| Thu 26 Jul 2007, 8:00 | | INL/INP - Investec - Announcement |
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INL INP
INL INP
INL/INP - Investec - Announcement
Investec Limited
Incorporated in the Republic of South Africa
Registration number 1925/002833/06
JSE share code: INL
ISIN: ZAE000081949
Investec plc
Incorporated in England and Wales
Registration number 3633621
JSE share code: INP
ISIN: GB00B17BBQ50
As part of the dual listed company ("DLC") structure, Investec plc and
Investec Limited notify both the London Stock Exchange and the JSE Limited of
matters which are required to be disclosed under the Disclosure and Listing
Rules of the United Kingdom Listing Authority (the "UKLA") and/or the JSE
Listing Requirements.
Accordingly we advise of the following:
Investec plc - Interim Management Statement
This is the first Interim Management Statement issued by Investec in
accordance with the new EU Transparency Directive and revised UK Listing
Authority rules. Unless stated otherwise, key trends and figures highlighted
below refer to the three months ended 30 June 2007 and the corresponding
period last year.
Overview
Operating fundamentals across the group have largely continued the trends as
reported at the year end results announcement on 17 May 2007. Markets have
tightened to some extent; however, there has been a fair amount of activity in
our core activities and geographies, the result of which is that the majority
of our businesses have continued to perform well.
Our strategy for the business is unchanged. Maintaining a balanced business
model remains an important focus, particularly in the context of a more
volatile operating environment. In this regard, our advances and third party
assets under management have continued to grow, which has supported solid
growth in net interest income, fees and commissions. Since our year-end loans
and advances have grown by 8.1% to GBP11.0 billion and third party assets
under management have increased by 1.8% to GBP57.1 billion (the numbers
reported by Rensburg Sheppards plc at 31 March 2007 have not however, been
adjusted). If one excludes the numbers for Rensburg Sheppards plc third party
assets under management have increased by 2.4% to GBP42.7 billion.
Our balance sheet and capital adequacy ratios remain strong and there have
been no significant changes in the financial position of the group since the
publication of the report and accounts in respect of the year ended 31 March
2007.
Significant transactions
The group has announced the following significant transactions during the
period:
- The recommended acquisition of the entire issued and to be issued share
capital of Kensington Group plc by Investec plc to be implemented by way
of a scheme of arrangement under section 425 of the Companies Act.
- The disposal of Investec Property Group Limited`s property fund
management business and property administration business as a going
concern to Growthpoint Properties Limited (referred to herein as "The
Growthpoint transaction").
Details with respect to these transactions and their impact on the financial
and operating performance of Investec were made publicly available on 30 May
2007 and can be found on our website at www.investec.com
Further to these announcements, on 25 June 2007 Kensington Group plc
despatched to its shareholders a circular (containing the terms of the
acquisition). On 18 July 2007 at the Court Meeting and the EGM, a resolution
to approve the scheme was passed by the requisite majority of Kensington Group
plc shareholders.
The Growthpoint transaction is still subject to a number of regulatory
approvals.
Outlook
The outlook for our business remains unchanged. The increase in scale and
market penetration that we have achieved across all our geographies should
continue to support the operating results of our businesses as expressed in
local currencies. We have seen the momentum continue in the majority of our
businesses and whilst financial market conditions remain volatile we would
expect to deliver on our stated growth and financial return objectives.
Future announcements
As in prior years we will be holding a pre-close briefing in September,
details of which will be posted on our website nearer the time.
On behalf of the board
Hugh Herman (Chairman), Stephen Koseff (Chief Executive Officer) and Bernard
Kantor (Managing Director)
Notes:
1 Please note that matters highlighted above may contain forward looking
statements which are subject to various risks and uncertainties and other
factors, including, but not limited to:
- the further development of standards and interpretations under
International Financial Reporting Standards (IFRS) applicable to
past, current and future periods, evolving practices with regard to
the interpretation and application of standards under IFRS.
- domestic and global economic and business conditions.
- market related risks.
- A number of these factors are beyond the Company`s control.
- These factors may cause the Company`s actual future results, performance
or achievements in the markets in which it operates to differ from those
expressed or implied.
- Any forward looking statements made are based on the knowledge of the
Company at today`s date.
2 Our reporting currency is Pounds Sterling. Certain of our operations are
conducted by entities outside the UK. The results of operations and the
financial condition of our individual companies are reported in the local
currencies in which they are domiciled, including Rands, Australian
Dollars and Euros. These results are then translated into Pounds Sterling
at the applicable foreign currency exchange rates for inclusion in our
combined consolidated financial statements. In the case of the income
statement, the weighted average rate for the relevant period is applied
and, in the case of the balance sheet, the relevant closing rate is used.
The following table sets out the movements in certain relevant exchange
rates against Pounds Sterling over the period:
30 June 2007 31 March 2007 30 June 2006
Currency per Period Average Period Average Period end Average
GBP1.00 end end
South 14.12 14.10 14.20 13.38 13.21 11.82
African Rand
Australian 2.36 2.38 2.42 2.47 2.48 2.44
Dollar
Euro 1.49 1.48 1.47 1.47 1.45 1.45
Timetable:
Year end: 31 March 2007
Pre-close briefing: 20 September 2007
Half-year end: 30 September 2007
Release of interim results: 15 November 2007
For further information please contact:
Investec Investor Relations
UK: +44 (0) 207 597 5546
South Africa: +27 (0) 11 286 7070
investorrelations@investec.com
About Investec
Investec is an international specialist banking group that provides a diverse
range of financial products and services to a niche client base in three
principal markets, the United Kingdom, South Africa and Australia as well as
certain other countries. The group was established in 1974 and currently has
approximately 5 000 permanent employees.
Investec focuses on delivering distinctive profitable solutions for its
clients in five core areas of activity namely, Private Client Activities,
Capital Markets, Investment Banking, Asset Management and Property Activities.
In July 2002 the Investec group implemented a dual listed company structure
with listings on the London and Johannesburg Stock Exchanges. The combined
group`s current market capitalisation is approximately GBP4 bn.
Date: 26/07/2007 08:00:04 Produced by the JSE SENS Department.
