| Thu 14 Sep 2006, 11:53 | | Investec Limited/Investec plc - Pre-close statemen |
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INL INP
INL INP
Investec Limited/Investec plc - Pre-close statement and investor briefing
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 363362
JSE share code: INP
ISIN: GB00B17BBQ50
Investec plc and Investec Limited ("Investec" or "the group") - Pre-close
statement and investor briefing
14 September 2006
Strong performance in the first half of the financial year
As previously announced, Investec is today hosting an investor pre-close
briefing at 11:00 (GMT) (12:00 South African time) which will focus on
developments within the group"s core business areas in the first half of
the current financial year ending 31st March 2007.
Overall group performance commentary
The group has continued to see strong operating performances from the
majority of its businesses in the first half of the financial year.
As we have outlined previously, our strategy of maintaining a balanced
volatile operating environment. In this regard, our average advances and
average third party assets under management have grown over the reporting
period, the result of which is we have experienced strong growth in net
interest income, fees and commissions. Contributions are well spread across
our core activities and geographies with noteworthy performances from our
Private Banking, Treasury and Specialised Finance and Asset Management
businesses.
Stephen Koseff, Group Chief Executive, commented:
"Although the first half of the financial year ends on 30 September 2006 we
are pleased to report at this point that we are on track to deliver a
strong performance for the six-month period. Whilst financial market
conditions have weakened since our year-ended 31 March 2006 we are
continuing to benefit from increased brand recognition and penetration in
our core activities and geographies.
We remain committed to maintaining a distinctive growth strategy and we are
well placed to once again deliver on our financial targets and objectives."
Bernard Kantor, Group Managing Director, commented:
"Our strategy to increase the scale in our UK and Australian operations is
starting to reap benefits and should be reflected in the operational
performance of the group during the first half of the financial year."
Business commentary
Salient features of the operating performance of our core business areas
are listed below and further details will be provided in the briefing
presentation which can be viewed on our website.
Private Banking
* Very strong performance.
* Benefiting from our growth strategy with continued penetration in all
areas of specialisation.
* Good momentum in lending turnover and transactional activity with
strong growth in margin and very strong growth in fees.
* Average advances increased by 30.0%.
Private Client Portfolio Management and Stockbroking
* Increased volatility but benefiting from higher average asset levels
and volumes over the period.
* Average assets under management increased by 46.2%.
Treasury and Specialised Finance
* Initiatives undertaken in the past few years are starting to generate
significant revenue.
* Pipeline and levels of activity have been good across the advisory,
lending, debt capital markets and structured derivative areas.
* Very strong performance in the UK and Australia supported by a good
performance in South Africa.
* The acquisition of N.M. Rothschild Australia Holdings Pty Ltd provides
a base from which to grow our operations in Australia.
* Average advances increased by 31.4%.
Investment Banking
* Agency and Advisory
- Strong corporate finance pipeline in South Africa and a stable
corporate finance pipeline in UK and Australia.
- Strong performance from the stockbroking businesses as a result
of increased volumes over the period.
* Direct Investments and Private Equity
- Good performance from the direct investments and private equity
portfolios in South Africa.
- The UK business has not benefited from realisations as was the
case in the prior year.
Asset Management
* Earnings growth enhanced by momentum of UK and international business.
* Solid long-term investment performance.
* Average assets under management increased by 17.2%.
Property Activities
* Property Activities in South Africa remain buoyant as the market
fundamentals remain strong, despite increases in interest rates,
however this may not be reflected in the current trading performance.
* Average assets under management increased by 23.0%.
Group Services and Other Activities
* Central Funding weaker performance:
- Negative market impact on underlying assets in the South African
shareholders portfolio.
- UK impacted by hedging loss on the translation of the Euro
denominated preferred securities (there is an equal and opposite
effect reflected in the minority interest line, and hence this
impact is neutral on the group"s overall profitability).
* Central Costs are marginally up on the previous year.
Notes:
1. Key trends set out above, unless stated otherwise, relate to the five
months ended 31 August 2006, and are compared to the six months ended
30 September 2005.
2. Please note that matters discussed in the briefing and 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.
Presentation details
The briefing starts at 11:00 (GMT) (12:00 South African time) and will be
broadcast live via video conference from the group"s offices in
Johannesburg to London. The briefing will also be available via a live and
recorded telephone conference call, a live and delayed video webcast, a
delayed podcast and a delayed Mp3. Further details in this regard can be
found on the website at: www.investec.com
Timetable:
Six-month period end: 30 September 2006
Release of interim results: 16 November 2006
Financial year-end: 31 March 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 4 800 employees.
Investec focuses on delivering distinctive profitable solutions for its
clients in five core areas of activity namely, Private Client Activities,
Treasury and Specialised Finance, 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. Management
and staff own approximately 15% of the equity share capital of the group.
The combined group"s current market capitalisation is approximately
GBP3.1bn.
Date: 14/09/2006 11:53:55 AM Produced by the JSE SENS Department
