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Man Group PLC:
Results for the year ended 31 March 2008.
Peter Clarke, CEO of
Man Group, said: " These results are a strong testament to the strength and
resilience of Man's business model in our 225th anniversary year. We have
generated positive returns for our investors, recorded pre-tax profits of over
$2 billion for our shareholders, and invested in the business.
Our
strength is in our wide range of investment management
capabilities combined with conservative product structures, both
of which have allowed us to perform for our investors through
some of the most turbulent markets in recent memory. With our
product breadth and wide geographical presence, we are able to
access the changing patterns of global wealth accumulation and
continue to grow our business.
"In the
first two months of the current year we have seen strong growth
in Funds under Management, with positive performance and sales
growing assets by $4 billion to an estimated $78.5 billion."
Financial Highlights
-Profit
before tax from continuing operations up to 60% to $2,079 million, driven by a
161% increase in
net
performance fee income to $936 million and a 21% increase in net management fee
income to $1,143
million
-Diluted earnings per share on continuing operation up 63% to 90.2 cents
-Post-tax return on equity on continuing operations of 41.60%, (2007: 32.20%),
-Proposed final dividend of 24.80, making total dividend for the year of 44.0
cents, (2007: 20.0 cents).
Operating Highlights
-Funds under Management of $74.60 billion at 31 March 2008, up 21%. Private
investors accounted
for 58%
of FUM; institutional investors 42.00%.
-Sales
of $15.90 billion, equalling last year's record level. 51% of sales were to
institutional investors
and 49% to private investors.
-Redemption of $10.70 billion, maintaining significantly lower levels than the
industry average.
-$5.60
billion of performance generated for investors, principally from AHL.
-Acquisition of 50% interest in Ore Hill to create a leading multi-strategy
credit business.
- Funds under
Management up to around $78.50 billion since year end, driven by positive
investment
performance, the recently launched $1 billion Asian fund and institutional
business won in the US.
Outlook
Man
remains strongly positioned for continued growth.
The
outlook for financial markets remains uncertain and periods of
higher volatility may return. Against this backdrop, investors
are likely to increase their focus on the long term benefits of
diversification into non-traditional assets.
Man's
market access and resources provide institutional investors with
a full range of solutions, from diversified funds to thematic or
regional products. For the private investor, Man offers
guaranteed products for those who seek diversification without
long term capital risk, and open-ended products for those who
seek flexibility with greater focus.
Man's
established regional office network provides local access to the
evolving locations of global capital accumulation and wealth
creation. Regulatory changes, especially in Europe, are
progressively opening up private investor markets for
non-traditional investment products. Challenging markets will
continue to provide Man with opportunities to expand its
investment management capacity and grow its business.
Since year
end, the recently launched $1 billion Asian fund has commenced
trading and Man has won further institutional business in the
US. Positive performance and continued sales momentum have
contributed to funds under management increasing by around $4
billion in the first two months of the year and are currently
estimated to be about $78.5 billion.
Dividend & Share Buy Back
Man
announced at the time of its Interim results in November 2007
that, recognising the increased diversification and stability of
much of its performance fee income, it had changed its
distribution policy to target cover of at least 1.8 times its
combined management and performance fee earnings. In addition,
Man said that it would use share repurchases on a continuing
basis to address capital surpluses as they arise, recognising
the need to maintain a strong capital position and flexibility
to invest in the continued growth of the business.
Accordingly, the directors recommend a final dividend of 24.8
cents per ordinary share giving a total of 44.0 cents per
ordinary share for the year. Subject to shareholder approval at
the Annual General Meeting, the final dividend will be paid on
12 August 2008 in sterling to shareholders on the register at
the close of business on 18 July 2008. The sterling rate payable
on the final dividend will be announced on 10 July 2008,
following the AGM. The shares will be quoted ex-dividend on 16
July 2008. The Dividend Reinvestment Plan will be available in
respect of this dividend.
Man will
recommence its share buy back programme with immediate effect.
RESULTS SUMMARY
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For the year ended 31 March |
2008 |
2007 |
%
change |
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Continuing
operations
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Funds under Management |
$74.6bn |
$61.7bn |
21% |
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Net management fee income |
$1,143m |
$943m |
21% |
|
Net performance fee income |
$936m |
$358m |
161% |
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Profit before tax |
$2,079m |
$1,301m |
60% |
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Pre-tax margin |
64% |
58% |
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Profit after tax |
$1,717m |
$1,110m |
55% |
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Weighted average number of shares |
1,910m |
2,051m |
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Diluted earnings per share |
90.2c |
55.4c |
63% |
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Dividend per share relating to the year |
44.0c |
20.0c |
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Post tax return on equity |
41.6% |
32.2% |
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Discounted operations |
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|
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Profit after tax |
$1,753m |
$174m |
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