Wrap Text
INP/INL - Investec - Unaudited combined consolidated financial results in Pounds
Sterling for the year ended 31 March 2010
Investec plc
Regisration number: 3633621
Share Code: INP
ISIN: GB00B17BBQ50
Investec Limited
Regisration number: 1925/002833/06
Share Code: INL
ISIN: ZAE000081949
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results in Pounds Sterling for the
year ended 31 March 2010
Salient Features
31 March 31 March %
2010 2009 Change
Operating profit before, 432,258 396,766 8.9
goodwill, non-operating items,
taxation and after minorities
(GBP`000)
Earnings attributable to 346,133 292,022 18.5
shareholders (GBP`000)
Adjusted earnings before goodwill 309,710 269,215 15.0
and non-operating items (GBP`000)
Adjusted earnings per share 45.1 42.4 6.4
(before goodwill and non-
operating items) (pence)
Earnings per share (pence) 44.0 38.5 14.3
Headline earnings per share 40.1 41.2 (2.7)
(pence)
Dividends per share (pence) 16.0 13.0 23.1
Tangible net asset value per 324.1 266.3 21.7
share (pence)
Customer accounts (deposits) 21,934 14,573 50.5
(GBP million)
Third party assets under 73,600 48,828 50.7
management (GBP million)
Combined consolidated income statement
Year to 31 March Unaudited Audited
GBP`000 2010 2009
Interest income 2,726,011 2,596,913
Interest expense (2,112,925) (1,902,882)
Net interest income 613,086 694,031
Fee and commission income 612,574 592,814
Fee and commission expense (67,497) (61,292)
Principal transactions 457,759 276,521
Operating income from associates 11,595 12,438
Investment income on assurance activities 94,914 74,584
Premiums and reinsurance recoveries on 31,938 18,773
insurance contracts
Other operating income/(loss) 22,737 (30,240)
Other income 1,164,020 883,598
Claims and reinsurance premiums on (119,918) (88,108)
insurance business
Total operating income net of insurance 1,657,188 1,489,521
claims
Impairment losses on loans and advances (286,581) (256,173)
Operating income 1,370,607 1,233,348
Administrative expenses (920,694) (803,158)
Depreciation, amortisation and impairment (36,457) (30,102)
of property, equipment and intangibles
Operating profit before goodwill 413,456 400,088
Impairment of goodwill (3,526) (32,467)
Operating profit 409,930 367,621
Profit on disposal of group operations - 721
Profit before taxation 409,930 368,342
Taxation (82,599) (81,675)
Profit after taxation 327,331 286,667
Losses attributable to minority interests 18,802 5,355
Earnings attributable to shareholders 346,133 292,022
Earnings attributable to shareholders 346,133 292,022
Impairment of goodwill 3,526 32,467
Impairment of goodwill attributable to - (8,677)
minorities
Profit on disposal of group operations, - (721)
net of taxation
Preference dividends (43,860) (47,503)
Additional earnings attributable to other 3,911 1,627
equity holders
Adjusted earnings before goodwill and non- 309,710 269,215
operating items
Headline adjustments (gain on investment (34,579) (7,588)
properties and available for sale
instruments recognised in income)
Headline earnings 275,131 261,627
Earnings per share (pence)
- basic 44.0 38.5
- diluted 41.5 36.1
Adjusted earnings per share (pence)
- basic 45.1 42.4
- diluted 42.5 39.7
Headline earnings per share (pence)
- basic 40.1 41.2
- diluted 37.8 38.6
Number of weighted average shares
- basic (millions) 686.3 634.6
Combined summarised consolidated statement of comprehensive income
Year to 31 March Unaudited Audited
GBP`000 2010 2009
Profit after taxation 327,331 286,667
Fair value movements on cash flow hedges+ 14,202 (16,293)
Fair value movements on available for sale 20,370 (4,638)
assets+
(Gains)/losses on realisation of available (8,887) 415
for sale assets recycled through the income
statement+
Foreign currency movements 239,789 215,653
Pension fund actuarial losses (8,180) (9,722)
Total comprehensive income 584,625 472,082
Total comprehensive income attributable to 9,918 21,285
minority shareholders
Total comprehensive income attributable to 493,073 376,020
ordinary shareholders
Total comprehensive income attributable to 81,634 74,777
perpetual preferred securities
Total comprehensive income 584,625 472,082
+Net of taxation of GBP9,989 million (2009: (GBP7,978 million)).
