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Ninety One PLC (N91)

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Wednesday 20 May, 2020

Ninety One PLC

Final Results

RNS Number : 4091N
Ninety One PLC
20 May 2020
 

                                          Ninety One plc                                                               Ninety One Limited 

  Incorporated in England and Wales                                Incorporated in the Republic of South Africa 

  Registration number 12245293                                      Registration number 2019/526481/06 

  Date of registration: 4 October 2019                            Date of registration: 18 October 2019 

  LSE share code: N91                                                     JSE share code: NY1 

  JSE share code: N91                                                     ISIN: ZAE000282356

  ISIN: GB00BJHPLV88 

 

 

 

Results for the year ended 31 March 2020

Highlights

· This was a year of meaningful progress in the strategic positioning of Ninety One as an independent, focused investment manager with significant employee ownership. We executed a demerger and listing, with an exciting new brand.

· We delivered net inflows of £6.0 billion, in line with the prior year, representing a torque ratio of 5.4%.

· Assets under management reduced 7% to £103.4 billion.

· Profit before tax increased 11% to £198.5 million.

· Basic earnings per share increased 11% and adjusted earnings per share increased 10%.

· Short-term investment performance was negatively affected by the extreme market correction in March 2020.

· Employees now own more than 21% of Ninety One, which leaves us even better aligned with our clients and shareholders.

· In response to the COVID-19 pandemic, we prioritised the wellbeing of our people and did not furlough or make redundant any of our staff.  We contributed £2.9 million to relief efforts.

 

Key financials1

Full year 2020

Full year 2019

Change

%

Assets under management (£'bn)

103.4

111.4

(7)

Net flows (£'bn)

6.0

6.1

(1)

Net revenue (£'m)

609.9

556.9

10

Adjusted operating revenue (£'m)

588.0

540.6

9

Adjusted operating margin

32.3%

31.9%

n.m.

Profit before tax (£'m)

198.5

178.4

11

Basic earnings per share (p)

16.8

15.1

11

Headline earnings per share (p)

16.8

15.0

12

Adjusted earnings per share (p)

 16.1

14.6

10

Note: 1. Please refer to explanations and definitions on pages 14 and 15.

 

Hendrik du Toit, Founder and Chief Executive Officer, commented:  

"Last year was a momentous year for Ninety One. We ended our twenty-ninth year in business with record earnings, a quality client base from across the world, highly motivated people and an experienced leadership team, but were challenged by the consequences of the COVID-19 pandemic.

During the last month of the 2020 financial year, we successfully demerged from Investec, listed on the London and Johannesburg Stock Exchanges, and rebranded as Ninety One. Significantly, all staff are now shareholders and the people who work in the firm collectively own more than 21% of the equity of Ninety One. This was a pivotal period in the evolution of our business. While these developments support our proposition as an independent investment manager with significant employee ownership, it is important to emphasise the stability of our staff and the continuity our long-term strategy, which underpin the success of our business.

These developments took place in the face of extreme market volatility and weakened economic prospects, which we expect to endure for some time. The resilience of our people and technology enabled us to provide all our clients with uninterrupted service and intensified engagement. We successfully facilitated remote working for our staff to ensure their wellbeing just days after the demerger and listing. Ninety One is committed to doing its best for all stakeholders in the ongoing battle against this pandemic and its devastating economic consequences. We will do this by remaining focused on our clients and the investments we make on their behalf. We will engage and support the companies we invest in, care for our people and contribute to the societies we serve."

 

For further information please contact:

Investor relations

Varuni Dharma    [email protected] +44(0) 203 938 2486 

Eva Hatfield    [email protected]   +44(0) 203 938 2908 

Media

Media enquiries

 

Neil Doyle, FTI Consulting (UK)   [email protected]  +44 (0) 20 3727 1141 

Daniel Thole, Fletcher Advisory (South Africa)   [email protected]   +27 (0) 61 400 2939

 

Investor presentation

A presentation to investors and financial analysts will be made via live webcast at 9.00 am (UK time) on 20 May 2020. The webcast link is available at https://ninetyone.com/full-year-results .

A copy of the presentation will be made available on the company's website at https://ninetyone.com/2020-results-documents . The integrated annual report will be published in July 2020 and will be available at https://ninetyone.com/2020-results-documents .

Forward-looking statements

This announcement does not constitute or form part of any offer, invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Ninety One plc and its subsidiaries or Ninety One Limited and its subsidiaries (together, "Ninety One"), nor should it be construed as legal, tax, financial, investment or accounting advice. 

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements may be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect Ninety One's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Ninety One's business, results of operations, financial position, liquidity, prospects, growth and strategies. Forward-looking statements speak only as of the date they are made.

Ninety One expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement or any other forward-looking statements it may make whether as a result of new information, future developments or otherwise.

About Ninety One

Ninety One is an independent investment manager, founded in South Africa in 1991. It now operates and invests globally and offers a range of active strategies to its global client base. 

Ninety One is listed on the London and Johannesburg Stock Exchanges.

 

CHIEF EXECUTIVE OFFICER'S REVIEW

The financial year to 31 March 2020 was a momentous year for Ninety One.  We ended our twenty ninth year in business with record earnings growth, a quality client base from across the world, and a highly motivated and experienced leadership team, but challenged by the enormous economic and market consequences of the COVID-19 pandemic.

During the last month of the financial year, we successfully demerged from Investec, listed on the London and Johannesburg Stock Exchanges ("LSE" and "JSE"), and rebranded as Ninety One. Significantly, now all staff can be shareholders and the people who work in the firm collectively own more than 21% of the equity of Ninety One. This was a pivotal period in the evolution of our business. While these developments support our proposition as an independent investment manager with a significant employee ownership, it is important to emphasise the stability of our staff and continuity of our long-term strategy, which underpin the success of our business.

Strategy and opportunities

Although the past year is correctly characterised as eventful, our strategy remains consistent. Ninety One continues to provide a range of specialist, active strategies to its global client base. The business is differentiated from the competitor universe by its blend of global and emerging markets investment expertise. With its origins in emerging markets, Ninety One remains committed to participating in the well-established, structural trend of increased representation of these markets in major indices, in line with their growing weight in the total world economy. Our investment approach combines this perspective with a global approach to investing, free from "home bias". The near-term challenges facing emerging markets, relating to the COVID-19-triggered downturn, have not changed our long-term view. On the contrary, we expect the next few years to provide our investors with compelling long-term opportunities in both developed and emerging markets and risk assets in general. The stable and experienced investment teams at Ninety One are motivated to make the most of these opportunities for our clients and shareholders.

Investment performance and progress

In many ways the reporting period was a "year of two parts". Most of the first 11 months took place against the background of rising markets and an expanding global economy. During this period, our short- and longer-term investment performance, as measured at firm level on an aggregate asset-weighted basis displayed an improving trend. As at the end of December 2019, our one- and three-year firm-wide outperformance stood at 81% and 71% respectively. This compared favourably with the numbers we released for the half year to 30 September 2019 (54% and 75% for one- and three-year firm-wide outperformance respectively).

After markets were hit by the COVID-19 correction in March 2020, the situation deteriorated to the point where our aggregate performance looked decidedly average over one and three years, where the percentage of our strategies, measured on an aggregate asset-weighted basis, that beat their benchmarks were 39% and 55% respectively. Value strategies had a particularly tough time. On the positive side, other global and emerging markets equity strategies delivered excellent results. Our South African domestic strategies also reported strong performance. This period of market dislocation caused by the COVID-19 "black swan" event will create opportunities for substantial alpha generation over the coming year and we intend to capture as many of these opportunities as possible. The past year has not been our best performance year, but the investment teams have been here before and know exactly what they need to do to improve the situation. They have the full support of the leadership team to achieve this.

Ninety One has strong client relationships, built up over many years. This is because clients come first at Ninety One. This is non-negotiable and central to the way in which we operate.  Against a very challenging background for the active investment industry, we have achieved net inflows in line with the prior year. The flows were mainly driven by our fixed income and specialist equities offerings. Our five client regions (known as "Client Groups") have all generated net inflows, with the UK, Africa and Europe the best performers.

Our focus on developing our outcomes-based offerings across the advisor market was also well reflected in strong inflows in certain multi-asset strategies. Meanwhile, we remain confident that our substantial investments in our Americas and Asia Pacific Client Groups will deliver further value for our shareholders in due course.

Over the past year, Ninety One has increased its investment in technology to support our front office investment and client-facing teams.  We are acutely aware of the benefits of our single and well-invested operations platform, which we have built over many years. The fact that we could grow over the past year, demerge, list and rebrand on schedule whilst coping with the COVID-19 imperative to enable more than 1,000 people to work from home without a major incident, tells the story of a robust, experienced, well-invested and well-run operations platform.

Outlook

As we look ahead to the new year, we recognise the challenging market conditions and competitive environment which we face.

Our well-tested and diverse set of investment capabilities are in areas relevant to our clients, as evidenced by recent flows. We have solid bridgeheads into the largest markets in the world and we have maintained positive momentum in our original markets. We expect the appetite for risk assets to increase over time as the extreme volatility recedes and we see abundant opportunities for alpha generation for our clients. Notwithstanding these opportunities, we expect significant revenue pressure in the coming period. Our response will be one of strict prioritisation and cost discipline, but without impairing our ability to serve our clients in these uncertain times.

Ninety One is committed to doing its best for all stakeholders in the ongoing battle against the COVID-19 pandemic and its devastating economic consequences. We will do this by remaining focused on our clients and the investments we make on their behalf. We recognise the key to our long-term growth is maintaining client relevance and delivering investment performance. Furthermore, we will engage and support the companies we invest in, care for our people and contribute to the societies we serve.  

We believe our staff stability and strategic clarity position us well for the long term. We intend to use this moment of market and economic dislocation to inspire ourselves to build a better firm, develop better ways of investing and renew our commitment to building a better world. The people of Ninety One fully intend to pursue our purpose of investing for a better tomorrow.

