Aberdeen Asset Mngmt ADN Final Results

  Aberdeen Asset Mngmt (ADN) - Final Results

RNS Number : 9459R
Aberdeen Asset Management PLC
26 November 2012




                                      



                        ABERDEEN ASSET MANAGEMENT PLC

             RESULTS FOR THE YEAR TO 30 SEPTEMBER 2012 (AUDITED)

                                      

Highlights



· Revenue 11% higher at £869.2 million (2011: £784.0 million)

· Underlying profit before tax increased by 15% to £347.8 million (2011:
£301.9 million)

· 21% increase in underlying earnings per share to 22.6p (2011: 18.7p)

· Final dividend of 7.1p per share (2011: 5.2p), making 11.5p for the full
year (2011: 9.0p)

· Balance sheet strengthened further - net cash more than doubled to
£266.4 million (2011: £127.5 million)

· Assets under management increased by 10% to £187.2 billion (2011: £169.9
billion)



                                                      2012     2011
Net revenue                                        £869.2m  £784.0m
Pre-tax profit
Before amortisation and impairment of intangibles  £347.8m  £301.9m
After amortisation and impairment of intangibles   £269.7m  £224.1m
Diluted earnings per share
Before amortisation and impairment of intangibles    22.6p    18.7p
After amortisation and impairment of intangibles     17.6p    14.1p
Total dividend per share                             11.5p     9.0p
Gross new business                                 £36.0bn  £43.0bn
Net new business                                £0.0bn (£1.7bn)
Assets under management at the year end           £187.2bn £169.9bn



Martin Gilbert, Chief Executive of Aberdeen Asset Management PLC commented:



"This has  been a  difficult  and uncertain  year  in the  financial  markets. 
Against this  backdrop  we are  pleased  to have  delivered  extremely  strong 
performance for our shareholders by focusing on investment performance and  by 
delivering for  our  clients.  We  have been  rewarded  by  continuing  strong 
interest in our funds  and significant growth in  assets under management.  We 
have strengthened  our balance  sheet further  and remain  confident that  our 
long-term philosophy and rigorous investment processes will continue to  drive 
investment performance and shareholder value."



A presentation  and webcast  for analysts  and institutions  will be  held  at 
10.00am (GMT) on Monday  26 November 2012 at  Aberdeen's offices at Bow  Bells 
House, 1 Bread Street, London EC4M 9HH. The webcast can be viewed live on:



http://www.media-server.com/m/p/9sani2tb



For those unable to attend the presentation or view the live webcast, a replay
of the event will be available on the Group's website at
www.aberdeen-asset.com



For more information:



Aberdeen Asset Management

Martin Gilbert Chief Executive + 44 (0) 207 463 6000

Bill Rattray Finance Director + 44 (0) 207 463 6000



Maitland

Neil Bennett + 44 (0) 207
379 5151
Rowan Brown + 44 (0) 207 379
5151



Chairman's statement

The year ending 30 September 2012 was, in general, another period of  economic 
and market uncertainty,  nevertheless, Aberdeen  managed a  number of  notable 
achievements. We saw net revenue and underlying pre-tax profit increase by 11%
and 15% respectively, and the net cash position grow to £266.4 million by  the 
year end.A 21% increase  in underlying earnings per  share has enabled us  to 
propose a total dividend for  the year of 11.5p per  share, a 28% increase  on 
2011.Over the year  our share price  rose steadily, resulting  in a year  end 
market capitalisation of £3.7 billion. In March, Aberdeen was promoted to the
FTSE-100 index for the first time in its 29 year history.



These results are directly attributable  to the strong investment  performance 
that is  the  product  of  a  disciplined  and  rigorous  investment  process, 
illustrating that the Group flourishes when our clients prosper.



Financial highlights

Net revenue  for the  year of  £869.2 million  was 11%  higher than  in  2011, 
reflecting healthy  growth  in  recurring  management  fees,  supplemented  by 
increased performance fee  income. The  quality of income  remains high,  with 
recurring fees accounting for 94% of  net revenue and the blended average  fee 
rate rising to 45.1 basis points (2011: 41.2 basis points).



Operating expenses increased by 9%, with some controlled addition to headcount
in distribution  and additional  resource committed  to the  promotion of  the 
Aberdeen brand and positioning  of our product range  to satisfy existing  and 
expected investor trends.



Underlying operating profit, which is stated before amortisation of intangible
assets, increased by  14% to  £352.7 million  (2011: £309.3  million) and  the 
operating margin improved further to 40.6% (2011: 39.5%). Underlying  earnings 
per share increased by 21% to 22.6p (2011: 18.7p).



