TIDMPMI
RNS Number : 0006N
Premier Miton Group PLC
27 May 2022
PREMIER MITON GROUP PLC
HALF YEAR RESULTS FOR THE SIX MONTHSED 31 MARCH 2022
Strong investment performance despite volatile market
conditions
Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'),
the AIM quoted fund management group, today announces its half year
results for the six months ended 31 March 2022 (the 'Period').
Highlights
-- GBP12.8 billion closing Assets under Management (3) ('AuM') (2021 HY: GBP12.6 billion)
-- GBP12.5 billion closing AuM at 30 April 2022
-- Net outflows of GBP(401) million in the Period (2021 HY: GBP359 million inflows)
-- 80% of funds have above median investment performance since
launch or tenure (4) (2021 HY: 74%)
-- Adjusted profit before tax (1,3) of GBP14.6 million (2021 HY: GBP11.9 million)
-- Profit before tax of GBP9.9 million (2021 HY: GBP6.2 million)
-- Proposed interim dividend of 3.7 pence per share (2021 interim: 3.7 pence per share)
-- On 25 May 2022, Premier Miton announced the further expansion
of its investment capabilities with the hire of a new emerging
market sustainable equities team
-- New institutional distribution capability established to
build relationships with institutional investors and investment
consultants
Notes
(1) Adjusted profit before tax is calculated before the
deduction of taxation, amortisation, share-based payments, merger
related costs and exceptional items. Reconciliation included within
the Financial Review section.
(2) Adjusted earnings per share is calculated before the
deduction of amortisation, share-based payments, merger related
costs and exceptional costs.
(3) These are Alternative Performance Measures ('APMs').
(4) As at 31 March 2022. Based on Investment Association sector
classifications where applicable, with data sourced from FE
Analytics using the main representative post-RDR share class, based
on a total return, UK Sterling basis. Performance for investment
trusts is calculated on Net Asset Value ('NAV'), ranked against the
relevant Morningstar category for each investment trust.
Mike O'Shea, Chief Executive Officer of Premier Miton Group,
commented:
"This is a good set of results given the volatile market
environment. Premier Miton is a well-diversified asset manager
operating on a stable and sustainable platform with a robust
balance sheet and, notwithstanding the more difficult market
environment, our business is in good health. We are delivering
strong investment returns for our fund investors with almost 90% of
our funds outperforming over 3 years and 80% since tenure. At times
of market stress there are substantial opportunities for genuinely
active managers who have the courage of their convictions to run
differentiated, long-term, and focused portfolios by taking an
agile and positive role in the capital allocation process.
"We remain focused on our medium-term goal of growing our assets
under management to GBP20bn and beyond. We continue to develop our
successful profile in the UK wealth management and independent
financial advisory space as well as through our new distribution
channel in the UK institutional market.
"We are committed to invest in the future of our business by
hiring talented, high conviction managers to strengthen the range
of funds we can offer investors. We are therefore excited to
welcome a new Global Emerging Markets sustainable equities team.
This represents an important strategic development, aligned with
our objective to expand our investment strategies, as well as
bolstering our range of dedicated responsible and sustainable
investment products.
The outlook for investment markets remains uncertain and, in my
view, this is likely to remain the position for some months yet.
Our balance sheet strength and overall health of the business will
allow us to focus on delivering superior investment returns for our
clients through genuinely active investing during this volatile
period. As and when investors decide to commit new capital to
investment markets once more, I believe our strong, long term
performance record places us in a good position to capture
significant market share."
S
For further information, please contact:
Premier Miton Group plc
Mike O'Shea, Chief Executive Officer 01483 306 090
Investec Bank plc (Nominated Adviser and
Broker)
Bruce Garrow / Ben Griffiths / Virginia Bull
/ Harry Hargreaves 020 7260 1000
--------------
Edelman Smithfield Consultants (Financial
PR) 07785 275665/
John Kiely / Latika Shah 07950 671948
--------------
www.premiermiton.com
About Premier Miton
Premier Miton Investors is focused on delivering good investment
outcomes for investors through relevant products and active
management across its range of investment strategies, which include
equity, fixed income, multi-asset and absolute return.
LEI Number: 213800LK2M4CLJ4H2V85
Chairman's Statement
Investment markets by their nature are subject in good and bad
ways to commercial and political events and it is not surprising
that we have experienced a tough first half to the year. However,
our business has demonstrated its strength and we are continuing
with our medium-term growth plans.
Our financial performance has been affected by market turbulence
with our Assets under Management ('AuM') ending the period at
GBP12.8 billion, however, our adjusted profit before tax was
GBP14.6 million, representing an increase of 22% on the comparative
period.
We have a clear purpose in managing our funds as well as we can
for the benefit of our clients, and a strategy designed to provide
for their needs and ambitions as well as those of our people and
shareholders.
During the period, the Board held a strategy day to review this
in detail and I am pleased to say we reaffirmed our objectives and
plans to achieve these. We looked carefully at key aspects of our
own business and resources, as well as reviewing our markets and
competitors, to ensure we are rigorous in our self-examination as
well as clear sighted in considering the terrain we have to
traverse.
The broad savings market is large and ever changing, containing
a diverse range of participants and importantly has long term
structural growth. We are confident that there is an attractive
space for high performing genuinely active asset management here in
the UK as well as in other international markets, and properly
tackled this should allow us to grow our business and create
shareholder value.
Strong fund performance is critical in our industry as is an
energetic yet disciplined approach to managing our own business to
improve our overall performance. We believe that our diversified
product offering benefits our business and contributes to our
resilience. We actively manage our portfolio of funds as well as
regularly consider changes to reflect evolving market demands and
areas of future growth which should in time contribute to
shareholder value.
The business now has a range of funds and investment performance
which would be attractive to the institutional market, alongside
our traditional distribution channels in the UK IFA and wealth
management sectors. Following the recent appointment of a Head of
Business Development (Institutional), we are starting carefully to
invest in creating a proposition in what we see as a market with
considerable potential for us.
We continue to pursue organic, tactical and strategic growth and
value opportunities where we believe they are in the interests of
the business. We remain disciplined in our approach and
shareholders will have noted that we stepped away from one
potential public market transaction during the period. I am
confident that the Board made the right decisions here and I know
that our management team were thorough and robust throughout the
process.
Our industry is likely to present a range of opportunities over
the coming period and I feel comfortable that we can actively
participate in these conversations from a position of strength as a
highly credible potential new partner for high quality individuals,
teams and even other businesses.
At meetings I have with our shareholders and third parties, I am
frequently asked about the culture of Premier Miton and how we
manage this. Culture is crucial to success or failure in our
industry and the Board ensures that we keep a close watch on this.