Finally, I would like to thank our clients, shareholders, regulators, board of directors and all the people at Ninety One for their support through this time of change.   

 

OPERATING REVIEW

Assets under management ("AUM")

Our AUM reduced 7% to £103.4 billion (31 March 2019: £111.4 billion), as the positive net flows were offset by negative market movements, caused by the impact of COVID-19 in the last month of the year. The market and foreign exchange impact in the year was negative £14.0 billion (2019: positive £1.4 billion).

AUM by asset class

£ million

31 March 2020

31 March 2019

Change %

Equities

45,824

50,534

(9)

Fixed income

30,495

29,782

2

Multi-asset

18,261

20,504

(11)

Alternatives

2,608

3,272

(20)

South African fund platform

6,218

7,326

(15)

Total

103,406

111,418

(7)

 

Our AUM remained well diversified across asset classes. The mix of AUM remained broadly unchanged from the prior year. In spite of positive net flows into all asset classes, the negative impact of markets and foreign exchange reduced the overall AUM in all asset classes (and the South African fund platform) compared with the prior year, with the exception of fixed income, which saw a marginal increase.

AUM by Client Group

£ million

31 March 2020

31 March 2019

Change %

United Kingdom

21,922

22,739

(4)

Africa

35,963

40,595

(11)

Europe

14,479

13,828

5

Americas

13,649

15,142

(10)

Asia Pacific

17,393

19,114

(9)

Total

103,406

111,418

(7)

 

The AUM of the business remains well diversified by Client Group. The negative impact of markets and foreign exchange reduced AUM in all regions compared with the prior year. The only exception was Europe, which achieved AUM growth.

AUM by client type

£ million

31 March 2020

31 March 2019

Change %

Advisor

33,422

35,328

(5)

Institutional

69,984

76,090

(8)

Total

103,406

111,418

(7)

 

The proportion of total AUM managed on behalf of institutional clients remained flat at 68%, with the remainder managed on behalf of advisor clients. This reflects our strong and stable relationships with our clients and our focus on growing and deepening our reach in both channels. Notwithstanding positive net flows from both advisor and institutional clients, AUM in each channel was reduced by markets and foreign exchange, compared with the prior period.

Net flows

Notwithstanding the significant turbulence in the global markets, we achieved net inflows of £6.0bn, in line with the prior year. This represents 5.4% of opening AUM (2019: 5.9%).

 

Net flows by asset class

£ million

31 March 2020

31 March 2019

Equities

2,435

2,391

Fixed income

2,537

2,748

Multi-asset

751

447

Alternatives

108

280

South African fund platform

217

227

Total

6,048

6,093

 

We saw positive flows across all asset classes, with particularly good flows across our fixed income and specialist equities strategies. The overall allocation of net inflows between equities and fixed income remained broadly similar. In equities, this reflected our focus in recent years on growing the Quality equities capability, across both the advisor and institutional channels. Our recently developed sustainability strategies continued to gain investor attention. Multi-asset net inflows were higher compared to prior year, which reflected our focus on scaling our outcomes-based offerings across the advisor market. 

 

Net flows by Client Group

£ million

31 March 2020

31 March 2019

United Kingdom

2,342

1,703

Africa

1,835

2,908

Europe

1,549

981

Americas

256

593

Asia Pacific

66

(92)

Total

6,048

6,093

 

We achieved net inflows in all Client Groups. Net inflows into our most established markets of the UK and Africa were strong at £2.3 billion and £1.8 billion respectively, driven mainly by our established fixed income and equities asset classes. Europe was another area with strong net inflows, driven by our fixed income strategies, including our recently-launched credit strategies.

 

Net flows by client type

£ million

31 March 2020

31 March 2019

Advisor

2,382

1,805

Institutional

3,666

4,288

Total

6,048

6,093

 

There were positive net flows across both the advisor and institutional channels with £2.4 billion and £3.7 billion, respectively. Institutional net inflows were strong in equities and fixed income and were positive in all regions. Our focus on scaling our outcomes-based offerings across the advisor market was reflected in strong inflows in certain multi-asset strategies. Similarly, our specialist equities offerings were a significant driver of advisor inflows.

 

Investment performance

Firm-wide investment performance1

During the financial year 2020, short- and longer-term firm-wide investment performance displayed an improving trend. As at the end of December 2019, our one- and three-year outperformance stood at 81% and 71% respectively. This compared favourably with the numbers for the half year to 30 September 2019 (54% and 75% for one- and three-year firm-wide outperformance respectively).

However, after markets were hit by the COVID-19 correction in March 2020, firm-wide outperformance deteriorated resulting in the one- and three-year firm-wide outperformance closing at 39% and 55% respectively (compared with 54% and 71% respectively as at 31 March 2019). Notwithstanding this, long-term firm-wide investment performance remains robust.

 

1 Year

3 Year

5 Year

10 Year

Since inception

Outperformance

39%

55%

56%

79%

71%

Underperformance

61%

45%

44%

21%

29%

Note:

1. Firm-wide outperformance (underperformance) is calculated as the sum of the total market values for individual portfolios that have positive active returns (negative active returns) on a gross basis expressed as a percentage of total AUM. Our percentage of firm outperformance is reported on the basis of current AUM and therefore does not include terminated funds. Total AUM excludes double-counting of pooled products and third party assets administered on our South African fund platform. Benchmarks used for the above analysis include cash, peer group averages, inflation and market indices as specified in client mandates or fund prospectuses. For all periods shown, market values are as at the period end date.

 

Mutual fund investment performance1

During the financial year 2020, Ninety One's mutual fund investment performance on a one-year basis improved over the year with 51% of mutual funds in the first or second quartiles (compared with 49% as at 31 March 2019). On a three- and five-year basis, mutual fund performance declined with 52% and 62% of mutual funds in the first or second quartile respectively (compared with 72% and 70% respectively as at 31 March 2019).

 

1 Year

3 Year

5 Year

10 Year

First quartile

28%

33%

31%

36%

Second quartile

23%

19%

31%

48%

Third quartile

34%

40%

22%

7%

Fourth quartile

15%

7%

17%

9%

Notes:

1. Mutual fund performance and ranking as per Morningstar data using primary share classes net of fees to 31 March 2020. Peer group universes are either IA, GIFS or ASISA sectors as classified by Morningstar. Cash or cash-equivalent funds are excluded from the tables. Mutual fund performance weighted by AUM.

Percentages may not add up to 100% due to rounding.

 

FINANCIAL REVIEW

Summary income statement 1

£ million (unless stated)

Full year 2020

Full year 2019

Change %

Closing AUM (£ billion)

103.4

111.4

(7)

Net flows (£ billion)

6.0

6.1

(1)

Average AUM (£ billion)

118.3

108.0

10

 

 

 

 

Management fees

565.7

524.6

8

Performance fees

21.5

11.0

95

Foreign exchange gains and other income

0.8

5.0

(84)

Adjusted operating revenue

588.0

540.6

9

Adjusted operating expenses

(398.1)

(368.1)

8

Adjusted operating profit

189.9

172.5

10

Adjusted net interest income

4.5

5.5

(18)

Silica profit

1.9

1.4

36

Profit before tax and exceptional items

196.3

179.4

9

Exceptional items

 

 

 

Ninety One share scheme implementation

13.1

-

n.m.

Other exceptional items

(10.9)

(1.0)

n.m.

Profit before tax

198.5

178.4

11

Tax expense

(42.5)

(38.6)

10

Profit after tax

156.0

139.8

12

 

 

 

 

Average fee rate (bps)

47.8

48.6

n.m

Adjusted operating profit margin

32.3%

31.9%

n.m

Compensation ratio

44.0%

44.9%

n.m

Full-time employees

 1,165

 1,139

2

Note: 1. Please refer to explanations and definitions on pages 14 and 15.

 

Our adjusted operating profit increased 10% to £189.9 million (2019: £172.5 million). Adjusted operating profit margin of 32.3% increased on prior year (2019: 31.9%), principally due to higher performance fees earned. Profit before tax and exceptional items increased 9% to £196.3 million (2019: £179.4 million).

Assets under management

Ninety One achieved net inflows of £6.0 billion, in line with the prior year. Total AUM reduced by 7% to £103.4 billion (31 March 2019: £111.4 billion), as the net inflows were more than offset by negative market movements in the last month of the financial year. The market and foreign exchange impact for the year was negative £14.0 billion (2019: positive £1.4 billion).

The torque ratio of 5.4% was slightly lower than prior year (2019: 5.9%), as a result of similar net flows but higher opening AUM of £111.4 billion (31 March 2019:  £103.9 billion).

The average AUM increased 10% to £118.3 billion (31 March 2019: £108.0 billion), reflecting the positive market environment for most of the financial year.

Adjusted operating revenue

Management fees increased 8% to £565.7 million (2019: £524.6 million), below the 10% growth in average AUM, reflecting downward fee pressure due to some new mandates agreed at lower fee rates. Average fee rates were also impacted by the AUM mix, with growth in lower fee rate investment strategies, such as fixed income, relative to higher fee rate investment strategies, such as alternatives. The average management fee rate reduced 0.8 bps to 47.8bps (2019: 48.6bps).

Performance fees increased to £21.5 million (2019: £11.0 million) reflecting relative investment outperformance in a selection of strategies, particularly in South African equities.

Foreign exchange gains and other income of £0.8 million was lower compared to prior year (2019: £5.0 million) mainly due to lower foreign exchange gains earned as sterling strengthened and mark-to-market losses on private equity co-invested capital.

Adjusted operating expenses

Adjusted operating expenses increased 8% to £398.1 million (2019: £368.1 million), largely driven by an increase in staff expenses, as well as higher accommodation expenses. The increase in accommodation expenses was mainly due to a new office building in London, with the resulting double rent and associated expenses.