Combined summarised consolidated cash flow statement
Year to 31 March Unaudited Audited
GBP`000 2010 2009*
Cash inflows from operations 731,000 631,378
Increase in operating assets (3,336,695) (93,188)
Increase/(decrease) in operating liabilities 4,115,640 (183,343)
Net cash inflow from operating activities 1,509,945 354,847
Net cash outflow from investing activities (28,468) (63,670)
Net cash outflow from financing activities (118,694) (184,981)
Effects of exchange rate changes on cash and 274,915 226,277
cash equivalents
Net increase in cash and cash equivalents 1,637,698 332,473
Cash and cash equivalents at the beginning 2,284,349 1,951,876
of the year
Cash and cash equivalents at the end of the 3,922,047 2,284,349
year
Cash and cash equivalents are defined as including: cash and balances at central
banks, on demand loans and advances to banks and cash equivalent advances to
customers (all of which have a maturity profile of less than three months).
Combined consolidated balance sheet
At 31 March Unaudited Audited
GBP`000 2010 2009*
Assets
Cash and balances at central banks 2,338,234 1,105,089
Loans and advances to banks 2,781,630 2,018,089
Cash equivalent advances to customers 581,117 396,173
Reverse repurchase agreements and cash 911,432 569,770
collateral on securities borrowed
Trading securities 4,221,645 2,313,845
Derivative financial instruments 1,591,841 1,843,143
Investment securities 1,996,073 1,063,569
Loans and advances to customers 17,414,691 15,390,519
Loans and advances to customers - 1,776,525 1,897,878
Kensington warehouse assets
Securitised assets 5,334,453 5,628,347
Interest in associated undertakings 104,059 93,494
Deferred taxation assets 134,355 136,757
Other assets 1,240,624 894,062
Property and equipment 161,255 174,532
Investment properties 273,038 189,156
Goodwill 274,417 255,972
Intangible assets 36,620 34,402
41,172,009 34,004,797
Other financial instruments at fair value
through income in respect of
- liabilities to customers 5,397,014 3,358,338
- assets related to reinsurance 2,842 1,768
contracts
46,571,865 37,364,903
Liabilities
Deposits by banks 2,439,670 3,781,153
Deposits by banks - Kensington warehouse 1,213,042 1,412,961
funding
Derivative financial instruments 1,193,421 1,456,561
Other trading liabilities 504,618 344,561
Repurchase agreements and cash collateral 1,110,508 915,850
on securities lent
Customer accounts (deposits) 21,934,044 14,572,568
Debt securities in issue 1,791,869 1,014,871
Liabilities arising on securitisation 4,714,556 5,203,473
Current taxation liabilities 196,965 155,395
Deferred taxation liabilities 136,974 120,135
Other liabilities 1,572,760 1,264,144
Pension fund liabilities 1,285 1,212
36,809,712 30,242,884
Liabilities to customers under investment 5,392,662 3,352,863
contracts
Insurance liabilities, including unit- 4,352 5,475
linked liabilities
Reinsured liabilities 2,842 1,768
42,209,568 33,602,990
Subordinated liabilities 1,070,436 1,141,376
43,280,004 34,744,366
Equity
Called up share capital 195 190
Perpetual preference share capital 152 151
Share premium 1,928,296 1,769,040
Treasury shares (66,439) (173,068)
Other reserves 246,718 42,509
Retained income 846,060 658,129
Shareholders` equity excluding minority 2,954,982 2,296,951
interests
Minority interests 336,879 323,586
- Perpetual preferred securities issued by 314,944 295,084
subsidiaries
- Minority interests in partially held 21,935 28,502
subsidiaries
Total equity 3,291,861 2,620,537
Total liabilities and equity 46,571,865 37,364,903
*As restated for reclassifications detailed in the commentary section of this
report.
