TIDMPOLR
RNS Number : 8926Y
Polar Capital Holdings PLC
11 December 2017
Polar Capital Holdings plc ("Polar Capital" or "the Group")
Unaudited interim results for six months ended 30 September
2017
Summary of Results
Financial
-- Assets under Management ("AUM") at 30 September 2017 were
GBP10.6bn (31 March 2017: GBP9.3bn) - net fund inflows of GBP820m
together with market uplift and fund performance of GBP510m
-- Core operating profit , excluding performance fees, GBP12.0m (30 September 2016*: GBP8.7m)
-- Operating profit before share-based payments GBP15.7m (30 September 2016*: GBP10.6m)
-- Pre-tax profit GBP11.8m (30 September 2016*: GBP8.5m)
-- Basic earnings per share 10.19p (30 September 2016*: 6.68p)
and adjusted diluted earnings per share 11.78p (30 September 2016*:
8.15p)
-- Interim dividend per ordinary share of 6.0p declared (2016: 5.5p) to be paid in January 2018
-- Shareholders' funds GBP68.8m (30 September 2016*: GBP65.5m)
including cash and investments of GBP75.7m (30 September 2016*:
GBP73.8m)
The non-GAAP alternative performance measures shown here are
reconciled to IFRS measures in the Chief Executive's Statement and
Note 7.
* Comparative amounts restated as described in Note 2.
Corporate
-- Since the end of our interim period the Automation and
Artificial Intelligence Fund was launched in October 2017 and it
had assets of GBP156m at 30 November 2017.
Current Trading
-- AUM at 30 November 2017 were GBP11.4bn
Gavin Rochussen, Chief Executive Officer, commented:
"Fund performance has improved and it is pleasing to report
that, in the nine months to 30 September 2017, performance across
our fund range has been largely ahead of respective fund
benchmarks.
While the ethos and philosophy of Polar will not change, there
will be a strategic focus on diversification of fund strategies,
client segments and client geography. We continue to search for top
performing investment talent to manage funds that will complement
the existing strategies.
The outlook for the Company for the remainder of the financial
year is encouraging with continued momentum in flows and fund
performance in the months following the reporting period."
For further information please contact:
Polar Capital +44 (0)20 7227 2700
Gavin Rochussen (CEO)
John Mansell (COO)
Canaccord Genuity - Nomad and Joint Broker +44
(0)20 7523 8000
Simon Bridges (QE)
Andrew Buchanan
Margarita Mitropoulou
Peel Hunt - Joint Broker +44 (0) 20 7418 8893
Guy Wiehahn
Camarco +44 (0)20 3757 4984
Ed Gascoigne-Pees
Monique Perks
------------------------------------------------
Assets Under Management (AUM)
AUM split by strategy
30 September 31 March
2017 2017
------------- --------------- ------------ --------------
GBPbn % GBPbn %
Long only 9.59 90.5% Long only 8.44 91.1%
Alternative 1.01 9.5% Alternative 0.83 8.9%
------------- ------- ------ ------------ ------ ------
Total AUM 10.60 Total AUM 9.27
------------- ------- ------ ------------ ------ ------
AUM split by Business Unit
(in chronological order)
30 September 31 March
2017 2017
------------------------ --------------- --------------- -------------
GBPbn % GBPbn %
------------------------ -------- ----- --------------- ------ -----
Technology 2.61 24.6 Technology 2.19 23.6
Japan 1.00 9.4 Japan 0.97 10.4
European
European Long/Short 0.22 2.1 Long/Short 0.27 3.0
Healthcare 1.62 15.3 Healthcare 1.43 15.4
Financials 1.53 14.5 Financials 1.32 14.2
Emerging
Emerging Markets 0.39 3.7 Markets 0.39 4.2
Convertibles 0.45 4.2 Convertibles 0.43 4.7
North America 1.82 17.2 North America 1.74 18.9
Global Alpha 0.11 1.0 Global Alpha 0.11 1.1
UK Absolute UK Absolute
Equity 0.34 3.2 Equity 0.13 1.4
European
European Income 0.18 1.7 Income 0.12 1.3
UK Value
UK Value Opportunities 0.33 3.1 Opportunities 0.17 1.8
------------------------ -------- ----- --------------- ------ -----
Total AUM 10.60 Total AUM 9.27
------------------------ -------- ----- --------------- ------ -----
Chief Executive's Statement
Notwithstanding a period of geo-political tension and other
destabilising world events, markets all advanced and were, at
period end, testing new all-time highs, equity market confidence
remained supportive and volatility remained low. The broad-based
global economic growth continued during the period with the US ISM
Manufacturing Index reaching a 13-year high and September Euro Area
Manufacturing PMI the highest in six years.
