Final Results

RNS Number : 8194Y

Jupiter Fund Management PLC

07 March 2012

 



	Jupiter Fund Management plc
Highlights

RESULTS ANNOUNCEMENT 31 DECEMBER 2011 (UNAUDITED)

7 March 2012

Improved financial performance coupled with balance sheet resilience

			Year ended 31 December 2011	Year ended 31 December 2010
	Assets under management (£bn)		22.8	24.1
	Net inflows (£bn)		0.7	2.3
	EBITDA1 2 (£m)		134.9	124.6
	EBITDA margin2 (per cent.)		54	54
	Profit before tax (£m)		70.3	42.4
	Underlying earnings per share2 (p)		19.1	17.6
	Final dividend per share (p)		5.3	4.7

¹ Earnings before Interest, Tax, Depreciation and Amortisation ("EBITDA") is a non-GAAP measure which the Group uses to assess its performance. It is defined as operating earnings excluding the effect of depreciation and the charge for options over pre-Listing shares.

² non-GAAP

Edward Bonham Carter, Chief Executive, commented:

"2011 was a positive year for Jupiter, despite the significant headwinds presented by the Eurozone crisis and increased pressure on household finances. Revenues and profits improved over the period due to the benefits of the last two years' net inflows, continued operational efficiencies and reduced financing costs. Furthermore, our balance sheet position strengthened significantly through continued deleveraging and it was pleasing to see the Group move into a net cash position in advance of the year end as a result. This improved financial performance and balance sheet resilience has allowed a 13 per cent. increase in the final dividend.

"While financial assets have rallied sharply since the end of the year, the economic outlook remains uncertain. Markets are likely to remain volatile and fund flows subdued in the near term as a result. However, the long term growth drivers for the savings market remain intact and so we remain focused on delivering strong fund performance for our clients and investing in our business to capitalise on these opportunities when sentiment improves."

Analyst presentation

There will be an analyst presentation at 9.30am on 7 March 2012.

The presentation will be held at FTI Consulting, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB.  The presentation will be accessible via a conference call for those unable to attend in person.  To attend the presentation or dial in to the conference call, please contact Laura Pope at FTI Consulting on [phone] or at [e-mail]. Alternatively, sign up online using the following link: http://mediazone.brighttalk.com/event/Jupiter/2e907f44e0-5945-intro.

The Results Announcement will be available at www.investorsjupiteronline.co.uk  and copies may also be obtained from the registered office of the Company at 1 Grosvenor Place, London SW1X 7JJ. The Annual Report will be published later in March 2012 and will be available at www.investorsjupiteronline.co.uk.

For further information please contact:
	Investors	Media
Jupiter	Philip Johnson [phone]	Alicia Wyllie [phone]
FTI Consulting	Ed Gascoigne-Pees [phone]	Andrew Walton [phone]

FORWARD-LOOKING STATEMENTS

This announcement contains forward-looking statements with respect to the financial condition, results of operations and businesses of the Group. Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this announcement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast. Chief Executive's review

2011 was a positive year for Jupiter, despite the significant headwinds presented by the Eurozone crisis and decline in the propensity to save.

Financial markets endured significant volatility during the year with sentiment impacted early in the year by concerns over Japan's earthquake and tsunami and the Arab Spring. However, it was the sovereign debt crisis in Europe that dominated the year, with the lack of a credible solution to the region's problems and the generally unhelpful backdrop of rising unemployment and inflation resulting in significant market volatility and a worsening environment for asset managers across Europe.

In Continental Europe, investors withdrew some €90bn of assets from UCITS funds during 2011 (2010: invested €172bn). UK retail investors proved more resilient for most of the year but there was a marked retrenchment in fund sales in the second half, with equity funds in net outflow for each of the last four months of the year. This included November, where overall net retail sales were only £267 million - the lowest monthly net sales since October 2008 - and with the largest equity net outflows on record.

Despite the challenges presented by these market conditions, Jupiter continued to make progress, delivering cumulative net inflows of £746m during the year on the back of strong performance and the benefits of continued investment in our brand and distribution capabilities. This enabled us to maintain our market share on fund distribution platforms and assets under management were just shy of £23bn at the end of the year. This is pleasing in the context of the wider market environment and the bias of our AUM towards equities.

The defensive positioning adopted by many of our fund managers early in the year proved beneficial as market conditions deteriorated, enabling us to maintain our strong performance record. Over the three years to 31 December 2011, 26 of our 41 mutual funds (63 per cent.) outperformed their benchmarks, with 11 in the first quartile and 15 in the second quartile. Over the year to 31 December 2011, 27 of our 51 mutual funds (53 per cent.) outperformed their benchmarks with 10 in the first quartile and 17 in the second quartile.

Our investment team is at the heart of our ability to maintain our culture and performance. We believe our approach to developing the team successfully balances the requirement for experience and fresh talent, ensuring we are able to deliver investment outperformance for our clients over the long term. In this regard, we appointed two further investment professionals to our fund of funds team and widened the responsibilities of a number of individuals over the year. The team, 18 of whom have worked at Jupiter for more than 10 years, continue to achieve recognition for their investment skills and in February, independent fund analysts Financial Express awarded 'Alpha' manager status to 12 Jupiter managers - more than any other manager in the UK.

We refined our product range during the year, extending our UK mutual fund range with the launch of the Jupiter Global Energy Fund and rolling two hedge funds into alternative products in recognition of the trend for clients to buy regulated products with similar investment strategies. This led to a decision in the fourth quarter to close our office in Bermuda in 2012.

Building out our distribution capabilities remains a key focus and during 2011 we introduced 'I' classes on a number of our unit trusts to meet demand from institutional investors and registered our SICAV in Belgium, the Netherlands and Portugal, as well as five of its sub-funds in Hong Kong. Our success in developing our European distribution in recent years led us to create a new sales role to cover German-speaking Switzerland during 2011 and to extend our existing third party distribution agreement in France to French-speaking Switzerland.

Financial results

Our financial performance and balance sheet continued to strengthen during 2011. Revenues increased eight per cent., which was ahead of the four per cent. rise in average market levels, boosting EBITDA by eight per cent. over 2010. During the year, we continued to degear the business, halving the size of our gross debt. This allowed us to pay our first interim dividend of 2.5p and increase our total dividend to 7.8p. We have also moved to a net cash position and, while we do have a competitively priced debt facility, we will continue to assess our level of debt and balance this with the need to maintain an efficient capital structure. 