Segmental geographic and business analysis of operating profit before goodwill,
non-operating items and taxation for the year ended 31 March 2010
Unaudited United
Kingdom
and Southern Total
GBP`000 Europe Africa Australia group
Asset Management 25,335 58,077 - 83,412
Private Wealth 11,637 14,250 - 25,887
Property Activities 825 31,582 1,072 33,479
Private Banking 6,545 29,330 1,177 37,052
Investment Banking (4,399) 45,694 273 41,568
Capital Markets 93,163 70,572 15,404 179,139
Group Services and Other (9,407) 40,862 266 31,721
Activities
Operating profit after minorities 123,699 290,367 18,192 432,258
Minority interest-equity (18,802)
Operating profit before goodwill 413,456
Segmental geographic and business analysis of operating profit before goodwill,
non-operating items and taxation for the year ended 31 March 2009
Audited United
Kingdom
and Southern Total
GBP`000 Europe Africa Australia group
Asset Management 17,149 49,037 - 66,186
Private Wealth 12,044 12,058 - 24,102
Property Activities 774 21,769 2,138 24,681
Private Banking 42,034 35,954 2,475 80,463
Investment Banking (30,810) 66,065 (7,089) 28,166
Capital Markets 78,015 61,150 2,209 141,374
Group Services and Other (18,316) 47,395 2,715 31,794
Activities
Operating profit after minorities 100,890 293,428 2,448 396,766
Minority interest-equity 3,322
Operating profit before goodwill 400,088
Combined summarised consolidated statement of changes in equity
Year to 31 March Unaudited Audited
GBP`000 2010 2009
Balance at the beginning of the
year 2,620,537 2,210,019
Total comprehensive income 584,625 472,082
Share based payments adjustments 56,942 92,848
Dividends paid to ordinary shareholders (91,946) (143,995)
Dividends paid to perpetual preference shareholders (43,860) (47,503)
Issue of ordinary shares 84,178 91,764
Issue of perpetual preference shares 40,869 -
Share issue expenses (3,559) -
Movement of treasury shares 40,974 (58,164)
Issue of equity instruments
by subsidiaries 3,547 3,486
Dividends paid to minorities (578) -
Movement of minorities on
disposals and acquisitions 132 -
Balance at the end of the year 3,291,861 2,620,537
Investec plc and Investec Limited (combined results)
Unaudited combined consolidated financial results in Pounds Sterling for the
year ended 31 March 2010
Overall performance
Over the past year the group has concentrated on improving the quality of its
balance sheet whilst at the same time moving the organisation onto the front
foot. This has resulted in a satisfactory year end performance, with a
strengthening of both liquidity and capital and an increase of 6.4% in adjusted
earnings per share (EPS) before goodwill and non-operating items from 42.4 pence
to 45.1 pence.
The main features of the year under review are:
Operating profit before goodwill, non-operating items and taxation and after
minorities ("operating profit") increased 8.9% to GBP432.3 million (2009:
GBP396.8 million).
Adjusted earnings attributable to shareholders before goodwill and non-operating
items increased 15.0% to GBP309.7 million (2009: GBP269.2 million).
Net asset value per share increased by 17.9% to 364.0 pence (2009: 308.8 pence)
and net tangible asset value per share (which excludes goodwill and intangible
assets) increased by 21.7% to 324.1 pence (2009: 266.3 pence).
Third party assets under management increased by 50.7% to GBP73.6 billion (2009:
GBP48.8 billion).
Customer accounts (deposits) increased 50.5% to GBP21.9 billion (2009: GBP14.6
billion).
Core loans and advances (excluding own originated securitised assets) as a
percentage of customer deposits improved from 103.6% at 31 March 2009 to 76.2%.
Tier 1 capital adequacy ratios have strengthened in both Investec plc and
Investec Limited (refer to "Operational review" section below).
Low gearing ratios represented by core loans and advances to equity at 5.4 times
(2009: 6.2 times) and total assets (excluding assurance assets) to equity at
12.5 times (2009: 12.9 times).
The board proposes a final dividend of 8.0 pence per ordinary share equating to
a full year dividend of 16.0 pence (2009: 13.0 pence) resulting in a dividend
cover based on the group`s adjusted EPS before goodwill and non-operating items
of 2.8 times (2009: 3.3 times), consistent with the group`s dividend policy.