The Board and management team seek to demonstrate the right tone
from the top and we use formal surveys and informal feedback to
foster an inclusive and accountable culture and demonstrate our
values. We want and expect to be doing the right things, in the
right way and for the right reasons, with a focus on looking after
our clients. There are always things we can adjust yet I believe we
have a strong and healthy culture for our business to support our
strategic ambitions.
The commercial turbulence of the pandemic, along with current
political and market strains, is testing for all of us and I am
pleased how well our people are handling this within the business.
We are assessing how we work and the changing attitudes of our
people to make sure that we continue to provide an environment
where individuals can flourish with a common and clear
understanding of their responsibilities and requirements, and where
decision making is achieved in a robust and defensible way.
We have a strong and well-regarded management team that we are
keen to retain, motivate and reward appropriately, including for
achieving our strategic objectives which include growing
shareholder value. Following a review of the compensation framework
for this group, we have now decided to deploy the LTIP which
Premier established on its IPO in 2016 for this and future years.
We believe the scheme has been designed to align the interests of
our major stakeholders and has appropriate mechanisms and
protections. Further details will be communicated in the next
Annual Report. The Board is confident that this is in the best
interests of all our stakeholders.
In uncertain times our financial position is a source of
strength and reassurance. We have a range of potential demands on
our capital and cash, including of course maintaining a suitable
level of regulatory capital. A lot of thought and effort goes into
deciding on this. In line with our ambitions and strategy, we are
seeking to invest in future growth areas, for example by hiring
individuals and teams, or developing our business model in a
careful way.
It is important to us that we seek to provide an attractive
return for our shareholders, including cash returns underpinned by
our dividend policy. The interim dividend of 3.7p reflects our
confidence in the resilience of the business and the board will
continue to monitor our capital allocation approach to ensure we
are balancing prudence with investment in the long-term growth of
the business and adequate cash returns to shareholders.
The asset management industry is expected to play an
increasingly important role in dealing with climate change
concerns. We are a responsible firm and keen to do not only what we
must but what we should; it is simply a matter of good business. Of
course, our main investment responsibility is to generate returns
for our clients on a basis consistent with their expectations and
we note that for many these increasingly include low/zero carbon
alignment.
This is a rapidly evolving and complex area of expertise and we
are making sure that the Board is fully aware of the issues and
challenges involved so we are in a position to exercise appropriate
oversight and governance in making good strategic choices,
especially as regards to commitments made by the business.
Outlook
In my statement in the last Annual Report, I commented that we
are an ambitious and growing business, that markets were showing
signs of strain and material volatility, with an uncertain
political and regulatory environment adding to our challenges.
The war in Ukraine has added to this list. I also said that the
long-term prospects for the savings markets are attractive and we
continue to believe this. I have a high level of confidence in the
quality and attitude of our people and in the resilience and
potential of our business. We will continue to work hard through
these challenging times for a better future for all of our
stakeholders.
Robert Colthorpe
Chairman
26 May 2022
Chief Executive Officer's Statement
The half year ended 31 March 2022 was a more challenging period
for the Group. Recent geopolitical events, as well as worries about
inflation, introduced additional uncertainty for our clients. As a
result we have seen a much tougher environment for UK retail fund
flows across the industry and we have not been immune to this.
Overall, investors made net withdrawals of GBP303 million from
our open-ended funds during the period. This represents around 2%
of our opening Assets under Management ('AuM').
Inevitably, the falls in markets we have seen of late have
impacted on our total AuM which stood at GBP12.8 billion at the end
of March, down some 8% on the position on 1 October 2021. However,
we are long term investors both for our clients and for our
business and recognise that there will be many fluctuations in
markets as we build for the future. Our business remains strong
with good cash reserves and an exciting and diversified portfolio
of actively managed funds that we believe will become increasingly
attractive to investors seeking strong investment performance in
the new environment we face over the coming years. With this in
mind, we are continuing to develop our business by adding new
investment capabilities and through developing new distribution
channels for our funds.
I am proud of how the team at Premier Miton has responded to
recent challenges and their commitment to deliver good investment
results for our clients through our clear and consistent approach
to genuinely active management.
At 31 March 2022, 62% of our funds by number were ranked in the
first quartile of our funds' relevant sectors since fund manager
start date, and 80% of our funds had performed above median in
their respective Investment Association ('IA') sectors over the
same period.
It is our belief that the conditions created by a period of
reducing interest rates and deflation seen since the financial
crisis of 2008 will now make way for a different reflationary
environment.
Our proposition of genuinely active management managed by very
high-quality investment teams is well suited to produce long term
value for clients in these conditions.
Business performance
The Group's average AuM was GBP13.5 billion versus GBP11.8
billion for the comparative period, an increase of 14%.
Net outflows for the period from our open-ended funds were
GBP303 million (2021 HY: GBP14 million inflow). We have seen
investor redemptions predominantly from out of favour areas for
wealth managers and investment-led intermediaries, such as UK
equities. We have continued to see redemptions from our multi
manager funds, although the rate of these redemptions has slowed
and we are encouraged by the progress we are making to grow net
flows and assets under management in our directly invested multi
asset funds. Our range of six Diversified funds have strong
performance records and are seeing good levels of new business from
intermediaries, as well as ratings from highly regarded research
agencies.
Pleasingly the business demonstrated robust profitability with
adjusted profit before tax increasing by 22% against the
comparative period to GBP14.6 million.
Following the arrival of our fixed income team in September
2020, we have continued to see strong net flows and an 11% increase
in AuM to GBP1.1 billion. This includes the Group's existing
corporate bond fund and two newly launched funds. Growing this
franchise is a core priority and the team's highly active
investment approach should be well suited to succeeding in more
volatile markets.
In the past two years we have launched five new equity and bond
funds. AuM in these funds has now reached a total of GBP413
million. These funds are run by talented investment teams who are
establishing their important three-year track records within
Premier Miton. When we look across that important three-year
performance period for our more established funds, we see strong
numbers across UK equities, European equities, global
infrastructure, US equities, global sustainable equities, global
equity income, multi-asset, pan European property, absolute return
and fixed income. As ever, our primary focus is on ensuring that we
deliver superior investment outcomes for investors in our funds.
The combination of our new teams and our established managers
coupled with our strong investment performance means we are
optimistic about the long-term growth potential of the Group.
Product development
During the period the Group has continued to develop its product
range. In March 2022 we introduced the Premier Miton Diversified
Sustainable Growth Fund to our range of dedicated responsible and
sustainable funds. This fund was previously known as the Premier
Miton Balanced Multi Asset Fund and has been managed by Neil
Birrell and the Diversified investment team since March 2021. The
change better reflects the fund characteristics with a strong
environmental, social and governance profile and long-term
sustainable growth themes, as described in the fund's updated
investment policy and investment strategy.