Operating cashflow  was strong,  and this  enabled  us to  grow the  net  cash 
position to £266.4 million (2011: £127.5 million) at the year end. We will use
£80 million of this cash to pay the proposed final dividend, but will  achieve 
our aim of meeting  the regulatory capital  requirements, without reliance  on 
the consolidation waiver, by  the end of 2012.  The capital position has  been 
strengthened further since the  year end, with the  holders of £65 million  of 
convertible bonds having elected to convert their holdings to ordinary shares.



Dividend

The Board is recommending a final dividend  of 7.1p per share, making a  total 
payment for the  year of  11.5p per  share, an increase  of 28%  on the  total 
payment for  2011.  The Board  remains  committed to  a  progressive  dividend 
policy.



New business

New  business  totalling  £36.0  billion  was  added  during  the  year,  with 
two-thirds of those flows  being into pooled funds.  By contrast, over 50%  of 
outflows, also £36.0 billion, were from lower margin segregated mandates. As a
result, 45%  of our  year-end assets  under management  (AuM) is  invested  in 
pooled funds  (2011:  40%).  Gross  inflows were  sourced  from  investors  in 
Continental Europe (36%), the UK (23%), the Americas (25%), Asia Pacific (15%)
and the Middle East (1%).



Consistent with recent years, the major inflows were into our global  emerging 
markets (GEM), Asia Pacific and global equity products. We continue to work to
moderate the scale  of inflows to  GEM, as  we are committed  to avoiding  any 
dilution to the quality of the portfolios. We also saw healthy interest in our
emerging market debt (EMD)  and Asian fixed  income capabilities, both  higher 
margin products.  Indeed,  our  flagship  EMD  fund  passed  the  $2  billion 
milestone during  the  year.  However, overall  fixed  income  flows  remained 
negative, primarily due to outflows from the more traditional developed market
strategies. We  also experienced  net outflows  from the  solutions  business. 
Although our property funds reported a small net outflow, we have strengthened
our global property platform with expanded multi manager teams in Asia and the
US, and have added specialist distribution capabilities in both regions.



Our equity  teams  again  delivered consistent  outperformance  against  their 
respective benchmarks  over both  the  longer and  shorter  term and,  in  due 
course, once  sentiment towards  the Eurozone  improves, we  believe that  our 
pan-European equities team will attract interest from investors. Fixed income
performance remains generally above benchmark over five years, although a  few 
strategies underperformed over one year as the teams believe government  bonds 
remain overvalued and so favoured a short duration stance.



Within solutions, performance was good in fund of hedge funds (FoHF)  although 
it was a  mixed year for  new business  with outflows from  the multi  manager 
capability, which continues  its transition following  the acquisition of  the 
RBS business. Nevertheless, we  continue to widen the  appeal to our  existing 
investor and consultant base.



Business development

Our distribution efforts included the launch  of a number of funds in  various 
jurisdictions, led by multi asset, FoHF and EMD capabilities. Among these  was 
a diversified growth fund in the UK,  a multi strategy fund in Luxembourg  and 
an emerging markets bond fund in the US.



In early October,  we announced the  opening of a  new office in  New York  to 
support our expansion in  North America. The office  will serve as a  business 
development and marketing centre and  complements our existing North  American 
headquarters in Philadelphia. In addition, we added business development staff
in Chicago, Dallas, Los Angeles, Miami, San Francisco and Toronto.



Our main focus is  on markets with the  largest asset pools, particularly  the 
Americas and  Europe,  and  Aberdeen's marketing  and  sponsorship  programmes 
continue to gain traction in these key geographies. As well as our  continued 
sponsorship of Cowes Week, Aberdeen was  also the main sponsor of this  year's 
Scottish Open golf tournament, as part of a three year agreement.



Earlier in the year, the  Group won a number of  awards. UK wins included  the 
Investment Week Fund  Manager Group of  the Year as  well as Investment  Trust 
Group of the Year from both What Investment and Money Observer. Around  Europe 
(Belgium, Finland, Italy, Norway) we were named best Speciality Equity  House, 
while in France  we received an  award for Best  Equity Manager. Finally,  our 
EMD, multi  asset, FoHF  capabilities were  also recognised  at various  award 
ceremonies. Most recently, Aberdeen was named  Best Overall Group at the  11th 
Annual European FoHF Awards.



In  preparation  for  the  Retail  Distribution  Review,  the  Group  launched 
unbundled share classes in our UK and  Luxembourg fund ranges ahead of the  31 
December deadline.



The Board

On behalf of the  Board as a whole,  I would like to  thank all our staff  for 
their continued  hard work  and dedication  which  is at  the heart  of  these 
results.



