TIDMMGR
RNS Number : 6138Z
Miton Group Plc
16 March 2017
16 March 2017
MITON GROUP PLC
FINAL RESULTS FOR THE YEARED 31 DECEMBER 2016
"Strong momentum in all Group KPIs"
Miton Group plc (the 'Company' or 'Group'), the AIM quoted asset
management group, today announces its final results for the year
ended 31 December 2016.
2016 Results
-- GBP2,905 million closing Assets under Management (AuM), up
from GBP2,784 million at the start of 2016.
-- Average AuM up by 20% for the year at GBP2,783 million (2015: GBP2,319 million).
-- Net management fee margin maintained.
-- Adjusted profit before tax increased by 70% to GBP5.1 million for the year.
-- Proposed dividend of 1.0p, up 49% reflecting confidence in
future prospects and momentum in AuM.
-- Group remains robustly financed with total cash of GBP21.0m up 51%.
Fund highlights
-- The multi-asset fund range grew by 41% to end the year at GBP672 million.
-- The CF Miton US Opportunities Fund reached its three-year
track record in March 2016 and has maintained first quartile
performance since inception. AuM increased by 85% to end the year
at GBP238 million.
-- The CF Miton European Opportunities Fund was launched on 14
December 2015 and saw strong performance and AuM generation, ending
the year at GBP82 million.
-- 86% of funds are first or second quartile*.
* Since launch or manager tenure up to 31 December 2016
Current Trading
-- GBP3,097 million closing AuM at 28 February 2017.
-- New launch of a global infrastructure income fund on 23 March 2017.
Ian Dighé, Chairman of Miton Group, said:
"The business has demonstrated its resilience with momentum
regained since the half year. Gross sales during 2016 were in
excess of GBP1.1bn which is a testament to the quality of our fund
management team and a differentiated and attractive product
offering".
"Over the past year, Miton has continued to build its
distinctive identity as a genuinely active fund manager. The
acceleration of our growth over recent quarters underlines our
confidence in our prospects. Miton has an outstanding team, and
along with a maturing range of funds, having reached GBP3,097m AuM
at the end of February, we look forward to 2017 and beyond."
2016 2015
GBPm GBPm %
Closing AuM 2,905 2,784 +4.3
Average AuM(1) 2,783 2,319 +20.0
Net revenue 19.0 15.7 +21.0
Adjusted Profit before tax(2) 5.1 3.0 +70.0
Profit before tax(3) 4.3 2.1 +104.8
Cash generated from operations 8.5 2.4 +254.3
Total cash 21.3 14.1 +51.0
pence pence %
Adjusted earnings per share(4) 2.67 1.43 +86.7
Diluted adjusted earnings per share(5) 2.40 1.18 +103.4
Basic earnings per share 2.14 0.92 +132.6
Proposed dividend per share 1.00 0.67 +49.3
Notes
(1) Average AuM is based on the total month end closing AuM for
each product managed by the Group.
(2) Adjusted Profit is calculated before the deduction of
amortisation, exceptionals, VAT provision relating to prior years
and associated taxation.
(3) Profit before tax includes exceptional operating expenses of
GBP0.598m relating to the implementation of a new remuneration
structure for the fund management team and the cancellation of the
Growth Share Plan for those participants who had no value accrued
in the scheme. In 2015 the exceptional items related to redundancy
and restructuring costs.
(4) Adjusted earnings per share excludes charges for
amortisation, exceptionals, VAT provision and associated
taxation.
(5) Diluted adjusted earnings per share involves a dilution of
9.5% largely as a result of an estimate of the Miton Group plc
shares which would be issued if all the Growth Share Plan shares
with an accrued value at 31 December 2016 had vested and had been
exchanged for Miton Group plc ordinary shares at that date.
S
For further information, please contact:
Miton Group plc 020 3714 1500
David Barron
Gervais Williams
MHP Communications miton@mhpc.com
Reg Hoare / Simon Hockridge / Charlie Barker 020 3128 8100
Peel Hunt (Nominated adviser and Broker) 020 7418 8893
Guy Wiehahn / Rishi Shah
Note to Editors:
Miton Group plc (referred to as the "Company" or "Group"), is a
multi-asset and equity asset management specialist based in London.