Operational review
Liquidity and funding
Diversifying Investec`s funding sources has been a key element in improving the
quality of the group`s balance sheet and reducing its reliance on wholesale
funding. The group has been successful in growing customer deposits in all three
core geographies and substantially increasing its cash and near cash balances
from GBP4.9 billion to GBP9.1 billion. The maintenance of cash reserves and a
stock of readily available, high quality liquid assets well in excess of minimum
regulatory requirements remains a core strategy of the group, with these
balances on average representing 20% to 30% of the group`s liability base over
the period.
Capital adequacy
The group holds capital in excess of regulatory requirements targeting a minimum
tier one capital ratio of 11% and a total capital adequacy ratio range of 14% to
17% on a consolidated basis for each of Investec plc and Investec Limited.
Capital ratios are within the group`s target range across all core geographies.
Basel II ratios 31 Mar 2010 31 Mar 2009
Investec plc
Capital adequacy ratio 15.9% 16.2%
Tier 1 ratio 11.3% 10.1%
Investec Limited
Capital adequacy ratio 15.6% 14.2%
Tier 1 ratio 12.1% 10.8%
Asset quality
The bulk of Investec`s credit and counterparty risk arises through its Private
Banking and Capital Markets activities. The Private Bank lends mainly to high
net worth and high income individuals, whilst the Capital Markets division
primarily transacts with mid to large sized corporates, public sector bodies and
institutions. Investec continues to focus on asset quality and credit risk in
all geographies. Impairments and defaults on core loans and advances have
increased in line with guidance previously provided, as detailed in the
"Financial statement analysis" below.
Business unit review
Investec is a focused, specialist bank and asset manager striving to be
distinctive in all that it does. The group seeks to maintain an appropriate
balance between revenue earned from operational risk businesses and revenue
earned from financial risk businesses. This ensures that the group is not over
reliant on any one part of its business to sustain its activities and that it
has a large recurring revenue base that enables it to navigate through varying
cycles and to support its long-term growth objectives.
Investec`s current strategic objectives include increasing the proportion of its
non-lending revenue base which the group largely intends to achieve through the
continued strengthening and development of its wealth and asset management
businesses.
Against this background, the group has modified its segmental reporting
disclosure for the period, effectively separating out its asset and wealth
management activities from its specialist banking activities. This has not
resulted in a restatement of any segmental reporting numbers but has merely
altered the format of the disclosure.
Asset Management
Asset Management reported an increase in operating profit of 26.0% to GBP83.4
million (2009: GBP66.2 million), benefitting from substantial net inflows of
GBP4.7 billion. Since 31 March 2009, assets under management increased by 60.9%
from GBP28.8 billion to GBP46.4 billion.
Private Wealth (previously Private Client Portfolio Management and Stockbroking)
Private Wealth reported an increase in operating profit of 7.4% to GBP25.9
million (2009: GBP24.1 million). The business in South Africa was impacted by
lower activity levels. The results of the UK operations include Investec`s 47.1%
share of the directors` estimate of the post-tax profit of Rensburg Sheppards
plc for the year ended 31 March 2010.
On 30 March 2010, it was announced that Investec and Rensburg Sheppards plc had
reached agreement on the terms of a recommended all share offer under which
Investec will acquire the entire issued and to be issued ordinary share capital
of Rensburg Sheppards plc not already owned by it. Full details of the offer,
which is still subject to shareholder and regulatory approvals, can be found on
Investec`s website: http://www.investec.com
Property Activities
Property Activities generated an increase in operating profit of 35.6% to
GBP33.5 million (2009: GBP24.7 million). The results of the division were
largely supported by a satisfactory performance from the investment property
portfolio in South Africa.
Private Banking
Operating profit from the Private Banking division decreased by 54.0% to GBP37.0
million. (2009: GBP80.5 million). The division focused resources during the
period on building its deposit book which increased by 52.3% to GBP11.8 billion
(2009: GBP7.7 billion). Funds under advice also increased 25.0% to GBP4.1
billion (2009: GBP3.3 billion). The private client core lending book grew by
16.7% to GBP12.9 billion (2009: GBP11.1 billion), mainly due to movements in
exchange rates. Activity levels remained muted and impairment losses on loans
and advances increased.
