should, in turn, lead to fund inflows and increased
revenues, underpinned by a far stronger financial position as a result of
disposals and cost reduction.
C L A Irby
Chairman
Aberdeen Asset Management PLC
Group
Profit and Loss Account
for the six months to 31 March 2003
|
|
Notes |
6 mths to |
6 mths to |
Year to |
|
|
|
|
|
|
|
Turnover – fixed margin property management |
|
7,376 |
5,886 |
11,899 |
|
Turnover – other |
|
67,547 |
88,434 |
180,179 |
|
Total turnover |
|
74,923 |
94,320 |
192,078 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
– Fixed margin property management |
|
(6,680) |
(5,435) |
(11,030) |
|
– Other |
|
(54,961) |
(59,233) |
(123,771) |
|
– Exceptional costs |
2 |
(2,965) |
(2,128) |
(5,621) |
|
Amortisation of goodwill |
|
(9,179) |
(9,180) |
(19,640) |
|
Total administrative expenses |
|
(73,785) |
(75,976) |
(160,062) |
|
Other operating income – exceptional |
|
– |
– |
4,446 |
|
Exceptional amounts written off investments |
2 |
(5,783) |
– |
(2,651) |
|
Operating profit before goodwill |
|
|
|
|
|
amortisation & exceptional items |
|
13,282 |
29,652 |
57,277 |
|
Amortisation of goodwill & exceptional items |
|
(17,927) |
(11,308) |
(23,466) |
|
Operating (loss)
profit |
|
(4,645) |
18,344 |
33,811 |
|
Gain on disposal of management contracts |
2 |
54,237 |
– |
– |
|
Net interest payable and similar charges |
|
(7,700) |
(7,502) |
(15,533) |
|
Profit on ordinary
activities before taxation |
|
41,892 |
10,842 |
18,278 |
|
Tax on profit on ordinary activities |
|
(10,817) |
(5,362) |
(11,184) |
|
Profit for the
financial period |
|
31,075 |
5,480 |
7,094 |
|
Minority interests – equity |
|
(320) |
(164) |
(216) |
|
Profit attributable
to shareholders |
|
30,755 |
5,316 |
6,878 |
|
Dividends |
|
|
|
|
|
Equity dividends on ordinary shares |
1 |
(3,539) |
(6,725) |
(10,500) |
|
Non equity dividends on preference shares |
|
(318) |
(593) |
(1,132) |
|
|
|
(3,857) |
(7,318) |
(11,632) |
|
Retained profit
(loss) for the financial period |
|
26,898 |
(2,002) |
(4,754) |
|
Earnings per share
– basic |
|
|
|
|
|
Before goodwill amortisation & exceptional items |
4 |
2.01p |
8.87p |
16.51p |
|
After goodwill amortisation & exceptional items |
4 |
17.29p |
2.71p |
3.29p |
|
Earnings per share
– diluted |
|
|
|
|
|
Before goodwill amortisation & exceptional items |
4 |
2.01p |
8.37p |
16.47p |
|
After goodwill amortisation & exceptional items |
4 |
17.29p |
2.79p |
3.28p |
Turnover and operating (loss) profit arise
wholly from continuing activities.
There is no material difference between the profit on ordinary activities
before taxation above and the historic cost equivalent.