Financial markets have been stable with the US equity market's
30-day volatility touching a five- decade low. This low volatility
is a function of a largely supportive global economic environment.
The extent of the performance of markets is demonstrated by
significant rises in all major indices for the nine months to 30
September 2017. The FTSE All Share Index (GBP) was up 7.75%, the
MSCI North America Index (USD) was up 13.76%, the MSCI All-Country
World Index (USD) was up 17.25%, Topix (Yen) was up 12.45% and
leading the indices in terms of gains were the MSCI Emerging Market
Index (USD) with a 27.78% rise and the Dow Jones World Technology
Index (USD) up 29% in the nine months to 30 September 2017.
Fund Performance
Fund performance and positive net inflow momentum began to
improve in the second half of the last financial year and this
trend has continued during the period under review. It is pleasing
to report that in the nine months to 30 September 2017, 75% of AUM
is ahead of respective benchmarks, over 12 months 72% is ahead of
benchmarks and, since inception 90% of AUM is ahead of
benchmarks.
At 30 September 2017 56% of Polar's UCITS funds AUM is ranked in
the top quartile against peer group over 12 months, 78% is top
quartile over three years and 96% is ranked top quartile against
respective peer groups since inception.
Net performance fees accrued in the funds as at 30 September
2017 amounted to GBP9.6m and, although performance fees do not
crystallise until 31 December 2017, reflects a marked increase on
the comparable net performance fee of GBP1.2m reported in the
financial year to 31 March 2017.
AUM and Fund Flows
In the six months to 30 September 2017, AUM increased by
GBP1.3bn from GBP9.3bn to GBP10.6bn, an increase of 14%. Net
inflows in the six months of GBP820m together with GBP510m of
market uplift and fund performance made up the increase in AUM and
this compares to GBP542m of net inflows in the immediately
preceding six-month period.
The total net inflows during the period are after experiencing
net outflows on four equity strategies, Japan - GBP82m (GBP352m in
the immediately preceding six-month period), European Forager Fund
- GBP39m, Financial Opportunities Fund - GBP15m and Emerging
Markets strategies - GBP9m. There has been renewed investor
interest in Japanese equities and, together with improved fund
performance, we anticipate the rate of outflow from our Japanese
equity strategies to decline further.
Net inflows during the period have been spread across a broad
range of fund strategies. Despite a backdrop of negative industry
flows into UK equity funds post the Brexit referendum, the two
Polar UK funds, UK Absolute Return and UK Value Opportunities, have
performed well and have attracted net inflows of GBP173m and
GBP143m respectively, with the UK Absolute Return Fund also
claiming the Fund of the Year award at the Eurohedge Absolute UCITS
Awards 2017. The Technology team benefitted from GBP170m of net
inflows, Global Insurance received GBP109m and the Healthcare team
recorded net inflows across the fund strategies it manages of
GBP164m. The Income Opportunities Fund received GBP72m with modest
inflows across the remainder of the fund strategies making up the
balance.
Recent Fund Launches
The UK Value Opportunities Fund was launched on 31 January 2017,
is top quartile since its inception and had total assets of GBP330m
as at 30 September 2017. This marks one of Polar's more successful
launches. During the period under review our Healthcare Investment
Trust was successfully restructured resulting in a fund with AUM of
GBP298m. The Automation and Artificial Intelligence Fund, managed
by the Technology team, was successfully launched in October
2017.
Results
Profit before tax increased by 38% to GBP11.8m for the first six
months of this financial year compared to the same period last
year. Adjusted diluted earnings per share increased by 45% to
11.78p. The increase in profit was primarily due to increased
revenue on greater average AUM during the period of GBP9.9bn
compared to GBP7.4bn in the comparable prior year period - an
increase of 34%.