As at 28 February 2017 the Group managed GBP3.1 billion of assets
including eight OEICs, two unit trusts and four investment
trusts.
Chairman's Statement
Overview
In the past year, Adjusted Profit before tax increased by 70%
driven by higher average Assets under Management than the previous
financial year.
The business has demonstrated its resilience with momentum
regained since the half year. As I reported in September 2016,
progress was interrupted following the change of management on the
CF Miton UK Value Opportunities Fund. However, under the new
management of Andy Jackson, who we moved quickly to bring in as
portfolio manager, the fund has delivered strong first quartile
performance since he took over on 1 July 2016 in what were volatile
market conditions following the Brexit referendum.
There has also been strong growth in our multi-asset funds. The
combination of good outcome-driven performance coupled with a
focused distribution effort has seen the funds grow from assets
totalling GBP477m to GBP672m, an increase of over 41%.
Gross sales during 2016 were in excess of GBP1.1bn which is a
significant achievement and testament to the quality of our fund
management team and a differentiated and attractive product
offering, combined with excellent distribution, operations and
support capabilities.
Our approach of managing a range of differentiated single
strategy funds and transparent multi-asset funds is one that gives
the business greater resilience and the ability to deliver
investment solutions to a wider range of clients.
Investment performance
Low bond yields imply that longer term returns on assets could
be more limited. Whatever the markets have in store for 2017 and
beyond, we believe that a genuinely active approach to investing
will be advantageous for investors.
At 31 December the Group's product range continued to perform
well with 8 out of 14 funds in the first quartile of their
respective sectors over the tenures of the current managers.
Results and dividends
The substantial net inflows we experienced in quarters one and
four in the year have placed the Group in a strong position moving
into 2017. Average AuM as highlighted earlier has improved from
last year and operating costs have been tightly controlled which
has positively impacted both revenue and profitability.
The Board is proposing to increase the annual dividend by 49% to
1.00p per share (2015: 0.67p) payable on 4 May 2017 to shareholders
registered as at 31 March 2017. This increase in dividend reflects
the Board's continued confidence in the Group's future prospects
and momentum in AuM.
The Group remains robustly financed for whatever the markets may
hold, with GBP21.3m of cash on hand at 31 December 2016 (2015:
GBP14.1m).
Board developments
Miton was refinanced in 2011 in a transaction led by myself and
Gervais Williams. Under our leadership Miton has been transformed
into a well-resourced and stable asset management business offering
truly differentiated single strategy and multi-asset funds. The
business is growing well, with a scalable operating platform, a
strong balance sheet and an outstanding team of people including
some of the UK's leading fund managers.
In November 2016 the Company announced that as part of the
normal process of Board refreshment I would be moving from
Executive to Non-Executive Chairman. This transition will be
effective from 16 March 2017. David Barron assumes my executive
responsibilities on an interim basis in the role of Chief Executive
Officer, to continue building on the growing momentum within the
Group.
It has always been my intention to initiate a search for a new
Non-Executive Chairman at this stage and stand down from the Board
following an orderly handover of responsibilities. The search for a
new Non-Executive Chairman is now underway. The Company will also
recruit a Chief Executive to lead the management team in the
future.
I am delighted this annual report underlines the considerable
progress made in recent years and the tremendous prospects for
Miton looking forward. With the planned changes to our Board we
will continue to build on the strong foundations that have been
laid, focusing on delivering value for our clients and
shareholders.
Our people
To develop the business requires a huge amount of work and
co-ordination. Our team have been relentless in their efforts and
commitment. I continue to be hugely appreciative of everyone's
work.
We have, as previously announced, amended our remuneration
scheme for fund managers to reflect evolving market expectations
and to align incentives more closely to investment performance.
Prospects
We were delighted to announce that fund manager, Jim Wright,
joined Miton on 16 January 2017 with a view to launching a global
equity infrastructure income fund in early 2017. This is in line
with our ambition to launch new products and identify talented
managers who fit with our "genuinely active approach".
Jim has a tremendous track record in this area managing the
infrastructure mandate of the British Steel Pension Fund for the
past ten years. We believe this is an attractive asset class and
one where our strongly differentiated approach will appeal to
clients.
This latest launch announcement is a further step in bringing
new and differentiated funds to market. Since 2011 Miton has
launched five new equity funds. These funds now have client assets
of GBP1,526m with an average age of just under three and a half
years.