We now have a total of six funds that are dedicated to
responsible and sustainable investing and the Premier Miton
Diversified Sustainable Growth Fund is our first multi-asset fund
in this category. Dedicated responsible and sustainable investing
funds have been a significant area of demand from investors in the
UK and elsewhere, and this is believed to be a significant,
long-term trend. I am glad that the Group continues to develop
strong offerings in this area, as well as the integration of
responsible and sustainable factors in our wider investment
approach. Raising assets in these dedicated responsible and
sustainable investment strategies is a key business development
focus.
I am pleased to be able to report that during the period, as
well as launching new dedicated responsible and sustainable
investing funds, we have also made good progress in integrating
responsible and sustainable factors across our investment
strategies. Importantly, we have continued to make good progress in
the area of responsible investing, including initiating a
Responsible Investing Oversight Committee to oversee our activities
in this area, led by our Head of Responsible Investing.
We have also expanded our responsible investing team with a new
hire and we are a signatory to the Financial Reporting Council's
Stewardship Code and achieved a B- rating for our most recent CDP
submission covering our environmental impacts, processes and plans.
We have also partnered with Climate Action 100+, which is an
investor-led initiative to ensure the world's largest corporate
greenhouse gas emitters take necessary action on climate change,
and we have engaged with many of the companies we invest in to
participate in the CDP Non-Disclosure Campaign.
During the period, we have been informed that three of our funds
have been shortlisted in three different multi-asset and flexible
investment categories for this year's Investment Week Fund Manager
of the Year Awards. The awards are designed to "honour fund
managers and groups at the top of their game who have demonstrated
consistently strong performance for investors and whom the judging
panel believe have the potential to continue
to outperform in the future."
The three funds are Premier Miton Defensive Multi Asset, Premier
Miton Diversified Growth and Premier Miton Worldwide Opportunities.
We were also pleased to learn that Premier Miton Defensive Multi
Asset, Premier Miton Diversified Growth, Premier Miton Cautious
Monthly Income and Premier Miton Multi-Asset Monthly Income have
all been shortlisted for awards with Professional Adviser.
Distribution
Over the past year the Group has been assessing the opportunity
to develop a presence in the institutional market, catering to the
demands of institutional investors looking for high alpha
investment strategies.
In April 2022 we welcomed a new Head of Business Development -
Institutional who will be responsible for building, maintaining,
and developing relationships with institutional investors and
investment consultants. Our strategy in this new growth channel
will complement our already successful UK wholesale-focused
business, with the intention of growing AuM and diversifying our
client base.
Our marketing team continues to focus on a broad range of
activities to build awareness of the Premier Miton brand and
familiarity across our investment range, as well as keeping our
clients informed. This work has included organising digital
content, including webinars, videos, infographics, e-marketing,
advertising, social media, and virtual events, aimed at both
existing and potential investors.
The marketing team have continued to develop the Group's new and
improved website, launched in March 2021, to ensure it continues to
provide easy access to up-to-date, relevant information for
different client types
and products.
Ukraine crisis
At the time of writing, we continue to hear harrowing stories of
the widescale impact the war has had on Ukrainians and their
country. As a Group we have made a corporate donation to the DEC
Ukraine Humanitarian Appeal, and we extend our solidarity to those
who have been displaced by the awfulness of the violence.
From an investment point of view, we know that all of our funds
continue to be expertly and actively managed by our investment
teams. We are long term investors, but this period of volatility
and uncertainty for economies, markets and investing needs to be
carefully managed. We keep our clients informed, including through
regular fund manager commentaries, client meetings with fund
managers, videos, webinars and articles. The economic, market and
investment implications of the crisis formed a key part of the
virtual event we held in March on our Diversified funds for
investment-led intermediaries, featuring eight fund managers
covering different asset classes.
We took the decision during the period to exclude Russian
investments from our portfolios. Our directly invested funds moved
to exclude Russian Sovereign debt, corporate debt instruments and
equities listed on a Russian exchange or issued by a company
incorporated in Russia or Belarus. Outside of our directly invested
funds, including in our range of multi-manager funds which invest
in Collective Investment Schemes, we have a policy to exclude
Russian domiciled funds and to ensure that managers of external
schemes intend to fully comply with sanctions issued against Russia
and other relevant countries.
River & Mercantile
In November it was announced that we had approached the board of
River & Mercantile ('RMG') about a possible acquisition of
their residual fund management business following the sale of their
solution business to Schroders. In January our Board concluded that
there were insufficient commercial merits for our shareholders to
make a formal proposal for the acquisition of RMG and thereafter we
withdrew from the process.
We are extremely well placed as a stand-alone business and we
will continue to focus on delivering outstanding returns for our
investors and on our own organic growth plans. However, we will
continue to look at possible strategic acquisitions where we
believe they can accelerate this growth path and create value for
our shareholders.
Outlook
The last decade or so has been dominated by quantitative easing,
falling bond yields, and falling inflation. This
has had the effect of 'raising all boats' across asset classes
and reducing the dispersion of returns within major indices.
As we look forward, the long-term implications of current events
remain unclear. Investors are pondering issues such as energy
security, global supply chains, energy transition, increased
defence spending and the end of quantitative easing. Above all, a
generation of investors has never had to worry about investing in
an inflationary era.
Irrespective of whether these issues turn out to be permanent or
more transitory in nature, they will create opportunities for
genuinely active managers who have the courage of their convictions
to run long term, focused portfolios. Not only through good
investment performance but through the active and positive role we
play in the capital allocation process. Taken together, these
factors represent good opportunities for our business to grow
significantly.
We expect strong demand for clearly differentiated, high
performing, actively and responsibly managed investment products as
investors recognise their investments have to work harder to
achieve their financial objectives.
Alongside our core active investment proposition, we have a
strong, ongoing focus on delivering good client service, improving
the efficiency of our business processes and maintaining a working
environment that makes Premier Miton a really good place to work.
With this focus I am confident we can deliver for our clients, our
shareholders, our employees and society over the long term.
Mike O'Shea
Chief Executive Officer
26 May 2022
Financial Review
Financial performance
Profit before tax increased by 60% to GBP9.9 million (2021 HY:
GBP6.2 million). The increase in profitability for the period was
primarily driven by a higher average level of assets being managed
by the Group when compared to the comparative period, detailed
below. In addition to this, the comparative period includes
non-recurring costs associated with the completion of the
operational aspects of the merger totalling GBP1.2 million.
Adjusted profit before tax *, which is stated before
amortisation, share-based payments, merger related costs and
exceptional costs increased to GBP14.6 million (2021 HY: GBP11.9
million).