The results do not contain any income from performance fees as
such revenues arrive in the second half of the financial year.
The Board has declared an interim dividend of 6p to be paid in
January 2018.
Restated*
Six months Six months
to to
30 September 30 September
2017 2016
--------------- --------------
Core operating profit (including
cost of LTIP and GBP12.0m GBP8.7m
Group share option awards)
Other income GBP2.4m GBP1.4m
--------------- --------------
Profit before share-based payments
on preference GBP14.4m GBP10.1m
shares and tax
Share-based payments on preference GBP(2.6)m GBP(1.6)m
shares
--------------- --------------
Profit before tax GBP11.8m GBP8.5m
--------------- --------------
Adjusted diluted EPS (non-GAAP
measure. See Note 7) 11.78p 8.15p
--------------- --------------
* Comparative amounts have been restated as described in Note
2.
Cost of LTIP and Group share awards to 30 September 2017:
GBP1.3m (30 September 2016: GBP0.5m)
Regulatory changes
As the Group looks out into 2018 and beyond it has reflected on
its policy in respect of MiFID II and the cost of research. Polar
has committed to its funds that it will bear the cost of all core
waterfront written research consumed by its managers. For certain
strategies where the consumption of specialised research is
regarded as critical to the investment process, Polar is in late
stage discussions with these funds to pay or contribute to such
costs.
Strategic Review
As part of a strategic review following my appointment, the
decision has been taken to close the Global Alpha strategy, the
European Conviction Fund and Emerging Markets Growth Fund. All
these closures will take place after the end of the reporting
period and will not have a material impact on AUM.
While the ethos and philosophy of Polar will not change, there
will be a strategic focus on diversification of fund strategies,
client segments and client geography. We continue to search for top
performing investment talent to manage funds that will complement
the existing strategies. Capacity management remains a key means of
enhancing and preserving fund performance.
Outlook
While there are constant questions about the impact of fiscal
tightening in the US and the degree and timing of any rate rise,
ECB tapering, Brexit outcome, US tax reform and geo-political
tensions in Asia and the Middle East, our fundamental research
driven highly active strategies are performing well for investors.
The outlook for the Company for the remainder of the financial year
is encouraging with continued momentum in flows and fund
performance in the months following the reporting period.
Gavin Rochussen
Chief Executive 10 December 2017
Interim Consolidated Statement of Profit or Loss
For the six months to 30 September 2017
Restated*
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
------------------------------------ ---------------- ----------------
Revenue 44,439 33,596
Other income 2,402 1,477
------------------------------------ ---------------- ----------------
Gross income 46,841 35,073
Commissions and fees payable (3,086) (2,999)
------------------------------------ ---------------- ----------------
Net income 43,755 32,074
Operating costs before share-based
payments (28,039) (21,483)
------------------------------------ ---------------- ----------------
Operating profit before share-based
payments and tax 15,716 10,591
Share-based payments (3,962) (2,107)
------------------------------------ ---------------- ----------------
Profit for the period before
tax 11,754 8,484
Taxation (2,607) (2,460)
------------------------------------ ---------------- ----------------
Profit for the period attributable
to ordinary shareholders 9,147 6,024
------------------------------------ ---------------- ----------------
Earnings per share
Basic 10.19p 6.68p
Diluted 9.64p 6.40p
Adjusted basic (Non-GAAP measure) 12.46p 8.51p
Adjusted diluted (Non-GAAP measure) 11.78p 8.15p
------------------------------------ ---------------- ----------------
* Certain amounts shown here do not correspond to the 2016
interim financial statements and reflect adjustments as described
in Note 2.
Interim Consolidated Statement of Other Comprehensive Income
For the six months to 30 September 2017
Restated*
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
---------------------------------------- ---------------- ----------------
Profit for the period attributable
to ordinary shareholders 9,147 6,024
Other comprehensive income -
items that may be reclassified
to income statement in subsequent
periods:
Net movement on the fair valuation
of cash flow hedges 1,694 (729)
Deferred tax effect (322) 147
---------------------------------------- ---------------- ----------------
1,372 (582)
---------------------------------------- ---------------- ----------------
Exchange differences on translation
of foreign operations (67) 682
---------------------------------------- ---------------- ----------------
Other comprehensive income for
the period 1,305 100
---------------------------------------- ---------------- ----------------
Total comprehensive income for
the period, net of tax, attributable
to ordinary shareholders 10,452 6,124
---------------------------------------- ---------------- ----------------
* Certain amounts shown here do not correspond to the 2016
interim financial statements and reflect adjustments as described
in Note 2.
