Financial Highlights
| • | Funds under management of $68.6 billion at 30 September 2007, up $6.9 billion from 31 March 2007: |
| – Fund sales in the six month period of $8.0 billion; | |
| – Redemptions of $4.4 billion, with private investor redemptions consistent with the prior year; | |
| – Positive fund performance added $2.9 billion | |
| • | Profit before tax on continuing operations increased by 21% to $820 million from $679 million |
| • | Diluted earnings per share on continuing operations increased by 17% to 34.1 cents from 29.2 cents |
| • | Annualised return on shareholders’ equity of 33.1%# |
| • | Long-term debt ratings confirmed and regulatory capital surplus of $1 billion |
| • | In line with our new distribution policy, we have declared an interim dividend in US dollar terms of 16.8 cents per existing share, payable at the rate of 8.03 pence per existing share. Assuming the proposed share consolidation is approved by shareholders at an EGM on 23 November 2007, the dividend will be 19.2 cents per consolidated share, payable at the rate of 9.18 pence per consolidated share+ |
| • | Successful IPO of an 81.4% holding in MF Global, giving rise to gross proceeds of $2.9 billion, a gain on sale of $1.7 billion and, subject to shareholder approval, a distribution of approximately $2.75 billion |
| • | Continued development: funds under management at 31 October 2007 are estimated to be over $70 billion |
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| Half year to 30 September 2007 |
Half year to 30 September 2006 |
Year to 31 March 2007 |
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| Funds under management | $68.6bn | $56.8bn | $61.7bn |
| Asset Management net management fee income | $537m | $458m | $943m |
| Asset Management net performance fee income | $283m | $221m | $358m |
| Profit before tax – continuing operations | $820m | $679m | $1,301m |
| Taxation | ($148m) | ($99m) | ($191m) |
| Profit after tax – continuing operations | $672m | $580m | $1,110m |
| Discontinued operations – MF Global | $53m | $40m | $174m |
| Profit on sale of MF Global | $1,746m | – | – |
| Statutory profit after tax on total operations | $2,471m | $620m | $1,284m |
| Diluted earnings per share | |||
| Continuing operations | 34.1c | 29.2c | 55.4c |
| Total operations | 124.6c | 31.1c | 63.9c |
| Dividends per share | 16.8c | 7.3c | 20.0c |
| Post-tax return on equity (annualised)# | 33.1% | 31.5% | 30.9% |
| Equity shareholders’ funds | $7,173m | $4,124m | $4,539m |
| Diluted weighted average number of shares | 1,989m | 2,039m | 2,051m |
| # Post-tax return
on equity for the period ended 30 September 2007 is based on Asset
Management only (the return therefore excludes the earnings and the
profit on sale of MF Global, and the equity base excludes the proceeds
from the sale of MF Global and the residual investment in MF Global).
The comparative figures are as published in the interim and annual
reports for those periods. + Subject to shareholder approval at an EGM to be held on 23 November 2007, concurrent with a return to shareholders of the net proceeds of the IPO of MF Global, the ordinary share capital will be consolidated on a 7 for 8 basis to reflect the return of value. |
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