REG - Ashmore Group Plc - Interim Management Statement - Part 1

Released : 25/02/2010

RNS Number : 6443H

Ashmore Group PLC
25 February 2010

Ashmore Group plc

+0700 25 February, 2010

UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2009

Ashmore Group plc ("Ashmore", the "Group"), a leading specialist emerging
markets investment manager, today announces its interim results for the six
months to 31 December 2009

Highlights

Profit before tax up 40% to £112.4 million (2008: £80.3 million)

Total net revenue up 42% to £148.8 million (2008: £104.5 million)

Net management fees down 13% to £88.4 million (2008: £101.9 million)

Performance fees up 9% to £53.3 million (2008: £48.9 million)

Foreign exchange gain of £2.7 million (2008: £49.8 million loss)

Operating margin of 72% (H1 2009: 70%)

Assets under management ("AuM") of US$31.6 billion at 31 December 2009,
an increase of US$6.7 billion (27%) from 30 June 2009

Basic EPS of 12.51p (2008: 8.48p)

An interim dividend of 3.66p per share will be paid on 1 April 2010
(2008: 3.66p)

Commenting on the results Mark Coombs, Chief Executive Officer of Ashmore
Group plc said;

" The six months ended 31 December 2009 have seen Ashmore achieving a
satisfactory financial performance with assets under management increasing
by 27% to US$31.6 billion as a result of good net inflows and positive
investment performance underpinned by the strategies employed at the bottom
of the cycle.

"Ashmore remains well positioned to benefit from the opportunity presented
by the increased importance of the emerging markets' role within the global
order, and increased investor allocations into, and between, emerging
markets."

Analysts briefing

There will be a presentation for analysts at 09.00 on 25th February at the
offices of

Goldman Sachs at Peterborough Court, 133 Fleet Street, London EC4A 2BB. A
copy of the

presentation will be made available on the Group's website at
www.ashmoregroup.com

For further information, please    
contact: Ashmore Group plc
 
                                   Penrose Financial
 
                                   Ashmore@penrose.co.uk
 
Graeme Dell            Gay Collins                 Elisha Vincent
 
Group Finance Director +44 20 7786 4888 /          +44 20 7786 4833
 
+44 20 3077 6000       +44 7798 626 282
 

Chief Executive Officer's Statement

During the six months ended 31 December 2009 Ashmore Group Plc ("Ashmore"
the "Group") achieved a satisfactory financial performance. The assets
under management ("AuM") increased by 27% to US$31.6 billion during the
period, as a result of good net inflows and positive investment
performance. The profit before tax increased by 40% to £112.4 million (H1
2008/09 £80.3 million) resulting in basic earnings per share of 12.51p (H1
2008/09 8.48p).

AuM and financial performance

AuM development

The overall increase of US$6.7 billion in AuM comprised net subscriptions of
US$3.9 billion, and positive investment performance of US$2.8
billion. Gross subscriptions were US$5.6 billion which included further
subscriptions from existing clients and new segregated mandate and fund
launches, which will be outlined in the investment theme reviews
below. Gross redemptions declined substantially, as expected, to a level
of US$1.7 billion (H1 2008/09: US$8.0 billion) arising principally from
clients' continued needs for liquidity, which they often meet through a
rebalancing process following periods of strong emerging market performance
relative to other asset classes.

Revenue analysis

The Group's management fee income (net of distribution costs) reduced due to
the lower levels of average AuM compared to a year ago and some reduction in
average revenue margins to 97 bps (FY2008/09 107bps) arising from theme and
client mix effects. Performance fee income increased to £53.3 million,
arising principally from strong investment performance for funds with a 31
December 2009 year end. A stable US$: GBP exchange rate in the period
contrasted with the extraordinary volatility and dollar strength last
year. A small net realised and unrealised foreign exchange gain resulted,
compared to the significant losses of last year. Overall the Group's net
revenue increased by 42%, from £104.5 million to £148.8 million.