Staff expenses

Ninety One is a people business, and our staff expenses represent the largest portion of our expense base. Total staff expenses (excluding Silica and the deferred employee benefit scheme) increased by 7% to £258.8 million (2019: £242.6 million). This reflects a 5% increase in average headcount to 1,148 (2019: 1,094), with the remainder due to inflation and market-related adjustments.  The growth in headcount largely relates to the replacement of functions previously provided by Investec such as IT support services and internal audit. 

Over 50% of our staff expenses are variable and fluctuate in line with adjusted operating profit ensuring alignment with financial performance. 

The total compensation ratio reduced to 44.0% (2019: 44.9%), mainly due to the growth in management and performance fees being higher than the growth in total staff expenses.

Non-staff expenses

Non-staff expenses increased 11% to £139.3 million (2019: £125.5 million). This largely reflects non-recurring items such as duplicate London rental and one-off donations to COVID-19 relief efforts of £2.9 million, as well as an increase in systems and other expenses. We expect the accommodation expense to normalise following the office move in London in June 2020. Remaining expenses grew largely in line with business activity levels, and our continued investment to support long-term growth. 

Adjusted net interest income

Adjusted net interest income decreased to £4.5 million (2019: £5.5 million) in line with lower interest rates and maintaining reasonable levels of capital. Adjusted net interest income excludes interest expense on lease liabilities of £3.0m (2019: nil), which has been included in adjusted operating expenses. This ensures that the changes resulting from the implementation of IFRS 16 Leases reflect consistently in adjusted operating expenses for both years.

Silica

Silica is our transfer agency business in South Africa, which was established in 1999. Its profits are not material as it reinvests them annually into its core operational platforms.

Ninety One share scheme implementation

Upon the successful listing, Ninety One awarded shares to the value of £2,000 to each eligible employee and also partially invested deferred compensation awards in shares into the Ninety One share scheme. The Ninety One share scheme implementation income of £13.1 million (2019: nil) reflects the impact of reversing staff expense accruals to fund the investment into the new Ninety One share schemes in March 2020, net of the share scheme expenses which are amortised over the vesting period of the awards under IFRS 2 Share-based Payment . This is to ensure a like-for-like comparison of our operating expenses with the prior financial year.

Other exceptional items

Other exceptional items of £10.9 million (2019: £1.0 million) largely related to the demerger from Investec, and subsequent listing on the LSE and JSE. Most of the demerger expenses related to promotional and rebranding expenses, as well as the IT network and support services migration. The other exceptional items in financial year 2019 included the demerger expenses and net foreign exchange related gain on the closing of our Taiwan subsidiary.

Profit before tax 

Profit before tax increased by 11% to £198.5 million (2019: £178.4 million), while adjusted operating profit increased 10% to £189.9 million (2019: £172.5 million).

Effective tax rate

The effective tax rate was 21.4% (2019: 21.6%), above the UK corporation tax rate of 19.0% (2019: 19.0%), mainly due to the effect of higher tax rates applicable in foreign jurisdictions such as South Africa, where the tax rate is 28.0% (2019: 28.0%). The change in the effective tax rate in financial year 2020 was due to an increase in profits earned in higher tax rate countries offset by the adjustment of deferred tax assets for the fact that the UK tax rate will no longer reduce to 17.0% as previously announced.

Earnings per share

£ million (unless stated otherwise)

Full year 2020

Full year 2019

Change %

Profit after tax

156.0

139.8

12

Profit attributable to non-controlling interests

(0.6)

(0.5)

20

Profit attributable to ordinary shareholders

155.4

139.3

11

Ninety One share scheme implementation1

 (13.1)

                   - 

n.m.

Other exceptional items1

  10.9

 1.0

n.m.

Adjusted net interest income1

  (4.5)

  (5.5)

(18)

Silica profit1

  (1.9)

 (1.4)

36

Tax on adjusting items1

2.0

1.6

25

Adjusted earnings attributable to ordinary shareholders

148.8

135.0

10

 

 

 

 

Weighted average number of ordinary shares (m)

922.5

922.7

0

Number of ordinary shares (m)

922.7

922.7

-

 

 

 

 

Basic earnings per share (p)

16.8

15.1

11

Diluted earnings per share (p)

16.8

15.1

11

Headline earnings per share (p)

16.8

15.0

12

Adjusted earnings per share (p)

16.1

14.6

10

Note: 1. These items comprise "non-operating items" per adjusted earnings per share definition on page 15  

Basic earnings per share ("Basic EPS") and diluted EPS grew 11% to 16.8p (2019: 15.1p). There was no change in the number of shares in issue and the impact of the investment in own shares held by Ninety One as part of the new Ninety One share scheme had minimal impact on the weighted average number of ordinary shares. Headline earnings per share ("HEPS") grew 12% to 16.8p (2019: 15.0p), broadly in line with the growth in Basic EPS, reflecting minor adjustments between HEPS and Basic EPS.

Adjusted EPS increased by 10% to 16.1p (2019: 14.6p), consistent with the growth in adjusted operating profit and more reflective of the core operating performance of Ninety One.

For details on calculations, see note 6 to the financial statements.

Response to COVID-19

The safety and security of our people and clients is of paramount importance. We continue to monitor and comply with the relevant government recommendations around the spread of COVID-19, across all our geographies. We have put in place a range of precautionary measures, including restrictions of all non-essential travel, and we were able to implement working from home arrangements for all our staff within a week of listing as an independent business. Our people have worked hard to achieve this with no material impact on our operations or client experience.

We have not needed to make any of our staff redundant or furloughed as a result of COVID-19, and we contributed £2.9 million to COVID-19 relief efforts.

Summary balance sheet  

 

 

31 March 2020

 

£ million

Policyholders

Shareholders

Total IFRS

Non-current assets

-

145.2

145.2

Current assets

 

 

 

Linked investments backing policyholder funds

6,988.5

-

6,988.5

Cash and cash equivalents

-

194.5

194.5

Other current assets

67.3

255.8

323.1

Total current assets

7,055.8

450.3

7,506.1

Total assets

7,055.8

595.5

7,651.3

Non-current liabilities

5.6

140.1

145.7

Current liabilities

 

 

 

Policyholder investment contract liabilities

7,002.8

-

7,002.8

Other current liabilities

    47.4

304.3

351.7

Total current liabilities

7050.2

304.3

7,354.5

Total liabilities

7,055.8

444.4

7,500.2

Equity

-

151.1

151.1

Total equity and liabilities

7,055.8

595.5

7,651.3

           

 

 

 

31 March 2019

 

£ million

Policyholders

Shareholders

Total IFRS

Non-current assets

-

44.3

44.3

Current assets

 

 

 

Linked investments backing policyholder funds

8,173.7

-

8,173.7

Cash and cash equivalents

-

269.2

269.2

Other current assets

60.3

255.1

315.4

Total current assets

8,234.0

524.3

8,758.3

Total assets

8,234.0

568.6

8,802.6

Non-current liabilities

15.3

44.9

60.2

Current liabilities

 

 

 

Policyholder investment contract liabilities

8,190.9

-

8,190.9

Other current liabilities

 27.8

328.0

355.8

Total current liabilities

8,218.7

328.0

8,546.7

Total liabilities

8,234.0

372.9

8,606.9

Equity

-

195.7

195.7

Total equity and liabilities

8,234.0

568.6

8,802.6

           

Assets and liabilities

Ninety One undertakes linked insurance business through one of its South African entities and does not take on any insurance risk in respect of such business. The policyholders hold units in a pooled portfolio of assets via linked policies issued by the insurance entity. The assets are beneficially held by the insurance entity and the assets are reflected on its statement of financial position. Because of the nature of a linked policy, Ninety One's liability to the policyholders is equal to the market value of the assets underlying the policies, less applicable taxation. Therefore, the commentary below only covers the shareholders' amounts.

Total assets increased to £595.5 million (31 March 2019: £568.6 million). Cash and cash equivalents reduced to £194.5 million (31 March 2019: £269.2 million), which largely related to the payment of dividends prior to the demerger.

Total liabilities increased to £444.4 million (31 March 2019: £372.9 million), principally due to the recognition of lease liabilities on the balance sheet under IFRS 16 Leases, and there continues to be no debt financing on the balance sheet.

The adoption of IFRS 16 Leases in financial year 2020 resulted in an initial recognition of assets of £85.3 million and liabilities of £88.6 million, on 1 April 2019, which were previously not recognised on the balance sheet. At 31 March 2020, the corresponding assets and liabilities were £90.7 million and £101.6 million respectively.

Ninety One has limited seed investments. Seed capital for mutual funds was £1.7 million (31 March 2019: £1.2 million) and co-investments in private equity funds totalled £9.3 million (31 March 2019: £11.0 million).

Equity

Equity reduced to £151.1 million ( 31 March 2019: £195.7 million), which principally reflects the early payment of dividends in March 2020, ahead of the demerger.

 

Capital and regulatory position1

£ million

31 March 2020

31 March 2019

Equity

151.1

195.7

Non-qualifying assets2

(12.7)

(9.3)

Qualifying capital

138.4

186.4

Dividends declared after year end

-

(64.7)

Estimated regulatory requirement

(96.8)

(86.4)

Expected capital surplus

41.6

35.3

Notes:

1. The above table represents the amalgamated position across Ninety One plc and its subsidiaries and Ninety One Limited and its subsidiaries, which for regulatory capital purposes are separate groups. Both groups of companies had an expected capital surplus at 31 March 2019 and 31 March 2020.

2. Non-qualifying assets comprise assets that are not available to meet regulatory requirements.

 

Our estimated regulatory capital increased to £96.8 million (31 March 2019: £86.4 million). This provides Ninety One with an expected capital surplus of £41.6 million (31 March 2019: £35.3 million), which is consistent with our intention of maintaining a capital-light balance sheet. The capital requirements for all Ninety One companies are monitored throughout the year.