Statement of Total Recognised Gains and
Losses
for the six months to 31 March 2003
|
|
Notes |
6 mths to |
6 mths to |
Year to |
|
|
|
|
|
|
|
Profit attributable to shareholders |
|
30,755 |
5,316 |
6,878 |
|
Revaluation of fixed asset investment |
7 |
3,171 |
2,465 |
2,521 |
|
Translation of foreign currency net investments |
|
819 |
404 |
(735) |
|
Total recognised
gains and losses for the period |
|
34,745 |
8,185 |
8,664 |
|
Prior period adjustment |
|
– |
1,900 |
1,900 |
|
Total gains
recognised since last report |
|
34,745 |
10,085 |
10,564 |
Group Balance Sheet
as at 31 March 2003
|
|
Notes |
31 Mar 2003 |
31 Mar 2002 |
30 Sept 2002 |
|
ASSETS |
|
|
|
|
|
Fixed assets |
|
|
|
|
|
Intangible assets |
|
47,251 |
81,946 |
76,820 |
|
Goodwill |
|
324,221 |
342,174 |
331,792 |
|
Tangible assets |
|
16,987 |
18,813 |
17,452 |
|
Investments |
|
36,146 |
32,658 |
36,280 |
|
|
|
424,605 |
475,591 |
462,344 |
|
Current assets |
|
|
|
|
|
Stock |
|
284 |
730 |
720 |
|
Debtors |
|
41,974 |
100,526 |
55,807 |
|
Investments |
|
6,145 |
4,765 |
2,932 |
|
Cash at bank and in hand |
5 |
7,813 |
35,540 |
32,490 |
|
|
|
56,216 |
141,561 |
91,949 |
|
Assets attributable
to equity shareholders |
|
480,821 |
617,152 |
554,293 |
|
Assets of long-term life assurance business |
|
242,126 |
369,975 |
255,824 |
|
Total assets |
|
722,947 |
987,127 |
810,117 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Capital and
reserves |
|
|
|
|
|
Called up share capital |
6 |
28,034 |
38,421 |
38,411 |
|
Capital redemption reserve |
6 |
20,772 |
10,343 |
10,395 |
|
Share premium account |
|
19,205 |
18,425 |
19,203 |
|
Merger reserve |
|
133,994 |
133,994 |
133,994 |
|
Revaluation reserve |
7 |
15,529 |
11,563 |
12,358 |
|
Profit & loss account |
|
10,203 |
(3,130) |
(7,173) |
|
Shareholders' funds
|
|
|
|
|
|
Equity |
|
217,394 |
188,931 |
186,503 |
|
Non-equity |
|
10,343 |
20,685 |
20,685 |
|
|
|
227,737 |
209,616 |
207,188 |
|
Minority interest –
equity |
|
776 |
374 |
456 |
|
|
|
|
|
|
|
Creditors: due
within one year |
|
137,428 |
137,934 |
134,888 |
|
Creditors: due
after more than one year, |
|
|
|
|
|
Creditors |
|
10,947 |
137,781 |
108,061 |
|
Convertible debt |
|
97,157 |
122,760 |
96,788 |
|
|
|
108,104 |
260,541 |
204,849 |
|
Provisions for
liabilities and charges |
|
6,776 |
8,687 |
6,912 |
|
|
|
480,821 |
617,152 |
554,293 |
|
Liabilities of long-term life assurance business |
|
242,126 |
369,975 |
255,824 |
|
Total liabilities
|
|
722,947 |
987,127 |
810,117 |
Summary Group Cash Flow Statement
for the six months to 31 March 2003
|
|
Notes |
6 mths to |
6 mths to |
Year to |
|
|
|
|
|
|
|
Net cash inflows
from operating activities |
|
|
|
|
|
Core cashflow from operating activities |
|
13,465 |
8,401 |
47,227 |
|
Effects of short-term timing differences on |
|
|
|
|
|
unit trust settlements |
|
(8,025) |
(9,368) |
(8,208) |
|
|
3 |
5,440 |
(967) |
39,019 |
|
Returns on investments and servicing of finance |
|
(7,684) |
(8,524) |
(18,037) |
|
Taxation paid |
|
(875) |
(1,924) |
(7,154) |
|
Capital expenditure and financial investment |
|
79,403 |
(7,667) |
(12,522) |
|
Acquisitions and disposals |
|
(2,208) |
(25,217) |
(22,897) |
|
Equity dividends paid |
|
(3,774) |
(11,503) |
(18,245) |
|
Net cash inflow
(outflow) before financing |
|
70,302 |
(55,802) |
(39,836) |
|
Financing |
|
|
|
|
|
Issue of share capital |
|
– |
11 |
42 |
|
Redemption of share capital |
|
(10,342) |
(10,343) |
(10,495) |
|
(Decrease) increase in debt |
|
(71,762) |
53,587 |
24,433 |
|
Decrease in cash
|
|
(11,802) |
(12,547) |
