Preliminary Final Results
Ashmore Group PLC
12 September 2007
Press release
Ashmore Group plc
12 September 2007
PRELIMINARY RESULTS FOR THE YEAR ENDED 30 JUNE 2007
Ashmore Group plc, one of the world's leading emerging market investment
managers, today announces its audited results for the year ended 30 June 2007.
Financial highlights
• Assets under management of US$31.6 billion at 30 June 2007, up US$11.5
billion, 57% in the year
• Net management fees of £126.4 million, 61% higher than for the year
ended 30 June 2006
• Performance fees of £20.4 million (£54.2 million for the year ended
30 June 2006)
• Profit before tax of £131.4 million, up 26% (a 36% increase at
constant exchange rates, see note below)
• Basic eps of 13.7p (2006: 10.8p) and diluted eps of 12.9p (2006: 10.4p)
• A final dividend of 6.7p per share will be paid on 7 December 2007,
giving a total dividend for the year of 9.0p.
Note: The increase in profit before tax at constant exchange rates is calculated
by restating the prior year at the current year's average US$/£ exchange rate.
Commenting on the results Mark Coombs, Chief Executive Officer Ashmore Group
plc, said:
'During the year we continued to make significant advances towards our strategic
goal to be the leading emerging markets investment manager. These results
clearly demonstrate the progress we have made in the year, enhancing our
long-term track record. The Group is well placed to continue its growth momentum
into the 2008 financial year'.
Analyst/investors briefing
There will be a presentation for analysts at 09.30 on 12 September at the
offices of Goldman Sachs at Peterborough Court, 133 Fleet Street, London EC4A
2BB. There will be a conference call for US based analysts and investors at
14.00 London time, 09.00 US Eastern time. Dial in details are available upon
request from Penrose Financial on the number below. A copy of the presentation
will be made available on the Group's website at www.ashmoregroup.com.
Contacts
For further information, please contact:
Ashmore Group plc +44 20 7557 4100
Jim Pettigrew +44 20 7557 4157
Chief Operating and Financial Officer
Penrose Financial +44 20 7786 4888
Gay Collins +44 7798 626 282
Ashmore Group plc
Results overview
The 2007 financial year represented another successful stage in the development
of the Group. Significant year-on-year increases in assets under management
(AuM), revenue, profit and eps were reported, exceeding the financial targets
the Group set itself at the beginning of the financial year.
The key driver of profit growth in the year was the substantial (61%) increase
in net management fees, which was achieved across the Group's investment themes.
Net management fees by theme, net of distribution costs, are set out in the
table below.
Year ended Year ended
30 June 30 June Increase against prior year
2007 2006
Investment theme £m £m £m %
__________________________________________________________________________________________________
Global US$ 71.9 52.2 19.7 38
Local currency 21.4 11.3 10.1 89
Special situations 25.9 11.9 14.0 118
Equity 7.2 3.1 4.1 132
__________________________________________________________________________________________________
Group net management fees 126.4 78.5 47.9 61
__________________________________________________________________________________________________
As well as the growth in absolute levels of net management fees, the Group's net
management fee margin increased to 93 basis points in the financial year to 30
June 2007 from 83 basis points in the prior year.
Performance fees were £20.4 million in the year ended 30 June 2007 compared to
£54.2 million in the prior year. This was predominately due to a reduction in
the performance fee delivered by EMLIP (the Group's US$5 billion global US$
fund) for which investment performance was ahead of the peer group and relevant
benchmarks, but in line with its hurdle rate. In the previous year, investment
performance for EMLIP was in excess of the hurdle rate.
Other revenue was substantially up on the prior year at £13.0 million (2006:
£2.9 million) reflecting a higher level of transaction based corporate finance
fees generated in the year.
The Group continues to manage its cost base in an efficient and effective
manner. Against the backdrop of substantial AuM and revenue growth, the Group
continues to invest to support the future growth of the business.
