On 30 March 2007 the Group Board announced the proposed Initial Public Offering on the New York Stock Exchange of a majority interest in Brokerage, to be renamed MF Global. The IPO is expected to take place in the third calendar quarter of 2007, subject to shareholder approval and market conditions remaining favourable. As a result, Brokerage has been reclassified as a discontinued operation in these financial statements. It is expected that a Registration Statement relating to the proposed Initial Public Offering of MF Global will be filed with the United States Securities and Exchange Commission later today and will be available on its public website. This notice does not constitute an offer of any securities for sale.
On 30 March 2007 the Group Board announced the proposed Initial Public Offering on the New York Stock Exchange of a majority interest in Brokerage, to be renamed "MF Global". The IPO is expected to take place in the third calendar quarter of 2007, subject to shareholder approval and market conditions remaining favourable. As a result, Brokerage has been reclassified as a discontinued operation in these financial statements. It is expected that a Registration Statement relating to the proposed Initial Public Offering of MF Global will be filed with the United States Securities and Exchange Commission later today and will be available on its public website. This notice does not constitute an offer of any securities for sale.
Following the IPO, and subject to shareholder approval, the net proceeds will be distributed to shareholders in the fourth quarter of the calendar year. Also at this time the Board will inform shareholders of the appropriate changes to the Group's capital management and distribution policy.
Financial Highlights
- Funds under management of $61.7 billion at 31 March 2007 (including private investor FUM of $36.6 billion), up 24% from last year
- Post year-end development - funds under management currently estimated to be over $65 billion
- Record fund sales in the year of $15.9 billion, including private investor sales of $8.6 billion
- Statutory profit after tax on total operations up 27% to $1,284 million
- Profit before tax on Asset Management (continuing operations) up 13% to $1,301 million
- Diluted earnings per share on total operations* up 25% to 63.9 cents#
- Recurring net management fee income up 34% to $943 million
- Net performance fee income down 20% to $358 million
- Diluted earnings per share on continuing operations* up 15% to 55.4 cents#
- Brokerage (discontinued operations) profit before tax and exceptional items up 69% to $257 million
- Diluted underlying earnings per share* up 42% to 50.8 cents#
- Post-tax return on equity of 30.9%, down from 33.5% last year
- Dividends relating to the year up 40% in US dollar terms to 20.0 cents~. Subject to shareholder approval, the proposed final dividend of 12.7 cents will be payable at the rate of 6.42 pence per ordinary share
Peter Clarke, Chief Executive said:
"These record results underscore the strength of our business franchise. The record level of sales in the period reflects high levels of demand for our products from both institutional and private investors, and the power of our distribution network in accessing investors world-wide. The strong growth in assets under management in the year has continued into the current year, with performance and sales combining to drive assets under management up $3.5bn in the first two months, to a total of over $65bn. Together with new initiatives in our product offering and continued development in our range of investment managers, we are very confident about the prospects for the year ahead."
VIDEO INTERVIEWS & AUDIO WEBCAST
Video interviews with Peter Clarke, Group Chief Executive, and Kevin Hayes, Finance Director, in video, audio and text are available on www.mangroupplc.com and www.cantos.com.
There will be a live audio webcast of the results presentation at 9am on www.mangroupplc.com and www.cantos.com which will also be available on demand from later in the day.
Enquiries
Man Group plc
020 7144 1000
Harvey McGrath
David Browne
Merlin Financial
020 7653 6620
Paul Downes
07900 244888
Lachlan Johnston
07989 304356
To read this release in full please view the linked PDF