During the year,  I was  pleased to  welcome to  the Board  a new  independent 
non-executive director, Richard  Mully, and  shortly after  the year-end,  Rod 
MacRae, our Global  Head of  Risk, joined  as an  executive director.  Gerhard 
Fusenig resigned from the Board in March following Credit Suisse's sale of its
shareholding, and I would like  to record the thanks  of the entire Board  for 
his considerable contribution over the last three years.



Giles Weaver  will retire  from the  Board  at the  conclusion of  the  Annual 
General Meeting in January, following twelve  years' service. I would like  to 
place on  record  the  thanks  of  all of  his  colleagues  for  his  valuable 
contribution and  commitment  throughout  that  period.  I  would  expect  to 
announce the appointment of a  further independent non-executive director,  as 
part of the ongoing refreshment of the Board, in due course.



Outlook

It is perhaps unwise to anticipate an end to the uncertainty engendered by the
global economic and political backdrop, but I do believe that our clients  and 
shareholders will be well  served by the long  term investment philosophy  and 
rigorous process  of  our  teams.  While equity  based  products  continue  to 
generate healthy  sales,  we  are  confident that  our  sustained  efforts  in 
connection with  other  asset  classes will  make  an  increasingly  important 
contribution to the Group's performance in the coming months.



Roger Cornick

Chairman



                                      

Group Income
Statement
For the year to 30
September 2012
                                        2012                              2011
                         Before                           Before            

                   amortisation Amortisation         amortisation Amortisation
                                                     & impairment            &
                   & impairment & impairment   Total               impairment   Total
             Notes           £m           £m      £m           £m           £m      £m
Gross
revenue                 1,048.8            - 1,048.8        954.5            -   954.5
Commissions
payable                 (179.6)            - (179.6)      (170.5)              (170.5)
Net revenue      2        869.2            -   869.2        784.0            -   784.0
Operating
costs                   (516.5)            - (516.5)      (474.7)            - (474.7)
Amortisation
and
impairment
of
intangible
assets                        -       (78.1)  (78.1)            -       (77.8)  (77.8)
Operating
expenses                (516.5)       (78.1) (594.6)      (474.7)       (77.8) (552.5)
Operating
profit                    352.7       (78.1)   274.6        309.3       (77.8)   231.5
Net finance
costs            5        (5.1)            -   (5.1)        (7.7)            -   (7.7)
Other gains
and losses                  0.2            -     0.2          0.3            -     0.3
Profit
before
taxation                  347.8       (78.1)   269.7        301.9       (77.8)   224.1
Tax expense      6       (62.7)         16.6  (46.1)       (60.2)         20.0  (40.2)
Profit for
the year                  285.1       (61.5)   223.6        241.7       (57.8)   183.9
Attributable
to:
Equity
shareholders
of the
Company                                        208.7                             169.7
Other equity
holders                                         14.9                              14.2
                                               223.6                             183.9
Earnings per
share
Basic            8                            18.88p                            15.01p
Diluted          8                            17.55p                            14.06p
                                      
        Group Statement
       of Comprehensive               
        Income
       For the year to 30 September 2012   
                                                            2012     2011 
                                                              £m       £m 
       Profit for the year                                223.6    183.9 
                                                                          
       Net actuarial gain on defined benefit pension                     
        schemes                                               0.6      6.0
       Translation of foreign currency net investments    (9.2)      2.3 
       Available for sale assets:                                        
       - losses during the period                        (0.7)    (4.7) 
        - losses recycled from equity to the income                      
        statement                                             4.6      1.7
       Tax on items of other comprehensive income         (3.4)      1.6 
       Other comprehensive (expense) income, net of                      
        tax                                                 (8.1)      6.9
                                                                          
       Total comprehensive income for the year             215.5    190.8 
                                                                          
       Attributable to:                                                  
       Equity shareholders of the Company                 200.6    176.6 
       Other equity holders                                14.9     14.2 