There were a number of one-off costs in the year to 30 June 2006: professional
fees associated with the Company's IPO (£2.0 million) and a share-based payments
charge in respect of the change from a cash to equity-settled basis (£4.9
million). Excluding these items and the costs of the Group's administration
business (£0.4 million), which was disposed of in December 2005, costs increased
by £4.5 million, a 13% increase in the year. As part of the process of
supporting the growth of the business, the Group's headcount increased by 41%,
from 49 at 30 June 2006 to 69 at 30 June 2007. During the year the number of
investment professionals within the Group increased from 17 to 25, continuing
the process of building the next generation of Ashmore investment professionals.
The largest component of the cost base is variable compensation (including
share- based payments) which was 18.4% of profit before tax, interest and
variable compensation for the year ended 30 June 2007 (2006: 24.3%). In order to
provide greater flexibility, in future years, the intention is to pay up to 25%
of the Group's profit before tax, interest and variable compensation as variable
compensation, previously 20%-25 %.
An operating profit margin of 76% was achieved in the financial year to 30 June
2007 (70% in 2006), with the current year's margin benefiting from the lower
variable compensation ratio. The Group continues to plan the development of its
activities as a relatively high margin investment management business.
These results were achieved against the backdrop of a weaker US$/£ exchange
rate. As the majority of the Group's revenue is denominated in US dollars, while
the cost base is largely in sterling, this has impacted on the Group's reported
profit. Reported profit before tax increased by £27.5 million, a 26% increase
over the prior year. After excluding the impact of US$/£ exchange rate
movements, at constant exchange rates, profit before tax increased by £34.1
million, an increase of 36% in the year.
Basic eps were 13.7p, an increase of 27 % on the prior year. Diluted eps were
12.9p (2006: 10.4p).
Operations and investment theme review
The investment philosophy and process that has been in place at Ashmore for many
years remains unchanged. Ashmore follows an active, value-driven and mainly
top-down investment approach. The Group also selects credits and certain
investments through bottom-up analysis, particularly for those funds where
corporate and special situations/distressed assets are more significant.
As at 30 June 2007, the Group managed 41 funds/segregated accounts, diversified
across four investment themes.
AuM increased by US$11.5 billion (57%) from US$20.1 billion at 30 June 2006 to
US$31.6 billion at 30 June 2007. Net subscriptions in the same period were
US$8.3 billion (2006: US$7.9 billion), consisting of gross subscriptions of
US$10.4 billion (2006: US$10.1 billion) and redemptions of US$2.1 billion (2006:
US$2.2 billion). These gross flows exclude US$0.4 billion of intra-investment
theme flows by the Group's multi-strategy fund. On a net subscriptions basis
there were US$4.3 billion of net inflows into existing funds and fund raisings
into new products and funds of US$4.0 billion in the financial year. Investment
performance contributed a total of US$3.2 billion.
AuM as at AuM as at
30 June Net 30 June
2006 subscriptions Performance 2007
Investment theme US$bn US$bn US$bn US$bn
____________________________________________________________________________________________________
Global US$ 15.2 4.1 1.9 21.2
Local currency 3.0 1.4 0.6 5.0
Special situations 1.3 1.8 0.3 3.4
Equity 0.6 1.0 0.4 2.0
____________________________________________________________________________________________________
Total 20.1 8.3 3.2 31.6
____________________________________________________________________________________________________
Global US$
The global US$ investment theme comprises US dollar and other hard currency
denominated instruments which may include derivatives, investing principally in
sovereign bonds but with a growing corporate debt element.
AuM at 30 June 2007 were US$21.2 billion, an increase of US$6.0 billion (39%)
from 30 June 2006. Net subscriptions in the year were US$4.1 billion,
representing 49% of the Group's net inflows in the year. Performance contributed
US$1.9 billion.
During the year, there were strong inflows into the theme's public open-ended
funds, with two new fund launches: a new structured product initially funded at
US$0.2 billion in the first half of the financial year and a new US$0.4 billion
segregated account in the second half. In November 2006, one small segregated
fund was merged into a public fund.
While the global US$ investment theme continued to generally outperform the
relevant benchmarks it has not been a particularly strong investment return
year.