Net revenue, at £248.5m, was eight per cent. ahead of the £230.5m recorded in 2010, while EBITDA was £134.9m, an increase of eight per cent compared to 2010. Our EBITDA margin remained stable at 54 per cent.

Outlook

While financial markets have rebounded since the start of 2012 on the back of the ECB's long term refinancing operation and signs of economic stability in the US and China, the significant public and private debt issues faced by Western economies will take some years to unwind and are likely to cause some volatility yet. Fund flows are likely to remain subdued in the near term as a result.

Despite this recent turbulence, the structural growth drivers for the savings market remain intact and the growth opportunities for a highly-regarded brand such as Jupiter are considerable.  As we have previously demonstrated, success in this regard requires consistent investment through the market cycle, a focus on retaining and attracting outstanding talent who can deliver the continued investment outperformance that is the hallmark of our brand as well as continuing to develop our distribution presence in both the UK and abroad. Such an approach will enable us to capture the benefits of our scalable platform. 

By building on the strong foundations we have established over the past decade, Jupiter can continue to grow and prosper to the benefit of clients and shareholders.

Edward Bonham Carter

Chief Executive

Financial review

Sales

We realised £0.7bn (2010: £2.3bn) of net inflows into our funds during the year ended 31 December 2011, predominantly driven by strong UK sales in mutual funds during the first part of the year. In the final quarter of the year, we experienced net outflows due to the challenging market environment as well as the loss of a single segregated mandate from an institutional client following a strategic asset allocation change.

Net inflows by product	2011 £m		2010 £m
Mutual funds	528		1,886
Segregated mandates	96		359
Private clients	122		121
Investment trusts	-		(46)
Total	746		2,320

Mutual funds were the main product contributor with net sales of £0.5bn (2010: £1.9bn), reflecting net inflows into our Merlin fund ranges and a first full year of Global Convertibles, as well as increasing sales from our international distribution channels.

During the year, segregated fund net inflows were £0.1bn (2010: £0.4bn), driven by new mandate wins and additional assets from existing customers, but hampered by the loss of a single segregated mandate as noted above.  Private client flows of £0.1bn (2010: £0.1bn) were in line with the previous year. During the year, our hedge fund net outflows included the merger of our largest hedge fund into the Europa SICAV and, in order to simplify our disclosure, we are now reporting our hedge fund AUM within segregated mandates.

Assets under management

Assets under management by product	31 December 2011 £bn		31 December 2010 £bn
Mutual funds	17.2		18.4
Segregated mandates	3.4		3.5
Private clients	1.7		1.7
Investment trusts	0.5		0.5
Total	22.8		24.1

The Group's AUM is predominantly made up of mutual funds, which at 31 December 2011 totalled £17.2bn (31 December 2010: £18.4bn), representing 75 per cent. of total AUM (31 December 2010: 76 per cent.). We were the fifth largest fund manager of UK retail mutual funds by AUM at 31 December 2011.

Investment performance

The delivery of investment performance across our product range remains one of our fundamental business objectives. In the key three year investment period, at 31 December 2011 26 mutual funds representing approximately 74 per cent. of mutual funds by AUM had delivered first or second quartile investment performance (31 December 2010: 22 mutual funds representing approximately 66 per cent. of mutual fund AUM). Looking across the shorter term of 2011 only, in a period of high market instability, our funds continued to perform well with 27 mutual funds above median over one year, representing 82 per cent. of mutual fund AUM as at the year end (31 December 2010: 26 funds representing 55 per cent. of AUM), due to the early adoption of defensive positioning by many of our fund managers.

EBITDA

EBITDA was £134.9m for the year (2010: £124.6m), an eight per cent. increase on the prior year, primarily as a result of the scalability of our business model as net revenues rose alongside a more modest increase in fixed costs. The Group's disclosed EBITDA includes a £0.8m charge in relation to the planned closure in 2012 of our Bermuda office.

The Group maintained its EBITDA margins at 54 per cent., successfully absorbing the expected increase in variable costs due to the introduction of new incentive schemes post-Listing.

Net revenue

Net revenue for the year was £248.5m (2010: £230.5m), eight per cent. ahead of 2010. This was mainly due to an increase of 10 per cent. in net management fees, reflecting four per cent. higher average market levels (the FTSE 100 averaged 5,680 compared to 5,465 in 2010) and the contribution from net inflows over the last two years.

	2011		2010
Net management fees (£m)	226.0		204.7
Average AUM (£bn)	23.8		21.1
Net management fee margin (bps)	95		97

Net management fees continue to contribute the majority of our net revenues (2011: 91 per cent., 2010: 89 per cent.). The net management fee margin for the year was 95 basis points, slightly below the 2010 margin of 97 basis points, but in line with our expectations and previous market guidance. This reduction was primarily due to the unfavourable interaction between daily markets levels, being the basis on which we invoice the majority of fees, and the month-end market levels, being the basis on which the majority of mutual fund rebates, fees and commissions are paid, and new flows being written at a lower margin than within the back book. Countering this was the one-off recognition of £3.2m of management fees on the disposal of our private equity business.

We continue to expect net management fee margins to decline slowly over time, as distributors look to take an increasing share of fees and the effects of the Retail Distribution Review take shape, although the rate and angle of any such decline is still uncertain.

	2011 £m		2010 £m
Net management fees	226.0		204.7
Net initial charges	17.2		20.1
Net performance fees	5.3		5.7
Total	248.5		230.5

Net initial charges decreased by £2.9m to £17.2m (2010: £20.1m), primarily driven by lower box profits. Performance fees of £5.3m (2010: £5.7m) are in line with the previous year. Approximately £2.3bn of our AUM attracts a performance fee, the majority of which have a calculation period in the second half of the financial year.

Administrative expenses

	2011 £m		2010 £m
Fixed staff costs	38.7		39.1
Other expenses	38.7		35.7
Total fixed costs	77.4		74.8
Variable staff costs	36.8		32.5
Charge for options over pre-Listing shares	9.6		7.8
Administrative expenses	123.8		115.1

Administrative expenses of £123.8m rose by £8.7m compared to £115.1m in 2010, with an increase in variable staff costs of £4.3m primarily due to the compensation schemes introduced post the Listing. Fixed staff costs of £38.7m decreased slightly (2010: £39.1m), due to the full year effects of the headcount reductions in 2010 from outsourcing UTA operations to IFDS. The impact of this outsource (which effectively switches these costs from fixed staff costs to other expenses) was the main driver for the increase in this line during 2011.