Dividends

Prior to the demerger, Ninety One paid its final dividends. The Ninety One board of directors recommended no further ordinary or special dividends for the 2020 financial year.

Looking ahead, Ninety One expects to target an ordinary dividend payout ratio of at least 50% of its profit after tax. We will consider paying a special dividend, which will comprise surplus retained earnings not needed for regulatory or specific investment needs, as well as a reasonable buffer as agreed with our board of directors.

There are no plans to increase the current number of shares in issue.

Liquidity

Ninety One maintains a strong liquidity position, which comprises cash and cash equivalents of £194.5 million (31 March 2019: £269.2 million). Ninety One maintains a consistent liquidity management model, with liquidity requirements monitored carefully against its existing and longer-term obligations. To meet the daily requirements of the business and to mitigate its credit exposure, Ninety One diversifies its cash and cash equivalents across a range of suitably credit-rated corporate banks and money funds.

Alternative performance measures

Ninety One uses non-IFRS measures to reflect the manner in which management monitors and assesses the financial performance of Ninety One. In particular, they exclude Silica as it is not core to Ninety One's asset management activities. These non-IFRS measures are considered additional disclosures and in no case are intended to replace the financial information prepared in accordance with the basis of preparation detailed in the consolidated financial statements. Moreover, the way in which Ninety One defines and calculates these measures may differ from the way in which these or similar measures are calculated by other entities. Accordingly, they may not be comparable to measures used by other entities in Ninety One's industry.

These non-IFRS measures are considered to be pro forma financial information for the purpose of the JSE Listings Requirements and are the responsibility of Ninety One's board of directors. The non-IFRS financial information has been prepared with reference to JSE Guidance Letter: Presentation of pro forma financial information dated 4 March 2010 and in accordance with paragraphs 8.15 to 8.33 in the JSE Listings Requirements, the Revised SAICA Guide on Pro forma Financial Information (issued September 2014) and International Standard on Assurance Engagement ("ISAE") 3420 - Assurance Engagements to Report on the Compilation of Pro forma Financial Information included in a Prospectus, to the extent applicable given the Non-IFRS Financial Information's nature. This pro forma financial information has been reported on by KPMG Inc in terms of ISAE 3420 and their unmodified report is available for inspection on the Ninety One website (www.ninetyone.com).

These non-IFRS measures, including reconciliations to their nearest consolidated financial statements equivalents, are as follows:

 

£ million

Full year 2020

Full year 2019

Net revenue

  609.9

  556.9

Adjustments

 

 

Silica third-party revenue

  (21.2)

  (21.8)

Foreign exchange gains

  2.1

  5.0

Net (losses)/gains on investments

  (4.2)

  5.1

Deferred employee benefit scheme losses/(gains)

  1.0

  (5.0)

Other income

  0.2

  0.4

Rounding

  0.2

-

Adjusted operating revenue

  588.0

  540.6

Of which management fees

  565.7

  524.6

Of which performance fees

  21.5

  11.0

Of which foreign exchange gains and other income

  0.8

  5.0

 

 

 

£ million

Full year 2020

Full year 2019

Operating expenses

  413.4

  393.7

Adjustments

 

 

Silica net expenses

  (19.4)

  (20.6)

Deferred employee benefit scheme losses /(gains)

  1.0

  (5.0)

Interest expense on lease liabilities

  3.0

  - 

Rounding

  0.1

  - 

Adjusted operating expenses

  398.1

  368.1

 

 

 

£ million

Full year 2020

Full year 2019

Adjusted operating revenue

  588.0

  540.6

Adjusted operating expenses

  (398.1)

  (368.1)

Adjusted operating profit

  189.9

  172.5

Adjusted operating profit margin

32.3%

31.9%

 

 

 

£ million

Full year 2020

Full year 2019

Net interest income

  1.7

  5.7

Adjustments

 

 

Silica interest

  (0.1)

  (0.2)

Interest expense on lease liabilities

  3.0

  - 

Other interest expense

  (0.1)

  - 

Adjusted net interest income

  4.5

  5.5

Foreign currency

Ninety One prepares its financial information in pounds sterling. The results of operations and the financial condition of Ninety One's individual companies are reported in the local currencies of the countries in which they are domiciled, including South African Rand and US Dollars. These results are then translated into pounds sterling at the applicable foreign currency exchange rates for inclusion in the condensed consolidated financial statements. The following table sets out the movements in the relevant exchange rates against pounds sterling for the years ended 31 March 2019 and 2020.

 

31 March 2020

31 March 2019

Period end

Average

Period end

Average

South African Rand

22.16

18.78

18.79

18.04

US Dollar

1.23

1.27

1.30

1.31

 

DEFINITIONS

Adjusted earnings per share: Profit attributable to ordinary shareholders, adjusted to remove non-operating items, divided by the number of ordinary shares in issue at the end of the year

Adjusted net interest income: Calculated as net interest income less interest income arising from Silica operations, interest expenses from lease liabilities for office premises, and other interest expenses

Adjusted operating expenses: Calculated as operating expenses less Silica net expenses and deferred employee benefit scheme movements, but including interest expense on lease liabilities

Adjusted operating profit: Calculated as adjusted operating revenue less adjusted operating expenses

Adjusted operating profit margin: Calculated as adjusted operating profit divided by adjusted operating revenue

Adjusted operating revenue: Calculated as net revenue, less Silica third-party revenue and adjusted for foreign exchange gains/losses, deferred employee benefit scheme movements, and other income.

ASISA: Association for Savings and Investment South Africa represents the majority of the country's asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life insurance companies

Assets under management (AUM): The aggregate assets managed on behalf of clients. For some private markets investments, the aggregate value of assets managed is based on committed funds by clients; this is changed to the lower of committed funds and net asset value, in line with the fee basis. Where cross investment occurs, assets and flows are identified, and the duplication is removed. AUM excludes assets administered for third-party clients by Silica

Average AUM: Calculated as a 13-point average of opening AUM for the year, and the month end AUM for the subsequent 12 months

Average fee rate: Management fee revenue divided by the average AUM (annualised for non-twelve month periods), expressed in basis points

Basic earnings per share (Basic EPS): Profit after tax attributable to ordinary shareholders divided by the weighted average number of ordinary shares outstanding during the year, excluding own shares held by Ninety One share schemes

Compensation ratio: Total staff expenses excluding Silica and deferred employee benefit schemes as a percentage of adjusted operating revenue

Diluted earnings per share: Profit for the year attributable to ordinary shareholders divided 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

GIFS: Global Investment Fund Sectors are international categories developed and tested by Standard and Poor's

Headline earnings per share (HEPS):  Ninety One is required to calculate HEPS in accordance with JSE Listing Requirements, determined by reference to circular 1/2019 "Headline Earnings" issued by the South African Institute of Chartered Accountants

IA: The Investment Association is the trade body that represents investment managers and asset management firms in the UK

Johannesburg Stock Exchange (JSE): The exchange operated by JSE Limited, a public company incorporated and registered in South Africa, under the Financial Markets Act

London Stock Exchange (LSE): The securities exchange operated by London Stock Exchange plc under the Financial Services and Markets Act 2000, as amended

Net flows: The increase in AUM received from clients, less the decrease in AUM withdrawn by clients, during a given period. Where cross investment occurs, assets and flows are identified, and the duplication is removed

Net revenues:   Represents revenue in accordance with IFRS, less commission expense

Quality investment capability: One of Ninety One's equities capabilities, which aims to identify businesses with strong, consistent track records with embedded identifiable strategies, low leverage, strong management teams and good governance structures

Torque ratio : The relative scale of net flows in relation to the overall size of the business, expressed as a percentage. Calculated as net flows for the relevant period divided by AUM as at the first day of that period (annualised for non-twelve month periods)

Review report

The condensed consolidated financial statements, which comprise the condensed consolidated statement of financial position at 31 March 2020 and the condensed consolidated income statement, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the year then ended and the notes to such condensed consolidated financial statements and the annexure to the consolidated financial statements, have been reviewed by KPMG Inc., in accordance with paragraph 3.18(c) of the JSE Listings Requirements, who expressed an unmodified review conclusion. The auditor's report does not necessarily report on all of the information contained in these financial results. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor's engagement, they should obtain a copy of the auditor's report together with the accompanying financial information from the company's registered office.

 

Preparation of condensed consolidated financial statements 

These condensed consolidated financial statements have been prepared by management under the supervision of the Finance Director, Kim McFarland CA (SA). The board of directors take full responsibility for the preparation of the condensed consolidated financial statements.