Investment Banking
The Investment Banking division reported an increase of 47.6% in operating
profit to GBP41.6 million (2009: GBP28.2 million). The Principal Investments
division recorded a solid result, primarily driven by an improved performance
from some of the investments held in the UK and Australian portfolio. The Agency
divisions closed fewer transactions in comparison to the prior year and
commissions were impacted by lower volumes.
Capital Markets
Capital Markets reported an increase in operating profit of 26.7% to GBP179.1
million (2009: GBP141.4 million). The division has experienced reasonable levels
of activity across the advisory businesses and took advantage of select debt and
credit opportunities. Trading and balance sheet management activities have,
however, been impacted by the lower rate environment and declining volatility.
Core loans and advances declined 6.1% to GBP4.5 billion (2009:GBP4.8 billion).
Kensington Group plc ("Kensington") produced a stable performance and reported
an operating profit of GBP37.3 million (2009: GBP37.1 million).
Group Services and Other Activities
Group Services and Other Activities contributed GBP31.7 million to operating
profit (2009: GBP31.8 million). The Central Funding division performed well
benefiting from the repurchase of group debt, partially offset by a lower return
on surplus cash.
Further information on key developments within each of the business units is
provided in a detailed report published on the group`s website:
http://www.investec.com
Financial statement analysis
Total operating income
Total operating income net of insurance claims has increased by 11.3% to
GBP1,657 million (2009: GBP1,490 million). Material movements in total operating
income are analysed below.
Net interest income decreased by 11.7% to GBP613.1 million (2009: GBP694.0
million) largely as a result of a lower return generated on excess capital held
given the declining rate environment.
Net fee and commission income increased by 2.6% to GBP545.1 million (2009:
GBP531.5 million). Average funds under management have been supported by
improved market indices and significant net inflows. Transactional activity,
however, remains mixed and below historic trends.
Income from principal transactions increased 65.5% from GBP276.5 million to
GBP457.8 million. The group has benefited from the repurchase of its debt,
opportunities taken in the dislocated credit markets and good trading conditions
across all geographies.
Operating income from associates decreased by 6.8% to GBP11.6 million (2009:
GBP12.4 million). The figure includes Investec`s 47.1% share of the directors`
estimate of the post-tax profit of Rensburg Sheppards plc for the year ended 31
March 2010.
The consolidation of the operating results of certain investments held within
the group`s Private Equity portfolio is partly reflected in other operating
income/loss, which improved from a loss of GBP30.2 million to a gain of GBP22.7
million.
As a result of the foregoing factors, recurring income as a percentage of total
operating income decreased to 60.4% (2009: 70.0%).
Impairment losses on loans and advances
The weaker credit cycle has caused a decline in the performance of the group`s
loan portfolio. In line with previous guidance provided, impairment losses on
loans and advances have increased from GBP163.0 million to GBP205.4 million
(excluding Kensington). The credit loss charge as a percentage of average gross
loans and advances is 1.16%, marginally higher than the 1.08% reported at 31
March 2009.The percentage of default loans (net of impairments but before taking
collateral into account) to core loans and advances has increased from 3.3% to
4.0% since 31 March 2009. The ratio of collateral to default loans (net of
impairments) remains satisfactory at 1.33 times (2009: 1.22 times).
Impairment losses on loans and advances relating to the Kensington business
amount to GBP81.2 million (2009: GBP93.2 million). The total Kensington book has
reduced to GBP4.7 billion from GBP5.2 billion at 31 March 2009. The percentage
of accounts in arrears has increased as the book continues to run off.
Administrative expenses and depreciation
The ratio of total operating expenses to total operating income amounts to 57.8%
(2009:55.9%).
Total expenses grew by 14.9% to GBP957.2 million (2009: GBP833.3 million)
largely as a result of the appreciation of the Rand and an increase in variable
remuneration in certain divisions given improved profitability. Total staff
compensation costs increased by 15.0% to GBP598.1 million (2009:GBP520.2
million), resulting in a compensation ratio of 36.1% (2009:34.9%). Other
operating expenses increased by 14.7% to GBP359.1 million.