All five funds are top quartile performers since their
respective launch dates and demonstrate our ability to identify
strategies that can deliver superior returns and talented fund
managers to run them. We believe we can launch new funds which are
distinct and complementary to what we already offer.
The Group remains a well-capitalised and resourced business with
significant expertise and a product range that we believe is
increasingly relevant to clients. By continuing to build on the
product launches of the last five years, offering a strongly
differentiated approach and broadening our range of funds, we have
confidence that we can deliver significant growth in the
business.
Outlook
Recent election results point to a period of shifting political
and economic trends. Regulatory and social expectations are also
increasingly challenging. Our funds are well placed to navigate
these changes with their focus on flexibility, access to a wider
opportunity set and careful management of both risk and return. We
believe they are relevant to clients through a range of market
conditions.
We do not manage our business by trying to predict regulatory
changes or by assuming markets will perform in a particular
fashion. We offer a range of strategies that are genuinely
distinctive in the eyes of clients. We aim to have diversification
in our business, to offer both single strategy and multi-asset
funds, delivering excellent client service with a robust operating
platform and appropriate cost management. We are nimble and
entrepreneurial and can take advantage of the opportunities that
may arise from changes elsewhere in the fund management sector.
Over the past year, Miton has continued to build its distinctive
identity as a genuinely active fund manager. The acceleration of
our growth over recent quarters underlines our confidence in our
prospects. Miton has an outstanding team, and along with a maturing
range of funds, having reached GBP3,097m AuM at the end of
February, we look forward to 2017 and beyond.
Ian Dighé
Executive Chairman
15 March 2017
Financial and Operational Review
Results for the year
Average Assets under Management (AuM) for 2016 was GBP2,783m
(2015: GBP2,319m) representing an increase of 20% for the year.
This increase has driven the rise in underlying profitability
despite the Group's closing AuM ending the year only 4.3% ahead of
the opening position at GBP2,905m.
Net revenues increased to GBP19.0m for the year (2015: GBP15.7m)
and Adjusted Profit before tax was GBP5.1m (2015: GBP3.0m).
Although administration expenses exhibited a similar upward trend,
these did not increase at the same pace as Group revenues.
As noted in the half year report, the Group's significant net
inflows in the first quarter were offset in the second quarter
primarily as a result of outflows experienced on the CF Miton UK
Value Opportunities Fund. The second half of the year saw momentum
in asset gathering resume, resulting in net inflows for the year of
GBP1m as detailed below.
AuM by asset class
Closing
Opening AuM Market / AuM
1 January investment 31 December
2016 Net Flows performance 2016
GBPm GBPm GBPm GBPm
------------------ ----------- --------- ------------ ------------
Equity funds 1,834 (181) 61 1,714
Multi-asset Funds 477 154 41 672
Investment Trusts 473 28 18 519
------------------ ----------- --------- ------------ ------------
Total 2,784 1 120 2,905
------------------ ----------- --------- ------------ ------------
The Group continues to focus on the diversification of the fund
range. Pleasingly the European equity strategy launched on 14
December 2015 closed the year at GBP82m.
The CF Miton US Opportunities Fund continued to deliver first
quartile performance as it has done since inception. AuM increased
by 85% to end the year at GBP238m.
The multi-asset funds saw net inflows for the year totalling
GBP154m, of which GBP152m related to the MI Miton Cautious Monthly
Income Fund which saw its assets end the year at GBP210m.
Looking to 2017, the Group continues to broaden its fund range
with the pending launch of a new fund specialising in listed global
equity infrastructure assets.
Net management fees and margins
2016 2015 % growth
-------------------------------- ----- ----- --------
Average AuM (GBPm) 2,783 2,319 20.0
-------------------------------- ----- ----- --------
Net management fees (GBPm) 19.0 15.7 21.0
-------------------------------- ----- ----- --------
Net management fee margin (bps) 68.2 67.7
-------------------------------- ----- ----- --------
Net management fee margin rose slightly to 68.2bps for the year
(2015: 67.7bps). The increase continues to reflect the maturing
product mix and the higher margin contribution from Investment
Trusts managed by the Group.
It is anticipated that these margins will reduce somewhat in
future years as the Group continues to diversify and new strategies
contribute at lower founder investor margins in their early asset
gathering phases.