Group Balance Sheet                                      
As at 30 September 2012                                 
                                                                  2012    2011
                                                         Notes      £m      £m
Assets
Non-current assets
Intangible assets                                           9   994.1 1,060.0
Property, plant and equipment                                    19.1    20.1
Other investments                                          10    53.1    46.8
Deferred tax assets                                              15.9    22.5
Pension surplus                                            13    12.9     5.4
Trade and other receivables                                       3.6     4.4
Total non-current assets                                      1,098.7 1,159.2
Current assets
Stocks of shares in managed funds                                 0.2     0.4
Assets backing investment contract liabilities             11 2,311.9 1,128.1
Trade and other receivables                                     254.2   325.8
Other investments                                          10    58.5    63.3
Cash and cash equivalents                                       347.9   209.5
Total current assets                                          2,972.7 1,727.1
Total assets                                                  4,071.4 2,886.3
Equity
Called up share capital                                         115.1   114.9
Share premium account                                           815.9   812.2
Other reserves                                                  209.0   216.8
Retained loss                                                  (51.6) (123.7)
Total equity attributable to shareholders of the parent       1,088.4 1,020.2
Non-controlling interest                                         14.0    16.2
Perpetual capital securities                                    198.1   198.1
Total equity                                                  1,300.5 1,234.5
Liabilities
Non-current liabilities
Interest bearing loans and borrowings                      12       -    82.0
Pension deficit                                            13    28.3    29.7
Provisions                                                        5.9     2.2
Deferred tax liabilities                                         36.4    46.5
Total non-current liabilities                                    70.6   160.4


Current liabilities
Investment contract liabilities                            11 2,311.9 1,128.1
Interest bearing loans and borrowings                      12    81.5       -
Trade and other payables                                        269.4   329.7
Current tax payable                                              37.5    33.6
Total current liabilities                                     2,700.3 1,491.4
                                                                            

Total liabilities                                            2,770.9 1,651.8
Total equity and liabilities                                  4,071.4 2,886.3





Group Statement of Changes in Equity

For the year to 30 September 2012

                                                               Perpetual
                                              
                          Share                          Non-    capital        
                  Share premium    Other Retained controlling
                capital account reserves earnings    interest securities    Total
                                                                           equity
                     £m      £m       £m       £m          £m         £m       £m
Balance at 30
September 2010    114.8   812.1    216.8  (170.5)        13.6      198.1  1,184.9
Profit for the
period                -      -        -    169.7          -      14.2    183.9
Other
comprehensive
income               -       -        -     6.9           -          -      6.9
Total
comprehensive
income               -      -        -    176.6           -       14.2    190.8
Arising on the
issue of shares     0.1     0.1       -       -          -         -      0.2
Share based
payment charge       -      -       -     54.4          -          -     54.4
Purchase of own
shares               -      -       -   (98.1)          -         -   (98.1)
Dividends paid
to shareholders       -       -       -   (86.1)          -     (14.2)  (100.3)
Non-controlling
interest in
consolidated
funds                 -       -        -        -         2.6          -      2.6
Balance at 30
September 2011    114.9   812.2    216.8  (123.7)        16.2      198.1  1,234.5
Profit for the
period               -      -       -    208.7          -       14.9   223.6
Other
comprehensive
expense              -      -    (6.7)   (1.4)          -         -    (8.1)
Total
comprehensive
(expense)
income               -      -    (6.7)    207.3           -       14.9    215.5
Arising on the
issue of shares      -     0.1       -       -          -         -      0.1
Conversion of
convertible
bonds               0.2     2.8    (0.3)      0.3           -          -      3.0
Conversion of
preference
shares                -     0.8    (0.8)        -           -          -        -
Share based
payment charge       -      -       -     53.8          -         -     53.8
Purchase of own
shares               -      -       -   (83.1)          -         -   (83.1)
Dividends paid
to shareholders      -      -       -  (106.2)          -     (14.9) (121.1)
Non-controlling
interest in
consolidated
funds                -      -       -       -       (2.2)       -    (2.2)
Balance at 30
September 2012    115.1   815.9    209.0   (51.6)        14.0     198.1  1,300.5



Group Statement of Cash Flows          
For the year to 30 September 2012      
                                                           2012           2011
                                          Notes            £m            £m
Core cash generated from operating
activities                                                419.8          399.3
Short-term timing differences on open
end fund settlements                                      (5.3)            7.9
Cash generated from operations                           414.5          407.2
Net interest paid                                        (2.1)          (7.1)
Tax paid                                                (43.6)         (26.4)
Net cash generated from operations                       368.8          373.7
Non-recurring costs paid                                     -          (7.3)
Net cash generated from operating
activities                                     4          368.8          366.4
Cash flows from investing activities
Proceeds from sale of investments                         52.4           50.2
Acquisition of businesses, net of
cash acquired                                                 -          (3.3)
Purchase of intangible assets                           (13.4)          (2.4)
Purchase of property, plant &
equipment                                                 (7.6)          (5.9)
Purchase of investments                                 (53.8)         (62.1)
Net cash used in investing activities                   (22.4)         (23.5)
Cash flows from financing activities
Purchase of own shares                                  (83.1)         (98.1)
Repayment of borrowings                                      -         (77.9)
Dividends paid and coupon payments                     (126.0)        (105.5)
Net cash used in financing activities                  (209.1)        (281.5)
Net increase in cash and cash
equivalents                                               137.3           61.4
Cash and cash equivalents at 1
October                                                   209.5          150.8
Exchange rate fluctuations on cash
and cash equivalents                                        1.1          (2.7)
Cash and cash equivalents at 30
September                                                 347.9          209.5