Local currency
The local currency investment theme comprises local currency and local currency
denominated debt instruments, principally sovereign in nature, and it may
include derivatives.
AuM at 30 June 2007 were US$5.0 billion; an increase of US$2.0 billion (67%)
from 30 June 2006.There has been strong demand for the Group's local currency
products with net subscriptions in the period of US$1.4 billion. As part of the
process of accessing the increasing European appetite for the local currency
theme, a new targeted SICAV fund was launched in the first half of the financial
year and this was initially funded at US$0.1 billion. Theme performance in the
period contributed US$0.6 billion.
Generally, it has been a good investment performance year for the theme,
assisted during most of the year by the relative strength of local currencies
against the US dollar. The local currency markets continue to deepen, with
gradually improving liquidity and the extension of duration.
Special situations (distressed debt/private equity)
The special situations (distressed debt/private equity) theme comprises
investments in debt and/or equity or other instruments focussing on situations
usually involving specialist corporate investments and/or projects and including
distressed assets or distressed sellers of assets, often incorporating
restructuring, reorganisations and /or a private equity approach.
AuM at 30 June 2007 were US$3.4 billion, an increase of US$2.1 billion (162%).
Net subscriptions were US$1.8 billion, with performance contributing US$0.3
billion.
Included within net subscriptions is the Group's GSSF 3 fund which was launched
in August 2006. This represented US$1.4 billion of the total net subscriptions
in the period and as at 6 September 2007 it is 100% drawn down. A new private
equity fund investing in Turkey was launched in the second half of the financial
year initially funded at US$0.1 billion.
It has been another positive year from the perspectives of investment
performance, deal opportunities and realisations. The Group's network continues
to source an attractive pipeline of deals.
Equity
The equity investment theme comprises public equity and equity-related
securities. The instruments invested in by the funds can include equities,
convertibles, warrants and equity derivatives.
AuM at 30 June 2007 were US$2.0 billion, an increase of US$1.4 billion (233%)
from 30 June 2006. Net subscriptions were US$1.0 billion, with performance
contributing US$0.4 billion.
Net subscriptions benefited by US$0.8 billion as a result of two new segregated
funds that were launched in the first half of the financial year. There were two
small lower margin segregated funds that were closed in the second half of the
financial year (US$0.2 billion in total).
It was a good year from an investment return point of view. The theme continues
to be characterised by the relative movement of global liquidity from US
equities to emerging market equities.
Multi-strategy funds
Net subscriptions into the Group's multi-strategy funds, where Ashmore is making
the asset allocation decision across the Group's investment themes, were US$1.8
billion and represented 22% of the Group's total net subscriptions in the year
of US$8.3 billion. This includes a new fund launched in April 2007 for the
Japanese retail market which raised US$1.0 billion.
Diversification of product offering
There were eight new fund launches during the year and, after taking account of
two small segregated account closures and one fund merger, by 30 June 2007 the
Group was managing 41 funds /segregated accounts. These funds are spread across
the Group's four investment themes, highlighting the diversification of the
Group's AuM. The global dollar debt theme represented 67% of the Group's AuM in
June 2007, compared to 76% in June 2006. Furthermore, the Group's AuM is
diversified by type of account: 52% of AuM is in Ashmore sponsored funds, 32% in
segregated accounts, 10% white label and 6% in structured products.
As at 30 June 2007, 64% of funds by AuM can generate performance fees (2006:
57%). These funds, totalling 22 in number (2006: 17), are spread across the
Group's investment themes. Only 46% of AuM can make use of leverage and, where a
fund can use leverage, it is usually restricted to a maximum of 50% of a fund's
AuM, and never more than 75%. Typically a fund's leverage capacity is not fully
utilised.
Investor profile
There is a broad range of investors in the funds managed by the Group.
The funds which Ashmore manages remain predominately sourced from institutional
investors, including pension plans, government agencies, financial institutions
and corporates. As at 30 June 2007, 85% of the Group's AuM was institutional
(2006: 89%), and 15% (2006: 11%) was high net worth individuals /retail. The
increase in high net worth individuals/retail reflects, in part, the new fund
launched in the year targeting Japanese retail investors. The investor profile
within the institutional segment showed an increase in the proportion of
government investors (up from 9% to 12%) and a decline in bank investors (22% to
17%). Public pension plan investors increased from 16% to 18% while the
proportion of corporate pension investors reduced from 22% to 16%.