Adjusted profit and profit before tax
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2022 2021 2021
GBPm GBPm GBPm
---------------------------- ------------ ------------ -------------
Net revenue 43.7 38.5 84.5
Administrative expenses (29.1) (26.6) (55.8)
Adjusted profit before tax* 14.6 11.9 28.6
---------------------------- ------------ ------------ -------------
Amortisation (2.4) (2.4) (5.1)
Share-based payments (2.2) (2.1) (4.5)
Merger related costs - (1.2) (1.4)
Exceptional costs - (0.1) (0.1)
---------------------------- ------------ ------------ -------------
Profit before tax 9.9 6.2 17.5
---------------------------- ------------ ------------ -------------
* Indicates Alternative Performance Measures ('APMs').
Assets under Management * ('AuM')
AuM ended the period at GBP12,847 million (2021 HY: GBP12,602
million) representing an 8% fall from the opening position of
GBP13,931 million on 1 October 2021. Despite this, the Group's
average AuM increased by 14% over the comparative period to
GBP13,453 million (2021 HY: GBP11,819 million).
Geopolitical events created a challenging period for markets and
this was reflected in the Group's AuM. Despite strong relative
investment performance the Group saw negative market returns of
GBP683 million.
Net outflows for the period from open ended funds were GBP303
million (2021 HY: GBP14 million net inflows), these were primarily
from UK equity funds and the multi-asset multi-manager funds where
there was weaker client demand. The outflows were partially offset
by inflows into the fixed income funds and the Diversified
multi-asset funds.
Opening Closing
AuM AuM
1 October Half year Market/ investment 31 March
2021 net flows performance 2022
GBPm GBPm GBPm GBPm
-------------------- ---------- ---------- ------------------ ---------
Equity funds 8,223 (279) (567) 7,377
Multi-asset funds 3,919 (159) (38) 3,722
Fixed income funds 594 135 (21) 708
Investment trusts 784 (101) (42) 641
Segregated mandates 411 3 (15) 399
-------------------- ---------- ---------- ------------------ ---------
Total 13,931 (401) (683) 12,847
-------------------- ---------- ---------- ------------------ ---------
Net revenue
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2022 2021 2021
GBPm GBPm GBPm
--------------------------------------- ------------ ------------ -------------
Management fees 48.5 43.3 93.2
Fees and commission expenses (4.8) (5.4) (10.3)
--------------------------------------- ------------ ------------ -------------
Net management fees (1 *) 43.7 37.9 82.9
--------------------------------------- ------------ ------------ -------------
Other income - 0.6 1.6
--------------------------------------- ------------ ------------ -------------
Net revenue 43.7 38.5 84.5
--------------------------------------- ------------ ------------ -------------
Average AuM (2) (*) 13,453 11,819 12,751
--------------------------------------- ------------ ------------ -------------
Net management fee margin3 (bps) (3 *) 65.1 64.2 65.0
--------------------------------------- ------------ ------------ -------------
1 Being management fee income less trail/rebate expenses and the
cost of any external Authorised Corporate Director ('ACD') fees
2 Calculated using the daily AuM adjusted for the monthly
closing AuM invested in other funds managed by the Group
3 Net management fee margin represents annualised net management
fees divided by the average AuM
The Group's revenue represents management fees generated on the
assets being managed by the Group. The net management fee margin
for the period was 65.1 basis points. The increase from the
comparative period reflects the alignment of the operating model
completed on 27 November 2020 with all open-ended funds being on
the in-house ACD platform from that date.
Net management fees increased to GBP43.7 million (2021 HY:
GBP37.9 million) representing a 15% increase reflecting the higher
level of average AuM compared to the comparative period.
Administration expenses
Administration expenses for the period (excluding share-based
payments) totalled GBP29.1 million (2021 HY: GBP26.6 million), an
increase of 9%.
Staff costs continue to be the largest component of
administration expenses, consisting of both fixed and variable
elements.
The fixed staff costs, which includes salaries and associated
National Insurance, employers' pension contributions and other
indirect costs of employment increased to GBP9.8 million (2021 HY:
GBP9.1 million). The average headcount for the period increased to
163 (2021 HY: 150) reflecting further hires predominantly in the
investment team in the second half of 2021 and continued investment
in the current financial period.
Variable staff costs totalled GBP9.5 million (2021 HY: GBP7.8
million). Included within this are general discretionary bonuses,
sales bonuses and bonuses in respect of the fund management teams,
plus associated employers' national insurance. These costs move in
line with the net revenues of the Group and the adjusted profit
before tax.
Overheads and other costs totalled GBP9.2 million (2021 HY:
GBP9.0 million) being 21.1% of net revenues (2021 HY: 23.4%).
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2022 2021 2021
GBPm GBPm GBPm
---------------------------- ------------ ------------ -------------
Fixed staff costs 9.8 9.1 19.1
Variable staff costs 9.5 7.8 18.6
Overheads and other costs 9.2 9.0 16.7
Depreciation - fixed assets 0.3 0.4 0.7
Depreciation - leases 0.3 0.3 0.7
---------------------------- ------------ ------------ -------------
Administration expenses 29.1 26.6 55.8
---------------------------- ------------ ------------ -------------
Share-based payments
The share-based payment charge for the period was GBP2.2 million
(2021 HY: GBP2.1 million).
At 31 March 2022 the Group's Employee Benefit Trusts ('EBTs')
held 12,692,553 ordinary shares representing 8.0% of the issued
ordinary share capital (2021 HY: 10,421,565 shares).
At the period end the outstanding awards totalled 12,486,827
(2021 HY: 13,213,920).
During the period 1,902,500 awards were issued (2021 HY:
3,980,000). See note 12 for further detail.
Balance sheet, capital management and dividends
Total shareholders' equity as at 31 March 2022 was GBP127.7
million (2021 HY: GBP129.5 million).
At the period end the cash balances of the Group totalled
GBP36.0 million (2021 HY: GBP34.4 million). The Group has no
external bank debt.
Dividends totalling GBP9.3 million were paid in the period (2021
HY: GBP6.7 million).
The Board is recommending an interim dividend payment of 3.7p
per share (2021 HY: 3.7p). The interim dividend will be paid on 5
August 2022 to shareholders on the register at the close of
business on 8 July 2022.
The Group's dividend policy is to target an annual ordinary
dividend pay-out of approximately 50 to 65% of profit after tax,
adjusted for exceptional costs, merger related costs, share-based
payments and amortisation.
Piers Harrison
Chief Financial Officer
26 May 2022
Alternative Performance Measures ('APMs')
APM Unit Definition Purpose
Adjusted GBP Profit before interest, Except for the noted costs, this
profit before taxation, amortisation, encompasses all operating expenses
tax share-based payments, in the business, including fixed
merger related costs and variable staff cash costs. Provides
and exceptional costs. a proxy for cash generated and is
the key measure of profitability
for management decision making.