Operating costs and margins

The Group's tightly controlled cost structure has been maintained, with its
low proportion of recurring costs and large proportion of variable
performance-related costs. Recurring personnel costs have increased in
line with the planned additions to headcount, bringing total employee
numbers within the Group to 156 (30 June 2009:142; 31 December
2008:138). Variable compensation including performance-related bonuses,
share based payments and associated social security costs is calculated as a
percentage of earnings before variable compensation, interest and tax
"EBVCIT". This has been accrued at a rate of 20%, (H1 2008/09:20%;
FY2008/09:14%).

Investment theme reviews

External debt

External debt, our longest established and largest theme, comprises
principally US Dollar and other hard currency denominated instruments, which
may include derivatives, investing principally in sovereign bonds.

AuM at 31 December 2009 were US$17.6 billion, an increase of US$2.9 billion
(20%) from 30 June 2009, with net subscriptions accounting for US$0.8
billion and positive performance of US$2.1 billion. In line with the third
phase of our strategy, to mobilise emerging markets capital, the
subscriptions include significant additional inflows from existing emerging
market central bank & sovereign wealth fund clients. During the period the
theme contributed £37.5 million in management fees at an average margin of
73 bps, and £33.5 million of performance fees (H1 2008/09: £42.7 million;
86 bps; and £17.4 million).

Local currency

The local currency investment theme comprises local currency and local
currency denominated debt instruments, which may include derivatives,
investing in FX and mainly sovereign bonds.

AuM at 31 December 2009 were US$5.7 billion; an increase of US$1.5 billion
(36%) from 30 June 2009, with net subscriptions of US$0.9 billion and
positive performance of US$0.6 billion. Included in net inflows were three
new mandates: a central government pension fund, a US based family office
and, within one of our local asset management subsidiaries, a new mandate
from a family office. During the period the theme contributed £15.3
million in management fees at an average margin of 96 bps, and £12.8
million of performance fees (H1 2008/09: £22.4 million; 117 bps; and £14.9
million).

Special situations

The special situations theme comprises investments in both distressed debt
(principally for control) and/or private equity.

AuM at 31 December 2009 were US$3.1 billion, a decrease of US$0.2 billion
(6%) from 30 June 2009. Net redemptions were US$0.1 billion and there was
negative investment performance of US$0.1 billion. Redemptions included an
amount of US$0.1 billion in respect of the payment of a first realised
profit distribution from the GSSF4 fund in December. During the period the
theme contributed £21.2 million in management fees at an average margin of
215 bps, and £4.5 million of performance fees (H1 2008/09: £21.4 million;
185 bps; and £16.2 million).

Equity

The equity investment theme comprises public equity and equity-related
securities. The instruments invested in by the funds can include equities,
warrants and equity derivatives.

AuM at 31 December 2009 were US$0.2 billion, an increase of US$0.1 billion
from 30 June 2009 with positive investment performance of US$0.1
billion. During the period the theme contributed £0.8 million in
management fees at an average margin of 186 bps, and £2.4 million of
performance fees (H1 2008/09: £0.9 million; 112 bps; and £0.1 million).

Corporate high yield

The corporate high yield theme comprises investments in corporate debt
within emerging markets. This asset class offers investors a risk-return
profile distinct from other segments of emerging markets fixed income.

AuM at 31 December 2009 had increased by 40% to US$0.7 billion from US$0.5
billion at 30 June 2009 including net subscriptions of US$0.2
billion. During the period the theme contributed £3.4 million in
management fees at an average margin of 173 bps, and £0.1 million of
performance fees (H1 2008/09: £2.6 million; 192 bps; and nil).

Multi strategy

The multi-strategy funds supplement the core product range, investing into
the five core themes and any new themes where appropriate. They include
Ashmore Global Opportunities Limited, a permanent capital vehicle, which
listed on the LSE in December 2007.

AuM at 31 December 2009 were US$2.0 billion, with no change from 30 June
2009. Net redemptions were US$0.1 billion with positive investment
performance of US$0.1 billion. During the period the theme contributed
£9.2 million in management fees at an average margin of 145 bps, and no
performance fees (H1 2008/09: £11.8 million; 132bps; and £0.3 million).