Notes to the Accounts
  

1. Preparation in accordance with IFRS

   This preliminary announcement of results sets out information which will be
   more fully covered in the Annual Report for the year to 30 September 2012.
2. Revenue                                                      2012      2011
                                                                 £m       £m
   Revenue comprises:
   Gross management fees                                       993.1     909.7
   Commissions payable to intermediaries                     (179.6)   (170.5)
   Net management fees                                         813.5     739.2
   Performance fees                                             47.5      36.3
   Transaction fees                                              8.2       8.5
   Net revenue                                                 869.2     784.0
                                       
3  Segmental reporting                 
   The Group  operates  a single  business  segment of  asset  management  for 
   reporting and control purposes.

   

   IFRS 8 Operating Segments requires  disclosures to reflect the  information 
   which the Group management board, being the body that is the Group's  chief 
   operating  decision  maker,  uses   for  evaluating  performance  and   the 
   allocation of resources. The Group is managed as a single asset  management 
   business, with multiple investment strategies of equities, fixed income and
   property, complemented by our solutions business which provides multi asset
   and fund of alternatives  services. These strategies  are managed across  a 
   range of products, distribution channels and geographic regions.  Reporting 
   provided to the Group management board is on an aggregated basis.
4. Analysis of cash flows                                       2012      2011
                                                                 £m       £m
   Reconciliation of profit after tax
   to operating cash flow
   Profit after tax                                            223.6     183.9
   Depreciation                                                 8.3       5.7
   Amortisation and impairment of
   intangible assets                                            78.1      77.8
   Unrealised foreign currency (gains)
   losses                                                      (1.0)       1.2
   Gains on investments                                        (0.2)         -
   Share based element of remuneration                          61.9      60.4
   Net finance costs                                             5.1       7.7
   Income tax expense                                           46.1      40.2
                                                               421.9     376.9
   Increase in provisions                                        3.7       0.1
   Decrease (increase) in stock                                 0.2     (0.1)
   (Increase) decrease in trade and
   other receivables                                           (1.4)       0.9
   Decrease (increase) in open end
   fund receivables                                             69.7    (30.4)
   (Decrease) increase in trade and
   other payables                                              (4.6)      14.2
   (Decrease) increase in open fund
   payables                                                   (75.0)      38.3
   Net cash inflow from operating
   activities                                                  414.5     399.9
   Net interest paid                                           (2.1)     (7.1)
   Income tax paid                                            (43.6)    (26.4)
   Net cash generated from operating
   activities                                                  368.8     366.4

5. Net finance costs                                            2012      2011
                                                                 £m       £m
   Interest on 7.2% subordinated notes
   2016                                                            -       4.3
   Interest on 3.5% convertible bonds
   2014                                                          3.2       3.2
   Interest on overdrafts, revolving
   credit facilities and other
   interest bearing accounts                                     1.7       0.2
                                                                 4.9       7.7
   Release of discount on liability
   component of convertible bonds                                2.0       1.7
   Amortisation of issue costs on
   convertible bonds                                             0.5       0.6
   Total finance costs                                           7.4      10.0
   Finance revenue - interest income                           (2.3)     (2.3)
   Net finance costs                                             5.1       7.7
6. Tax expense                                                 2012      2011
                                                                 £m       £m
   Current year tax charge on profit before,
   amortisation and impairment of intangible assets             64.2      59.3
   Adjustments in respect of prior
   periods                                                     (1.5)       0.9
                                                                62.7      60.2
   Tax credit on amortisation and impairment of
   intangible assets                                          (16.6)    (20.0)
                                                                46.1      40.2
   

   
7. Dividends and coupons payable                                2012      2011
                                                                  £m        £m
   Dividend on convertible
   preference shares
   Dividend paid                                                 0.2       0.3
   Coupon payments on perpetual
   capital securities
   Coupon payments made during
   the year                                                     19.8      19.4
   Dividends on ordinary shares
   Declared and paid during the
   year:
   Final dividend for 2011 -
   5.2p (2010 : 3.8p)                                           57.5      42.9
   Interim dividend for 2012 -
   4.4p (2011: 3.8p)                                            48.5      42.9
                                                               106.0      85.8
   Total dividends and coupon
   payments paid during the year                               126.0     105.5
   

   Proposed for approval at the Annual General Meeting

   (not recognised as a liability at 30 September)
   Dividends on ordinary
   shares:
   Final dividend for 2012 - 7.1
   p (2011 : 5.2p)                                              81.2      59.5

  The total ordinary dividend for the year is 11.5p per share including the
  proposed final dividend of 7.1p per share.