The geographic profile of the Group's investors remains diversified. During the
year there was strong asset gathering in Europe, including a number of
significant mandate wins in the UK.
Cash flow and balance sheet
The Group has strong cash generative characteristics as demonstrated by the
£85.3 million increase in the Group's cash balances during the year to £218.0
million as at 30 June 2007. The needs for a strong balance sheet remain: to
support regulatory capital requirements, to meet the commercial demands of
current and prospective investors, and the development needs of the business,
including seeding of new funds/initiatives. As part of the process of developing
its presence in local emerging markets, a certain proportion of the Group's
capital resources may be utilised for such purposes.
The Group's policy remains that, should the Group accumulate cash which is
surplus to that required to meet its continuing obligations and to fund future
growth, consideration will be given to returning surplus cash and capital to
shareholders in an appropriate manner.
As at 30 June 2007, total equity was £196.0 million compared to £96.6 million at
30 June 2006. There is no debt on the Group's balance sheet.
Dividend
As a result of the highly cash generative nature of the business, subject to
shareholder approval, a final dividend of 6.7p per share is proposed to be paid
on 7 December 2007 to shareholders on the register on 9 November 2007, the
ex-dividend date being 7 November 2007. An interim dividend for the six-month
period to 31 December 2006 of 2.3p was paid on 27 April 2007. This would result
in a full-year dividend of 9.0p. The Company's intention is for its dividend
policy to be progressive.
US$/£ exchange rate
The results for the year ended 30 June 2007 were achieved against the backdrop
of a weaker US$/£ exchange rate. As the majority of the Group's revenue is
denominated in US dollars and its costs in sterling, this has impacted on the
Group's reported profit. Reported profit before tax increased by £27.5 million,
a 26% increase over the prior year. In constant exchange rate terms, profit
before tax increased by 36%. This was after restating the prior year figures at
the current year's average US$/£ exchange rate (2007 US$/£ 1.95; 2006 US$/£
1.78).This resulted in the following restatements to the prior year numbers:
lower net revenue in sterling terms (£11.4 million), net hedging gains excluded
(£0.9 million), and a notional reworking of the variable compensation cost to
reflect the above items (a £3.0 million reduction). In the current year, £2.7
million of net hedging gains were excluded. On this basis, the net impact of the
movement in the US$/£ exchange rate on the reported increase in profit before
tax in the year of £27.5 million was £6.6 million.
Taxation
The vast majority of the Group's profit is subject to UK taxation and typically
the Group has a limited number of non-tax deductible expenses. Consequently the
Group's effective tax rate has historically tracked close to the 30% UK
statutory tax rate. The introduction of a 28% corporation tax rate from 1 April
2008 will have a small beneficial impact on the Group's effective corporation
tax rate in the financial year to 30 June 2008, with the full-year benefit in
the following financial year.
There is a £14.4 million deferred tax asset on the Group's balance sheet at 30
June 2007. This is largely due to cash tax deductions which will arise over the
next seven or so years in respect of share price appreciation on share-based
payments awards.
Strategy
The Group's strategy is to be the leading emerging markets investment manager by
maintaining a market-leading investment track record, delivering growth and
enhancing diversification of earnings, facilitating such controlled growth and
developing further the Ashmore brand and business model.
These results demonstrate very clearly the progress that the Group has made in
the year towards its strategic objectives. Substantial growth in AuM, revenue
and profit has been achieved while progress continues in diversifying the
Group's AuM by investment theme, geography, fund structure, risk/return profile,
duration and investor type (institutional/high net worth individuals/retail and
within institutional).
The Group continues to research new opportunities to diversify further and to
continue to grow the Group's investment themes and earnings streams, and to
access the growing domestic capital pools within selected emerging markets. This
may result in the Group using a proportion of its resources as seed capital for
new fund launches/initiatives.