Variable staff costs increased in 2011 compared with 2010 due to the higher profitability of the business, together with the first year of awards under the LTIP scheme and the second full year of the accounting charge for the Deferred Bonus Plan. Of the £4.3m increase against 2010, £3.0m related to share based charges on these new schemes. Variable compensation as a proportion of pre-variable compensation operating earnings was 22 per cent. (2010: 21 per cent.). This excludes a £9.6m charge (2010: £7.8m) in respect of options granted prior to the Listing over the remaining shares in the pool established for employees at the time of the MBO in June 2007. We expect the variable compensation ratio to rise to the mid to high twenty per cents range over the medium-term as the incentive schemes put in place as part of our Listing build to maturity.

Amortisation of intangible assets

Amortisation of £39.9m (2010: £39.8m) included £38.7m (2010: £38.7m) relating to intangible assets acquired as part of the MBO on 19 June 2007 at a value of £276.7m. These assets relate to the investment management contracts (acquired for £258.0m) and the Jupiter brand name (acquired for £18.7m), and are being amortised on a straight line basis over seven and ten years respectively. The remaining £1.2m relates to the amortisation of acquired computer software.

Exceptional costs

There were no costs arising in 2011 which the Group consider to be exceptional.

During 2010 the Group recognised two exceptional costs, being a charge of £1.6m relating to expenses associated with the Listing and a charge for the contribution of £5.2m made by the Group to the Financial Services Compensation Scheme (FSCS) second interim levy for 2010/11. The FSCS continues to look into the final resolution of this levy, but no further charge or credit for 2010/2011 has yet been announced.

Finance expense

Finance expenses decreased by £14.7m to £14.3m (2010: £29.0m) due to the combined effects of eliminating the MBO capital structure at Listing in June 2010 and the reduction in the outstanding bank loan through the repayment of £140m during 2011. The positive effect of this repayment was partially offset by an acceleration in the recognition of the debt issuance costs of £1.6m (2010: £1.2m).

Profit before tax ("PBT")

PBT for the year was £70.3m (2010: £42.4m). This increase of 66 per cent. was driven by increased operating earnings, the absence of exceptional costs and a reduction in finance expenses.

Tax expense

The effective tax charge for 2011 is 27 per cent. (2010: 23 per cent.). The effective tax rate for 2011 is slightly higher than the standard rate of corporation tax of 26.5 per cent. due to non-tax deductible capital losses, partially offset by the effect of adjusting the opening deferred tax balances in light of the forthcoming changes to the standard rate of corporation tax.

Earnings per share ("EPS")

The Group's basic and diluted EPS measures were 15.6p and 15.0p respectively in 2011, compared to 10.8p and 7.6p in 2010. Underlying profit before tax and underlying EPS are non-GAAP measures which the Board believes provide a more useful representation of the Group's trading performance than the statutory presentation. 

Underlying EPS	2011 £m		2010 £m
Profit before tax	70.3		42.4
Adjustments:
Amortisation of acquired investment management contracts and trade name	38.7		38.7
Charge for options over pre-Listing shares	9.6		7.8
Exceptional Listing costs	-		1.6
FSCS Levy exceptional cost	-		5.2
Pre-Listing loan amendment fees	-		3.8
Finance expense relating to pre-Listing capital structure	-		12.5
	48.3		69.6
Underlying profit before tax	118.6		112.0
Tax at statutory rate of 26.5 per cent (2010: 28 per cent.)	(31.4)		(31.4)
Underlying profit after tax	87.2		80.6
Actual shares on post vesting basis (m)	457.7		457.7
Underlying EPS	19.1p		17.6p

2011 underlying EPS was 19.1p (2010: 17.6p). The increase of nine per cent. is the result of the improved trading performance of the Group.

Cash and net debt

Helped by the deleveraging of the balance sheet during 2010, the generation of significant cash amounts through trading and reduced financing costs, the Group moved into a net cash position at 31 December 2011 of £7.4m (31 December 2010: net debt of £62.7m). During 2011, the Group's gross cash decreased by £69.9m to £150.4m (2010: £220.3m) as cash generated from operating activities was used for the repayment of £140m of bank debt and the payment of £31.7m in respect of our maiden final and interim dividends.

Looking at our current financing structures within the Group, the bank facility remains attractive in the light of potentially available financing in both rate and terms. It contains no financial covenants and is not due for repayment until June 2015. Despite this horizon, we believe it would be sensible to pay down the debt in tranches ahead of 2015 as there are no penalties for early repayment. This was demonstrated by the repayments made in March 2011 of £80m and October 2011 of £60m. However, there is no specific timetable for any further repayments and the Board will continue to monitor the level of debt in combination with the level of cash generated.

Seed capital investments

The Group deploys seed capital into funds to assist them in building a track record from launch or to give small but strongly performing funds sufficient scale to attract external money. As at 31 December 2011, we had a total investment of £39.1m in our own funds (2010: £53.2m). These investments are shown on the Group's balance sheet under the appropriate heading for the relevant level of ownership in each fund. The Group only invests into liquid funds and chooses to hedge market and currency risk on the majority of its holdings of seed capital investments, with 99 per cent. of seed capital either hedged or invested in absolute return products.  As a result, the value of these investments is stable and available to improve the Group's cash balances and liquidity if required.

Shareholders' equity

Total shareholders' equity increased by £33.9m as a result of the Group's continued profitability, partially offset by the maiden final and interim dividends of £20.7m and £11.0m respectively. During the year, the share premium account of £255.7m and the capital redemption reserve of £54.1m were cancelled with the sanction of the Court and the balances on these accounts were transferred to retained earnings as distributable reserves.

In February 2012, the Group was granted a new investment consolidation waiver. This will run for the three years from June 2012 to June 2015. The FSA's policy is not to grant waivers in respect of periods where projections do not support the requirement. However, the FSA have confirmed that should market or other conditions change prior to June 2015 such that a consolidation waiver may be required, a new application would be considered in the usual way.