 

On behalf of the board of directors

Hendrik du Toit                                                               Kim McFarland

Chief Executive Officer  Finance Director

 

 

20 May 2020  20 May 2020

 

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2020

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

2

 761.0

 

 696.6

Commission expense

 

 

 

 

 

 

 (151.1)

 

 (139.7)

Net revenue

 

 

 

 

 

 

 609.9

 

 556.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

3

 (413.4)

 

 (393.7)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)/gain on investments

 

 

 

 

 (4.2)

 

 5.1

Foreign exchange gain

 

 

 

 

 2.1

 

 5.0

Other income

 

 

 

 

 

 

 0.2

 

 0.4

Operating profit

 

 

 

 

 

 

194.6

 

 173.7

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

4

 1.7

 

 5.7

Profit before tax and exceptional items

 

 

 

 

 196.3

 

179.4

 

 

 

 

 

 

 

 

 

 

Exceptional items

 

 

 

 

 

 

 

 

 

Financial impact of group restructures

 

 

 

17(a)

 (10.9)

 

 (1.5)

Ninety One share scheme implementation

 

 

 

17(b)

 13.1

 

 -

Gain on disposal of subsidiary

 

 

 

 

 -

 

 0.5

Profit before tax

 

 

 

 

 

 

 198.5

 

 178.4

 

 

 

 

 

 

 

 

 

 

 

Tax expense

 

 

 

 

 

5

 (42.5)

 

 (38.6)

Profit after tax

 

 

 

 

 

 

 156.0

 

 139.8

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

Shareholders

 

 

 

 

 

 

 155.4

 

 139.3

Non-controlling interests

 

 

 

 

 

 

 0.6

 

 0.5

 

 

 

 

 

 

 

 

 156.0

 

 139.8

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (pence)

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

 

6(a)

 16.8

 

 15.1

                               

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2020

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

Profit after tax

 

 

 

 

 

 

156.0

 

 139.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income/(loss) for the year

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss:

 

 

 

 

 

Net actuarial losses on pension fund asset/obligation

 (1.8)

 

(2.4)

Deferred tax on revaluation of pension fund asset/obligation

0.4

 

0.4

Deferred tax on other movements through other comprehensive income

0.1

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to profit or loss:

 

 

 

Exchange differences on translation of foreign subsidiaries

 (10.2)

 

 (9.9)

Other comprehensive loss for the year

 

 

 (11.5)

 

 (11.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income for the year

 

 

 144.5

 

 127.9

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

 

Shareholders

 

 

 143.9

 

 127.4

Non-controlling interests

 

 

 0.6

 

 0.5

 

 

 

 

 

 

 

 

 144.5

 

 127.9

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 March 2020

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

Notes

 

£'m

 

£'m

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

8

 

 4.8

 

 5.3

Investment in associate

 

 

 

 

 

 0.3

 

 -

Property and equipment

 

 

 

 

2

 

 18.0

 

 7.7

Right-of-use assets

 

 

 

 

14

 

 90.7

 

 -

Deferred tax assets

 

 

 

 

 

 

 

 25.2

 

 25.3

Other receivables

 

 

 

 

 

 

 

 6.2

 

 5.8

Pension fund asset

 

 

 

 

 

 -

 

 0.2

Total non-current assets

 

 

 

 

 

 

 145.2

 

 44.3

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

 

8

 

 72.3

 

 72.4

Linked investments backing policyholder funds

 

7

 

 6,988.5

 

 8,173.7

Income tax recoverable

 

 

 

 

 

 

 

 4.4

 

 1.2

Trade and other receivables

 

 

 

 

 

 

 246.4

 

 241.8

Cash and cash equivalents

 

 

 

 

9

 

 194.5

 

 269.2

Total current assets

 

 

 

 

 

 

 7,506.1

 

 8,758.3

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

 

 

 

 7,651.3

 

 8,802.6

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

 

 

12

 

 39.3

 

 44.9

Lease liabilities

 

 

 

 

14

 

 98.9

 

 -

Pension fund obligation

 

 

 

 

 

 1.8

 

 -

Deferred tax liabilities

 

 

 

 

 

 5.7

 

 15.3

Total non-current liabilities

 

 

 

 

 

 145.7

 

 60.2

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder investment contract liabilities

 

 

 

11

 

 7,002.8

 

 8,190.9

Other liabilities

 

 

 

 

12

 

 37.6

 

 32.6

Lease liabilities

 

 

 

 

14

 

 2.7

 

 -

Trade and other payables

 

 

 

 

13

 

 304.3

 

 311.2

Deferred income

 

 

 

 

 

 -

 

 0.2

Income tax payable

 

 

 

 

 

 

 7.1

 

 11.8

Total current liabilities

 

 

 

 

 

 

 7,354.5

 

 8,546.7

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

10(a)

 

 441.2

 

 441.2

Own share reserve

 

 

 

10(b)

 

 (9.9)

 

 -

Other reserves

 

 

 

10(c)

 

 (351.6)

 

 (346.1)

Retained earnings

 

 

 

 

 71.0

 

 100.0

Shareholders' equity excluding non-controlling interests

 

 

 150.7

 

 195.1

Non-controlling interests

 

 

 

 

 

 0.4

 

 0.6

Total equity

 

 

 

 

 

 

 151.1

 

 195.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and liabilities

 

 

 

 

 

 

 7,651.3

 

 8,802.6

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 March 2020

 

 

 

 

 

 

Share capital

 

Own share reserve

 

Total other reserves

 

Retained earnings

 

Total shareholders' equity

 

Non-controlling interests

 

Total equity

 

 

 

Notes

 

£'m

 

£'m

 

£'m

 

£'m

 

£'m

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 April 2019

 

 

 

 441.2

 

 -

 

 (346.1)

 

 100.0

 

 195.1

 

 0.6

 

 195.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the year

 

 

 -

 

 -

 

 -

 

155.4

 

 155.4

 

0.6

 

 156.0

Other comprehensive loss

 

 

 

 -

 

 -

 

 (10.2)

 

 (1.3)

 

 (11.5)

 

 -

 

 (11.5)

Total comprehensive income

 

 

 -

 

 -

 

 (10.2)

 

 154.1

 

 143.9

 

 0.6

 

 144.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with shareholders of the Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions related to Ninety One share scheme

 

 10(c)(iv)

 

 -

 

 -

 

 4.7

 

 -

 

 4.7

 

 -

 

 4.7

Own shares purchased

 

 10(b)

 

 -

 

 (9.9)

 

 -

 

 -

 

 (9.9)

 

 -

 

 (9.9)

Dividends paid 1

 

 

 

 -

 

 -

 

 -

 

 (183.1)

 

 (183.1)

 

 (0.8)

 

 (183.9)

Total transactions with shareholders of the Group

 

 

 

 -

 

 (9.9)

 

 4.7

 

 (183.1)

 

 (188.3)

 

 (0.8)

 

 (189.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 March 2020

 

 

 

 441.2

 

 (9.9)

 

 (351.6)

 

 71.0

 

 150.7

 

 0.4

 

 151.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 April 2018

 

 

 

 441.2

 

 -

 

 (336.2)

 

 106.1

 

 211.1

 

 0.6

 

 211.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit for the year

 

 

 -

 

 -

 

 -

 

 139.3

 

 139.3

 

 0.5

 

 139.8

Other comprehensive loss

 

 

 

 -

 

 -

 

 (9.9)

 

 (2.0)

 

 (11.9)

 

 -

 

 (11.9)

Total comprehensive income

 

 

 

 -

 

 -

 

 (9.9)

 

 137.3

 

 127.4

 

 0.5

 

 127.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transactions with shareholders of the Group

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment transactions related to Ninety One share scheme

 

 10(c)(iv)

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

Own shares purchased

 

 10(b)

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

 

 -

Dividends paid 1

 

 

 

 -

 

 -

 

 -

 

 (143.4)

 

 (143.4)

 

 (0.5)

 

 (143.9)

Total transactions with shareholders of the Group

 

 

 

 -

 

 -

 

 -

 

 (143.4)

 

 (143.4)

 

 (0.5)

 

 (143.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 March 2019

 

 

 

 441.2

 

 -

 

 (346.1)

 

 100.0

 

 195.1

 

 0.6

 

 195.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1 Dividends paid relates to the distribution of profit prior to the Date of Demerger.

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 March 2020

 

 

 

 

 

 

 

 

 

 

 2020

 

 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flows from operating activities - Shareholders

 

 

 

 

 

146.1

 

112.9

Net cash flows from operating activities - Policyholders

 

 

 

 

 

667.5

 

596.5

Net cash flows from operating activities

 

 

 

16(a)

 

813.6

 

 709.4

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Net (acquisition)/disposal of investments

 

 

 

 

 

 (3.6)

 

 3.4

Additions to property and equipment

 

 

 

 

 

 (13.4)

 

 (6.5)

Proceeds from disposal of subsidiary

 

 

 

 

 -

 

 1.8

Net acquisition of linked investments backing policyholder funds

7

 

 (655.0)

 

 (592.7)

Net cash flows from investing activities

 

 

 

 

 

 (672.0)

 

 (594.0)

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payment of lease liabilities

 

 

14(b)

 

 (5.7)

 

 -

Purchase of own shares by EBTs

 

 

 

10(b)

 

 (9.9)

 

-

Dividends paid

 

 

 

 

 

 

 

 (183.9)

 

 (143.9)

Net cash flows from financing activities

 

 

 

 

 

 (199.5)

 

 (143.9)

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes

 

 

 

 

 

 (16.8)

 

 (10.6)

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalents

 

 

 

 

 

 (74.7)

 

 (39.1)

Cash and cash equivalents at beginning of year

 

 

 

 

 

 269.2

 

 308.3

Cash and cash equivalents at end of year

 

 

 

9

 

 194.5

 

 269.2

 

 

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 March 2020

 

Background

On 14 September 2018, Investec plc and Investec Limited (collectively referred to as "Investec") announced its plan to demerge and publicly list the asset management business (the "Ninety One Business"). The separation was implemented by way of a demerger of the Ninety One Business to a new dual-listed company ("DLC") arrangement, comprising Ninety One plc, a public limited company incorporated in England and Wales under the UK Companies Act 2006 and Ninety One Limited, a public company incorporated in the Republic of South Africa under the South African Companies Act 71 of 2008. Investec has retained a minority stake in the Ninety One Business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As a result of the planned demerger of the Ninety One Business from Investec, Ninety One plc and Ninety One Limited became the holding companies of the Ninety One Business, through a share for share exchange, with Ninety One plc and Ninety One Limited receiving the entire net asset value of the underlying entities of the Ninety One Business, in exchange for the issue of ordinary shares of Ninety One plc and Ninety One Limited to the original stakeholders of the Ninety One Business on a pro rata basis. Upon the completion of the share for share exchange, Ninety One plc and Ninety One Limited together with their direct and indirect subsidiaries formed a DLC arrangement through the Ninety One DLC agreements which is that Ninety One plc and Ninety One Limited are operated as a single corporate group (collectively, the "Group") under the agreements. The Group was demerged from Investec on 13 March 2020 (the "Date of Demerger") and listed on the London and Johannesburg Stock Exchanges on 16 March 2020 ("Admission Date").