Costs
Administration expenses (excluding share-based payments) rose
during the year to GBP13.1m, an increase of 15.9%. This is due
largely to the introduction of a new fund manager remuneration
scheme (discussed below).
Fixed personnel costs rose to GBP6.6m due to the addition of a
full year of costs for the Group's European equity strategy,
changes to the management of the UK value strategy and general
increases in base salaries across the Group.
Overheads decreased by 5.6% reflecting a sharpened focus on the
cost base in 2016 as a result of the cost review performed in Q4
2015. Included within overheads were recruitment costs totalling
GBP0.4m relating to the Group's continued development and also
arising from specific events that occurred during the year.
In 2016 project related costs reduced to GBP0.1m compared to
GBP0.4m in 2015. The Group continues to streamline the business and
build on the progress made in 2015.
Other costs consist principally of depreciation and
irrecoverable VAT.
Adjusted Profit and Profit before Tax
2016 2015
GBPm GBPm
--------------------------- ------ ------
Net revenue 19.0 15.7
Administrative expenses (13.1) (11.3)
Share-based payments (0.7) (1.2)
VAT adjustment* - (0.2)
--------------------------- ------ ------
Adjusted Profit before tax 5.1 3.0
--------------------------- ------ ------
Amortisation (0.3) (0.8)
Exceptional costs (0.6) (0.3)
VAT adjustment* - 0.2
--------------------------- ------ ------
Profit before tax 4.3 2.1
--------------------------- ------ ------
* Provision relating to prior year
The profit before tax of GBP4.3m (2015: GBP2.1m) arose after
charging exceptional costs of GBP0.6m arising from the cancellation
of the Growth Share Plan (GSP) for those participants who had no
accrued value in the scheme as at 30 June 2016. It also includes
costs associated with the implementation of the new remuneration
structure for the fund management team. In 2015 the exceptional
costs of GBP0.3m resulted from redundancy and associated legal
costs.
Share-based payments
The share-based payment expense for the year was GBP0.7m (2015:
GBP1.2m). The decrease during the year is due to two elements:
1. The forfeiture of awards by employees leaving the Group,
resulting in a write-back of the cumulative expense recognised in
prior periods totalling GBP0.43m. Of this, GBP0.21m is in relation
to previous awards under the Management Incentive Plan (MIP) and
Management Equity Incentive (MEI) schemes, the balance of GBP0.22m
relates to awards under the GSP.
2. An accelerated charge recognised as an exceptional item for
the cancellation of the GSP (which would have normally been
included in share-based payments for 2016 and future years). This
amounted to a non-cash IFRS 2 charge of GBP0.48m, shown below.
Reconciliation of share-based payment expense:
2016 2015
GBPm GBPm
---------------------------------------------------------- ------ ------
Share-based payment: GSP 0.85 0.70
Share-based payment: MEI & MIP 0.32 0.54
Forfeiture of awards: (0.43) (0.04)
---------------------------------------------------------- ------ ------
Share-based payment expense 0.74 1.20
---------------------------------------------------------- ------ ------
Exceptional item: Acceleration of GSP share-based payment 0.48 -
---------------------------------------------------------- ------ ------
New fund manager remuneration scheme
The GSP has been replaced as the primary mechanism to remunerate
each fund manager with a new scheme which allows participants to
share in the net revenue generated by their funds. The award in a
given year will not exceed 25% of the net revenue generated. Any
award under the scheme is adjusted for performance and risk metrics
and deducts direct employment costs. A percentage of the award,
over a de minimis amount, is required to be invested into funds
managed by the Group and released to the participant over a three
year deferral period.
With the introduction of the new scheme and more variable cash
costs, there will be a reduction in future dilution as well as the
resulting non-cash share-based payment expense.
Earnings per share
The adjusted earnings per share of 2.67p shows an increase of
86.7% on 1.43p achieved in 2015. The increase is due primarily to
the increase in the Adjusted Profit after tax.
Basic earnings per share was 2.14p (2015: 0.92p).
Diluted adjusted earnings per share of 2.40p (2015: 1.18p) shows
a theoretical dilution of 9.5% (2015: 20%) largely as a result of
an estimate of the number of Miton Group plc shares which would
have been issued if all the outstanding growth shares with accrued
value at 31 December 2016 had been converted at that date.