Dividend

The Board recommends an increased final dividend for the year of 5.3p per share (2010: 4.7p) to ordinary shareholders, making a total payment for the year of 7.8p per share. As the Group did not pay an interim dividend in 2010 due to the Listing, there is no comparable prior year total dividend amount.

The Board has implemented a progressive dividend policy, with dividends determined taking into account historic and anticipated profits, cash flow and balance sheet position, with the split between the interim and final dividend weighted towards the final dividend.

This payment is subject to shareholders' approval at the Annual General Meeting and, if approved, will be paid on 22 May 2012 to shareholders on the register on 16 March 2012. CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2011

			Notes		2011 (unaudited)		Restated 2010 (audited)
					£m		£m
	Revenue		2		346.9		318.8
	Fee and commission expenses		2		(98.4)		(88.3)
	Net revenue		2,3		248.5		230.5
	Administrative expenses				(123.8)		(115.1)
	Operating earnings				124.7		115.4
	Other (losses)/gains				(1.2)		1.7
	Amortisation of intangible assets				(39.9)		(39.8)
	Operating profit before exceptional costs				83.6		77.3
	Exceptional costs		4		-		(6.8)
	Operating profit				83.6		70.5
	Finance income				1.0		0.9
	Finance expense		5		(14.3)		(29.0)
	Profit before taxation				70.3		42.4
	Income tax expense		6		(18.9)		(9.9)
	Profit for the year attributable to owners of the parent				51.4		32.5
	Earnings per share
	Basic		7		15.6p		10.8p
	Diluted		7		15.0p		7.6p

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2011

			Notes	2011  (unaudited)			2010 (audited)
				£m			£m
	Profit for the year			51.4			32.5
	Other comprehensive income
	Exchange movements on translation of subsidiary undertakings		16	(0.1)			0.2
	Changes in the fair value of available for sale assets		16	1.1			10.3
	Other comprehensive income for the year			1.0			10.5
	Total comprehensive income for the year attributable to owners of the parent			52.4			43.0

CONSOLIDATED BALANCE SHEET

As at 31 December 2011

			Notes		2011  (unaudited)		2010 (audited)
					£m		£m
	ASSETS
	NON-CURRENT ASSETS
	Goodwill		9		341.2		341.2
	Intangible assets		10		103.5		142.4
	Property, plant and equipment		11		1.6		1.1
	Available for sale investments		12		24.6		20.2
	Deferred tax assets				11.3		11.0
	Trade and other receivables		12		17.3		11.2
	Total non-current assets				499.5		527.1
	CURRENT ASSETS
	Investment in associates		12		13.6		13.6
	Financial assets at fair value through profit and loss		12		25.5		45.3
	Derivative financial instruments		12		-		0.9
	Trade and other receivables		12		78.6		110.5
	Cash and cash equivalents		13		151.3		220.3
	Total current assets				269.0		390.6
	TOTAL ASSETS				768.5		917.7
	EQUITY ATTRIBUTABLE TO THE OWNERS OF THE PARENT
	Share capital		15		9.2		9.2
	Share premium		16		-		255.7
	Capital redemption reserve		16		-		54.1
	Own share reserve		16		(2.1)		(2.9)
	Other reserve		16		8.0		8.0
	Available for sale reserve		16		11.4		10.3
	Foreign currency translation reserve		16		7.4		7.5
	Retained earnings		16		390.7		48.8
	TOTAL EQUITY				424.6		390.7
	LIABILITIES
	NON-CURRENT LIABILITES
	Loans and borrowings		14		141.4		281.5
	Trade and other payables		12		27.5		17.1
	Deferred tax liabilities				25.8		39.6
	Total non-current liabilities				194.7		338.2
	CURRENT LIABILITIES
	Financial liabilities at fair value through profit or loss		12		-		7.0
	Trade and other payables		12		132.4		170.6
	Provisions				-		2.0
	Current tax liabilities				16.2		9.2
	Derivative financial instruments		12		0.6		-
	Total current liabilities				149.2		188.8
	TOTAL LIABILITIES				343.9		527.0
	TOTAL EQUITY AND LIABILITIES				768.5		917.7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2011

	Attributable to the owners of the parent
	Share  capital	Share   premium	Deferred  share  capital	Capital  redemption  reserve	Own  share  reserve	Other  reserve	Available  for sale   reserve	Foreign  currency  translation  reserve	Retained  earnings	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2010 (audited)	32.3	-	-	-	-	-	-	7.3	6.9	46.5
Profit for the year	-	-	-	-	-	-	-	-	32.5	32.5
Currency translation differences	-	-	-	-	-	-	-	0.2	-	0.2
Changes in fair value of available for sale investments	-	-	-	-	-	-	10.3	-	-	10.3
B shares conversion	3.7	-	-	-	(2.9)	-	-	-	-	0.8
Tier 1 preference share conversion	(30.5)	-	30.5	-	-	-	-	-	-	-
Tier 2 preference share conversion	0.4	-	23.6	-	-	8.0	-	-	-	32.0
Acquisition of Preferred Finance Securities	0.6	48.4	-	-	-	-	-	-	-	49.0
New ordinary shares issued	2.7	217.6	-	-	-	-	-	-	-	220.3
Share issue expenses	-	(10.3)	-	-	-	-	-	-	-	(10.3)
Cancellation of deferred shares	-	-	(54.1)	54.1	-	-	-	-	-	-
Share-based payments	-	-	-	-	-	-	-	-	7.8	7.8
Deferred tax on share-based payments	-	-	-	-	-	-	-	-	1.6	1.6
Balance at 31 December 2010 (audited)	9.2	255.7	-	54.1	(2.9)	8.0	10.3	7.5	48.8	390.7
Profit for the year	-	-	-	-	-	-	-	-	51.4	51.4
Currency translation differences	-	-	-	-			-	(0.1)	-	(0.1)
Changes in fair value of available for sale investments	-	-	-	-	-	-	1.1	-	-	1.1
Cancellation of share premium and capital redemption reserve	-	(255.7)	-	(54.1)	-	-	-	-	309.8	-
Vesting of ordinary shares	-	-	-	-	0.8	-	-	-	-	0.8
Dividends paid	-	-	-	-	-	-		-	(31.7)	(31.7)
Share-based payments	-	-	-	-	-	-	-	-	12.7	12.7
Deferred tax on share-based payments	-	-	-	-	-	-	-	-	(0.3)	(0.3)
Balance at 31 December 2011 (unaudited)	9.2	-	-	-	(2.1)	8.0	11.4	7.4	390.7	424.6

