AMVESCAP PLC Reports Results for Year Ended December 31, 2004.LONDON London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. -- AMVESCAP (NYSE NYSE See: New York Stock Exchange :AVZ) (LSE LSE - Language Sensitive Editor :AVZ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AVZ) reported that profit before tax, goodwill amortization and exceptional items amounted to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 269.8 million ($518.0 million) compared to GBP 270.3 million ($481.1 million) in 2003. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of before goodwill amortization and exceptional items was 21.7p for the 2004 year (2003: 23.2p). If the average U.S. dollar exchange rate in 2004 had remained the same as 2003, then the diluted earnings per share for 2004 would have been 23.2p, unchanged from 2003. Revenues amounted to GBP 1,158.5 million ($2,224.3 million) compared to GBP 1,158.1 million ($2,061.4 million) in 2003.
Results for Year Ended
2004 2003 2004(b) 2003(b)
---------- ---------- ---------- ----------
Revenues
GBP 1,158.5m GBP1,158.1m $2,224.3m $2,061.4m
Profit before tax,
goodwill amortization
and exceptional items GBP 269.8m GBP 270.3m $518.0m $481.1m
Earnings per share before
goodwill
amortization and
exceptional items:
--basic 21.9p 23.4p $0.84(a) $0.83(a)
--diluted 21.7p 23.2p $0.83(a) $0.83(a)
Dividends per share 7.5p 11.5p $0.29(a) $0.41(a)
----------------------------------------------------------------------
(a) Per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. equivalent to 2 ordinary shares. (b) For the convenience of the reader, pounds sterling for the year ended December December: see month. 31, 2004 have been translated to U.S. dollars using $1.92 per GBP 1.00 (2003: $1.78 per GBP 1.00). References to "$" in this release are to U.S. dollars unless otherwise indicated. AMVESCAP reported that profit before tax, goodwill amortization and exceptional items for the three months ended December 31, 2004 amounted to GBP 65.1 million ($125.0 million) compared to GBP 65.2 million ($118.0 million) in the third quarter of 2004. Diluted earnings per share before goodwill amortization and exceptional items amounted to 5.3p for the fourth quarter of 2004, compared to 5.2p in the third quarter of 2004. Revenues for the fourth quarter of 2004 amounted to GBP 300.5 million ($577.0 million) compared to GBP 280.9 million ($508.4 million) in the third quarter. For the fourth quarter of 2003, profit before tax, goodwill amortization and exceptional items was GBP 82.2 million ($146.3 million), diluted earnings per share before goodwill amortization and exceptional items amounted to 7.0p per share, and revenues were GBP 301.2 million ($536.1 million). "While many of AMVESCAP's businesses around the world enjoyed great success during 2004, the market timing investigation held back our U.S. business for much of the year," said Mr. Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by W. Brady Bra·dy , James Buchanan Known as "Diamond Jim." 1856-1917. American financier and philanthropist who gained his nickname because of his attraction to diamonds and his extravagant lifestyle. Noun 1. , Executive Chairman. "AMVESCAP ended the year with a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. focus on serving our clients and regaining re·gain tr.v. re·gained, re·gain·ing, re·gains 1. To recover possession of; get back again: regain one's strength. See Synonyms at recover. 2. business momentum." "Our company has taken strong measures to ensure that we always uphold up·hold tr.v. up·held , up·hold·ing, up·holds 1. To hold aloft; raise: upheld the banner proudly. 2. To prevent from falling or sinking; support. 3. the trust and confidence of those who have entrusted us with their assets," added Mr. Brady. "As a leading investment manager in the world's major financial markets, our improved operating efficiency across the company and a continuing reputation for outstanding client service provide a solid foundation for growing the business." Funds under management increased 3% to $382.1 billion (GBP 199.0 billion) at December 31, 2004 compared to $370.6 billion at December 31, 2003. Institutional money market funds, included above, amounted to $41.7 billion at December 31, 2004 compared to $50.9 billion at the end of the prior year. Approximately 55% of the total funds under management was invested in equity securities and 45% was invested in fixed income and other securities at December 31, 2004. The equity securities were invested in the following investment styles at December 31, 2004: 34% in growth, 39% in core and 27% in value styles (September September: see month. 30, 2004: 31% in growth, 41% in core and 28% in value styles). Average funds under management amounted to $371.3 billion for 2004 compared to $340.8 billion for the prior year. Average funds under management amounted to $374.0 billion for the fourth quarter compared to $364.0 billion for the preceding quarter, an increase of $10.0 billion. The average money market fund levels totaled $43.2 billion for the fourth quarter and $45.1 billion for the 2004 year ($51.5 billion for 2003). During December, AMVESCAP completed two significant debt-related transactions. Through a tender offer, AMVESCAP purchased $320.5 million of the $400 million of its 6.6% notes due in May of this year. In conjunction with that transaction, AMVESCAP issued a total of $500 million in new notes: $300 million of 5-year notes with a coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer of 4.5% and the remaining $200 million of 10 year notes with a coupon of 5.375%. Net debt at December 31, 2004 amounted to GBP 590.9 million (excluding client cash) compared to GBP 576.6 million at December 31, 2003. Earnings before interest, taxes, depreciation, amortization and exceptional items ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") reached GBP 372.8 million ($715.8 million) for the full year 2004, compared to GBP 386.6 million ($688.1 million) for the full year 2003. The Board has recommended a final dividend of 5.0p, resulting in a total dividend of 7.5p for 2004 (2003: 11.5p). This dividend, if approved by the shareholders at the Annual General Meeting in April, will be paid on May 4, 2005 to shareholders on the register on April 1, 2005. The ex-dividend date Ex-dividend date The first day of trading when the buyer of a stock is no longer entitled to the most recently announced dividend payment ( i.e. the trade will settle the day after the record date, too late for the buyer to appear on the shareholder record and receive the dividend. for the dividend will be March 30, 2005. 