(25,856) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash flow to movement in net debt |
|
|
|
|
|
|
Notes |
6 mths to |
6 mths to |
Year to |
|
|
|
|
|
|
|
Decrease in cash |
|
(11,802) |
(12,547) |
(25,856) |
|
Decrease (increase) in debt |
|
71,762 |
(53,587) |
(24,433) |
|
Amortisation of issue costs of convertible bonds |
|
(372) |
– |
(494) |
|
Conversion of convertible bonds |
|
3 |
– |
– |
|
Translation difference |
|
819 |
404 |
(735) |
|
Movement in net
debt in the period |
|
60,410 |
(65,730) |
(51,518) |
|
Net debt brought
forward |
6 |
(234,451) |
(182,933) |
(182,933) |
|
Net debt carried
forward |
6 |
(174,041) |
(248,663) |
(234,451) |
Notes
|
1. |
Interim dividend |
|
|
|
|
|
The interim ordinary dividend of 2p per share will be paid
on 16 July 2003 to qualifying shareholders on the register at 13 June 2003. |
|||
|
|
|
6 mths to |
6 mths to |
Year to |
|
2. |
Exceptional items |
|
|
|
|
|
Exceptional costs |
|
|
|
|
|
Recognised within operating profit |
|
|
|
|
|
Redundancy, relocation and duplicate staff costs |
826 |
2,128 |
5,155 |
|
|
Office closure costs |
309 |
– |
– |
|
|
Other costs |
1,830 |
– |
466 |
|
|
|
2,965 |
2,128 |
5,621 |
|
|
Amounts written off investments |
5,783 |
– |
2,651 |
|
|
|
8,748 |
2,128 |
8,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of management contracts |
54,237 |
– |
– |
|
|
|
|
|
|
|
|
|
6 mths to |
6 mths to |
Year to |
|
3. |
Reconciliation of
operating (loss) profit to operating cash flow |
|
|
|
|
|
Operating (loss) profit |
(4,645) |
18,344 |
33,811 |
|
|
Depreciation charges |
2,133 |
2,601 |
5,939 |
|
|
Amortisation of goodwill |
9,179 |
9,180 |
19,640 |
|
|
Amortisation of intangible assets |
1,044 |
– |
1,565 |
|
|
Profit on disposal of tangible fixed assets |
– |
– |
32 |
|
|
Amounts written off fixed and current asset investments |
5,783 |
– |
2,651 |
|
|
Share of results of associated undertakings |
– |
– |
(67) |
|
|
Decrease in provisions for liabilities and charges |
(510) |
– |
(521) |
|
|
Decrease (increase) in stock |
436 |
(360) |
(350) |
|
|
Decrease (increase) in debtors |
13,765 |
(18,020) |
26,664 |
|
|
Decrease in creditors |
(21,745) |
(12,712) |
(50,345) |
|
|
Net cash inflow (outflow) from operating activities |
5,440 |
(967) |
39,019 |
|
|
|
|
Change in |
|
Change in |
|
|
|
Analysis of the
balances of cash as shown in the balance sheet |
31 Mar 2003 |
period |
30 Sept 2002 |
period |
31 Mar 2002 |
|
|
Net cash balances (note 5) |
7,813 |
(11,147) |
18,960 |
16,580 |
35,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 mths to |
6 mths to |
|
|
Analysis of changes
in cash |
|
|
|
|
|
|
|
Net cash outflow before adjustment for the effects of
foreign exchange |
|
|
|
(11,802) |
(12,547) |
|
|
Effects of foreign exchange rate changes |
|
|
|
655 |
924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,147) |
(11,623) |
|
4. |
Earnings per share |
|
|
|
|
|
|
|
|
The calculations of earnings per share are based on the
following profits and numbers of shares: |
||||||
|
|
|
|
Basic |
|
|
Diluted |
|
|
|
|
6 mths to |
6 mths to |
Year to |
6 mths to |
6 mths to |
Year to |
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit attributable to shareholders |
30,755 |
5,316 |
6,878 |
30,755 |
5,316 |
6,878 |
|
|
Less non-equity dividends |
(318) |
(593) |
(1,132) |
(318) |
(593) |
(1,132) |
|
|
Interest saving, net of |
|
|
|
|
|
|
|
|
attributable taxation, on |
|
|
|
|
|
|
|
|
notional conversion of |
|
|
|
|
|
|
|
|
loan notes |
– |
– |
– |
– |
634 |
– |
|
|
Profit for financial period-FRS 14 basis |
30,437 |
4,723 |
5,746 |