  The proposed final dividend of 7.1p per ordinary share will be paid on 24
  January 2013 to qualifying shareholders on the register at the close of
  business on 7 December 2012.

The coupon payments on  perpetual capital securities  are tax deductible.  The 
deduction for 2012 is  £4.9 million (2011: £5.2  million), resulting in a  net 
cost of £14.9 million (2011: £14.2 million).



8.    Earnings per share                                                     
      The calculations  of earnings  per share  are based  on the  following 
      profits and numbers of shares.

      

      Basic earnings per share amounts are calculated by dividing profit for
      the year attributable to ordinary shareholders by the weighted average
      number of ordinary shares outstanding during the year.

      

      Diluted earnings per share amounts are calculated by dividing the  net 
      profit for  the  year attributable  to  ordinary shareholders  by  the 
      weighted average  number of  ordinary  shares outstanding  during  the 
      year, plus the weighted average  number of ordinary shares that  would 
      be issued on  the conversion  of all the  potentially dilutive  shares 
      into ordinary shares.

      

      Underlying earnings per share figures are calculated by adjusting  the 
      profit to exclude  amortisation and impairment  of intangible  assets. 
      The purpose of providing the underlying earnings per share is to allow
      readers of the accounts to clearly consider trends without the  impact 
      of these non-cash items.

      
                                        IAS33       Underlying 
                                             2012     2011     2012     2011
                                                                             
      Basic earnings per share                 £m      £m      £m      £m
      Profit attributable to                                                 
      shareholders                          223.6    183.9    223.6    183.9
      Dividend on convertible                                                
      preference shares                     (0.2)    (0.3)    (0.2)    (0.3)
      Coupon payments in respect
      of perpetual capital                                                   
      securities (net of tax)              (14.9)   (14.2)   (14.9)   (14.2)
      Profit for the financial                                              
      year                                  208.5    169.4    208.5    169.4
      Amortisation and impairment
      of intangible assets, net                                              
      of attributable taxation                                 61.5     57.8
      Underlying profit for the                                              
      financial year                                          270.0    227.2
      Weighted average number of                                             
      shares (millions)                   1,104.2  1,128.4  1,104.2  1,128.4
      Basic earnings per share            18.88p   15.01p   24.45p   20.13p 
                                  
      Diluted earnings per share  
      Profit for calculation of
      basic earnings per share,                                              
      as above                              208.5    169.4    270.0    227.2
      Add: interest on 2014
      convertible bonds, net of                                              
      attributable taxation                   4.3      4.0      4.3      4.0
      Add: dividend on
      convertible preference                                                 
      shares                                  0.2      0.3      0.2      0.3
      Profit for calculation of                                             
      diluted earnings per share            213.0    173.7    274.5    231.5
                                  
      Weighted average number of shares        
      (millions)
      For basic earnings per
      share                               1,104.2  1,128.4  1,104.2    1,128.4
      Dilutive effect of 2014
      convertible bonds                      48.6     48.6     48.6       48.6
      Dilutive effect of
      convertible preference
      shares                                  3.1      4.4      3.1        4.4
      Dilutive effect of LTIP
      awards                                  0.2      0.6      0.2        0.6
      Dilutive effect of
      exercisable share options
      and deferred shares                    57.5     53.8     57.5       53.8
                                          1,213.6  1,235.8  1,213.6    1,235.8
      Diluted earnings per share           17.55p   14.06p   22.62p     18.73p
9.    Intangible assets                                        2012       2011
                                                                 £m         £m
      Management contracts                                    310.6      370.1
      Distribution contracts                                   21.2       30.2
      Goodwill                                                652.9      654.4
      Software                                                  9.4        5.3
                                                              994.1    1,060.0
10.   Other investments                                        2012       2011
                                                                 £m         £m
      Non-current assets
      Non-current investments                                  53.1       46.8
      Current assets
      Seed capital investments                                 40.4       29.8
      Investment in funds to hedge deferred bonus
      liabilities                                              11.5          -
      Investments of life and pensions subsidiary              6.6       23.1
      Listed securities - held for trading                        -       10.4
                                                               58.5       63.3
      Seed capital investments consist of amounts invested in funds when the
      intention is to dispose of these as soon as practicably possible.