Other

This includes new themes developed in line with our strategy to diversify
our capabilities and investor base. At 31 December 2009 this included fund
of third party funds, real estate, overlay/hedging strategies and liquidity
management including the liquidity fund, with its Standard & Poor's "AAAm"
rating, which is principally used to manage the cash components of the
underlying Ashmore funds retained for liquidity purposes.

AuM at 31 December 2009 were US$2.3 billion up from US$0.1 billion at 30
June 2009. Net subscriptions were US$2.2 billion which included a
significant new currency overlay mandate for a central government pension
fund and a first close of a small dedicated real estate fund in
December. During the period the theme contributed £1.0 million in
management fees at an average margin of 22 bps (H1 2008/09: £0.1 million).

AuM movements by investment theme as classified by mandate
 
                     AuM at                           AuM at
 
                                                                  Av mgt
                     30 June  Net subs Net            31 December fee
 
                     2009     (reds)   performance    2009        margin
 
Investment theme     US$bn    US$bn    US$bn          US$bn       bps
 
External debt        14.7     0.8      2.1            17.6        73
 
Local currency       4.2      0.9      0.6            5.7         96
 
Special situations   3.3      (0.1)    (0.1)          3.1         215
 
Equity               0.1      -        0.1            0.2         186
 
Corporate high yield 0.5      0.2      -              0.7         173
 
Multi strategy       2.0      (0.1)    0.1            2.0         145
 
Other                0.1      2.2      -              2.3         22
 
Total                24.9     3.9      2.8            31.6        97
 


Balance sheet, cash flow, seeding & foreign exchange


Balance sheet

It is the Group's policy to maintain a strong balance sheet in order to
support regulatory capital requirements, to meet the commercial demands of
current and prospective investors, and to fulfil the development needs
across the business including funding the establishment costs of local asset
management ventures and seeding new funds. As at 31 December 2009, total
equity attributable to shareholders of the parent was £331.9 million (31
December 2008: £262.3 million; 30 June 2009: £308.5 million). There is
no debt on the Group's balance sheetand information regarding the principal
risks, uncertainties and related party transactions is provided in the
accompanying notes to the financial statements.

Cash flow

Cash has decreased during the six months to 31 December 2009 from £288.4
million to £269.3 million. The Group's operating activities remain highly
cash generative but in contrast to H1 2008/09, the majority of performance
fees were related to funds having a 31 December year end and were received
in January 2010. These resulted in the significantly increased levels of
trade and other receivables and payables at 31 December 2009. Material
non-operating cash outflows during the period were dividends (£57.2
million), purchase of available for sale investments (£5.6 million),
purchase of own shares (£5.1 million) and purchase of non-current assets
held for sale (£3.0 million).

Seeding

The Group supports the creation of new business by seeding new funds where
necessary. As at 31 December 2009 the amount invested was £24.9 million
(at cost) with a market value of £40.3 million. During the period amounts
previously classified as non-current assets held for sale were reclassified
as available for sale assets as they are no longer controlled by the Group.
Upon this reclassification a profit of £4.6 million was recognised in the
income statement which is characterised as finance income, together with the
Group's interest income, reflecting the nature of the activity.

Foreign exchange

The Group's foreign exchange hedging policy of hedging up to two thirds of
its foreign exchange exposure in connection with net management fees for up
to two years forward has remained in force. At the beginning of the period
the level of foreign exchange hedges in place was US$180 million and this
fell to US$120 million at 31 December 2009 through the contractual expiry of
the forward foreign exchange contracts at the effective average exchange
rate for the period. No further hedging transactions were undertaken in
the period given the less attractive GBP:USD rates available compared with
those forecast. The balance at 31 December 2009 consisted of US$60 million
forward foreign exchange contracts for the remainder of the financial year,
and an option collar protecting the sterling value of US$60 million of
management fee revenue from being impacted by currency movements outside the
range of GBP 1.52 - 1.70 US$ for FY2010/2011. The current year forwards
have been marked to market at the period end rate of GBP: US$ 1.617, whilst,
as designated hedges, the mark to market movements in the value of the
options continue to be taken through reserves.

Dividend

The Board has determined that an interim dividend of 3.66 pence per share
(2008: 3.66 pence) per share will be paid on 1 April 2010 to all
shareholders who are on the register on 12 March 2010.