Annual performance fees for August 2007 fund year ends
Annual performance fees (unaudited) for the funds with year ends at 31 August
2007 (EMLIP, LCD and ARD) were £17.6 million (2006: £0.3 million) and these will
be recognised within revenue in the six months to 31 December 2007.
Outlook
The Group remains focused on delivering long-term investment out-performance,
generating net management fee income through the attraction of net subscriptions
across its investment themes and developing the Ashmore brand and business
model.
Despite continuing market volatility, trading conditions across the Group's
investment themes during the last quarter of the 2007 financial year and into
the start of the 2008 financial year remain satisfactory. The Group continues to
believe that strong macro-economic, demographic and political factors, together
with enhanced liquidity, index weighting and credit worthiness in the Group's
markets will continue to underpin long-term growth across emerging market
classes.
These factors, together with Ashmore's experience and expertise in emerging
markets investment management, position the Group well to benefit from further
demand for emerging market investment management products and to continue its
growth momentum into the 2008 financial year.
About Ashmore Group plc
Ashmore is one of the world's leading emerging market investment managers with a
history of consistently outperforming the market. Ashmore currently specialises
in a number of emerging market investment themes: dollar denominated debt, local
currency and local currency debt, special situations incorporating distressed
debt / private equity, and public equity.
More information is available on the Group's website www. ashmoregroup.com.
Ashmore Group plc
Consolidated income statement
Year ended 30 June 2007
2007 2006
Notes £m £m
_____________________________________________________________________________________________
Management fees 130.2 80.8
Performance fees 20.4 54.2
Other revenue 13.0 2.9
_____________________________________________________________________________________________
Total revenue 163.6 137.9
Less: Distribution costs (3.8) (2.3)
_____________________________________________________________________________________________
Net revenue 159.8 135.6
Personnel expenses 2 (32.6) (34.4)
Other expenses (5.5) (6.5)
_____________________________________________________________________________________________
Operating profit 121.7 94.7
Gain on sale of business - 2.8
Interest income 9.7 6.5
Interest expense - (0.1)
_____________________________________________________________________________________________
Profit before tax 131.4 103.9
Income tax expense (39.9) (32.3)
_____________________________________________________________________________________________
Profit for the year 91.5 71.6
=============================================================================================
Attributable to:
Equity holders of the parent 91.4 71.5
Minority interest 0.1 0.1
_____________________________________________________________________________________________
Profit for the year 91.5 71.6
=============================================================================================
Earnings per share:
Basic 3 13.7p 10.8p
Diluted 3 12.9p 10.4p
Ashmore Group plc
Consolidated balance sheet
As at As at
30 June 30 June
2007 2006
Note £m £m
______________________________________________________________________________________________
Assets
Property, plant and equipment 0.2 0.2
Intangible assets 4.1 4.1
Other receivables 0.1 3.6
Deferred tax asset 14.4 1.6
______________________________________________________________________________________________
Total non-current assets 18.8 9.5
______________________________________________________________________________________________
Trade and other receivables 27.2 20.0
Derivative financial instruments 0.5 1.3
Cash and cash equivalents 218.0 132.7
Total current assets 245.7 154.0
Total assets 264.5 163.5
Equity
Issued capital 5 - -
Share premium 0.3 0.3
Retained earnings 195.6 96.3
______________________________________________________________________________________________
Total equity attributable to equity holders of the
parent 195.9 96.6
Minority interest 0.1 -
______________________________________________________________________________________________
Total equity 196.0 96.6
______________________________________________________________________________________________
Liabilities
Deferred tax liabilities - 0.1
______________________________________________________________________________________________
Total non-current liabilities - 0.1
______________________________________________________________________________________________
Current tax 15.7 18.0
Derivative financial instruments - 0.1
Trade and other payables 52.8 48.7
______________________________________________________________________________________________
Total current liabilities 68.5 66.8
______________________________________________________________________________________________
Total liabilities 68.5 66.9