All of the items in the above statements are derived from
continuing operations.
Interim Consolidated Balance Sheet
As at 30 September 2017
(Audited)
(Unaudited) 31 March
30 September
2017 2017
GBP'000 GBP'000
---------------------------------- ------------- ---------
Non-current assets
Property and equipment 2,192 2,402
Deferred tax assets 4,205 3,478
---------------------------------- ------------- ---------
Total non-current assets 6,397 5,880
---------------------------------- ------------- ---------
Current assets
Investment securities 15,649 14,429
Assets at fair value through
profit or loss 10,225 9,623
Other financial assets 301 -
Trade and other receivables 10,917 10,107
Cash and cash equivalents 49,887 58,539
Total current assets 86,979 92,698
---------------------------------- ------------- ---------
Total assets 93,376 98,578
---------------------------------- ------------- ---------
Non-current liabilities
Provisions and other liabilities 2,091 2,169
Deferred tax liabilities 946 539
---------------------------------- ------------- ---------
Total non-current liabilities 3,037 2,708
---------------------------------- ------------- ---------
Current liabilities
Liabilities at fair value through
profit or loss 2,583 2,170
Other financial liabilities - 1,350
Trade and other payables 16,809 19,741
Current tax liabilities 2,136 1,869
---------------------------------- ------------- ---------
Total current liabilities 21,528 25,130
---------------------------------- ------------- ---------
Total liabilities 24,565 27,838
---------------------------------- ------------- ---------
Net assets 68,811 70,740
---------------------------------- ------------- ---------
Capital and reserves
Issued share capital 2,297 2,286
Share premium 18,676 18,631
Investment in own shares (3,532) (3,747)
Capital and other reserves 10,250 7,840
Retained earnings 41,120 45,730
---------------------------------- ------------- ---------
Total equity - attributable to
ordinary shareholders 68,811 70,740
---------------------------------- ------------- ---------
Interim Consolidated Statement of Changes in Equity
For the six months to 30 September 2017
Issued
share Share Investment Capital Other Retained Total
capital premium in own shares reserves reserves earnings equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 1 April
2017 (audited) 2,286 18,631 (3,747) 695 7,145 45,730 70,740
Profit for the
period - - - - - 9,147 9,147
Other comprehensive
income - - - - 1,305 - 1,305
--------------------- --------- -------- -------------- --------- --------- --------- --------
Total comprehensive
income - - - - 1,305 9,147 10,452
Dividends paid
to shareholders - - - - - (17,469) (17,469)
Dividends paid
to third-party
interests - - - - - (25) (25)
Issue of shares
against options 11 45 - - - (10) 46
Loss on sale of
EBT shares - - 215 - - (215) -
Share-based payment - - - - - 3,962 3,962
Current tax in
respect of employee
share options - - - - 306 - 306
Deferred tax in
respect of employee
share options - - - - 799 - 799
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 30 September
2017 (unaudited) 2,297 18,676 (3,532) 695 9,555 41,120 68,811
--------------------- --------- -------- -------------- --------- --------- --------- --------
As at 1 April
2016 (audited) 2,280 18,509 (879) 123 6,772 48,792 75,597
Prior period adjustment
(Note2) - - 132 572 25 (629) 100
------------------------ ----- ------ ----- --- ----- -------- --------
As at 1 April
2016 - restated* 2,280 18,509 (747) 695 6,797 48,163 75,697
Profit for the
period - - - - - 6,024 6,024
Other comprehensive
income - - - - 100 - 100
------------------------ ----- ------ ----- --- ----- -------- --------
Total comprehensive
income - - - - 100 6,024 6,124
Dividends paid
to shareholders - - - - - (17,583) (17,583)
Dividends paid
to third-party
interests - - - - - (18) (18)
Issue of shares
against options 3 148 - - - (104) 47
Share-based payment - - - - - 2,107 2,107
Current tax in
respect of employee
share options - - - - 45 - 45
Deferred tax in
respect of employee
share options - - - - (956) - (956)
------------------------ ----- ------ ----- --- ----- -------- --------
As at 30 September
2016 (unaudited)
- restated* 2,283 18,657 (747) 695 5,986 38,589 65,463
------------------------ ----- ------ ----- --- ----- -------- --------
* Certain amounts shown here do not correspond to the 2016
interim financial statements and reflect adjustments as described
in Note 2.