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 (a)

Basis of preparation

 

The condensed consolidated financial statements have been prepared in accordance with:

the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa;

the framework concepts and the measurement and recognition requirements of International Financial Reporting Standards ("IFRS"), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by Financial Reporting Standards Council and to also, as a minimum, contain the information required by IAS 34 Interim Financial Reporting;

the accounting policies applied in the preparation of these condensed consolidated financial statements comply with the measurement and recognition criteria of both IFRS as issued by the International Accounting Standards Board ("IASB") and IFRS as adopted by the EU since the latter are identical in all material respects to current IFRSs as issued by the IASB;

the accounting policies used were those applied in preparing the combined financial statements of Ninety One Business as reported in the Ninety One prospectus dated 2 March 2020 (the "Prospectus"), which is available on the Group's website and are consistent with the accounting policies that will be applied to the Group's full consolidated financial statements for the year ended 31 March 2020; and

- the requirements in UK Listing Rule R 9.7A with regards the preparation of preliminary statements of annual results.

 

The condensed consolidated financial statements have been prepared on the historical cost basis with the exception of linked investments backing policyholder funds, policyholder investment contract liabilities, investments, the pension fund asset and the pension fund obligations.

 

The board of directors have considered the resilience of the Group, taking into account its current financial position, the principal risks facing the business and the impacts that the outbreak of the new coronavirus ("COVID-19") and its associated events has had on the Group. The board of directors have considered the impact of COVID-19 by applying various stressed scenarios, including plausible downside assumptions, about the impact on assets under management, profitability of the Group and known commitments. All scenarios show that the Group would continue to operate profitably for a period of at least 12 months from the date of the release of these results. The condensed consolidated financial statements have therefore been prepared on a going concern basis.

 

The presentation currency of the Group is Pounds Sterling ("£"), being the functional currency of Ninety One plc. The functional currency of Ninety One Limited is South African Rand. All values are rounded to the nearest million ("£'m"), unless otherwise indicated.
 

Foreign operations are subsidiaries and interests in associated undertakings of the Group, the activities of which are based in a functional currency other than that of the reporting entity. The functional currency of an entity is determined based on the primary economic environment in which the entity operates. Foreign currency transactions are translated into the functional currency of the entity in which the transactions arise, based on rates of exchange ruling at the date of the transactions.

 

The insertion of Ninety One plc and Ninety One Limited as the ultimate holding companies of the Group via a share-for-share exchange with the original stakeholders of the Ninety One Business (the "Demerger Transactions") constitute "transactions under common control" in which merger accounting is applied. Accordingly, the condensed consolidated financial statements are prepared as if the Group had already existed before the start of the earliest period presented.

 

This provisional announcement does not constitute the Group's full consolidated financial statements for the year ended 31 March 2020. The Group's full consolidated financial statements will be approved by the board of directors and reported on by the auditors in June 2020 and published in July 2020.  Accordingly, the financial information for the year ended 31 March 2020 is presented unaudited in this preliminary announcement to satisfy UK reporting requirements and is presented reviewed in this provisional announcement to satisfy the JSE Limited Listings Requirements in South Africa. 

The condensed consolidated financial statements were prepared as if the Group had already existed before the start of the earliest period presented. The comparative information is unaudited and not reviewed.

 

 

1(b)

Accounting judgements and estimates

 

The preparation of the condensed consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The Group has not identified any significant judgements and estimates at the end of the reporting period. However, the areas that include estimates are related to the valuation of level 3 financial instruments per the fair value hierarchy and the valuation of the pension fund asset/obligation. Management do not expect changes in assumptions to lead to a material adjustment in the future periods. Areas of either estimation or judgement not considered to be significant are presented as follows:

Basis of consolidation

Ninety One plc and Ninety One limited operate under a DLC arrangement as a result of legally binding agreements that were executed at the point of demerger. The effect of the DLC arrangement is that Ninety One plc and Ninety One Limited and their direct and indirect subsidiaries and associates operate together as a single economic entity, with neither assuming a dominant role and accordingly are reported as a single reporting entity under IFRS. IFRS does not specifically provide guidance on how to account for such arrangements and hence judgement is required in applying the consolidation principles set out in IFRS 10, Consolidated Financial Statements,  The board of directors of Ninety One plc and Ninety One Limited, having assessed the legal agreements referred to above and the requirements of IFRS 10, have concluded that the Group's condensed consolidated financial statements represent the consolidation of the assets, liabilities and the results of Ninety One plc and Ninety One Limited and their direct and indirect subsidiaries and associates. Subsidiaries are those entities controlled by the Group. Subsidiaries are consolidated from the date of the Group obtains control and are excluded from consolidation from the date which the Group loses control.

On consolidation, the results and financial position of foreign operations are translated into the presentation currency of the Group, as follows:

Assets and liabilities for the condensed consolidated statements of financial position presented are translated at the closing rate at the reporting date;

Income and expense items are translated at exchange rates ruling at the date of the transactions;

All resulting exchange differences are recognised in other comprehensive income (foreign currency translation reserve), which is recognised in profit or loss within the condensed consolidated statement of comprehensive income on disposal of the foreign operation, and;

Cash flow items are translated at the exchange rates ruling at the date of the transactions.

All intra-group balances, income and expenses arising from transactions between companies belonging to the Group were eliminated when preparing the condensed consolidated financial statements. In addition, the investments of the holding companies in the Group were eliminated against the equity of the respective subsidiaries. The share capital of the Group is an aggregation of the share capitals of Ninety One plc and Ninety One Limited. 

 

 

Lease assets and liabilities

IFRS 16 Leases became effective for periods beginning on or after 1 January 2019. The new standard removes the distinction between operating and finance leases and requires the recognition of a right-of-use asset and corresponding liability for future lease payments. The Group has elected to use the modified retrospective approach and therefore has not restated comparatives information in preparing the 31 March 2020 condensed consolidated financial statements, as permitted under the specific transitional provisions in the standard. Details of the adoption of IFRS 16 are disclosed in note 1 (c).

Exceptional items

Exceptional items are defined as income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Ninety One Business and therefore are not expected to recur frequently or regularly. Such items have been separately presented to enable a better understanding of the Group's operating performance. Exceptional items relate primarily to:

the costs incurred as part of the demerger and separate listing of the Group in March 2020; and

the impact of reversing staff expense accruals to fund the investment into the new Ninety One share schemes in March 2020, net of the share scheme expenses which are amortised over the vesting period of the awards under IFRS 2 Share-based Payment.

Details of exceptional items are presented in note 17.

 

 

1(c)

 New standard adopted by the Group

 

 

 

 

 

 

 

 

 

 

 

 

 

The Group has initially adopted IFRS 16 Leases as from 1 April 2019 (the "Date of Initial Application"). IFRS 16 Leases replaces IAS 17 Leases and sets out the principles for recognition, measurement, presentation and disclosure of leases for lessees and lessors. It introduces a single accounting model for lessees, which requires a lessee to recognise a right-of-use asset and a lease liability for all leases, except for leases that have a lease term of 12 months or less ("short-term leases") and leases of low-value assets. It also introduces additional disclosure requirements which aim to enable users of the financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity.

 

 

 

 

 

The Group has elected to use the modified retrospective approach and therefore has not restated comparative information, as permitted under the specific transitional provisions in the standard.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At the Date of Initial Application, the Group determined the length of the remaining lease terms and measured the lease liabilities for the leases previously classified as operating leases at the present value of the remaining lease payments, discounted using the relevant incremental borrowing rates used at the Date of Initial Application. Right-of-use assets were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognised in the statement of financial position of the respective subsidiaries as at 31 March 2019. The weighted average of the incremental borrowing rates used for determination of the present value of the remaining lease payment was 3.37%. The Group has applied the following practical expedients:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Grandfather the previous assessment of which existing contracts are, or contain, leases in accordance with IAS 17; and

 

Not consider on adoption any initial direct costs in the initial calculation of the right-of-use asset.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table reconciles the operating lease commitments as disclosed at the end of the annual reporting period of respective subsidiaries immediately preceding the Date of Initial Application to the opening balance for lease liabilities recognised as at the Date of Initial Application.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 April 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

Operating lease commitments at 31 March 2019

 

 

 

 

 

 

 

 113.8

 

Add: lease payments for the additional periods where the Group considers it reasonably certain that it will exercise the extension options

 

 

 0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 113.9

 

Less: total future interest expenses

 

 

 

 

 

 

 

 

 

 (25.3)

 

Total lease liabilities recognised at 1 April 2019

 

 

 

 

 

 

 

 

 

 88.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in accounting policy affected the following items in the statement of financial position on 1 April 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Right-of-use assets increased by £85.3m

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables decreased by £3.3m; and

 

 

 

 

 

 

 

 

 

Lease liabilities increased by £88.6m

 

 

 

 

 

 

 

 

 

 

 

2

Segmental reporting

 

Revenue primarily consists of management fees and performance fees derived from investment management activities. As an integrated global investment manager, the Group operates a single-segment investment management business. All financial, business and strategic decisions are made centrally by the chief operating decision maker (the "CODM") of the Group. The CODM is the chief executive officer of the Group from time to time. Reporting provided to the CODM is on an aggregated basis which is used for evaluating the Group's performance and the allocation of resources. The CODM monitors operating profit for the purpose of making decisions about resource allocation and performance assessment. Revenue is disaggregated by geographic location of contractual entities, as this best depicts how the nature, amount, timing and uncertainty of the Group's revenue and cash flows are affected by economic factors. Non-current assets other than intangibles, investments, deferred tax assets and pension fund assets are allocated based on where the assets are physically located. Non-current assets for this purpose consist of property and equipment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Revenue from external clients

 

 

 

 

 

 

 

 

 

 

United Kingdom and Other

 

 

 

 

 

 

 

 597.4

 

 546.3

 

Southern Africa

 

 

 

 

 

 

 

 

 

 163.6

 

 150.3

 

Total

 

 

 

 

 

 

 

 

 

 761.0

 

 696.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance fees included in revenue above