Impairment of goodwill
The current period goodwill impairment relates to Asset Management businesses
acquired in prior years.
Taxation
The operational effective tax rate of the group decreased from 21.1% to 20.6% as
a result of an increase in income earned that is subject to lower tax rates or
is non-taxable.
Losses attributable to minority interests
Losses attributable to minority interests of GBP18.8 million largely comprise:
GBP12.3 million relating to investments consolidated in the Private Equity
division;
GBP6.9 million relating to Euro denominated preferred securities issued by a
subsidiary of Investec plc which are reflected on the balance sheet as part of
minority interests. (The transaction is hedged and a forex transaction profit
arising on the hedge is reflected in operating profit before goodwill with the
equal and opposite impact reflected in earnings attributable to minorities).
Balance sheet analysis
Since 31 March 2009:
Total shareholders` equity (including minority interests) increased by 25.6% to
GBP3.3 billion largely as a result of retained earnings and the issue of shares.
Total assets increased from GBP37.4 billion to GBP46.6 billion largely as a
result of increased cash holdings and movement in exchange rates.
The return on adjusted average shareholders` equity declined from 14.8% to
13.5%.
Outlook
Investec has built its capital, liquidity and third party assets under
management over the period under review. The foundation is now in place for
further growth both in the group`s non capital intensive asset management
businesses as well as in its core specialist banking businesses. Although the
economic situation remains uncertain the business is oriented towards capturing
available opportunities in all its core geographies.
On behalf of the boards of Investec plc and Investec Limited
Hugh Herman Stephen Koseff Bernard Kantor
Chairman Chief Executive Officer Managing Director
Notes to the commentary section above
Presentation of financial information
Investec operates under a Dual Listed Companies (DLC) structure with
premium/primary listings of Investec plc on the London Stock Exchange and
Investec Limited on the JSE Limited.
In terms of the contracts constituting the DLC structure, Investec plc and
Investec Limited effectively form a single economic enterprise in which the
economic and voting rights of ordinary shareholders of the companies are
maintained in equilibrium relative to each other. The directors of the two
companies consider that for financial reporting purposes, the fairest
presentation is achieved by combining the results and financial position of both
companies.
Accordingly, the year end results for Investec plc and Investec Limited present
the results and financial position of the combined DLC group under IFRS,
denominated in Pounds Sterling. In the commentary above, all references to
Investec or the group relate to the combined DLC group comprising Investec plc
and Investec Limited.
Unless the context indicates otherwise, all comparatives included in the
commentary above relate to the year ended 31 March 2009.
Foreign currency impact
The group`s reporting currency is Pounds Sterling. Certain of the group`s
operations are conducted by entities outside the UK. The results of operations
and the financial condition of the individual companies are reported in the
local currencies in which they are domiciled, including Rands, Australian
Dollars, Euros and US Dollars. These results are then translated into Pounds
Sterling at the applicable foreign currency exchange rates for inclusion in the
group`s 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:
Year to date 31 Mar 2010 31 Mar 2009
Currency per GBP1.00 Close Ave Close Ave
South African Rand 11.11 12.38 13.58 14.83
Australian Dollar 1.66 1.88 2.07 2.19
Euro 1.12 1.13 1.08 1.21
Dollar 1.52 1.59 1.43 1.73
Exchange rates between local currencies and Pounds Sterling have fluctuated over
the period. The most significant impact arises from the appreciation of the
Rand. The average exchange rate over the period has appreciated by 16.5% and the
closing rate has appreciated by 18.2% since 31 March 2009.
Accounting policies and disclosures
The accounting policies applied in the preparation of the results for the year
ended 31 March 2010 are consistent with those adopted in the financial
statements for the year ended 31 March 2009, except for the adoption of the
following standards and interpretations:
IAS 1 Presentation of Financial Statements (revised)
IFRIC 13 Customer Loyalty Programmes
The adoption of these standards and interpretations had no material effect on
the results and no resulting prior year restatements.
These unaudited condensed combined consolidated financial statements have been
prepared in terms of the recognition and measurement criteria of International
Financial Reporting Standards, and the presentation and disclosure requirements
of IAS 34, Interim Financial Reporting.