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2011

		Notes		2011 (unaudited)		Restated 2010 (audited)
				£m		£m
	Cash flows from operating activities
	Cash generated from operations	18		133.5		109.8
	Income tax paid			(26.4)		(1.7)
	Net cash inflows from operating activities			107.1		108.1
	Cash flows from investing activities
	Purchase of property, plant and equipment	11		(1.1)		(0.9)
	Purchase of intangible assets			(1.0)		(0.5)
	Purchase of seed capital investments			-		(44.5)
	Proceeds from disposal of seed capital investments			8.3		51.3
	Purchase of available for sale investments			(3.3)		-
	Proceeds from disposal of available for sale investments			-		4.3
	Finance income received			0.8		0.8
	Dividend income received			0.2		-
	Net cash inflows from investing activities			3.9		10.5
	Cash flow from financing activities
	Dividends paid	8		(31.7)		-
	Net proceeds on issue of ordinary shares			-		220.3
	Net payments on redemption of the Preferred Finance Securities			-		(192.9)
	Finance expense paid			(9.2)		(56.2)
	Repayment of bank loans			(140.0)		(80.0)
	Listing and equity issuance expenses			-		(11.9)
	Net cash outflows from financing activities			(180.9)		(120.7)
	Net decrease  in cash and cash equivalents			(69.9)		(2.1)
	Cash and cash equivalents at beginning of the year			220.3		223.4
	Exchange gain/ (loss) on cash and cash equivalents			-		(1.0)
	Cash and cash equivalents at end of year	13		150.4		220.3

NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

The financial information set out does not constitute the Company's statutory accounts for the years ended 31 December 2011 or 2010, but is derived from those accounts. The 2010 comparatives included here have been updated, taking into account the restatements as explained in Note 2 and Note 17. Statutory accounts for 2010 have been delivered to the Registrar of Companies and those for 2011 will be delivered following the signing by the Board of Directors and the Auditors. The Auditors have reported on the 2010 accounts; their report was unqualified, unmodified and did not contain statements under section 498(2) or 498(3) of the Companies Act 2006. The unaudited Results Announcement for the year ended 31 December 2011 is subject to completion of the audit and may also change should a significant adjusting event occur before the approval of the Annual Report and Accounts for 2011.

The audited Annual Report and Accounts for 2011 are expected to be posted to shareholders by no later than 13 April 2012. Copies of the Annual Report and Accounts for 2011 may be obtained from that date by writing to the Company Secretary, Jupiter Fund Management plc, 1 Grosvenor Place, London SW1X 7JJ. The Annual General Meeting of the Company will be held on 16 May 2012 and notice will be circulated to all shareholders at least 20 working days before the meeting.

Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union and IFRIC Interpretations ("IFRS as adopted by the EU") and with the provisions of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial statements have been prepared on a going concern basis using the historical cost convention modified by the revaluation of certain financial instruments that have been measured at fair value. After reviewing the Group's current plans, forecasts and financing arrangements, as well as the current trading activities of the Group, the Directors consider that the Group has adequate resources to continue operating for the foreseeable future.

The Group did not adopt any standards which were issued during the year, but which were not effective at the balance sheet date.

Standards not affecting the reported results nor the financial position

The following new and revised standards and interpretations have been adopted in the current year.  Their adoption has not had any significant impact on amounts reported in the financial statements.

Various	Annual improvements to IFRSs (Issued by IASB in May 2010)
IAS 24 (revised)	Related Party Disclosures
Amendments to IFRS 7	Financial Instruments: Disclosures - Transfers of Financial Assets
IFRIC 19	Extinguishing Financial Liabilities with Equity Instruments

New standards and interpretations not applied

The International Accounting Standards Board has issued the following standards, which are relevant to the Group's reporting but which have not yet been applied as they have not yet been endorsed:

Not yet endorsed		Effective date
IFRS 9	Financial Instruments	1 January 2015
IFRS 10	Consolidated Financial Statements	1 January 2013
IFRS 12	Disclosures of Interests in Other Entities	1 January 2013
IFRS 13	Fair Value Measurement	1 January 2013
IAS 27 (revised)	Separate Financial Statements	1 January 2013
IAS 28 (revised)	Investments in Associates and Joint Ventures	1 January 2013
IAS 1 (revised)	Presentation of Items of Other Comprehensive Income	1 July 2012

The Directors are still assessing the future impact of these standards on the Group's financial results for the period of initial application.

Operating earnings

Operating earnings are defined as net revenue less administrative expenses and do not include investment income and returns, other gains/(losses), amortisation of intangible assets or exceptional costs. These are items which the Group considers are not indicative of the ongoing income and costs of its operations. The Group believes that operating earnings, while not a GAAP measure, gives relevant information on the profitability of the Group and its ongoing operations. Operating earnings may not be comparable with similarly titled measures used by other companies.

2. RESTATEMENT OF REVENUE AND FEE AND COMMISSION EXPENSES

The financial statements include a prior period restatement in relation to the classification of revenue and fee and commission expenses. This restatement does not have a cash effect and does not impact net revenue, profit for the financial year attributable to the owners of the parent, earnings per share or total equity.

In preparing the current year financial statements, the Directors have reviewed the substance of contractual arrangements in relation to rebates, which are netted off against revenue, and fee and commission expenses, which are shown separately. As a result of this review, certain items in relation to the prior year have been reclassified between revenue and fee and commission expenses to ensure consistency with the current year presentation.

The impact of the prior year restatement is shown below:

			As reported		Difference		As restated
			£m		£m		£m
	Revenue		271.1		47.7		318.8
	Fees and commission expense		(40.6)		(47.7)		(88.3)
	Net revenue		230.5		-		230.5

3. SEGMENTAL REPORTING

The Group operates only as a single operating segment, investment management.

The Group acts as an investment manager to authorised unit trusts, SICAVs, investment trusts, pension funds, private clients, hedge funds and other specialist funds and has offices in the United Kingdom, Bermuda, Germany, Jersey, and Singapore.