The theoretical dilution has fallen significantly as a result of
an exchange notice being served on 100 growth shares during the
year and the subsequent issue of plc shares. In addition to this, a
team with accrued value in the GSP as at 31 December 2015 departed
during the year and as a consequence forfeited their growth
shares.
There is also a dilution element arising from the Management
Equity Incentive (MEI) and the Management Incentive Plan (MIP)
where the exercise prices are below the average share price during
the year of 27.32p (2015: 25.83p).
Dividend
The Board is proposing to increase the annual dividend by 49.3%
to 1.00p per share (2015: 0.67p) payable on 4 May 2017 to
shareholders registered as at 31 March 2017. The increase in the
dividend reflects the Board's continued confidence in the Group's
growth prospects and AuM progression now that the Group's operating
platform has been established and the historic structural changes
completed.
Balance sheet and cash management
As at the year end the cash balances of the Group were GBP21.3m
(2015: GBP14.1m). The rise was driven by the increased
profitability over the year coupled with positive working capital
movements.
The Group believes in maintaining a healthy balance sheet,
particularly in light of economic and political changes. The Group
has not used capital retained in the business to seed new
investment products.
On 22 December 2016 the Group announced that it would be
utilising some of its cash resources to mitigate the dilution
impact arising from conversions under the GSP. The Group provided
an instruction to Peel Hunt to acquire up to 6,606,900 ordinary
shares. The buyback commenced in January 2017 and was completed on
23 February 2017. At 15 March 2017 all the shares purchased as part
of this process have been cancelled.
Piers Harrison
Chief Operating Officer
15 March 2017
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2016
2016 2015
Notes GBP000 GBP000
---------------------------------------------------- ----- -------- ----------
Revenue 24,067 22,031
Fees and commission expenses (5,079) (6,306)
---------------------------------------------------- ----- -------- ----------
Net revenue 18,988 15,725
Administration expenses (13,122) (11,319)
Share-based payment expense (739) (1,218)
Amortisation of intangible assets (290) (768)
Exceptional operating expenses 3(c) (598) (317)
---------------------------------------------------- ----- -------- ----------
Operating profit 3(a) 4,239 2,103
Finance revenue 11 22
---------------------------------------------------- ----- -------- ----------
Profit for the year before taxation 4,250 2,125
Taxation (1,002) (730)
---------------------------------------------------- ----- -------- ----------
Profit for the year after taxation and attributable
to equity holders of the parent 3,248 1,395
---------------------------------------------------- ----- -------- ----------
pence pence
---------------------------------------------------- ----- -------- ----------
Basic earnings per share 4(a) 2.14 0.92
---------------------------------------------------- ----- -------- ----------
Diluted earnings per share 4(a) 1.92 0.75
---------------------------------------------------- ----- -------- ----------
No other comprehensive income was recognised during 2016 or
2015. Therefore, the profit for the year is also the total
comprehensive income.
Consolidated Statement of Changes in Equity
for the year ended 31 December 2016
Employee
Share Share Benefit Treasury Creditors' Retained
Capital Premium Trust Shares Reserve Earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------------- --------- --------- -------- ---------- ------------ ---------- --------
At 1 January 2015 171 2,661 (6,294) (26) 3,057 57,171 56,740
Profit for the year - - - - - 1,395 1,395
Release of Treasury shares - - 43 - - - 43
Purchase of Treasury shares - - (17) - - - (17)
Purchase of Employee Benefit
Trust Shares - - (252) - - - (252)
Share-based payment - - - - - 1,218 1,218
Release from Creditors' Reserve - - - - (3,057) 3,057 -
Equity dividends paid - - - - - (910) (910)
-------------------------------- --------- --------- -------- ---------- ------------ ---------- --------
At 1 January 2016 171 2,661 (6,520) (26) - 61,931 58,217
-------------------------------- --------- --------- -------- ---------- ------------ ---------- --------
Profit for the year - - - - - 3,248 3,248
Release of Treasury shares - - - 15 - - 15
Purchase of Employee Benefit
Trust Shares - - (10) - - - (10)
Share-based payment - - - - - 1,215 1,215
Settlement of options - - - - - (159) (159)
Share issues on exchange of
Growth Shares 7 - - - - (7) -
Equity dividends paid - - - - - (1,012) (1,012)