---- -------------------------- -------------------------------------------
AuM GBP The value of external Management fee income is calculated
assets that are managed based on the level of AuM managed.
by the Group. The AuM managed by the Group is
used to measure the Group's relative
size against the industry peer group.
---- -------------------------- -------------------------------------------
Net management GBP The net revenue of the Provides a consistent measure of
fee Group. Calculated as the profitability of the Group and
gross management fee its ability to grow and retain clients,
income, less the cost after removing amounts paid to third
of fund accounting, parties.
external ACDs, OCF caps
and any enhanced fee
arrangements.
---- -------------------------- -------------------------------------------
Net management bps Net management fees A measure used to demonstrate the
fee margin divided by average AuM. blended fee rate earned from the
AuM managed by the Group. A basis
point ('bps') represents one hundredth
of a percent, this measure is used
within the asset management sector
and provides comparability of the
Group's net revenue generation.
---- -------------------------- -------------------------------------------
Adjusted p Profit after tax excluding Provides a clear measure to shareholders
earnings amortisation, share-based of the profitability of the Group
per share payments, merger related from its underlying operations.
(basic) costs and exceptional The exclusion of amortisation, share-based
costs, divided by the payments, merger related costs and
weighted average number exceptional items provides a consistent
of shares in issue in basis for comparability of results
the period. period on period.
---- -------------------------- -------------------------------------------
Unaudited Condensed Consolidated Statement of Comprehensive
Income
for the six months ended 31 March 2022
Unaudited Unaudited
six months six months Audited
to to year to
31 March 31 March 30 September
2022 2021 2021
Notes GBP000 GBP000 GBP000
---------------------------------- ----- ----------- ----------- --------------
Revenue 4 48,503 43,878 94,726
Fees and commission expenses (4,789) (5,386) (10,248)
---------------------------------- ----- ----------- ----------- --------------
Net revenue 43,714 38,492 84,478
Administration expenses (29,140) (26,573) (55,832)
Share-based payment expense 12 (2,240) (2,067) (4,528)
Amortisation of intangible assets 8 (2,424) (2,379) (5,117)
Merger-related costs 5 (25) (1,213) (1,350)
Exceptional items 5 - (64) (126)
---------------------------------- ----- ----------- ----------- --------------
Operating profit 9,885 6,196 17,525
Finance revenue (7) - -
---------------------------------- ----- ----------- ----------- --------------
Profit for the period before
taxation 9,878 6,196 17,525
Taxation 6 (4,062) (1,041) (3,496)
---------------------------------- ----- ----------- ----------- --------------
Profit for the period after
taxation attributable to equity
holders of the parent 5,816 5,155 14,029
---------------------------------- ----- ----------- ----------- --------------
pence pence pence
--------------------------- ---- ----- ----- -----
Basic earnings per share 7(a) 3.97 3.48 9.53
--------------------------- ---- ----- ----- -----
Diluted earnings per share 7(a) 3.71 3.30 8.96
--------------------------- ---- ----- ----- -----
No other comprehensive income was recognised during 2022 or
2021. Therefore, the profit for the period is also the total
comprehensive income.
All of the amounts relate to continuing operations.
Unaudited Condensed Consolidated Statement of Changes in
Equity
for the six months ended 31 March 2022
Employee Capital
Share Merger Benefit redemption Retained
capital reserve Trust reserve earnings Total
Notes GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 1 October 2021 60 94,312 (15,790) 4,532 49,110 132,224
------------------------------- ----- -------- -------- -------- ----------- --------- --------
Profit for the period - - - - 5,816 5,816
Purchase of own shares held
by an EBT 12(a) - - (3,222) - - (3,222)
Exercise of options - - 393 - (393) -
Share-based payment expense 12 - - - - 2,240 2,240
Deferred tax direct to equity - - - - (103) (103)
Equity dividends paid 3 - - - - (9,269) (9,269)
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 31 March 2022 (Unaudited
half year) 60 94,312 (18,619) 4,532 47,401 127,686
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 1 October 2020 60 94,312 (14,649) 4,532 45,439 129,694
------------------------------- ----- -------- -------- -------- ----------- --------- --------
Profit for the period - - - - 5,155 5,155
Purchase of own shares held
by an EBT 12(a) - - (724) - - (724)
Share-based payment expense 12 - - - - 2,067 2,067
Other amounts direct to equity - - - - (134) (134)
Deferred tax direct to equity - - - - 70 70
Equity dividends paid 3 - - - - (6,660) (6,660)
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 31 March 2021 (Unaudited
half year) 60 94,312 (15,373) 4,532 45,937 129,468
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 1 October 2020 60 94,312 (14,649) 4,532 45,439 129,694
------------------------------- ----- -------- -------- -------- ----------- --------- --------
Profit for the year - - - - 14,029 14,029
Purchase of own shares held
by an EBT - - (4,101) - - (4,101)
Exercise of options - - 2,960 - (2,960) -
Share-based payment expense - - - - 4,528 4,528
Other amounts direct to equity - - - - (134) (134)
Deferred tax direct to equity - - - - 305 305
Equity dividends paid - - - - (12,097) (12,097)
------------------------------- ----- -------- -------- -------- ----------- --------- --------
At 30 September 2021 (Audited) 60 94,312 (15,790) 4,532 49,110 132,224
------------------------------- ----- -------- -------- -------- ----------- --------- --------
Unaudited Condensed Consolidated Statement of Financial
Position
as at 31 March 2022
Unaudited Unaudited Audited
31 March 31 March 30 September
2022 2021 2021
Notes GBP000 GBP000 GBP000
--------------------------------------- ----- --------- --------- -------------
Non-current assets
Goodwill 8 70,688 70,948 70,688
Intangible assets 8 24,953 29,855 27,377
Other investments 100 100 100
Property and equipment 1,561 2,021 1,737
Right-of-use assets 1,411 2,091 1,751
Deferred tax asset 2,431 1,400 2,166
Trade and other receivables 803 791 971
--------------------------------------- ----- --------- --------- -------------
101,947 107,206 104,790
--------------------------------------- ----- --------- --------- -------------
Current assets
Financial assets at fair value through
profit and loss 3,458 3,319 3,529
Trade and other receivables 114,395 167,816 146,084
Cash and cash equivalents 9 36,038 34,402 47,675
--------------------------------------- ----- --------- --------- -------------
153,891 205,537 197,288
--------------------------------------- ----- --------- --------- -------------
Total assets 255,838 312,743 302,078
--------------------------------------- ----- --------- --------- -------------
Current liabilities
Trade and other payables (120,241) (175,169) (163,208)
Current tax liabilities - (1,471) -
Provisions 10 - - (15)
Lease liabilities (868) (871) (870)
--------------------------------------- ----- --------- --------- -------------