Strategy and outlook

Over the last six months the team at Ashmore has maintained its focus on the
execution of the Group's stated strategy. Investment performance,
underpinned by the strategies employed at the bottom of the cycle, has been
strong, with 98% by AuM of those accounts managed to benchmarks
outperforming their benchmarks over 12 months. Asset raising remains a
challenge, but work on new opportunities, projects and initiatives that were
outlined in September has continued apace. A number of new fund launches
have been completed, although at smaller sizes than pre-crisis as always at
this time in the cycle. New segregated and dual brand mandates have also
been won. At the current time the quantum and range of activities in
progress has increased further, with a number of major institutional RFPs
underway. 

During the period the world has slowly continued to progress out of the
credit crisis and its immediate aftermath. We are seeing clearly that this
process is not universal. A number of economies traditionally viewed as
developed have taken a major backwards step relative to the larger emerging
markets. This emphasises the three views we have consistently expressed:
the increased importance of the emerging markets' role within the global
order; that there will be increased allocations from investors towards
emerging markets; and ultimately, that the largest source of capital to
manage over the long term remains the capital from within the emerging
markets. Ashmore remains well positioned to benefit from the opportunity
presented and continues to add the resources necessary to take full
advantage over the long term.

Mark Coombs

Chief Executive Officer

25 February 2010


Consolidated Statement of Comprehensive Income



                              Unaudited        Unaudited        Audited
 
                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
                         Note £m               £m               £m
 
Management fees               89.4             104.6            186.8
 
Performance fees              53.3             48.9             52.5
 
Other revenue                 4.4              3.5              6.4
 
Total revenue            2    147.1            157.0            245.7
 
Less: Distribution costs      (1.0)            (2.7)            (3.6)
 
Add: Foreign exchange    3    2.7              (49.8)           (38.6)
 
Net revenue                   148.8            104.5            203.5
 
Personnel expenses            (32.9)           (23.2)           (36.0)
 
Other expenses                (9.2)            (8.1)            (16.9)
 
Operating profit              106.7            73.2             150.6
 
Finance income           4    5.7              7.1              9.2
 
Profit before tax             112.4            80.3             159.8
 
Tax expense                   (28.1)           (23.3)           (44.3)
 
Profit for the period         84.3             57.0             115.5
 
Other comprehensive
income:
 
Exchange adjustments on       -                0.7              0.5
translation of foreign
operations
 
Net gains on                  6.2              0.6              2.3
available-for-sale
financial assets
including deferred tax
 
Gains on                      (4.6)            -                -
available-for-sale
financial assets
previously recognised
directly in equity
 
Total comprehensive           85.9             58.3             118.3
income for the period
 
Attributable to:
 
Equity holders of the         85.5             58.2             117.8
parent
 
Minority interest             0.4              0.1              0.5
 
Total comprehensive           85.9             58.3             118.3
income for the period
 
Earnings per share:
 
Basic                    5    12.51p           8.48p            17.12p
 
Diluted                  5    11.74p           7.90p            15.99p
 

Consolidated Balance Sheet

                                   Unaudited        Unaudited        Audited
 
                                   As at            As at            As at
 
                                   31 December 2009 31 December 2008 30 June
 
                                                                     2009
 
                              Note £m               £m               £m
 
Assets
 
Property, plant and equipment      4.3              4.0              4.6
 
Intangible assets                  6.7              6.7              6.7
 
Deferred acquisition costs         10.3             12.4             11.3
 
Other receivables                  0.7              1.0              0.9
 
Deferred tax assets                18.1             8.0              14.0
 

 
Total non-current assets           40.1             32.1             37.5
 
Trade and other receivables        157.4            32.9             33.1
 
Available-for-sale financial  7    36.2             -                4.8
assets
 
Derivative financial               0.2              -                0.8
instruments
 
Cash and cash equivalents          269.3            301.8            288.4
 
Total current assets               463.1            334.7            327.1
 
Non-current assets held for   8    16.9             16.6             34.8
sale
 
Total assets                       520.1            383.4            399.4
 
Equity
 
Issued capital                     -                -                -
 
Share premium                     0.3              0.3              0.3
 
Retained earnings                  331.6            262.0            308.2
 

 