Interim Consolidated Cash Flow Statement
For the six months to 30 September 2017
Restated*
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
-------------------------------------- ---------------- ----------------
Operating activities
Cash generated/(used) from operations 9,397 (3,524)
Tax paid (1,851) (1,447)
-------------------------------------- ---------------- ----------------
Net cash flow from operating
activities 7,546 (4,971)
-------------------------------------- ---------------- ----------------
Investing activities
Interest received and similar
income 34 19
Sale of investment securities 1,417 4,629
Purchase of investment securities (2,089) (7,045)
Sale of assets at fair value
through profit or loss 2,781 9,978
Purchase of assets at fair value
through profit or loss (1,104) -
Purchase of property and equipment (44) (28)
Net cash flow from investing
activities 995 7,553
-------------------------------------- ---------------- ----------------
Financing activities
Dividends paid to shareholders (17,469) (17,583)
Dividends paid to third-party
interests (25) (18)
Issue of ordinary shares 45 45
Third-party subscriptions into
consolidated funds 308 815
Third-party redemptions from
consolidated funds (25) (2,301)
Net cash flow from financing
activities (17,166) (19,042)
-------------------------------------- ---------------- ----------------
Net decrease in cash and cash
equivalents (8,625) (16,460)
Cash and cash equivalents at
start of period 58,539 48,862
Effect of exchange rate changes
on cash and cash equivalents (27) 8
-------------------------------------- ---------------- ----------------
Cash and cash equivalents at
end of period 49,887 32,410
-------------------------------------- ---------------- ----------------
* Certain amounts shown here do not correspond to the 2016
interim financial statements and reflect adjustments as described
in Note 2.
Notes to the Unaudited Interim Consolidated Financial
Statements
For the six months to 30 September 2017
1. General Information, Basis of Preparation and Accounting Policies
Polar Capital Holdings plc ("the Company") is a public limited
Company registered in England and Wales.
The unaudited interim condensed consolidated financial
statements to 30 September 2017 have been prepared in accordance
with IAS 34: Interim Financial Reporting.
The unaudited interim condensed consolidated financial
statements do not include all the information and disclosures
required in annual financial statements, and should be read in
conjunction with the Group's annual financial statements as at 31
March 2017 which have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union and the Companies Act 2006 applicable to
companies reporting under IFRS.
The accounting policies adopted in the preparation of the
unaudited interim condensed consolidated financial statements are
consistent with those used in the preparation of the Group's annual
financial statements for the year ended 31 March 2017.
2. Restatement of comparatives
a) During the year ended 31 March 2017 the Group ceased to
classify its seed capital investment in the European Income and
International Alpha funds as held for sale as the criteria for such
recognition were no longer met. The Group determined that it
controlled the funds under IFRS 10 and they were deemed to be
subsidiaries of the Group. As a result, the comparatives for the
period ended 30 September 2016 have been amended retrospectively as
though the funds had never qualified as held-for-sale, as required
by IFRS 5, and as if the Group had consolidated the funds on a line
by line basis from the date of initial investment.
b) During the year ended 31 March 2017 the Group determined that
it controlled the Group Employee Benefit Trust (EBT) and it was
deemed to be a subsidiary. As a result, the consolidated financial
statements have been restated at 1 April 2016 to reflect cash held
by the EBT of GBP105,000, other net liabilities of GBP3,000,
expenses of GBP30,000 and a corresponding credit to reserves of
GBP132,000.
c) The Company financial statements for the year ended 31 March
2017 were restated for intra-group recharges for share awards and
accounted for as a return of capital contribution. Amounts paid in
excess of the original contribution recorded by the Company are
treated as a distribution. As part of this restatement, other
reserves of GBP572,000 were transferred to retained earnings.