30,437 |
5,357 |
5,746 |
|
|
Amortisation of goodwill |
9,179 |
9,180 |
19,640 |
9,179 |
9,180 |
19,640 |
|
|
Exceptional items (net of |
|
|
|
|
|
|
|
|
attributable taxation) |
8,157 |
1,553 |
3,474 |
8,157 |
1,553 |
3,474 |
|
|
Gain on disposal of management contracts |
|
|
|
|
|
|
|
|
(net of attributable taxation) |
(44,237) |
– |
– |
(44,237) |
– |
– |
|
|
Profit for the financial period |
|
|
|
|
|
|
|
|
before goodwill amortisation |
|
|
|
|
|
|
|
|
& exceptional items |
3,536 |
15,456 |
28,860 |
3,536 |
16,090 |
28,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 Mar 2003 |
31 Mar 2002 |
30 Sept 2002 |
|
|
Weighted average number of shares |
|
|
|
|
|
|
|
|
For basic earnings per share |
|
|
|
176,050 |
174,255 |
174,806 |
|
|
Dilutive effect of convertible loan notes |
|
|
|
– |
17,442 |
– |
|
|
Dilutive effect of exercisable share options and
performance shares |
|
|
|
– |
463 |
395 |
|
|
For diluted earnings per share |
|
|
|
176,050 |
192,160 |
175,201 |
|
|
|
|
|
|
|
|
|
At 31 March 2003 the loan notes are
no longer convertible and no performance shares remain in issue. The loan notes
and share options currently in issue have no dilutive effect and have therefore
been excluded from the above table. The Directors believe that the Group's
results are more fairly represented by a measure of earnings per share which
excludes exceptional items and amortisation of goodwill and therefore also
present earnings per share figures stated before these items are charged to the
profit and loss account. The two measures of earnings per share can be
reconciled as follows:
|
|
|
Basic |
|
|
Diluted |
|
|
|
6 mths to |
6 mths to |
Year to |
6 mths to |
6 mths to |
Year to |
|
After goodwill amortisation |
|
|
|
|
|
|
|
& exceptional items |
|
|
|
|
|
|
|
– FRS 14 basis |
17.29p |
2.71p |
3.29p |
17.29p |
2.79p |
3.28p |
|
Add:amortisation of goodwill |
5.21p |
5.27p |
11.23p |
5.21p |
4.78p |
11.21p |
|
Add:exceptional items, net |
|
|
|
|
|
|
|
of attributable taxation |
4.64p |
0.89p |
1.99p |
4.64p |
0.80p |
1.98p |
|
Less:gain on disposal of management |
|
|
|
|
|
|
|
contracts net of attributable taxation |
(25.13)p |
– |
– |
(25.13)p |
– |
– |
|
Before goodwill amortisation |
|
|
|
|
|
|
|
& exceptional items |
2.01p |
8.87p |
16.51p |
2.01p |
8.37p |
16.47p |
|
6. |
Share capital |
|
|
During the period 10,342,000 redeemable preference shares
of £1 were redeemed at par and £10,342,000 has been transferred to the
capital redemption reserve. |
|
|
|
|
7. |
Revaluation of
fixed asset investment |
|
|
The Group's investment in the ordinary shares of Lombard
International Assurance SA ("Lombard"), has been revalued to
reflect the relevant share of Lombard's most recently published embedded
value. |
|
|
|
|
8. |
Contingent
liabilities |
|
|
In the Annual Report to 30 September 2002 the Company made
detailed disclosures in respect of contingent liabilities which might exist
due to the Group's involvement in the management and marketing of split
capital closed end funds ("Splits") and as manager of the Aberdeen
Progressive Growth Unit Trust ("Progressive"). |
|
|
|
|
9. |
The interim results have been prepared on the basis of the
accounting policies set out in the Group's 2002 statutory accounts. The
comparative figures for the period ended 31 March 2002 have been restated to
reflect the accounting treatment in the annual report for the year ended 30
September 2002. The restatement had no effect on the profit on ordinary
activities before taxation or shareholders' funds. The comparative figures