The Group offers different fund products through different distribution channels. All financial, business and strategic decisions are made centrally by the Board, which determines the key performance indicators of the Group. Information is reported to the chief operating decision maker, the Board, on a single segment basis. While the Group has the ability to analyse its underlying information in a number of different ways, this information is not used by the Board to make decisions on an aggregated basis. The information used to allocate resources and assess performance is reviewed for the Group as a whole. On this basis, the Group considers itself to be a single-segment investment management business.

Management monitors the operating earnings of its operating segment for the purpose of making decisions about resource allocation and performance assessment.

Geographical information

		2011 £m		2010 £m
	Net revenue by location of clients
	UK	223.6		208.2
	Continental Europe	18.3		15.5
	Bermuda	5.6		6.6
	Rest of the world	1.0		0.2
	Total net revenue by location of clients	248.5		230.5

4. EXCEPTIONAL COSTS

There were no costs arising in 2011 which the Group consider to be exceptional.

During 2010, the Group recognised two exceptional costs, being a charge of £1.6m relating to expenses associated with the Listing and a charge for the contribution of £5.2m made by the Group to the Financial Services Compensation Scheme (FSCS) second interim levy for 2010/11. The FSCS continues to look into the final resolution of this levy, but no further charge or credit has yet been announced.

5. FINANCE EXPENSE

		2011 £m		2010 £m
	Interest payable on bank borrowings	9.5		19.9
	Amortisation of senior debt issue costs (Note 14)	2.5		2.3
	Fair value movement on interest rate swaps	1.6		(9.6)
	Interest payable on interest rate swaps	0.4		-
	Other finance costs	0.3		0.1
	Interest on Preferred Finance Securities	-		10.9
	Loan amendment costs	-		3.8
	Finance cost (dividends) on Tier 2 preference shares	-		1.6
	Total finance expense	14.3		29.0

During the year, £140.0m (2010: £80.0m) of the senior bank debt was repaid.  This resulted in an acceleration of £1.6m (2010: £1.2m) in the amortisation of the debt issue costs.

Interest rate swaps

In November 2010, the Group entered into two interest rate swaps; both have a notional value of £35.0m with interest settling quarterly. One is for a period of three years paying a fixed interest rate of 1.33 per cent., the other is for a period of four years paying a fixed rate of 1.6175 per cent.

In 2007, the Group entered into a £300m amortising interest rate swap, at an interest rate of 6.2475 per cent.  From 2009 until maturity in August 2010 the notional amount of the swap was £212.5m.

Finance expense relating to pre-Listing structure

Prior to the Listing, the Group was partially funded by Preferred Finance Securities ("PFS") and Tier 2 preference shares.  These were treated as debt instruments in the financial statements. The PFS accrued interest at 10 per cent. per annum, compounding on 31 March each year if no interest had been paid. The Tier 2 preference shares carried the right to a fixed preferential dividend of 10 per cent. per annum of the issue price of £1 per share, compounding if no payment had been made. Prior to the Listing the PFS were repaid and the Tier 2 preference shares were converted to ordinary and deferred shares.

6.  INCOME TAX EXPENSE

	2011 £m		2010 £m
Current taxation - UK corporation tax
Tax on profits for the year	33.3		21.4
Adjustment in respect of prior years	-		(0.3)
	33.3		21.1
Deferred taxation
Origination and reversal of temporary differences	(13.9)		(10.6)
Impact of changes in corporation tax rate	(1.7)		-
Adjustment in respect of prior years	1.2		(0.6)
	(14.4)		(11.2)
Total tax expense	18.9		9.9

The weighted average UK corporation tax rate for the year ended 31 December 2011 was 26.5 per cent. (2010: 28 per cent.). The tax charge in the year is higher (2010: lower) than the standard rate of corporation tax in the UK and the differences are explained below:

Factors affecting tax expense for the year	2011 £m		2010 £m
Profit before taxation	70.3		42.4
Taxation at the standard corporation tax rate (2011: 26.5 per cent.; 2010: 28 per cent.)	18.6		11.9
Non-taxable income	(0.5)		(0.3)
Disallowable expenses	0.8		2.0
Other permanent differences	0.5		(1.9)
Adjustment to current tax charge in respect of prior years	-		(0.3)
Adjustment to deferred tax charge in respect of prior years	1.2		(0.6)
Impact of tax rate change on deferred tax balances	(1.7)		(0.9)
Total tax expense	18.9		9.9

7. EARNINGS PER SHARE

Basic earnings per share ("EPS") is calculated by dividing the profit for the year attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the year, less the weighted average number of own shares held. 

Diluted EPS is calculated by dividing the profit for the year attributable to owners of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

In 2010, the profit for the year was reduced by the catch up entitlement of £10.4m on the Tier 1 preference share conversion at Listing.

	Net profit attributable to owners of the parent	2011 £m		2010 £m
	Profit for the year attributable to owners of the parent	51.4		32.5
	Deduction of the catch up entitlement of £10.4m on the Tier 1 preference shares	-		(10.4)
	Net profit attributable to owners of the parent	51.4		22.1

Since the Listing, the number of ordinary shares in issue is 457.7m. For the purposes of calculating EPS, the share capital of the parent is calculated as the weighted average number of ordinary shares in issue over the years reported. 2010 calculations take retrospective account of the restructuring of the Company's share capital at Listing.  The weighted average number of ordinary shares during the year used for the purposes of calculating EPS is as follows:

	Weighted average numbers of shares	2011 Number m		2010 Number m
	Issued share capital	457.7		368.7
	Less own shares held	(129.1)		(164.2)
	Weighted average number of ordinary shares for the purpose of basic EPS	328.6		204.5
	Add back weighted average number of dilutive shares	13.2		88.2
	Weighted average number of ordinary shares for the purpose of diluted EPS	341.8		292.7

The weighted average number of own shares is deducted from the weighted average number of ordinary shares. 'Own shares' are shares held in an Employee Benefit Trust ("EBT") for the benefit of employees under the vesting, lock-in and other incentive arrangements in place.

	Earnings per share	2011 p		2010 p
	Basic	15.6		10.8
	Diluted	15.0		7.6

8.     DIVIDENDS

		2011 £m		2010 £m
	Final dividend 2010 (4.7p per ordinary share)	21.5		-
	Interim dividend 2011 (2.5p per ordinary share)	11.4		-
		32.9		-
	Dividends on shares held in EBT	(1.2)		-
		31.7		-

Dividends of £1.2m (2010: £nil) were paid on shares held in the EBT, beneficially owned by the Company.  Net dividends paid were therefore £31.7m.  A final dividend for 2011 of 5.3p per share (2010: 4.7p) will be proposed at the Annual General Meeting on 16 May 2012 and will be accounted for in 2012.