Investec operates in a legal and regulatory environment that exposes it to
litigation risks. As a result, Investec is involved in disputes and legal
proceedings which arise in the ordinary course of business. Investec does not
expect the ultimate resolution of any of the proceedings to which Investec is
party to have a significant adverse effect on the financial position of the
group. These claims, if any cannot be reasonably estimated at this time.
Restatements
The group applies a policy of offsetting financial assets and financial
liabilities when there is both an intention to settle on a net basis (or
simultaneously) and a legal right to offset exists. With regard to derivative
instruments, the group identified that in certain isolated instances offsetting
was applied in prior financial periods to derivative assets and liabilities
where it is not market practice to settle net, whilst the legal right to settle
net exists. The impact of this restatement on the balance sheet of the two prior
years is noted below:
GBP`000 31 Mar 2009 31 Mar 2008
Restated
Derivative financial instrument assets 1,843,143 1,425,587
Derivative financial instrument liabilities 1,456,561 1,001,900
As previously reported
Derivative financial instrument assets 1,582,908 1,305,264
Derivative financial instrument liabilities 1,196,326
881,577
Change to previously reported
Derivative financial instrument assets 260,235 120,323
Derivative financial instrument liabilities 260,235
120,323
The above restatements have no impact on equity and the net cash position.
Proviso
Please note that matters discussed in this announcement 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 group`s control.
These factors may cause the group`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 group at
20 May 2010.
The information in the announcement for the year ended 31 March 2010, which was
approved by the board of directors on 19 May 2010, does not constitute statutory
accounts as defined in Section 435 of the UK Companies Act 2006.
Ordinary dividend announcements
Investec plc
Regisration number: 3633621
Share Code: INP
ISIN: GB00B17BBQ50
In terms of the DLC structure, Investec plc shareholders who are not South
African resident shareholders may receive all or part of their dividend
entitlements through dividends declared and paid by Investec plc on their
ordinary shares and/or through dividends declared and paid on the SA DAN share
issued by Investec Limited.
Investec plc shareholders who are South African residents, may receive all or
part of their dividend entitlements through dividends declared and paid by
Investec plc on their ordinary shares and/or through dividends declared and paid
on the SA DAS share issued by Investec Limited.
Notice is hereby given that final dividend number 16 of 8 pence (2009: 5 pence)
per ordinary share has been recommended by the board in respect of the financial
year ended 31 March 2010 payable to shareholders recorded in the members`
register of the company at the close of business on Friday, 30 July 2010, which
will be paid as follows:
For non-South African resident Investec plc shareholders, through a dividend
payment by Investec plc of 8 pence per ordinary share
For South African resident shareholders of Investec plc, through a dividend
payment by Investec plc of 1.5 pence per ordinary share and through a dividend
payment on the SA DAS share of 6.5 pence per ordinary share.
The relevant dates for the payment of the dividends are as follows:
Last day to trade cum-dividend:
On the London Stock Exchange (LSE) Tuesday, 27 July 2010
On the Johannesburg Stock Exchange (JSE) Friday, 23 July 2010
Shares commence trading ex-dividend:
On the London Stock Exchange (LSE) Wednesday, 28 July 2010
On the Johannesburg Stock Exchange (JSE) Monday, 26 July 2010
Record date (on the LSE and the JSE) Friday, 30 July 2010
Payment date (on the LSE and the JSE) Tuesday, 17 August 2010
Share certificates on the South African branch register may not be
dematerialised or rematerialised between Monday, 26 July 2010 and Friday, 30
July 2010, both dates inclusive, nor may transfers between the UK and SA
registers take place between Monday, 26 July 2010 and Friday, 30 July 2010, both
dates inclusive.
Shareholders registered on the South African register are advised that the
distribution of 8 pence, equivalent to 89 cents per share, has been arrived at
using the Rand/Pound Sterling average buy/sell forward rate, as determined at
11h00 (SA time) on Wednesday, 19 May 2010.
By order of the board
D Miller
Company Secretary
19 May 2010
Investec Limited
Regisration number: 1925/002833/06
Share Code: INL
ISIN: ZAE000081949
Notice is hereby given that a final dividend number 109 of 89 cents (2009: 66
cents) per ordinary share has been recommended by the board in respect of the
financial year ended 31 March 2010 payable to shareholders recorded in the
members` register of the company at the close of business on Friday, 30 July
2010.