 

 

 

 21.5

 

 11.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

United Kingdom and Other

 

 

 

 

 

 

 

 14.8

 

 5.1

 

Southern Africa

 

 

 

 

 

 

 

 3.2

 

 2.6

 

Total

 

 

 

 

 

 

 

 

 

 18.0

 

 7.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

3

Operating expenses

 

 

 

 

 

 

 

£'m

 

£'m

 

Staff expenses (Note 3(a))

 

 

 

 

 

 273.2

 

 263.6

 

Operating lease expense

 

 

 

 

 

 -

 

 11.6

 

Depreciation of right-of-use assets (note 14)

 

 

 

 

 

 10.7

 

 -

 

Depreciation of property and equipment

 

 

 

 

 

 2.5

 

 2.0

 

Auditors' remuneration

 

 

 

 

 

 1.5

 

 1.2

 

Other administrative expenses

 

 

 

 

 

 125.5

 

 115.3

 

 

 

 

 

 

 

 

 

 

 

 413.4

 

 393.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

3(a)

Staff expenses

 

 

 

 

 

 

 

£'m

 

£'m

 

Salaries, wages and other related costs

 

 

 

 

 

 245.0

 

 236.1

 

Share-based payments expense related to Investec share scheme

 

 

 

 

 

 1.2

 

 2.4

 

Social security costs

 

 

 

 

 

 17.8

 

 16.7

 

Pension costs

 

 

 

 

 

 

 

 

 

 9.2

 

 8.4

 

 

 

 

 

 

 

 

 

 

 

 273.2

 

 263.6

 

The share based payments expense related to the Ninety One share scheme of £5.2 million (2019: nil) is excluded from the above expenses. See note 17 (b) for more detail.

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

4

Net interest income

 

 

 

 

 

 

 

£'m

 

£'m

 

Interest income

 

 

 

 

 

 

 4.8

 

 5.7

 

Interest expense on lease liabilities

 

 

 

 

 

 

 (3.0)

 

 -

 

Other interest expense

 

 

 

 

 

 

 (0.1)

 

 -

 

 

 

 

 

 

 

 

 

 

 

 1.7

 

 5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income consists of interest on financial assets measured at amortised cost.

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

5

Tax expense

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current tax - current year

 

 

 

 

 

 

 

 

 

 

 43.6

 

 40.0

 

Current tax - adjustment for prior years

 

 

 

 

 

 

 

 

 

 (0.2)

 

 0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 43.4

 

 40.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred tax - current year

 

 

 

 

 

 

 

 

 

0.5

 

 (2.0)

 

Deferred tax - adjustment for prior years

 

 

 

 

 

 

 

 (0.3)

 

-

 

Deferred tax - change in corporate tax rate

 

 

 

 

 

 

 

(1.1)

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (0.9)

 

 (1.5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 42.5

 

 38.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The UK corporate tax rate for 2020 was 19% (2019: 19%). The tax charge in the year is higher (2019: higher) than the standard rate of corporate tax in the UK and the differences are explained below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

Reconciliation of effective tax rate

 

 

 

 

 

 

 

 

 

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective rate of taxation

 

 

 

 

 

 

 

 

 

 

 21.4

 

 21.6

 

Tax effect of non-deductible expenses

 

 

 

 

 

 (0.3)

 

 (0.2)

 

Effect on deferred tax balances resulting from a change in tax rate

 

 

 

 

 

0.6

 

(0.3)

 

Adjustment to tax charge in respect of prior year

 

 

 

 

 

 0.2

 

-

 

Effect of different tax rates applicable in foreign jurisdictions

 

 

 

 

 

(2.9)

 

(2.1)

 

United Kingdom standard tax rate

 

 

 

 

 

 19.0

 

 19.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

Earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Group calculates earnings per share ("EPS") on a number of different bases in accordance with IFRS and prevailing South Africa requirements.

 

 

Share transactions such as share issues in respect of the Demerger Transactions are reflected in the EPS denominator as if these transactions had occurred before the year ended 31 March 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6(a)

Basic and diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

The calculations of basic and diluted EPS are based on IAS 33 Earnings per share, details are shown as below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share are calculated by dividing the profit for the year attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding own shares held by Ninety One Employee Benefit Trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share are calculated by dividing the 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. There are no potentially dilutive shares for the year ended 2020 and 2019, therefore the weighted average number of ordinary shares used to calculate the basic and diluted EPS is the same.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Profits attributable to ordinary shareholders

 

 

 

 

 

 

 

 155.4

 

 139.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The table below summarises the calculation of the weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares

 

 

 

 

 

 

 

Number of shares

 

Number of shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares in issue

 

 

 

 

 

 

 

 922,714,076

 

 922,714,076

 

Less: Own shares held by Ninety One Employee Benefit Trusts

 

 

 

 

 

 (262,276)

 

 -

 

Weighted average number of ordinary shares for the purpose of calculating basic and diluted EPS

 922,451,800

 

 922,714,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (pence)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 

 

 

 

 

 16.8

 

 15.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 6(b)

Headline earnings per share

 

 

 

 

 

 

 

 

 

 

 

The Group is required to calculate headline earnings per share ("HEPS") in accordance with JSE Listing Requirements, determined by reference to circular 1/2019 "Headline Earnings" issued by the South African Institute of Chartered Accountants.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The table below reconciles the profits attributable to ordinary shareholders  to headline earnings and summarises the calculation of basic and diluted HEPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Profits attributable to ordinary shareholders

 

 

 

 

 

 

 

 155.4

 

 139.3

 

   Impairment of investment in associate

 

 

 

 

 

 

 

 (0.2)

 

 -

 

   Gain on disposal of subsidiary

 

 

 

 

 

 

 

 -

 

 (0.5)

 

   Headline earnings and diluted headline earnings

 

 

 

 

 

 

 

 155.2

 

 138.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares

 

Number of shares

 

Weighted average number of ordinary shares for the purpose of calculating basic and diluted EPS (note 6(a))

 922,451,800

 

 922,714,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Headline earnings per share and diluted headline earnings per share (pence)

 

 

 

 16.8

 

 15.0

                                                             

 

6(c)

Adjusted earnings per share

 

Adjusted earnings per share is the Group's key alternative performance measure which is consistent with the way that financial performance is measured by the senior management of the Group. It is calculated by dividing the adjusted earnings attributable to ordinary shareholders by the total number of ordinary shares in issue at the end of the year. Adjusted earnings are calculated to reflect the underlying long-term performance of the Group by excluding the impact of the following items:

 

exceptional items;

interest income excluding Silica's interest;

profit or loss arising from entities which are not reflecting the core business of the Group (Silica); and

relevant tax impact on adjusting items.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The table below reconciles the profit for the financial year to adjusted earnings and summarises the calculation of adjusted EPS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Profits attributable to ordinary shareholders

 

 

 

 

 

 

 155.4

 

 139.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Adjusting items

 

 

 

 

 

 

 

 

 

 

 

 Financial impact of group restructures

 

 

 

 

 

 

 

 10.9

 

 1.5

 

 Ninety One share scheme implementation

 

 

 

 

 

 

 

 (13.1)

 

 -

 

 Gain on disposal of subsidiary

 

 

 

 

 

 

 

 -

 

 (0.5)

 

 Interest income excluding Silica's interest

 

 

 

 

 

 

 

 (4.5)

 

 (5.5)

 

 Profit from Silica

 

 

 

 

 

 

 

 (1.9)

 

 (1.4)

 

 Tax on adjusting items

 

 

 

 

 

 

 

 2.0

 

 1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Adjusted earnings attributable to ordinary shareholders

 

 

 

 

 

 148.8

 

 135.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares

 

Number of shares

 

Total number of ordinary shares

 

 

 

 

 

 

 922,714,076

 

 922,714,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share (pence)

 

 

 

 

 

 

 

 16.1

 

 14.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

7

Linked investments backing policyholder funds

 

 

 

 

 

 

 

£'m

 

£'m

 

Quoted investments at fair value

 

 

 

 

 

 

 

 

 

 

 

  Equities

 

 

 

 

 

 

 

 412.3

 

 836.9

 

  Interest-bearing stocks, debentures and other loans

 

 

 

 

 

 

 

 1,429.5

 

 1,760.5

 

  Derivatives

 

 

 

 

 

 

 

(30.9)

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1,810.9

 

 2,597.4

 

Unquoted investments at fair value

 

 

 

 

 

 

 

 

 

 

 

  Collective investment schemes

 

 

 

 

 

 

 

 2,886.4

 

 3,396.2

 

  Mutual funds

 

 

 

 

 

 

 

 1,233.9

 

 1,125.4

 

  Equities

 

 

 

 

 

 

 

 4.5

 

 4.9

 

  Interest bearing stocks, debentures and other loans

 

 

 

 

 

 

 

 824.2

 

 907.3

 

  Derivatives

 

 

 

 

 

 

 

 (13.5)

 

 (12.9)

 

  Cash and cash equivalents

 

 

 

 

 

 

 

 242.1

 

 155.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,177.6

 

 5,576.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 6,988.5

 

 8,173.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opening balance

 

 

 

 

 

 

 

 8,173.7

 

 8,424.2

 

Net fair value (losses)/gains on linked investments backing policyholder funds

 

 

 

 (588.7)

 

 159.7

 

Net acquisition of linked investments backing policyholder funds

 

 

 

 

 

 655.0

 

 592.7

 

Exchange adjustment

 

 

 

 

 

 (1,251.5)

 

 (1,002.9)

 

Closing balance

 

 

 

 

 

 

 

 

 

 6,988.5

 

 8,173.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

8

Investments

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in unlisted investment vehicles

 

 

 

 

 

 

 

 4.8

 

 5.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred compensation investments

 

 

 

 

 

 

 

 

 70.6

 

 71.2

 

Investments in pooled vehicles

 

 

 

 

 

 

 

 

 1.7

 

 1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 72.3

 

 72.4

 

Investments are initially recognised at fair value and subsequently measured at fair value through profit or loss in accordance with IFRS 9.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

9

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Cash at bank and on hand

 

 

 

 

 

 

 

 

 

 152.0

 

 82.6

 

Money Market Funds

 

 

 

 

 

 

 

 

 

 42.5

 

 186.6

 

 

 

 

 

 

 

 

 

 

 

194.5

 

 269.2

 

Cash balances within linked investments backing policyholder funds are not included as they are not due to the Group.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

Share capital and other reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10(a)

Share capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares are classified as equity instruments when there is no contractual obligation to deliver cash or other assets to another entity on terms that may be unfavourable. The value of the Group's share capital consists of the number of ordinary shares in issue in Ninety One plc and Ninety One Limited multiplied by their nominal value. The comparative figures are presented as if the Demerger Transactions had occurred at the beginning of the year ended 31 March 2019.