-------------------------------- --------- --------- -------- ---------- ------------ ---------- --------
At 31 December 2016 178 2,661 (6,530) (11) - 65,216 61,514
-------------------------------- --------- --------- -------- ---------- ------------ ---------- --------
Consolidated Statement of Financial Position
as at 31 December 2016
2016 2015
Notes GBP000 GBP000
--------------------------------- ----- ------- --------
Non-current assets
Goodwill 41,070 41,070
Intangible assets 817 1,107
Other investments 100 -
Property and equipment 86 161
Deferred tax asset 44 61
--------------------------------- ----- ------- --------
42,117 42,399
--------------------------------- ----- ------- --------
Current assets
Trade and other receivables 2,415 4,620
Cash and cash equivalents 5 21,288 14,073
--------------------------------- ----- ------- --------
23,703 18,693
--------------------------------- ----- ------- --------
Total assets 65,820 61,092
Current liabilities
Trade and other payables (3,953) (2,554)
--------------------------------- ----- ------- --------
(3,953) (2,554)
--------------------------------- ----- ------- --------
Non-current liabilities
Provisions (187) (89)
Deferred tax liability (166) (232)
--------------------------------- ----- ------- --------
(353) (321)
Total liabilities (4,306) (2,875)
--------------------------------- ----- ------- --------
Net assets 61,514 58,217
--------------------------------- ----- ------- --------
Equity
Share capital 178 171
Share premium 2,661 2,661
Employee Benefit Trust (6,530) (6,520)
Treasury shares (11) (26)
Retained earnings 65,216 61,931
--------------------------------- ----- ------- --------
Total equity shareholders' funds 61,514 58,217
--------------------------------- ----- ------- --------
Consolidated Statement of Cash Flows
for the year ended 31 December 2016
2016 2015
Notes GBP000 GBP000
---------------------------------------------------------------- ----- ------- --------
Operating activities
Profit for the year after taxation 3,248 1,395
Adjustments to reconcile profit to net cash flow from operating
activities:
Tax on continuing operations 1,002 730
Finance revenue (11) (22)
Depreciation 86 88
Loss on disposal of fixed assets 1 3
Amortisation of intangible assets 290 768
Share-based payment expense 1,215 1,218
Decrease/(increase) in trade and other receivables 1,661 (1,205)
Increase/(decrease) in trade and other payables 934 (357)
Increase/(decrease) in provisions 98 (171)
---------------------------------------------------------------- ----- ------- --------
Cash generated from operations 8,524 2,447
Income tax paid (42) (1,346)
---------------------------------------------------------------- ----- ------- --------
Net cash flow from operating activities 8,482 1,101
---------------------------------------------------------------- ----- ------- --------
Investing activities:
Interest received 11 22
Purchase of property and equipment (12) (36)
Purchase of other investments (100) -
Acquisition of Darwin Investment Managers Limited - (420)
Purchase of Matterley management contract - (650)
---------------------------------------------------------------- ----- ------- --------
Net cash flow from investing activities (101) (1,084)
---------------------------------------------------------------- ----- ------- --------
Financing activities:
Purchase of Treasury shares - (17)
Release of Treasury shares 15 43
Purchase of Employee Benefit Trust shares (10) (252)
Settlement of options (159) -
Dividend paid (1,012) (910)
---------------------------------------------------------------- ----- ------- --------
Net cash flow from financing activities (1,166) (1,136)
---------------------------------------------------------------- ----- ------- --------
Increase/(decrease) in cash and cash equivalents 7,215 (1,119)
Cash and cash equivalents at the beginning of the year 14,073 15,192
---------------------------------------------------------------- ----- ------- --------
Cash and cash equivalents at the end of the year 5 21,288 14,073
---------------------------------------------------------------- ----- ------- --------
Notes to the Consolidated Financial Statements
for the year ended 31 December 2016
1. Authorisation of financial statements and statement of
compliance with IFRS
The financial statements of Miton Group plc and its subsidiaries
(the 'Group') for the year ended 31 December 2016 were authorised
for issue by the Board of directors on 15 March 2017 and the
Consolidated Statement of Financial Position was signed on the
Board's behalf by Ian Dighé. Miton Group plc is a public limited
company incorporated and domiciled in England and Wales. The
Company's ordinary shares are traded on AIM.