(121,109) (177,511) (164,093)
--------------------------------------- ----- --------- --------- -------------
Non-current liabilities
Provisions 10 (374) (389) (374)
Deferred tax liability (5,958) (3,793) (4,237)
Lease liabilities (711) (1,582) (1,150)
--------------------------------------- ----- --------- --------- -------------
Total liabilities (128,152) (183,275) (169,854)
--------------------------------------- ----- --------- --------- -------------
Net assets 127,686 129,468 132,224
--------------------------------------- ----- --------- --------- -------------
Equity
Share capital 11 60 60 60
Merger reserve 94,312 94,312 94,312
Own shares held by an Employee Benefit
Trust 12 (18,619) (15,373) (15,790)
Capital redemption reserve 4,532 4,532 4,532
Retained earnings 47,401 45,937 49,110
--------------------------------------- ----- --------- --------- -------------
Total equity shareholders' funds 127,686 129,468 132,224
--------------------------------------- ----- --------- --------- -------------
Unaudited Condensed Consolidated Statement of Cash Flows
for the six months ended 31 March 2022
Unaudited Unaudited
six months six months Audited
to to year to
31 March 31 March 30 September
2022 2021 2021
Notes GBP000 GBP000 GBP000
Cash flows from operating activities:
----------------------------------------------------- ----- ----------- ----------- --------------
Profit after taxation 5,816 5,155 14,029
Adjustments to reconcile profit to net cash
flow from operating activities:
- Tax on continuing operations 6 4,062 1,041 3,496
- Finance expense 7 - -
- Interest payable on leases 34 51 94
- Depreciation - fixed assets 282 371 688
- Depreciation - leases 337 285 625
- Loss/(gain) on revaluation of financial assets
at fair value through profit and loss 18 (242) (407)
- Loss on disposal of property and equipment - - 28
- Increase in employee benefits liability 3,905 970 970
- Purchase of plan assets (held for employee
benefits liability) (3,905) (970) (970)
- Amortisation of intangible assets 8 2,424 2,379 5,117
- Share-based payment expense 12 2,240 2,067 4,528
- Decrease/(increase) in trade and other receivables 32,157 (123,967) (101,769)
- (Decrease)/increase in trade and other payables (42,980) 122,123 110,162
Cash generated from operations 4,397 9,263 36,591
Income tax paid (3,008) (2,607) (7,267)
----------------------------------------------------- ----- ----------- ----------- --------------
Net cash flow from operating activities 1,389 6,656 29,324
----------------------------------------------------- ----- ----------- ----------- --------------
Cash flows from investing activities:
Interest paid (7) - -
Acquisition of assets at fair value through
profit and loss (55) (1,216) (1,261)
Proceeds from disposal of assets at fair value
through profit and loss 107 836 836
Purchase of property and equipment (106) (7) (68)
Net cash flow from investing activities (61) (387) (493)
----------------------------------------------------- ----- ----------- ----------- --------------
Cash flows from financing activities:
Lease payments (474) (475) (950)
Purchase of own shares held by an EBT 12(a) (3,222) (724) (4,101)
Equity dividends paid 3 (9,269) (6,660) (12,097)
Net cash flow from financing activities (12,965) (7,859) (17,148)
----------------------------------------------------- ----- ----------- ----------- --------------
(Decrease)/increase in cash and cash equivalents (11,637) (1,590) 11,683
Opening cash and cash equivalents 47,675 35,992 35,992
----------------------------------------------------- ----- ----------- ----------- --------------
Closing cash and cash equivalents 9 36,038 34,402 47,675
----------------------------------------------------- ----- ----------- ----------- --------------
Notes to the Unaudited Condensed Consolidated Financial
Statements
for the six months ended 31 March 2022
1. Basis of accounting
These interim unaudited Condensed Consolidated Financial
Statements do not constitute statutory accounts within the meaning
of section 435 of the Companies Act 2006. They have been prepared
on the basis of the accounting policies as set out in the Group's
Annual Report for the year ended 30 September 2021.
The interim unaudited Condensed Consolidated Financial
Statements to 31 March 2022 have been prepared in accordance
with
IAS 34 'Interim Financial Reporting' and the Listing Rules of
the Financial Conduct Authority.
Premier Miton Group plc (the 'Group') is the Parent Company of a
group of companies which provide a range of investment management
services in the United Kingdom and Channel Islands.
The Group's 2021 Annual Report is prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted by
the United Kingdom, and is available on the Premier Miton Group plc
website (www.premiermiton.com).
The Group has considerable financial resources and ongoing
investment management contracts. As a consequence, the Directors
believe that the Group demonstrates the financial resilience
required to manage its business risks successfully. The Directors
have a reasonable expectation that the Group has adequate resources
to continue in operational existence for a period of at least 12
months after the date the interim financial statements are signed.
Thus, the Directors continue to adopt the going concern basis of
accounting in preparing the interim unaudited Condensed
Consolidated Financial Statements. The Directors note that the
Group has no external borrowings and maintains significant levels
of cash reserves. The Group has conducted financial modelling at
materially lower levels of AuM with the business remaining cash
generative. The Directors have also reviewed and examined the
financial stress testing inherent in the Internal Capital Adequacy
Assessment Process ('ICAAP').
These interim unaudited Condensed Consolidated Financial
Statements were approved and authorised for issue by the Board
acting through a duly authorised committee of the Board of
Directors on 26 May 2022.
The full-year accounts to 30 September 2021 were approved by the
Board of Directors on 6 December 2021 and have been delivered to
the Registrar of Companies. The report of the auditor on those
accounts was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under section 498 of
the Companies Act 2006. The figures for the six months ended 31
March 2022 and the six months ended 31 March 2021 have not been
audited.
The interim unaudited Condensed Consolidated Financial
Statements are presented in Sterling and all values are rounded to
the nearest thousand pounds (GBP000) except where otherwise
indicated.
Forward looking statements
These interim unaudited Condensed Consolidated Financial
Statements are made by the Directors in good faith based on
information available to them at the time of their approval of the
accounts. Forward looking statements should be treated with caution
due to the inherent uncertainties, including economic, regulatory
and business risk factors underlying any such statement. The
Directors undertake no obligation to update any forward looking
statement whether as a result of new information, future events or
otherwise. The interim unaudited Condensed Consolidated Financial
Statements have been prepared to provide information to the Group's
shareholders and should not be relied upon by any other party or
for any other purpose.