 

 

 

 

The tables below provide details of the share capital of Ninety One plc and Ninety One Limited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As at 31 March 2020 and 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares

 

Nominal value
£'m

 

Ninety One plc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares of £0.0001 each, issued, allotted and fully paid

 

 

 

 

 

 622,624,622

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special shares 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special converting shares

 

 

 

 

 

 

 

 

 

 

 

 300,089,454

 

 -

 

UK DAS Share

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

UK DAN Share

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

Special voting share

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ninety One plc balance as at 31 March 2020 and 2019

 

 

 

 

 

 

 

 

 

 0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On the Date of Demerger, Ninety One plc acquired the net assets of Ninety One UK Limited (previously Investec Asset Management Limited), the former holding company of the Ninety One Business in the UK, from Investec and Forty Two Point Two for a consideration of £915.3 million. The transfer was effected by the issue of 622,624,621 ordinary shares by Ninety One plc, with the balance giving rise to the share premium of £732.2 million and a merger reserve of £183.0 million, being the differences of the nominal value of shares issued and the consideration of the acquired net assets of Ninety One UK Limited. Share premium was subsequently transferred to distributable reserve by means of the reduction of share capital.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ninety One Limited

 

 

 

 

 

 

 

 

 

 

 

Number of shares

 

Nominal value
£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares with no par value, issued, allotted and fully paid

 

 

 

 

 

 300,089,454

 

 441.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special shares 1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Special converting shares

 

 

 

 

 

 

 

 

 

 

 

 622,624,622

 

 -

 

SA DAS Share

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

SA DAN Share

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

Special voting share

 

 

 

 

 

 

 

 

 

 

 

1

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ninety One Limited balance as at 31 March 2020 and 2019

 

 

 

 

 

 

 

 441.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On the Date of Demerger, Ninety One Limited acquired the net assets of Ninety One Africa Proprietary Limited (previously Investec Asset Management Holding Proprietary Limited), the former holding company of the Ninety One Business in Southern Africa, from Investec and Forty Two Point Two for a consideration of £441.1 million. The transfer was effected by the issue of 300,089,454 ordinary shares by Ninety One Limited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total ordinary shares in issue and share capital as at 31 March 2020 and 2019

 

 

 

 922,714,076

 

 441.2

 

 

1 Special shares will not have any rights to vote, except on a resolution either to vary the rights attached to such share or on a winding-up of Ninety One plc or Ninety One Limited, nor any right to receive any dividend or other distribution by Ninety One plc or Ninety One Limited.

 

10(b)

Own share reserve

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Group established the employee benefit trusts ("EBTs") for the purpose of purchasing the Group's shares and satisfying the share-based payment awards granted to employees. The EBTs are funded and operated by the relevant entity of the Group and hold shares that have not vested unconditionally to employees of the Group. The EBTs are consolidated into the Group's condensed financial statements, with any Ninety One shares held by the EBTs classified as own shares deducted from equity of the Group's condensed consolidated statement of financial position. These shares are recorded at cost, no gain or loss is recognised in the Group's condensed consolidated income statements on the purchase, sale, issue or cancellation of these shares.

Movements in the own shares reserve during the year were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

Opening balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -

 

Own shares purchased

 

 

 

 

 

 

 

 

 

 

 (9.9)

 

Closing balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (9.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6.4 million ordinary shares were purchased and held within the EBTs during the year.

 

 

10(c)

Other reserves

 

The following tables show the movements in other reserves during the year:

 

 

 

 

 

 

 

Share premium

 

Distributable reserve

 

Merger reserve

 

DLC reserve

 

Share-based payments reserve

 

Foreign currency translation reserve

 

Total

 

 

 

 

 

 

 

 

£m

 

£'m

 

£'m

 

£'m

 

£'m

 

£'m

 

£'m

 

 

 

 

 

 

 

 

(i)

 

(i)

 

(ii)

 

(iii)

 

(iv)

 

(v)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 April 2019

 

-

 

 732.2

 

 183.0

 

 (1,236.5)

 

 -

 

 (24.8)

 

 (346.1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange differences on translating foreign  subsidiaries

 

-

 

 -

 

 -

 

 -

 

 -

 

 (10.2)

 

 (10.2)

 

 

Share-based payment transactions

 

-

 

 -

 

 -

 

 -

 

4.7

 

 -

 

 4.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 March 2020

 

-

 

 732.2

 

 183.0

 

 (1,236.5)

 

 4.7

 

 (35.0)

 

 (351.6)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 April 2018

 

732.2

 

-

 

 183.0

 

 (1,236.5)

 

 -

 

 (14.9)

 

 (336.2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transfer to distributable reserve

 

(732.2)

 

732.2

 

-

 

-

 

-

 

-

 

-

 

 

Exchange differences on translating foreign subsidiaries

 

-

 

 -

 

 -

 

 -

 

 -

 

 (9.9)

 

 (9.9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31 March 2019

 

-

 

 732.2

 

 183.0

 

 (1,236.5)

 

 -

 

 (24.8)

 

 (346.1)

 

 

 

(i) Share premium and distributable reserve

 

The share premium amounting to £732.2 million arising from the Demerger transactions described in note 10(a), being the premium of shares issued by Ninety One plc to Investec plc shareholders in exchange for the 80 percent stake in Ninety One UK Limited, was subsequently transferred to a distributable reserve by effecting a court approved reduction of capital, reducing its share premium account in order to create a distributable reserve for future distributions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(ii) Merger reserve

 

The merger reserve of £183 million is a legally created reserve that represents the premium of shares issued by Ninety One plc to Forty Two Point Two in exchange for its 20 percent (less one share) stake in Ninety One UK Limited. This transaction attracted merger relief under section 612 of the Companies Act 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(iii) DLC reserve

 

The DLC reserve of £1,236.5 million is an accounting reserve in equity to reflect the difference between the consideration for the acquired net assets of Ninety One UK Limited and Ninety One Africa Proprietary Limited (i.e. value of shares issued by Ninety One plc and Ninety One Limited) amounting to £1,356.4 million and the share capital and share premium of Ninety One UK Limited and Ninety One Africa Proprietary Limited amounting to £119.9 million.

 

 

 

(iv) Share-based payment reserve

 

The share-based payment reserve of £4.7m comprises the fair value of share awards granted which are yet to be exercised. The amount will be reversed to own share reserve when the related awards are forfeited or vested and transferred to the employee.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(v) Foreign currency translation reserve

 

The foreign currency translation reserves of £35.0 million (2019: £24.8 million) represent the exchange differences arising from the translation of the financial statements of foreign subsidiaries.

11

Policyholder investment contract liabilities

 

 

 

 

 

 

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opening balance

 

 

 

 

 

 

 

 

 

 8,190.9

 

 8,446.1

 

 

 

 

 

 

 

 

 

  Investment income on linked investments backing policyholder funds

 

 

 

 452.9

 

 442.7

 

  Net fair value (losses)/gains on linked investments backing policyholder funds

 

 

 

 (588.7)

 

 159.7

 

  Investment and administration expenses

 

 

 

 (27.6)

 

 (24.9)

 

  Income tax expense - Policyholders' funds

 

 

 

 4.5

 

 (6.7)

 

  Surplus transferred to shareholders

 

 

 

 

 

 

 

 

 (28.3)

 

 (27.1)

 

Net fair value change on policyholder investment contract liabilities

 

 

 

 

(187.2)

 

543.7

 

 

 

 

 

 

 

 

 

 

Contributions

 

 

 

 

 

 

 

 

 

 975.1

 

 930.0

 

Withdrawals

 

 

 

 

 

 

 

 

 

 (722.1)

 

 (723.5)

 

Exchange adjustment

 

 

 

 

 

 

 

 

 

 (1,253.9)

 

 (1,005.4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 7,002.8

 

 8,190.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

12

Other liabilities

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Non-current deferred compensation liabilities

 

 

 

 

 

 

 

 39.3

 

 44.9

 

Current deferred compensation liabilities

 

 

 

 

 

 

 

 37.6

 

 32.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 76.9

 

 77.5

 

The above liabilities include applicable employer tax.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2019

13

Trade and other payables

 

 

 

 

 

 

 

 

 

£'m

 

£'m

 

Employee related payables

 

 

 

 

 

 

 

 

 

 

 

 145.4

 

 152.7

 

Trade payables

 

 

 

 

 

 

 

 

 

 

 

158.1

 

 154.8

 

Amounts payable to Investec

 

 

 

 

 

 

 

 

 

 0.8

 

 3.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

304.3

 

 311.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

Leases

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14(a)

Amount recognised in the condensed consolidated statement of financial position applying IFRS 16

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

£'m

 

Right-of-use assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Office premises

 

 

 

 

 

 

 

 

 

 

 

 90.7

 

Additions to the right-of-use assets during the year ended 31 March 2020 were £19.2m.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 2.7

 

Non-current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 98.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 101.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the remaining contractual maturities of the Group's lease liabilities at the end of the current reporting period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020