______________________________________________________________________________________________
Total equity and liabilities 264.5 163.5
==============================================================================================
Ashmore Group plc
Consolidated statement of changes in equity
Total equity
attributable
to equity
Issued Share Retained holders of the Minority Total
capital premium earnings parent interest equity
£m £m £m £m £m £m
_______________________________________________________________________________________________________
Balance at 1 July 2005 - 0.3 69.1 69.4 0.5 69.9
Profit for the year - - 71.5 71.5 0.1 71.6
Share-based payments - - 10.7 10.7 - 10.7
Disposal of business - - - - (0.6) (0.6)
Dividends - - (55.0) (55.0) - (55.0)
_______________________________________________________________________________________________________
Balance at 30 June 2006 - 0.3 96.3 96.6 - 96.6
Profit for the year - - 91.4 91.4 0.1 91.5
Share-based payments - - 6.5 6.5 - 6.5
Current tax - - 4.2 4.2 - 4.2
Deferred tax related to - - 11.6 11.6 - 11.6
share-based payments
Sale of own shares held - - 1.1 1.1 - 1.1
Dividends - - (15.5) (15.5) - (15.5)
_______________________________________________________________________________________________________
Balance at 30 June 2007 - 0.3 195.6 195.9 0.1 196.0
=======================================================================================================
Ashmore Group plc
Consolidated cash flow statement
Year ended 30 June 2007
2007 2006
Note £m £m
____________________________________________________________________________________________________
Operating activities
Cash receipts from customers 164.6 151.7
Cash paid to suppliers and employees (32.3) (34.7)
____________________________________________________________________________________________________
Cash generated from operations 132.3 117.0
Income taxes paid (39.2) (22.7)
____________________________________________________________________________________________________
Net cash from operating activities 93.1 94.3
____________________________________________________________________________________________________
Investing activities
Interest received 9.5 6.1
Dividends received - 1.4
Net proceeds from disposal of subsidiary - (0.2)
Purchase of property, plant and equipment (0.1) -
____________________________________________________________________________________________________
Net cash from investing activities 9.4 7.3
____________________________________________________________________________________________________
Financing activities
Dividends paid 4 (15.5) (55.0)
___________________________________________________________________________________________________
Net cash used in financing activities (15.5) (55.0)
___________________________________________________________________________________________________
Effect of exchange rate changes on cash and cash (1.7) (0.5)
equivalents
____________________________________________________________________________________________________
Net increase in cash and cash equivalents 85.3 46.1
Cash and cash equivalents at beginning of year 132.7 86.6
____________________________________________________________________________________________________
Cash and cash equivalents at end of year 218.0 132.7
====================================================================================================
Cash and cash equivalents comprise:
Cash at bank and in hand as shown in balance sheet 218.0 132.7
____________________________________________________________________________________________________
218.0 132.7
====================================================================================================
Notes to the Group financial statements
1) Basis of preparation and significant accounting policies
In preparing the financial information in this statement the Group has applied
policies which are in accordance with IFRSs as adopted by the European Union at
30 June 2007. The accounting policies applied in these financial statements are
consistent with those applied in the Group's prospectus, prior to listing on the
London Stock Exchange on 12 October 2006, for the year ended 30 June 2006. The
prospectus is available on the Group's website.
2) Personnel expenses
Number of employees
The number of employees of the Group (including executive directors) during the reporting
years, analysed by category, was as follows:
Average for the Average for
year the
ended year ended As at As at
30 June 30 June 30 June 30 June
2007 2006 2007 2006
Number Number Number Number
_______________________________________________________________________________________________
Investment management 59 42 69 49
Fund administration - 6 - -
_______________________________________________________________________________________________
Total employees 59 48 69 49
_______________________________________________________________________________________________
The fund administration employees in the above table relate to the employees of
International Administration (Guernsey) Limited which was sold on 30 December
2005.