 
Total equity attributable to       331.9            262.3            308.5
equity holders of the parent
 
Minority interests                 2.1              2.4              2.0
 
Total equity                       334.0            264.7            310.5
 
Liabilities
 
Deferred tax liabilities           4.1              2.1              1.5
 
                                   
 
Total non-current liabilities      4.1              2.1              1.5
 
Current tax                        24.9             20.3             24.0
 
Derivative financial               2.6              41.4             5.0
instruments
 
Trade and other payables           149.2            54.9             51.0
 
Total current liabilities          176.7            116.6            80.0
 
Non-current liabilities held  8    5.3              -                7.4
for sale
 
Total liabilities                  186.1            118.7            88.9
 
Total equity and liabilities       520.1            383.4            399.4
 

Consolidated Statement of Changes in Equity



                                          Total equity           
                                             attributable
                                             to equity
                                             holders of
                                          the parent             
 
                                                                 
 
               Issued   Share      Retained                Minority  Total
               capital  premium   earnings                interest  equity
 
               £m       £m         £m        £m            £m        £m
 
Audited        -        0.3        271.5     271.8         1.5       273.3
balance at 1
July 2008
 
Total          -        -          58.2      58.2          0.1       58.3
comprehensive
income for the
period
 
Issue of share -        -          -         -             0.8       0.8
capital
 
Treasury       -        -          (6.5)     (6.5)         -         (6.5)
shares
 
Share based    -        -          0.9       0.9           -         0.9
payments
 
Current tax    -        -          0.2       0.2           -         0.2
related to
share based
payments
 
Deferred tax   -        -          (5.3)     (5.3)         -         (5.3)
related to
share based
payments
 
Dividends to   -        -          (57.0)    (57.0)        -         (57.0)
equity holders
 
Unaudited      -        0.3        262.0     262.3         2.4       264.7
balance at 31
December 2008
 
Total          -        -          59.6      59.6          0.4       60.0
comprehensive
income for the
period
 
Own shares     -        -          (0.8)     (0.8)         -         (0.8)
 
Treasury       -        -          (0.4)     (0.4)         -         (0.4)
shares
 
Share based    -        -          7.3       7.3           -         7.3
payments
 
Deferred tax   -        -          5.4       5.4           -         5.4
related to
share based
payments
 
Dividends to   -        -          (24.9)    (24.9)        -         (24.9)
equity holders
 
Other movement -        -          -         -             (0.8)     (0.8)
 
Audited        -        0.3        308.2     308.5         2.0       310.5
balance at 30
June 2009
 
Total          -        -          85.5      85.5          0.4       85.9
comprehensive
income for the
period
 
Own shares     -        -          (12.4)    (12.4)        -         (12.4)
 
Share based    -        -          4.3       4.3           -         4.3
payments
 
Deferred tax   -        -          3.2       3.2           -         3.2
related to
share based
payments
 
Dividends to   -        -          -         -             (0.3)     (0.3)
minority
interests
 
Dividends to   -        -          (57.2)    (57.2)        -         (57.2)
equity holders
 
Unaudited      -        0.3        331.6     331.9         2.1       334.0
balance at 31
December 2009
 

Consolidated Cash Flow Statement

                              Unaudited        Unaudited        Audited
 
                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
                         Note £m               £m               £m
 
Operating activities
 
Cash receipts from            100.6            159.2            198.9
customers
 
Cash paid to suppliers        (27.2)           (51.1)           (48.0)
and employees
 
Cash generated from           73.4             108.1            150.9
operations
 
Taxes paid                    (26.0)           (28.2)           (47.7)
 
Net cash from operating       47.4             79.9             103.2
activities
 
Investing activities
 
Interest received             1.2              6.6              9.3
 
Acquisition of                -                (3.7)            (3.7)
subsidiary
 
Net purchase of               (3.0)            -                (6.9)
non-current assets held
for sale
 
Net purchase of               (5.6)            -                (4.7)
available-for-sale
financial assets
 
Purchase of property,         (0.4)            (1.1)            (2.1)
plant and equipment
 