The relevant dates for the payment of the dividend are as follows:
Last day to trade cum-dividend Friday, 23 July 2010
Shares commence trading ex-dividend Monday, 26 July 2010
Record date Friday, 30 July 2010
Payment date Tuesday, 17 August 2010
The final dividend of 89 cents per ordinary share has been determined by
converting the Investec plc distribution of 8 pence per ordinary share into
Rands using the Rand/Pounds Sterling average buy/sell forward rate at 11h00 (SA
time) on Wednesday, 19 May 2010.
Share certificates may not be dematerialised or rematerialised between Monday,
26 July 2010 and Friday, 30 July 2010, both dates inclusive.
By order of the board
B Coetsee
Company Secretary
19 May 2010
The Investec interim dividend was 100 cents per ordinary share (2008:128 cents)
which together with the final dividend results in a dividend for the year of 189
cents (2009: 194 cents).
Investec plc
Registration number: 3633621
Share Code: INPP
ISIN: GB00B19RX541
Non-redeemable non-cumulative non-participating preference shares dividend
announcements
Declaration of dividend number 8
Notice is hereby given that preference dividend number 8 has been declared for
the period 01 October 2009 to 31 March 2010 amounting to 7.48 pence per share
payable to holders of the non-redeemable non-cumulative non-participating
preference shares as recorded in the books of the company at the close of
business on Friday, 18 June 2010.
For shares trading on the Johannesburg Stock Exchange (JSE), the dividend of
7.48 pence per share is equivalent to 83 cents per share, which has been
determined using the Rand/Pound Sterling average buy/sell forward rate as at
11h00 (SA Time) on Wednesday, 19 May 2010.
The relevant dates relating to the payment of dividend number 8 are as follows:
Last day to trade cum-dividend:
On the Johannesburg Stock Exchange (JSE) Thursday, 10 June 2010
On the Channel Islands Stock Exchange (CISX) Tuesday, 15 June 2010
Shares commence trading ex-dividend:
On the Johannesburg Stock Exchange (JSE) Friday, 11 June 2010
On the Channel Islands Stock Exchange (CISX) Wednesday, 16 June 2010
Record date (on the JSE and CISX) Friday, 18 June 2010
Payment date (on the JSE and CISX) Thursday, 01 July 2010
Share certificates may not be dematerialised or rematerialised between Friday,
11 June 2010 and Friday, 18 June 2010, both dates inclusive, nor may transfers
between the UK and SA registers take place between Friday, 11 June 2010 and
Friday, 18 June 2010, both dates inclusive.
By order of the board
D Miller
Company Secretary
19 May 2010
Investec Limited
Regisration number: 1925/002833/06
Share Code: INPR
ISIN: ZAE000063814
Non-redeemable non-cumulative non-participating preference shares
Declaration of dividend number 11
Notice is hereby given that preference dividend number 11 has been declared for
the period 01 October 2009 to 31 March 2010 amounting to 365.92 cents per share
payable to holders of the non-redeemable non-cumulative non-participating
preference shares as recorded in the books of the company at the close of
business on Friday, 18 June 2010.
The relevant dates for the payment of dividend number 11 are as follows:
Last day to trade cum-dividend Thursday, 10 June 2010
Shares commence trading ex-dividend Friday, 11 June 2010
Record date Friday, 18 June 2010
Payment date Thursday, 01 July 2010
Share certificates may not be dematerialised or rematerialised between Friday,
11 June 2010 and Friday, 18 June 2010, both dates inclusive.
By order of the board
B Coetsee
Company Secretary
19 May 2010
Further information
Information provided on the Company`s website at www.investec.com includes:
Copies of this statement.
The results presentation.
Additional report produced for the investment community including more detail
on the results.
Excel worksheets containing the salient financial information under IFRS in
Pounds Sterling.
Alternatively for further information please contact the Investor Relations
division on e-mail investorrelations@investec.com or telephone +44 207 597 5546
/ +27 11 286 7070.
Date: 20/05/2010 08:00:04 Supplied by www.sharenet.co.za
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