2. Segmental reporting
The Group has only one business operating segment, asset
management for reporting and control purposes.
IFRS 8 'Operating Segments' requires disclosures to reflect the
information which the Group's management uses for evaluating
performance and the allocation of resources. The Group is managed
as a single asset management business and as such, there are no
additional operating segments to disclose. Under IFRS 8, the Group
is also required to make disclosures by geographical segments. As
Group operations are solely in the UK and Channel Islands, there
are no additional geographical segments to disclose.
3. Dividend
The final dividend for the year ended 30 September 2021 of 6.3p
per share was paid on 11 February 2022 resulting in a distribution
of GBP9,268,748. This is reflected in the unaudited Condensed
Consolidated Statement of Changes in Equity (2021 HY:
GBP6,659,616).
4. Revenue
Revenue recognised in the Consolidated Statement of
Comprehensive Income is analysed as follows:
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
---------------- ------------ ------------ --------------
Management fees 48,516 43,306 93,171
Commissions 2 267 1,075
Other income (15) 305 480
---------------- ------------ ------------ --------------
Total revenue 48,503 43,878 94,726
---------------- ------------ ------------ --------------
All revenue is derived from the United Kingdom and Channel
Islands.
5. Exceptional items and merger related costs
Recognised in arriving at operating profit from continuing
operations:
Unaudited
Unaudited six months Audited
six months to 31 year to
to 31 March March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
-------------------------- ------------ ----------- -------------
Connect development costs - 64 126
Total exceptional items - 64 126
-------------------------- ------------ ----------- -------------
Merger related costs 25 667 822
Merger employment restructuring costs - 546 528
Total merger related costs 25 1,213 1,350
-------------------------------------- ----- -----
Exceptional items are those items of income or expenditure that
are considered significant in size and/or nature to merit separate
disclosure and which are non-recurring.
There were GBP25,496 of merger related legal and professional
costs in the period (2021 HY: GBP667,026, of which, GBP25,496
represented legal and professional fees associated with the merger
with Miton Group plc and merger integration costs of
GBP641,530).
There were no employment restructuring costs arising as a result
of the merger (2021 HY: GBP546,057).
6. Taxation
Unaudited
Unaudited six months Audited
six months to 31 year to
to 31 March March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
---------------------------------------------------- ------------ ----------- -------------
Corporation tax charge 2,708 1,130 3,674
Deferred tax liability arising on historic business
combination 2,066 - -
Deferred tax credit (712) (89) (178)
---------------------------------------------------- ------------ ----------- -------------
Tax charge reported in the unaudited Condensed
Consolidated Statement of Comprehensive Income 4,062 1,041 3,496
---------------------------------------------------- ------------ ----------- -------------
In the Spring Budget 2021, the Government announced that from 1
April 2023 the corporation tax rate will increase to 25% from 19%.
This was subsequently enacted on 24 May 2021. The deferred tax
balances included within the Consolidated Financial Statements have
been calculated with reference to the rate of 25% to the relevant
balances from 1 April 2023.
At 31 March 2022, a deferred tax liability of GBP2,066,253 has
been included in relation to a temporary difference on an
intangible asset held on the balance sheet acquired in a business
combination in 2007. Management has assessed this adjustment to be
not material (on both quantitative and qualitative bases) to
require restating comparatives, and as such the deferred tax
liability has been recognised in this Unaudited Condensed
Consolidated Statement of Financial position via current period tax
charge.
7. Earnings per share
Basic earnings per share is calculated by dividing the profit
for the period attributable to ordinary equity shareholders of the
Parent Company by the weighted average number of ordinary shares
outstanding during the period.
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 Trusts ('EBTs'). Dividend waivers are
in place over shares held in the Group's EBTs.
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 period 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 period.
(a) Reported earnings per share
Reported basic and diluted earnings per share has been
calculated as follows:
Unaudited
Unaudited six months Audited
six months to 31 year to
to 31 March March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
---------------------------------------------------- ------------ ----------- -------------
Profit attributable to ordinary equity shareholders
of the Parent Company for basic earnings 5,816 5,155 14,029
No.000 No.000 No.000
Issued ordinary shares at 1 October 157,913 157,913 157,913
-Effect of own shares held by an EBT (11,571) (9,928) (10,641)
Weighted average shares in issue 146,342 147,985 147,272
---------------------------------------------------- ------------ ----------- -------------
-Effect of movement in share options 10,259 8,067 9,239
---------------------------------------------------- ------------ ----------- -------------
Weighted average shares in issue - diluted 156,601 156,052 156,511
---------------------------------------------------- ------------ ----------- -------------
Basic earnings per share (pence) 3.97 3.48 9.53
Diluted earnings per share (pence) 3.71 3.30 8.96
---------------------------------------------------- ------------ ----------- -------------
(b) Adjusted earnings per share
Adjusted earnings per share is based on adjusted profit after
tax, where adjusted profit is stated after charging interest but
before share-based payments, amortisation, merger related costs and
exceptional items.
Adjusted profit for calculating adjusted earnings per share:
Unaudited
Unaudited six months Audited
six months to 31 year to
to 31 March March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
---------------------------------------------- ------------ ----------- -------------
Profit before taxation 9,878 6,196 17,525
Add back:
-Share-based payment expense 2,240 2,067 4,528
-Amortisation of intangible assets 2,424 2,379 5,117
-Merger related costs 25 1,213 1,350
-Exceptional items - 64 126
---------------------------------------------- ------------ ----------- -------------
Adjusted profit before tax 14,567 11,919 28,646
---------------------------------------------- ------------ ----------- -------------
Taxation:
-Tax in the unaudited Consolidated Statement
of Comprehensive Income (4,062) (1,041) (3,496)
-Tax effect of adjustments 1,344 (1,118) (914)
---------------------------------------------- ------------ ----------- -------------
Adjusted Profit after tax for the calculation
of adjusted earnings per share 11,849 9,760 24,236
---------------------------------------------- ------------ ----------- -------------
Adjusted earnings per share was as follows using the number of
shares calculated at note 7(a):
Unaudited
Unaudited six months Audited
six months to to year to
31 March 31 March 30 September
2022 2021 2021
pence pence pence
---------------------------- -------------- ----------- -------------
Adjusted earnings per share 8.10 6.60 16.46
Diluted adjusted earnings
per share 7.57 6.25 15.49
---------------------------- -------------- ----------- -------------
8. Goodwill and other intangible assets
Cost amortisation and net book value of intangible assets are as
follows:
Unaudited
Unaudited six months Audited
six months to to year to
31 March 31 March 30 September
2022 2021 2021
Goodwill GBP000 GBP000 GBP000
----------------------------- -------------- ----------- --------------
Cost:
At 1 October 77,927 77,927 77,927
Additions - - -
----------------------------- -------------- ----------- --------------
At 31 March/30 September 77,927 77,927 77,927
----------------------------- -------------- ----------- --------------
Amortisation and impairment:
At 1 October 7,239 6,979 6,979
Amortisation during the
period - - 260
----------------------------- -------------- ----------- --------------
At 31 March/30 September 7,239 6,979 7,239
----------------------------- -------------- ----------- --------------
Carrying amount:
----------------------------- -------------- ----------- --------------
At 31 March/30 September 70,688 70,948 70,688
----------------------------- -------------- ----------- --------------
Unaudited
Unaudited six months Audited
six months to to year to
31 March 31 March 30 September
2022 2021 2021
Other intangible assets GBP000 GBP000 GBP000
------------------------- -------------- ----------- --------------
Cost:
At 1 October 81,025 81,025 81,025
Additions - - -
------------------------- -------------- ----------- --------------
At 31 March/30 September 81,025 81,025 81,025
------------------------- -------------- ----------- --------------
Accumulated amortisation
and impairment:
At 1 October 53,648 48,791 48,791
Amortisation during the
period 2,424 2,379 4,857
------------------------- -------------- ----------- --------------
At 31 March/30 September 56,072 51,170 53,648
------------------------- -------------- ----------- --------------
Carrying amount:
------------------------- -------------- ----------- --------------
At 31 March/30 September 24,953 29,855 27,377
------------------------- -------------- ----------- --------------
Other intangible assets relate to the investment management
agreements acquired in business combinations between the funds to
which they were the investment manager and the value arising from
the underlying client relationships.