Analysis of employee benefits expense
Year ended Year ended
30 June 30 June
2007 2006
£m £m
________________________________________________________________________________________________
Wages and salaries 3.8 3.0
Share-based payments 5.7 6.8
Performance related bonuses 21.7 23.6
Social security costs 0.5 0.3
Pension costs 0.2 0.2
Other costs 0.7 0.5
________________________________________________________________________________________________
Total employee benefits 32.6 34.4
________________________________________________________________________________________________
3) Earnings per share
Basic earnings per share is calculated by dividing the profit for the year
attributable to equity holders of the parent by the weighted average number of
ordinary shares in issue during the year.
Diluted earnings per share is calculated as for basic earnings per share with a
further 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 year attributable to equity
holders of the parent used in the basic and diluted earnings per share
calculations.
Reconciliation of the figures used in calculating basic and diluted earnings per
share:
Year ended Year ended
30 June 30 June
2007 2006
________________________________________________________________________________________________
Weighted average number of ordinary shares used in
calculation of basic earnings per share 667,467,808 660,200,000
Effect of dilutive potential ordinary shares - share
options 38,827,815 26,859,915
________________________________________________________________________________________________
Weighted average number of ordinary shares used in
calculation of diluted earnings per share 706,295,623 687,059,915
________________________________________________________________________________________________
4) Dividends
An analysis of dividends paid is as follows:
Group and Company Year ended Year ended
30 June 30 June
2007 2006
_______________________________________________________________________________________________
Interim dividend £15.5m £55.0m
Dividend per share 2.30p 8.33p
_______________________________________________________________________________________________
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.
On 12 September 2007 the board proposed a final dividend of 6.7p per share for
the year ended 30 June 2007. This has not been recognised as a liability of the
Group at the year end as it has not yet been approved by shareholders. Based on
the number of shares in issue at the year end which qualify to receive a
dividend, the total amount payable would be £44.7m.
5) Share capital
Group and Company
(a) Share capital authorised
As at As at As at As at
30 June 30 June 30 June 30 June
2007 2007 2006 2006
Number of Nominal value Number of Nominal value
shares £'000 shares £'000
_______________________________________________________________________________________________
Ordinary shares of 0.01p each 900,000,000 90 900,000,000 90
_______________________________________________________________________________________________
(b) Share capital issued
Allotted, called up and fully paid equity
shares:
As at As at As at As at
30 June 30 June 30 June 30 June
2007 2007 2006 2006
Number of Nominal value Number of Nominal value
shares £'000 shares £'000
_______________________________________________________________________________________________
Ordinary shares of 0.01p each 708,925,000 70 708,925,000 70
_______________________________________________________________________________________________
All the above ordinary shares represent equity of the Company and rank pari
passu in respect of participation and voting rights.
At 30 June 2006 there were 46,225,000 options in issue with contingent rights to
the allotment of ordinary shares of 0.01p in the Company. The exercise period
for these options ranges from December 2005 to April 2016 and the allotment
price ranges from 0.52p to 24.24p.
At 30 June 2007 there were 38,152,921 options in issue with contingent rights to
the allotment of ordinary shares of 0.01p in the Company. The exercise period
for these options ranges from December 2005 to December 2016 and the allotment
price ranges from 0.52p to 170.0p. There are also restricted share awards issued
under the Ashmore First Discretionary Share Option Scheme totalling 2,009,522
shares that have a release date in November 2011.
6) Own shares
The Ashmore 2004 Employee Benefit Trust (EBT) was established to encourage and
facilitate the acquisition and holding of shares in the Company by the employees
of the Company with a view to facilitating the recruitment and motivation of the
employees of the Company. As at the period end, the EBT owned 38,725,000 (June
2006: 48,725,000) ordinary shares of 0.01p with a nominal value of £3,872.50
(June 2006: £4,872.50) and shareholders' funds are reduced by £5.9m (June 2006:
£4.8m) in this respect. It is the intention to make these shares available to
employees by way of sale through the share option scheme.
7) Exchange rates
The only foreign exchange rate which has a material impact on the reporting of
the Group's results is the US dollar.
Closing rate Closing rate Average rate Average rate
as at as at year ended year ended
30 June 2007 30 June 2006 30 June 2007 30 June 2006
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US dollar 2.0088 1.8484 1.9466 1.7806
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This information is provided by RNS
The company news service from the London Stock Exchange
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