The restatements have been made to each of the affected
financial statement line items for prior periods, as follows:
Impact on equity (increase/ (decrease) in equity):
30 September 1 April
2016 2016
GBP'000 GBP'000
-------------------------------- ------------ ---------
Investment securities 13,488 10,065
Assets held for sale (11,626) (6,835)
Trade and other receivables 54 41
Cash 229 100
Financial liabilities at fair
value through profit or loss (2,041) (3,249)
Accruals (29) (22)
Net impact on equity 75 100
-------------------------------- ------------ ---------
Impact on consolidated statement of profit or loss (increase/
(decrease) in profit):
30 September
2016
GBP'000
------------------------------------- ------------
Revenue (41)
Other income (591)
Operating costs before share-based
payments (21)
Attributable to:
Equity holders of the parent (653)
Non-controlling interests -
------------------------------------- ------------
Impact on consolidated statement of other comprehensive income
(increase/ (decrease) in other comprehensive income):
30 September
2016
GBP'000
-------------------------------------- ------------
Exchange differences on translation
of foreign operations 652
-------------------------------------- ------------
Impact on earnings per share (EPS) (increase/(decrease) in
EPS):
30 September
2016
pence
------------------------------------------ ------------
Basic EPS (0.72)
Diluted EPS (0.69)
Adjusted basic EPS (Non-GAAP measure) (1.23)
Adjusted diluted EPS (Non-GAAP measure) (1.18)
------------------------------------------ ------------
3. Revenue
Restated
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
--------------------------- ---------------- ----------------
Investment management fees 45,003 34,568
Investment advisory fees 61 42
Loss on hedging (625) (1,014)
--------------------------- ---------------- ----------------
44,439 33,596
--------------------------- ---------------- ----------------
4 Profit Before Tax
a) Profit before tax is stated after charging the following
costs:
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
------------------------------- ---------------- ----------------
Staff costs 20,630 15,075
Depreciation 254 253
Operating lease rentals - land
& buildings 646 654
------------------------------- ---------------- ----------------
b) Auditors' remuneration:
Audit of group financial statements 26 26
Other fees
- local statutory audits of
subsidiaries 20 20
- GIPS Review 11 11
- internal controls review 25 25
- tax advisory services 10 17
------------------------------------
5. Taxation
The effective tax rate for the six months ended 30 September
2017 has reduced in comparison to the six months ended 30 September
2016 mainly due to a fall in the UK main corporation tax rate on 1
April 2017 from 20% to 19%, the impact of deferring staff
remuneration and a greater deduction for share based payments.
Under UK tax legislation the Group is only allowed a deduction for
share based payment costs when options are exercised by employees.
This deduction is based on the share price at the date the options
are exercised. When compared to the comparative period, the higher
group share price and a larger number of options exercised has
resulted in a greater amount of current tax relief in the period to
30 September 2017.
6. Dividends
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
-------------- ---------------- ----------------
Dividend paid 17,469 17,583
-------------- ---------------- ----------------
7. Earnings Per Share
A reconciliation of the figures used in calculating the basic,
diluted and adjusted earnings per share (EPS) figures is as
follows:
Restated
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
Earnings
Profit after tax for purpose
of basic and diluted EPS 9,147 6,024
Adjustments (post tax):
Add back cost of share-based
payments on preference shares 2,630 1,653
Less net amount of deferred
staff remuneration (598) -
-------------------------------- ---------------- ----------------
Profit after tax for purpose
of adjusted basic and adjusted
diluted EPS 11,179 7,677
-------------------------------- ---------------- ----------------
Going forward the adjusted EPS figures will include an
adjustment for deferred remuneration costs. The Group believes that
aligning staff remuneration and profits generated in the same time
period will allow users of the accounts to gain a better
understanding of the Group's results and their comparability period
on period.