The Group has determined that it has a single cash-generating
unit ('CGU') for the purpose of assessing the carrying value of
goodwill. Impairment testing is performed at least annually whereby
the recoverable amount of the goodwill is analysed via the
value-in-use method and compared to the respective carrying value.
During the period no impairment was identified.
9. Cash and cash equivalents
Unaudited Unaudited
six months six months Audited
to to year to
31 March 31 March 30 September
2022 2021 2021
GBP000 GBP000 GBP000
------------------------- ----------- ----------- --------------
Cash at bank and in hand 36,038 34,402 47,675
------------------------- ----------- ----------- --------------
10. Provisions
GBP000
----------------------------- ------
At 1 October 2021 389
Disposals (15)
----------------------------- ------
At 31 March 2022 (Unaudited) 374
----------------------------- ------
Current -
Non-current 374
----------------------------- ------
374
----------------------------- ------
At 1 October 2020 389
Additions -
------------------------------------------------------------- ---
At 31 March 2021 (Unaudited) and 30 September 2021 (Audited) 389
------------------------------------------------------------- ---
Provisions relate to dilapidations for the offices at 6th Floor,
Paternoster House, London, the lease on this property runs to 28
November 2023 and the provision for dilapidations has been
disclosed as non-current.
11. Share capital
Ordinary
shares Deferred
Allotted, called up and fully paid: 0.02 pence shares
Number of shares each Number Number
------------------------------------------------------------- ------------ --------
At 1 October 2021 157,913,035 1
Issued - -
------------------------------------------------------------- ------------ --------
At 31 March 2022 (Unaudited) 157,913,035 1
------------------------------------------------------------- ------------ --------
At 1 October 2020 157,913,035 1
Issued - -
------------------------------------------------------------- ------------ --------
At 31 March 2021 (Unaudited) and 30 September 2021 (Audited) 157,913,035 1
------------------------------------------------------------- ------------ --------
Ordinary shares Deferred
Allotted, called up and fully paid: 0.02 pence each shares Total
Value of shares GBP000 GBP000 GBP000
---------------------------------------------- ---------------- -------- -------
At 1 October 2021 31 29 60
Issued - - -
---------------------------------------------- ---------------- -------- -------
At 31 March 2022 (Unaudited) 31 29 60
---------------------------------------------- ---------------- -------- -------
At 1 October 2020 31 29 60
Issued - - -
---------------------------------------------- ---------------- -------- -------
At 31 March 2021 (Unaudited) and 30 September
2021 (Audited) 31 29 60
---------------------------------------------- ---------------- -------- -------
12. Share-based payment
The total expense recognised for share-based payments in respect
of employee services received during the period to 31 March 2022
was GBP2,240,420 (2021 HY: GBP2,067,110).
During the period, 1,902,500 (2021 HY: 3,980,000) nil cost
contingent share rights over ordinary shares of 0.02p in the
Company were granted to 32 employees (2021 HY: 36 employees). Of
the total award, 375,000 (2021 HY: 550,000) nil cost contingent
share rights were awarded to Executive Directors. The awards will
be satisfied from the Group's EBTs.
The share-based payment expense is calculated in accordance with
the fair value of the contingent share rights on the date of grant.
The price per right at the date of grant was GBP1.425 on 10 March
2022, resulting in a fair value of GBP2,711,063 to be expensed over
the vesting period of three years.
The key features of the awards include: a three-year vesting
term, automatic vesting at the relevant anniversary date with the
delivery of the shares to the participant within 30 days of the
relevant vesting date.
During the period, 157,035 nil cost contingent share rights over
ordinary shares of 0.02p in the Company were exercised by three
employees.
After the period end, 622,916 nil cost contingent share rights
over ordinary shares of 0.02p in the Company that vested on 16
April 2022, were exercised by 34 employees. On 23 April 2022,
848,333 nil cost contingent share rights over ordinary shares of
0.02p in the Company vested and were exercised by six employees; of
the total 275,000 were exercised by an Executive Director.
(a) Employee Benefit Trusts ('EBTs')
Premier Miton Group plc established an EBT on 25 July 2016 to
purchase ordinary shares in the Company to satisfy share awards to
certain employees.
During the period, 1,902,500 (2021 HY: 500,000) shares were
acquired and held by the Group's EBTs at a cost of GBP3,222,043
(2021 HY: GBP723,670).
At 31 March 2022, 12,692,553 (2021 HY: 10,421,565) shares are
held by the Group's EBTs, 12,486,827 (2021 HY: 10,421,565) shares
relate to outstanding awards.
At 31 March 2022, the cost of the shares held by the EBTs of
GBP18,619,283 (2021 HY: GBP15,372,639) has been disclosed as own
shares held by an EBT in the unaudited Condensed Consolidated
Statement of Changes in Equity and the unaudited Condensed
Consolidated Statement of Financial Position.
13. Subsequent events post balance sheet
At 26 May 2022, there were no subsequent events to report.
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END
IR KZGZKNVNGZZM
(END) Dow Jones Newswires
May 27, 2022 02:00 ET (06:00 GMT)
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