This financial information does not constitute statutory
accounts, but has been extracted from the statutory accounts for
the years ended 31 December 2016 and 31 December 2015 on which
unqualified audit reports, which did not contain a statement under
s498(2) or s498(3) of the Companies Acts 2006, have been issued.
The statutory accounts for the year ended 31 December 2015 were
posted to shareholders on 1 April 2016 and delivered to the
Registrar on 10 May 2016. The results announcement has been
prepared on the same basis as that used in the preparation of the
previous year's annual report and was approved for issue by the
board of directors on 15 March 2017.
The statutory accounts will be delivered to the Registrar of
Companies following the Company's Annual General Meeting which will
be held at 10.30am on 27 April 2017 at the offices of Stephenson
Harwood LLP, 1 Finsbury Circus, London, EC2M 7SH.
Copies of the Annual Report and Accounts and the Notice of
Annual General Meeting will be published on the Group's website
www.mitongroup.com on 16 March 2017 and posted to shareholders on
or before 3 April 2017. They will be available to the public at the
registered office from 3 April 2017.
2. Basis of preparation
The Group's financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRSs)
as adopted by the European Union as they apply to the financial
statements of the Group for the year ended 31 December 2016. The
consolidated financial statements have been prepared on the
historical cost basis, except for certain financial instruments
which have been measured at fair value. The consolidated financial
statements are presented in Sterling and all values rounded to the
nearest thousand pounds (GBP000). This results announcement
contains certain forward looking statements with respect to the
financial condition, results of operations and businesses and plans
for Miton Group plc. These statements and forecasts involve risk
and uncertainty because they relate to events and depend upon
circumstances that have not yet occurred. There are a number of
different factors that could cause actual results or developments
to differ materially from those expressed or implied by these
forward looking statements. Nothing in this statement should be
construed as a profit forecast.
Segmental reporting
The Group has only one operating segment, fund management, which
is derived from clients in the United Kingdom and Europe.
Therefore, no segmental reporting is presented. The Group has one
cash-generating unit.
3. Group operating profit
(a) Operating profit is stated after charging:
2016 2015
Notes GBP000 GBP000
--------------------------------------------- ----- ------- -------
Auditors' remuneration 3(b) 170 241
Staff costs 9,486 7,634
Operating lease rentals - land and buildings 487 606
Depreciation 86 88
Loss on disposal of fixed assets 1 3
Amortisation of intangible assets 290 768
Exceptional operating expenses 3(c) 598 317
--------------------------------------------- ----- ------- -------
The operating lease rental charged to the Consolidated Statement
of Comprehensive Income includes the service charges associated
with each lease.
(b) Auditors' remuneration
The remuneration of the auditors is analysed as follows:
2016 2015
GBP000 GBP000
-------------------------------------------------- ------- -------
Audit of the consolidated financial statements 40 77
Audit of the Company's subsidiaries 77 70
-------------------------------------------------- ------- -------
117 147
-------------------------------------------------- ------- -------
Other fees to auditors - tax compliance services 38 41
- tax advisory services 7 32
- other assurance services 8 21
-------------------------------------------------- ------- -------
170 241
-------------------------------------------------- ------- -------
(c) Exceptional operating expenses
2016 2015
GBP000 GBP000
---------------------------------------------------------------------------------------------------- ------- -------
Group restructuring costs - 317
New fund manager remuneration plan - implementation costs 123 -
- acceleration of share-based
payment (non-cash) 475 -
---------------------------------------------------------------------------------------------------- ------- -------
598 317
---------------------------------------------------------------------------------------------------- ------- -------
The exceptional costs in 2016 totalling GBP598,000 arose from
the cancellation of the GSP for those participants who had no
accrued value in the scheme as at 30 June 2016 along with costs
associated with the implementation of the new remuneration
structure for the fund management team.
Restructuring costs in 2015 represented GBP312,000 of redundancy
costs and GBP5,000 of associated legal costs.
4. Earnings per share
Basic earnings per share is calculated by dividing the profit
for the year attributable to ordinary equity shareholders of the
parent company by the weighted average number of ordinary shares
outstanding during the year.
The weighted average of issued ordinary share capital of the
Company is reduced by the weighted average number of shares held by
the Group's Employee Benefit Trust. These shares have waived their
dividend rights.