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
Number Number
of shares of shares
--------------------------------- ---------------- ----------------
Weighted average number of
shares
Weighted average number of
ordinary shares, excluding
own, shares for purposes of
basic and adjusted basic EPS 89,747,434 90,177,771
Effect of dilutive potential
shares - share options 5,139,759 4,002,900
Weighted average number of
ordinary shares, for purpose
of diluted and adjusted diluted
EPS 94,887,193 94,180,671
--------------------------------- ---------------- ----------------
Restated
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
Pence Pence
------------------- ---------------- ----------------
Earnings per share
Basic 10.19 6.68
Diluted 9.64 6.40
Adjusted basic 12.46 8.51
Adjusted diluted 11.78 8.15
------------------- ---------------- ----------------
8. Notes to the Cash Flow Statement
Reconciliation of profit before tax to cash generated from
operations
Restated
(Unaudited) (Unaudited)
Six months Six months
to 30 September to 30 September
2017 2016
GBP'000 GBP'000
---------------------------------------- ---------------- ----------------
Cash flows from operating activities
Profit on ordinary activities
before tax 11,754 8,484
Adjustments for:
Interest receivable and similar
income (34) (19)
Depreciation of non-current property
and equipment 254 253
Increase in fair value of investment
securities (550) (159)
Increase in fair value of assets
at fair value through profit
or loss (2,279) (4,624)
Decrease in other financial assets 43 -
Increase in other financial liabilities - 87
Increase in receivables (810) (1,367)
Decrease in trade and other payables (2,932) (8,467)
(Decrease)/ Increase in provisions (78) 116
Share-based payments 3,962 2,107
Increase in liabilities at fair
value through profit or loss 67 65
---------------------------------------- ---------------- ----------------
Cash generated/(used) from operations 9,397 (3,524)
---------------------------------------- ---------------- ----------------
9. Related Party Transactions
Transactions between the Company and its subsidiaries, which are
related parties of the Company, have been eliminated on
consolidation and are not included in this note.
B J D Ashford-Russell is a member of Polar Capital LLP and a
director of the Polar Capital Technology Trust plc (the Trust).
Polar Capital LLP is the appointed investment manager of the Trust.
The total fees received by the Group as investment manager of the
Trust were GBP5,990,800 (September 2016: GBP4,290,300). The amounts
receivable at period end in this respect were GBP2,113,000 (March
2017: GBP1,832,000).
10. The Publication of Non-Statutory Accounts
The financial information contained in this unaudited half year
report does not constitute statutory accounts as defined in S434 of
the Companies Act 2006. The financial information for the six
months ended 30 September 2017 and 2016 has not been audited. The
information for the year ended 31 March 2017 has been extracted
from the latest published audited accounts, which have been filed
with the Registrar of Companies. The audited accounts filed with
the Registrar of Companies contain a report of the independent
auditor dated 26 June 2017. The report of the independent auditor
on those financial statements contained no qualification or
statement under S498 of the Companies Act 2006.
Directors
T H Bartlam Non-executive Chairman
G M Rochussen Chief Executive Officer
J B Mansell Chief Operating Officer, Finance Director
H G C Aldous Non-executive Director, Chairman of Audit Committee
B J D Ashford-Russell Non-executive Director
J M B Cayzer-Colvin Non-executive Director
W E Robbins Non-executive Director
M W Thomas Non-executive Director, Chairman of Remuneration Committee
T J Woolley Non-executive Director
Company No.
4235369
Registered Office
16 Palace Street
London, SW1E 5JD
Tel: 020 7227 2700
Company Secretary
Neil Taylor
Dividend
A first interim dividend of 6.0p per share has been declared for
the year to 31 March 2018. This will be paid on 12 January 2018 to
shareholders on the register on 29 December 2017. The shares will
trade ex-dividend from 28 December 2017.
Remuneration Code
Disclosure of the group's Remuneration Code will be made
alongside its Pillar 3 disclosure which is available on the
Company's website.
Half Year Report
The Half Year report will be posted to shareholders in late
December 2017. Copies of this announcement and of the Half Year
report will be available from the Secretary at the Registered
Office, 16 Palace Street, London SW1E 5JD and from the Company's
website at www.polarcapital.co.uk
Neither the contents of the Company's website nor the contents
of any website accessible from the hyperlinks on the Company's
website (or any other website) is incorporated into or forms part
of this announcement.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFITFVLILID
(END) Dow Jones Newswires
December 11, 2017 02:00 ET (07:00 GMT)
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