      

      Investments in certain Aberdeen managed funds are held to hedge against
      liabilities from bonus awards that are deferred and settled in cash by
      reference to the share price of those funds.

      


11.   Assets backing investment contract liabilities
      These assets are held by the  Group's life assurance and pooled  pension 
      subsidiary to meet its contracted liabilities.

      

      The risks and  rewards of these  assets fall  to the benefit  of or  are 
      borne  by  the  underlying  policyholders.  Therefore,  the   investment 
      contract liabilities shown in  the Group's balance  sheet are equal  and 
      opposite in value to  the assets held on  behalf of the  policyholders. 
      The Group has no direct exposure to fluctuations in the value of  assets 
      which are held on  behalf of policyholders, nor  to fluctuations in  the 
      value of the  assets arising  from changes  in market  prices or  credit 
      default. The Group's exposure to these assets is limited to the  revenue 
      earned, which varies according to movements in the value of the assets.
12.   Interest bearing loans and borrowings                    2012       2011
                                                                £m        £m
      Non-current liabilities
      3.5% convertible bonds 2014                                 -       82.0
      Current liabilities
      3.5% convertible bonds 2014                              81.5          -
      On the 31 October 2012, the Company notified remaining bondholders  that 
      all outstanding bonds  in issue on  3 January 2013  will be redeemed  in 
      full (note  14).  The  liability  for the  convertible  bonds  has  been 
      reclassified as a current liability at 30 September 2012.

      
13. Retirement benefits

    The Group's principal form of pension provision is by way of three defined
    contribution schemes operated world-wide. The Group also operates  several 
    legacy defined benefit  schemes which include,  in the UK,  the CGA  Staff 
    Pension Fund, the  Murray Johnstone Limited  Retirement Benefits Plan  and 
    the Edinburgh Fund Managers  Group plc Retirement  & Death Benefits  Plan. 
    These defined benefit schemes are closed  to new membership and to  future 
    service accrual.
                                                               2012       2011
                                                                £m        £m
    Pension scheme deficits                                  (28.3)     (29.7)
    Pension scheme surplus                                     12.9        5.4
                                                             (15.4)     (24.3)
14. Post balance sheet event

    On 31 October, the  Company notified the holders  of the 3.5%  convertible 
    bonds 2014 that all outstanding bonds in issue on 3 January 2013, together
    with accrued interest on such  date, will be redeemed. Bondholders  remain 
    able to exercise their conversion rights until 27 December 2012. As at  23 
    November 2012,  holders of  £68.1 million  had exercised  their rights  to 
    convert to ordinary shares with £21.9 million still to be converted  prior 
    to 3 January 2013. 

    

    The outstanding bonds of £82.7 million, gross excluding unamortised  issue 
    costs, at 30 September 2012 have been reclassified as a current liability.

    
15. The financial information set out above does not constitute the  Company's 
    statutory accounts for  the years  ended 30  September 2012  or 2011.  The 
   financial information for 2011 is derived from the statutory accounts  for 
    2011 which  have  been  delivered  to  the  Registrar  of  Companies.  The 
   statutory accounts  for 2012  will be  delivered following  the  Company's 
    Annual General Meeting.  The auditors  have reported  on those  accounts; 
   their reports were (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  or  equivalent 
   preceding legislation.

   



                                                         
ASSETS UNDER MANAGEMENT
                                                               2012       2011
                                                                £bn        £bn
Equities                                                      100.7       75.1
Fixed income                                                   36.3       40.0
Aberdeen solutions                                             23.6       24.8
Property                                                       18.7       20.5
Money market                                                    7.9        9.5
                                                              187.2      169.9
Segregated mandates                                           102.8      102.4
Pooled funds                                                   84.4       67.5
                                                              187.2      169.9



QUARTERLY NEW BUSINESS FLOWS



                      3 mths to              3 mths to 3 mths to   Year to

                      31 Dec 11    3 mths to 30 Jun 12 30 Sep 12 30 Sep 12

                             £m 31 Mar 12 £m        £m        £m        £m
Gross inflows:
 Segregated mandates     3,337        2,893     3,133     3,026    12,389
 Pooled funds            4,502        7,486     5,660     5,961    23,609
                          7,839       10,379     8,793     8,987    35,998
Net inflows:
 Segregated mandates   (2,968)        (539)     (881)   (1,962)   (6,350)
 Pooled funds              158        2,970     1,186     1,987     6,301
                        (2,810)        2,431       305        25      (49)