9.     GOODWILL

On 19 June 2007, the Group acquired the entire share capital of Knightsbridge Asset Management Limited (formerly Comasman Limited) which gave rise to a goodwill asset being recognised.

		2011 £m		2010 £m
	Goodwill	341.2		341.2
		341.2		341.2

No additional goodwill was recognised in the year (2010: £nil).

The Group has determined that it has a single cash generating unit ("CGU") for the purpose of assessing the carrying value of goodwill. Goodwill is subject to an annual impairment review.  This recoverable amount was based on a fair value less costs to sell calculation using the Company's year end share price.  No impairment was identified.

10.   INTANGIBLE ASSETS

In 2007, the Group acquired the entire share capital of Knightsbridge Asset Management Limited (formerly Comasman Limited). This acquisition gave rise to the recognition of an intangible asset relating to investment management contracts and trade name of the Group. The other intangible assets relate to computer software.

		2011 £m		2010 £m
	Investment management contracts	90.9		127.7
	Trade name	10.2		12.1
	Computer software	2.4		2.6
		103.5		142.4

The amortisation charge for the year was £39.9m (2010: £39.8m). No additional investment management contracts were acquired in the year (2010: £nil).

11.   PROPERTY, PLANT AND EQUIPMENT

The net book value of property, plant and equipment at 31 December 2011 was £1.6m (2010: £1.1m). During the year, the Group acquired property, plant and equipment with a value of £1.1m (2010: £0.9m).

12.   FINANCIAL INSTRUMENTS

Financial instruments by category

The carrying value of the financial instruments of the Group at 31 December is shown below.

As at 31 December 2011	Available for sale	Designated at FVTPL	Loans and receivables	Financial liabilities at FVTPL	Other financial liabilities	Total financial instruments	Non-financial instruments	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Goodwill	-	-	-	-	-	-	341.2	341.2
Intangible assets	-	-	-	-	-	-	103.5	103.5
Property, plant and equipment	-	-	-	-	-	-	1.6	1.6
Available for sale investments	24.6	-	-	-	-	24.6	-	24.6
Deferred tax assets	-	-	-	-	-	-	11.3	11.3
Non current trade and other receivables	-	-	-	-	-	-	17.3	17.3
Investments in associates	-	13.6	-	-	-	13.6	-	13.6
Financial assets at fair value through profit or loss ("FVTPL")	-	25.5	-	-	-	25.5	-	25.5
Current trade and other receivables	-	-	57.4	-	-	57.4	21.2	78.6
Cash and cash equivalents	-	-	151.3	-	-	151.3	-	151.3
Loans and borrowings	-	-	-	-	(143.0)	(143.0)	1.6	(141.4)
Non current trade and other payables	-	-	-	-	(0.9)	(0.9)	(26.6)	(27.5)
Deferred tax liabilities	-	-	-	-	-	-	(25.8)	(25.8)
Current trade and other payables	-	-	-	-	(119.9)	(119.9)	(12.5)	(132.4)
Current income tax liability	-	-	-	-	-	-	(16.2)	(16.2)
Derivative financial instruments	-	-	-	(0.6)	-	(0.6)	-	(0.6)
Total	24.6	39.1	208.7	(0.6)	(263.8)	8.0	416.6	424.6

As at 31 December 2010	Available for sale	Designated at FVTPL	Loans and receivables	Financial liabilities at FVTPL	Other financial liabilities	Total financial instruments	Non-financial instruments	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Goodwill	-	-	-	-	-	-	341.2	341.2
Intangible assets	-	-	-	-	-	-	142.4	142.4
Property, plant and equipment	-	-	-	-	-	-	1.1	1.1
Available for sale investments	20.2	-	-	-	-	20.2	-	20.2
Deferred tax assets	-	-	-	-	-	-	11.0	11.0
Non current trade and other receivables	-	-	-	-	-	-	11.2	11.2
Investments in associates	-	13.6	-	-	-	13.6	-	13.6
Financial assets at FVTPL	-	45.3	-	-	-	45.3	-	45.3
Derivative financial instruments	-	0.9	-	-	-	0.9	-	0.9
Current trade and other receivables	-	-	83.1	-	-	83.1	27.4	110.5
Cash and cash equivalents	-	-	220.3	-	-	220.3	-	220.3
Loans and borrowings	-	-	-	-	(281.5)	(281.5)	-	(281.5)
Non current trade and other payables	-	-	-	-	-	-	(17.1)	(17.1)
Deferred tax liabilities	-	-	-	-	-	-	(39.6)	(39.6)
Financial liabilities at FVTPL	-	-	-	(7.0)	-	(7.0)	-	(7.0)
Current trade and other payables	-	-	-	-	(144.6)	(144.6)	(26.0)	(170.6)
Provisions	-	-	-	-	-	-	(2.0)	(2.0)
Current income tax liability	-	-	-	-	-	-	(9.2)	(9.2)
Total	20.2	59.8	303.4	(7.0)	(426.1)	(49.7)	440.4	390.7

13.   CASH AND CASH EQUIVALENTS

		2011 £m		2010 £m
	Cash at bank and in hand	17.2		24.1
	Short-term deposits	132.5		195.8
	Cash held by EBT and fund subsidiaries	1.6		0.4
	Cash and cash equivalents per the balance sheet	151.3		220.3
	Overdraft (included within trade and other payables)	(0.9)		-
	Cash and cash equivalents for purposes of cash flow	150.4		220.3

Cash at bank earns interest based at the current prevailing daily bank rates. Short-term deposits are made for varying periods of between one day and three months, depending on the forecast cash requirements of the Group, and earn interest at the respective short-term deposit rates.

14. LOANS AND BORROWINGS

		2011 £m		2010 £m
	Bank loan	141.4		278.9
	Due to employees in respect of share awards	-		2.6
	Total borrowings	141.4		281.5

The Group has a syndicated loan which is repayable on or before 19 June 2015.  The loan is secured by a charge over the assets of a subsidiary company, Jupiter Asset Management Group Limited. The restrictions which arise under the terms of the loan facility prevent intercompany loans between certain subsidiaries and prohibit assets being sold, leased or disposed of other than in the ordinary course of business.