Net cash (used in)/from       (7.8)            1.8              (8.1)
investing activities
 
Financing activities
 
Dividends paid to equity 6    (57.2)           (57.0)           (81.9)
holders
 
Dividends paid to             (0.3)
minority interests
 
Net purchase of own           (5.1)            -                (0.9)
shares
 
Purchase of treasury     9    -                (6.5)            (6.9)
shares
 
Net cash used in              (62.6)           (63.5)           (89.7)
financing activities
 
Net (decrease)/increase       (23.0))          18.2             5.4
in cash and cash
equivalents
 
Cash and cash                 288.4            279.2            279.2
equivalents at beginning
of period
 
Effect of exchange rate       3.9              4.4              3.8
changes on cash and cash
equivalents
 
Cash and cash                 269.3            301.8            288.4
equivalents at end of
period
 
Cash and cash
equivalents comprise:
 
Cash at bank and in hand      269.3            301.8            288.4
 
                              269.3            301.8            288.4
 
Notes to the Financial Statements

1) Basis of preparation and
significant accounting policies



The interim report is unaudited and does not constitute statutory accounts
within the meaning of Section 435 of the Companies Act 2006. The financial
statements have been prepared in accordance with IAS 34 'Interim Financial
Reporting' as adopted by the EU and the Disclosure Rules and Transparency
Rules of the Financial Services Authority ("FSA").



The comparative figures for the financial year ended 30 June 2009 are not
the company's statutory accounts for that financial 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 (i) unqualified,
(ii) did not include a reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report, and (iii) did
not contain a statement under section 498 (2) or (3) of the Companies Act
2006.

The accounting policies applied in these interim financial statements are
consistent with those applied in the Group's annual report and accounts for
the year ended 30 June 2009, except that with effect from 1 July 2009, the
Group adopted the following new standards and interpretations:



IFRS 2 Revised: Share-based Payments

This standard has been amended to clarify the definition of vesting
conditions. The amended standard also requires a cancellation of a
share-based award, whether by the entity or other parties, to be accounted
for as an acceleration or modification of the vesting period. The adoption
of this amendment has not had a material impact on the financial performance
or position of the Group.

IFRS 3 Revised: Business Combinations

This revised standard changes the accounting applied to the acquisition of
non controlling interests and the loss of control of subsidiaries. Adoption
of this revised standard has had no impact on the financial performance or
position of the Group.

IFRS 8: Operating Segments

This standard requires disclosure of information about the Group's operating
segments and replaces the requirement to determine primary and secondary
reporting segments of the Group. Additional disclosures are also required
for single segment businesses, including information about major customers
and the location of material non-current assets. Adoption of this standard
had no material impact on the disclosure in the accounts since management
continue to regard the Group's services as comprising one business segment
(being provision of investment management services) and that its operations
are not run on a discrete geographic basis. Disclosure regarding significant
revenue sources is given in note 2. No additional disclosure is required for
non-current assets on the basis that all material non-current assets are
held in the UK.

IAS 1 Revised: Presentation of Financial Statements

This revised standard introduces the Statement of Comprehensive Income,
which presents all items of recognised income and expense, either in one
single statement, or in two linked statements. The Group has elected to
present a single statement in the form of a Consolidated Statement of
Comprehensive Income.

IAS 27 Revised: Consolidated and Separate Financial Statements

Changes to IAS 27 and IFRS 3 work together such that a business combination
leading to acquisition accounting applies only at the point where control is
achieved. The revised standard also identifies that changes in a parent's
ownership interest in a subsidiary that do not result in a loss of control
are accounted for within shareholders' equity. Adoption of this revised
standard has had no impact on the financial performance or position of the
Group.

The annual report and accounts are available on the Group's website.

2) Revenue

Management fees are accrued throughout the period in line with fluctuations
in the levels of assets under management. Periodic performance fees are
recognised only if performance hurdles have been achieved in a period. The
Group is not reliant on any single source of revenue and no individual fund
provides more than 5% of total revenue through management fees. Two of the
Group's fund provided 16.0% and 10.2% of total revenue in the reporting
period when considering management fees and performance fees on a combined
basis.