In calculating diluted earnings per share, IAS 33 Earnings Per
Share requires that the profit is 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
conversion of all the dilutive potential ordinary shares into
ordinary shares during the year.
In January 2017 the Group undertook a share buyback that was
completed on 23 February 2017. The Group acquired a total of
6,606,900 ordinary shares and as at 15 March 2017 these shares had
been cancelled.
(a) Reported earnings per share
Reported basic earnings per share has been calculated as
follows:
2016 2015
-------------------------------- ------------------------------------
Basic
earnings Basic earnings
Profit Shares per share Profit Shares per share
GBP000 No. pence GBP000 No. pence
----------------------------------- ------- ----------- ---------- ------- ----------- --------------
Profit attributable to ordinary
equity shareholders of the parent
company for basic earnings 3,248 1,395
----------------------------------- ------- ----------- ---------- ------- ----------- --------------
Basic earnings per share 3,248 152,037,715 2.14 1,395 151,653,458 0.92
----------------------------------- ------- ----------- ---------- ------- ----------- --------------
Diluted earnings per share has been calculated as follows:
2016 2015
--------------------------------- --------------------------------------
Diluted
Diluted earnings Diluted Diluted earnings
Profit Shares per share Profit Shares per share
GBP000 No. pence GBP000 No. pence
----------------------------------- -------- ----------- ---------- ------- ----------- ----------------
Profit attributable to ordinary
equity shareholders of the parent
company for diluted earnings 3,248 1,395
----------------------------------- -------- ----------- ---------- ------- ----------- ----------------
Diluted earnings per share 3,248 169,165,834 1.92 1,395 184,819,738 0.75
----------------------------------- -------- ----------- ---------- ------- ----------- ----------------
Reconciliation of weighted average number of ordinary
shares:
2016 2015
Shares No. Shares No.
------------------------------------------------------------------- ----------- -----------
Weighted average number of ordinary shares for basic EPS* 152,037,715 151,653,458
Effects of dilution from share options 17,128,119 33,166,280
------------------------------------------------------------------- ----------- -----------
Weighted average number of ordinary shares adjusted for the effect
of dilution* 169,165,834 184,819,738
------------------------------------------------------------------- ----------- -----------
* The weighted average number of shares takes into account the
weighted average effect of changes in treasury share transactions
during the year.
(b) Adjusted earnings per share
Adjusted earnings per share is based on Adjusted Profit after
tax, where Adjusted Profit is stated after charging interest and
share-based payments but before amortisation, exceptional items and
items relating to previous years.
Adjusted Profit for calculating adjusted earnings per share:
2016 2015
GBP000 GBP000
------------------------------------------------------------------- ------- -------
Profit before taxation for the year 4,250 2,125
Add back:
Exceptional operating expenses 598 317
Amortisation 290 768
VAT provision relating to prior years - (185)
------------------------------------------------------------------- ------- -------
Adjusted Profit before tax 5,138 3,025
------------------------------------------------------------------- ------- -------
Taxation:
Tax charge in the Consolidated Statement of Comprehensive Income (1,002) (730)
Tax effect of adjustments (81) (119)
------------------------------------------------------------------- ------- -------
Adjusted Profit after tax for the calculation of Adjusted earnings
per share 4,055 2,176
------------------------------------------------------------------- ------- -------
Adjusted earnings per share was as follows using the number of
shares calculated at note 4(a):
2016 2015
pence pence
---------------------------- ------ -------
Adjusted earnings per share 2.67 1.43
---------------------------- ------ -------
Diluted Adjusted earnings per share was as follows:
2016 2015
pence pence
------------------------------------ ------ -------
Diluted Adjusted earnings per share 2.40 1.18
------------------------------------ ------ -------
The dilution arises largely as a result of the Miton Group plc
shares which would be issued if all the Growth Share Plan shares
with an accrued value at 31 December 2016, which will not fully
vest until September 2018, had vested and had been exchanged into
Miton Group plc ordinary shares at 31 December 2016.
5. Cash and cash equivalents
2016 2015
GBP000 GBP000
------------------------- ------- -------
Cash at bank and in hand 21,288 14,073
------------------------- ------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GGUUPWUPMGRA
(END) Dow Jones Newswires
March 16, 2017 03:00 ET (07:00 GMT)
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