As shown below, the carrying value of the loan is disclosed net of unamortised debt issue costs which were capitalised on issue.

		2011 £m		2010 £m
	Bank loan	143.0		283.0
	Unamortised debt issue costs	(1.6)		(4.1)
	Total carrying value of bank loan	141.4		278.9

The movement on the carrying value of the loan is shown below:

		2011 £m		2010 £m
	Balance at 1 January	278.9		356.6
	Voluntary prepayments made in the year	(140.0)		(80.0)
	Amortisation of senior debt issue costs (Note 5)	2.5		2.3
	Total carrying value of bank loan	141.4		278.9

Interest was payable at a rate per annum of 3 month LIBOR plus a margin of 2.125 per cent. until the Listing and is now payable at a rate per annum of 3 month LIBOR plus a margin of 3.75 per cent. The Group has two interest rate swaps in place to hedge its floating rate exposure. Details on these are given in Note 5 Finance expense.

Under the facility agreement, the Group also has access to a revolving credit facility of £10m. This was not utilised during the year.

Amounts due in respect of shares subject to vesting conditions

Due to employees relates to conditions attached to some of the ordinary shares and options over ordinary shares. In certain circumstances these require the Group to repurchase the instruments at 2p, being the original issue cost. At 31 December 2011, 82.5m (2010: 130.2m) shares and 14.8m options were subject to these restrictions and have been shown within current trade and other payables.

15.   SHARE CAPITAL

		2011 £m		2010 £m
	Issued, allotted, called-up and fully paid
	457.7m ordinary shares of 2p each	9.2		9.2
		9.2		9.2

16.   RESERVES

	(i) Share premium	2011 £m		2010 £m
	At 1 January	255.7		-
	Arising on issue of ordinary shares on acquisition of PFS	-		48.4
	Arising on issue of ordinary shares to new subscribers	-		217.6
	Expenses arising on issue of equity shares	-		(10.3)
	Cancelled in the year and transferred to retained earnings	(255.7)		-
	At 31 December	-		255.7

The share premium account represented amounts received on the issue of share capital in excess of nominal value and was not a distributable reserve.  On 9 June 2011, the Company's share premium reserve was, with the sanction of the Court, cancelled and an amount of £255.7m was transferred to a distributable reserve.

	(ii) Capital redemption reserve	2011 £m		2010 £m
	At 1 January	54.1		-
	Created in the year on cancellation of deferred shares	-		54.1
	Cancelled in the year and transferred to retained earnings	(54.1)		-
	At 31 December	-		54.1

On 9 June 2011, the Company's capital redemption reserve was, with the sanction of the Court, cancelled and an amount of £54.1m was transferred to a distributable reserve.

	(iii) Own share reserve	2011 £m		2010 £m
	At 1 January	(2.9)		-
	Created in year on cancellation of deferred shares	-		(2.9)
	Vesting of ordinary shares	0.8		-
	At 31 December	(2.1)		(2.9)

At 31 December 2011, 82.5m (2010: 130.2m) ordinary shares beneficially owned by senior employees were subject to restrictions which, in some circumstances, require the Group to repurchase the shares at their nominal value, and this liability is shown within current trade and other payables.  The shares on which these restrictions are attached vest over the next three years. These shares are held within the Group's EBT, and together with a further 20.9m (2010: 16.7m) shares held for the purpose of satisfying share option obligations to employees, are treated as own shares with a cost of £2.1m (2010: £2.9m).

	(iv) Other reserve	2011 £m		2010 £m
	At 1 January	8.0		-
	Tier 2 preference share conversion	-		8.0
	At 31 December	8.0		8.0

The other reserve relates to the conversion of Tier 2 preference shares in 2010.

	(v) Available for sale reserve	2011 £m		2010 £m
	At 1 January	10.3		-
	Changes in fair value of available for sale investments	1.1		10.3
	At 31 December	11.4		10.3

The available for sale reserve relates to the uplift in the fair value of the Group's holdings in investments classified as available for sale.

	(vi) Foreign currency translation reserve	2011 £m		2010 £m
	At 1 January	7.5		7.3
	Exchange movement on translation of subsidiary undertakings	(0.1)		0.2
	At 31 December	7.4		7.5

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries.

	(vii) Retained earnings	2011 £m		2010 £m
	At 1 January	48.8		6.9
	Profit for the year	51.4		32.5
	Share based payments	12.7		7.8
	Deferred tax on share-based payments	(0.3)		1.6
	Dividends paid (Note 8)	(31.7)		-
	Cancellation of share premium and transfer to retained earnings	255.7		-
	Cancellation of capital redemption reserve and transfer to retained earnings	54.1		-
	At 31 December	390.7		48.8

16.   RESTATEMENT OF STATEMENT OF CASH FLOWS

The presentation of the statement of cash flows has been reviewed and two items have been restated to more appropriately reflect the way the business generates its cash flows.  These changes are reclassifications only and the net cash flow for 2010 is unaffected. The changes to the face of the 2010 statement of cash flows are as follows:

-           Finance expense (2010: £56.2m) paid has been reclassified from "Net cash inflows from operating activities" to "Net cash outflows from financing activities"

-           Cash flows arising from purchase (2010: £44.5m) and disposal (2010: £51.3m) of seed capital investments have been reclassified from "Net cash inflows from operating activities" to "Net cash inflows from investing activities"

In addition, Note 18 has been updated to simplify the disclosure.

17.   CASH GENERATED FROM OPERATIONS

	Cash generated from operations	2011 £m		Restated 2010 £m
	Operating profit	83.6		70.5
	Adjustments for:
	Exceptional costs	-		6.8
	Amortisation of intangible assets	39.9		39.8
	Depreciation of property, plant and equipment	0.6		1.4
	Other non-cash gains and losses	4.3		(11.5)
	Share-based payments	12.7		7.8
	Decrease/(increase) in trade and other receivables	25.9		(29.7)
	(Decrease)/increase in trade and other payables	(31.5)		22.7
	(Decrease)/increase in provisions	(2.0)		2.0
	Cash generated from operations	133.5		109.8

 

END

 

 

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