                     3 mths to              3 mths to 3 mths to   Year to

                     31 Dec 11    3 mths to 30 Jun 12 30 Sep 12 30 Sep 12

                            £m 31 Mar 12 £m        £m        £m        £m
Gross inflows:
 Equities               4,250        7,093     5,378     5,659    22,380
 Fixed income           1,612        1,743     1,463     1,609     6,427
 Aberdeen solutions       661          493       578       504     2,236
 Property                 223          139       182       253       797
 Money market           1,093          911     1,192       962     4,158
                         7,839       10,379     8,793     8,987    35,998
Net inflows:
 Equities                 932        3,966     2,508     2,830    10,236
 Fixed income         (2,065)        (265)   (1,610)   (1,797)   (5,737)
 Aberdeen solutions   (1,247)        (568)     (550)     (841)   (3,206)
 Property                  38        (306)        64       (2)     (206)
 Money market           (468)        (396)     (107)     (165)   (1,136)
                       (2,810)        2,431       305        25      (49)



NEW BUSINESS FLOWS TO 30 SEPTEMBER 2012 - EQUITIES



                          3 mths to              3 mths to 3 mths to   Year to

                          31 Dec 11    3 mths to 30 Jun 12 30 Sep 12 30 Sep 12

                                 £m 31 Mar 12 £m        £m        £m        £m
Gross inflows:
 Asia Pacific                  814        1,755     1,654     1,629     5,852
 Global emerging markets     2,309        3,820     2,217     2,329    10,675
 Europe                         37           16         6        48       107
 Global & EAFE                 989        1,420     1,200     1,570     5,179
 UK                             18           37        43        16       114
 US                             83           45       258        67       453
                              4,250        7,093     5,378     5,659    22,380
Net flows:
 Asia Pacific                (176)          830       850       719     2,223
 Global emerging markets     1,127        2,492       794     1,281     5,694
 Europe                       (14)         (33)      (36)       (3)      (86)
 Global & EAFE                 307          805       771     1,159     3,042
 UK                           (72)         (20)      (41)     (303)     (436)
 US                          (240)        (108)       170      (23)     (201)
                                932        3,966     2,508     2,830    10,236



NEW BUSINESS FLOWS 30 SEPTEMBER 2012 - FIXED INCOME



                   3 mths to              3 mths to 3 mths to   Year to

                   31 Dec 11    3 mths to 30 Jun 12 30 Sep 12 30 Sep 12

                          £m 31 Mar 12 £m        £m        £m        £m
Gross inflows:
 Asia Pacific           235          145       105       178       663
 Australia              765          572       487       395     2,219
 Convertibles            16           38        23        30       107
 Currency overlay        14           74         4        31       123
 Emerging markets       354          430       535       602     1,921
 Europe                  42           80        33       113       268
 Global                  42           28        21        21       112
 High yield              70          148        60        77       355
 UK                      24           39       101       103       267
 US                      50          189        94        59       392
                       1,612        1,743     1,463     1,609     6,427
Net flows:
 Asia Pacific           164           57     (496)        85     (190)
 Australia               87        (345)     (137)     (164)     (559)
 Convertibles          (16)            4      (11)         5      (18)
 Currency overlay     (107)           51      (27)      (18)     (101)
 Emerging markets        57          276       196       336       865
 Europe                (39)         (24)     (196)     (116)     (375)
 Global             (1,513)          (6)      (65)   (1,589)   (3,173)
 High yield              20          104      (15)        33       142
 UK                   (667)        (331)     (630)     (247)   (1,875)
 US                    (51)         (51)     (229)     (122)     (453)
                     (2,065)        (265)   (1,610)   (1,797)   (5,737)



NEW BUSINESS FLOWS TO 30 SEPTEMBER 2012 - ABERDEEN SOLUTIONS



                          3 mths to              3 mths to 3 mths to   Year to

                          31 Dec 11    3 mths to 30 Jun 12 30 Sep 12 30 Sep 12

                                 £m 31 Mar 12 £m        £m        £m        £m
Gross inflows:
 Indexed equities                4            -         4         1         9
 Multi asset                   215          244       140       268       867
 Long only multi manager       418          211       408       200     1,237
 Funds of hedge funds           24           38        26        35       123
 Funds of private equity         -            -         -         -         -
                                661          493       578       504     2,236
Net flows:
 Indexed equities            (208)         (98)     (382)     (199)     (887)
 Multi asset                    26         (65)     (125)     (213)     (377)
 Long only multi manager     (833)        (204)        85     (189)   (1,141)
 Funds of hedge funds        (232)        (200)     (128)     (240)     (800)
 Funds of private equity         -          (1)         -         -       (1)
                            (1,247)        (568)     (550)     (841)   (3,206)



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


FR FEFFLIFESEFF -0- Nov/26/2012 07:00 GMT
 
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