for the financial year ended 30 September 2002 are not the company's
statutory accounts for that year. Those accounts have been reported on by the
company's auditors and delivered to the Registrar of Companies. The report of
the auditors was unqualified and did not contain a statement under section
237(2) or (3) of the Companies Act 1985. |
|
|
|
|
10. |
Copies of this statement are being sent to all
shareholders. Copies can be obtained from the Company's registered office,
One Albyn Place, Aberdeen, AB10 1YG. |
Independent
Review Report by KPMG Audit Plc to
Aberdeen
Asset Management PLC
Introduction
We have been instructed by the Group to review the financial information for
the six months ended 31 March 2003 which comprises the Profit and Loss Account,
Statement of Total Recognised Gains and Losses, Balance Sheet, Cash Flow
Statement and Notes to the Accounts. We have read the other information
contained in the Interim Report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
This report is made solely to the Company in accordance with the terms of our
engagement to assist the Company in meeting the requirements of the Listing
Rules of the Financial Services Authority. Our review has been undertaken so
that we might state to the Company those matters we are required to state to it
in this report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the Company
for our review work, for this report, or for the conclusions we have reached.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the Directors. The Directors
are responsible for preparing the Interim Report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of Group management and
applying analytical procedures to the financial information and underlying
financial data and, based thereon, assessing whether the accounting policies
and presentation have been consistently applied unless otherwise disclosed. A
review excludes audit procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially less in scope than an
audit performed in accordance with United Kingdom Auditing Standards and
therefore provides a lower level of assurance than an audit. Accordingly we do not
express an audit opinion on the financial information.
Contingent liabilities
In forming our review conclusion, we have considered the adequacy of the
disclosures made in note 8 to the Interim Report concerning the contingent
liabilities of the Group in respect of the split-capital closed end fund sector
generally and the Aberdeen Progressive Growth Unit Trust, and their potential
impact on the Group's financial position. In view of the significance of this
uncertainty, we consider that it should be drawn to your attention but our
review conclusion is not qualified in this respect.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months ended
31 March 2003.
KPMG Audit Plc
Chartered Accountants
Aberdeen, 30 April 2003
Assets
under Management
|
|
|
March 2003 |
September 2002 |
|
|
|
£m |
£m |
|
|
|
|
|
|
Institutional funds |
|
12,131 |
12,902 |
|
Unit trusts & unit-linked |
|
1,936 |
4,379 |
|
UK Investment trusts |
|
4,178 |
4,480 |
|
Offshore funds |
|
846 |
965 |
|
Discretionary accounts |
|
402 |
432 |
|
Private equity |
|
486 |
493 |
|
|
|
|
|
|
|
|
19,979 |
23,651 |
|
|
|
|
|
|
Equities: |
UK |
4,701 |
5,417 |
|
|
European |
1,146 |
1,420 |
|
|
USA |
728 |
1,074 |
|
|
Asia Pacific |
1,310 |
1,371 |
|
|
Japan |
329 |
397 |
|
|
Emerging markets |
168 |
221 |
|
|
|
|
|
|
|
|
8,382 |
9,900 |
|
|
|
|
|
|
Fixed interest & cash |
|
5,373 |
7,107 |
|
Property |
|
6,224 |
6,644 |
|
|
|
|
|
|
|
|
19,979 |
23,651 |