3) Foreign exchange


The only foreign exchange rate which has a material impact on the reporting
of the Group's results is the US dollar.

          Closing    Closing    Closing   Average    Average    Average rate
          rate as at rate as at rate as   rate       rate
                                at
 
                                                                year
          31         31                   six       six months
          December   December   30 June   months     ended
          2009       2008                 ended
                                                                ended
 
                                2009                31
                                          31         December
                                          December   2008       30 June
                                          2009
 
                                                                2009
 
US dollar 1.6170     1.4593     1.6458    1.6338     1.6984     1.6044
 




Analysis of foreign exchange
 
                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
                              £m               £m               £m
 
Realised and unrealised       (1.1)            (54.2)           (42.4)
hedging losses
 
Translation gains on          3.8              4.4              3.8
non-Sterling denominated
monetary assets and
liabilities
 
Total foreign exchange        2.7              (49.8)           (38.6)
gains/(losses)
 


4) Finance income

Analysis of Finance income
 
                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
                              £m               £m               £m
 
Interest on cash and cash     0.8              7.1              9.2
equivalents
 
Finance income                4.9              -                -
 
Total finance income          5.7              7.1              9.2
 


Included within finance income is £4.6 million in relation to the
reclassification of two of the Group's seed capital investments from
non-current assets held for sale to available-for-sale financial assets
(note 8).

5) Earnings per share

Basic earnings per share is calculated by dividing the profit for the period
attributable to equity holders of the parent of £83.9 million (six months
to 31 December 2008: £56.9 million) by the weighted average number of
ordinary shares in issue during the period.

Diluted earnings per share is calculated as for basic earnings per share
with an adjustment to the weighted average number of ordinary shares to
reflect the effects of all dilutive potential ordinary shares. There is no
difference between the profit for the period attributable to equity holders
of the parent used in the basic and diluted earnings per share calculations.

A reconciliation of the figures used in calculating basic and diluted
earnings per share is shown below:



                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
Weighted average number of    670,680,026      670,469,341      671,667,998
ordinary shares used in
calculation of basic earnings
per share
 
Effect of dilutive potential  44,151,164       49,804,829       47,330,538
ordinary shares - share
options
 
Weighted average number of    714,831,190      720,274,170      718,998,536
ordinary shares used in
calculation of diluted
earnings per share
 

6) Dividends

An analysis of dividends is as follows:


                              6 months to      6 months to      12 months to
 
                              31 December 2009 31 December 2008 30 June
 
                                                                2009
 
Dividends declared/proposed
in respect of the period:
 
Interim dividend declared per 3.66             3.66             3.66
share (p)
 
Final dividend                .                -                8.34
proposed/declared per share
(p)
 
Dividends paid in the period:
 
Interim dividend paid(£m)     .                -                24.9
 
Interim dividend per share    .                -                3.66
(p)
 
Final dividend paid(£m)       57.2             57.0             57.0
 
Final dividend per share (p)  8.34             8.34             8.34
 

Dividends are recognised in the accounts in the year in which they are paid,
or in the case of a final dividend when approved by the shareholders.



The board has approved an interim dividend for the six months to 31 December
2009 of 3.66p per share (six months 2008: 3.66p). This will be payable on 1
April 2010 to shareholders on the register on 12 March 2010.

7) Available-for-sale financial
assets

Investments at fair value  6 months to      6 months to      12 months to
 
                           31 December 2009 31 December 2008 30 June
 
                                                             2009
 
                           £m               £m               £m
 
Equities - listed          7.4              -                4.8
 
Equities - unlisted        7.4              -                -
 
Debt securities - unlisted 21.4             -                -
 
Total                      36.2             -                4.8
 
8) Non - current assets and
non-current liabilities held for sale

Where Group companies inject seed capital into funds operated and controlled
by the Group, then the fund is classified as being held for
sale. Typically, if the fund remains under the control of the Group for
more than one year from the original investment date it will cease to be
classified as held for sale, and will be consolidated line by line. In
determining whether to execute the reclassification, the Group will have
regard to the proximity of loss of control, and the extent to which
consolidation of the fund on a line by line basis would be material to the
presentation of the Group's financial statements.