2004 BUSINESS HIGHLIGHTS Investment Performance --INVESCO Perpetual's investment teams ended the year with 94% of retail assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. outperforming peer funds over one year. --AIM Trimark's asset-weighted investment performance has been impressive, with 82% of their funds in the first or second quartile Quartile A statistical term describing a division of observations into four defined intervals based upon the values of the data and how they compare to the entire set of observations. Notes: Each quartile contains 25% of the total observations. over three years and 89% over five years. --In Japan, the INVESCO INVESCO, (NYSE: IVZ) is an investment management company based in London, England, UK. It is quoted on the London Stock Exchange and is a member of the FTSE 100 Index. It has branches in 19 countries, but more than half of its business is in the United States. OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). Growth Stock Open fund was awarded "Fund of the Year" and was the No.1 performing fund out of 1,029 funds ranked by Nikkei Nikkei Short for Japan's Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index comprised of Japan's top 225 blue-chip companies on the Tokyo Stock Exchange. as of December 2003. --The AIM Real Estate fund was named the top fund in its respective category at the Lipper Business Description Lipper, Inc., a subsidiary of Reuters provides mutual and hedge fund information, analytical tools, data and commentary. Lipper's benchmarking provides a guidepost to asset managers, fund companies, financial intermediaries, traditional media, Fund awards. --Eight of AIM's 12 international funds beat their respective indexes for the year. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , ten funds rated in the top quartile of their Lipper categories with six of those funds ranking in the top decile decile one of the groups when a series of ranked data is divided into ten equal parts, or dividing points between such groups. See also quartile. . AIM Global Aggressive Growth fund and AIM International Small Company Growth fund were the top funds in their Lipper groups (as of November November: see month. 30, 2004). AIM International Small Company Growth fund also received a 2004 Lipper Fund Award. --In China, three of our four domestic funds were top quartile performers in 2004. They are the INVESCO Great Wall Jing jing (jing) [Chinese] one of the basic substances that according to traditional Chinese medicine pervade the body, usually translated as "essence"; the body reserves or constitutional makeup, replenished by food and rest, that supports Series - Equity Fund, the INVESCO Great Wall Jing Series - Balanced Fund Balanced Fund A mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. Also known as an asset allocation fund. and the INVESCO Great Wall - Domestic Demand Fund. Industry Rankings and Awards --AIM Trimark won six awards at the 2004 Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Investment Awards including the Advisors' Choice Fund Company of the Year for the second year in a row and for three of the last four years. --INVESCO Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. was recognized as "Most Improved Fund Manager of the Year" by Insto magazine and the INVESCO Diversified diversified (di·verˑ·s Growth PST PST Paroxysmal supraventricular tachycardia, see there was ranked No. 1 out of 28 funds in the Intech December Growth Funds Survey. --A national financial publication in China awarded INVESCO Great Wall, INVESCO's joint venture in China, with two first place awards for 2004: Best Fund Manager of the Year and the Best Performing Fund Manager of the Year for Open Ended Funds Category. --AIM Cash Management's institutional money market funds retained their No.1 ranking in the Standard & Poor's rated prime, government and tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. categories for the last 20 years. In addition, AIM Cash Management was recognized by iMoneyNet, Inc. as the fifth largest rated global institutional money market fund complex in the industry. --Financial Adviser selected INVESCO Perpetual Invesco Perpetual is an investment company based in Henley-on-Thames, Oxfordshire, England. It was originally founded as by Sir Martyn Arbib and before it merged with Invesco it was known first as Perpetual Mutual then as Perpetual plc. for three Investment Provider awards including Group of the Year; Fund Manager of the Year, U.K. sectors; and Fund Manager of the Year, Individual. --INVESCO Perpetual PERPETUAL. That which is to last without limitation as to time; as, a perpetual statute, which is one without limit as to time, although not expressed to be so. won Best Portfolio Bond Fund Manager award at the International Money Marketing Awards and won three Investment Week Fund Manager of the Year Awards In Major League Baseball, the Manager of the Year Award is an honor given annually since 1983 to the best managers in the American and National Leagues. The award is voted on by 28 members of the Baseball Writers Association of America. . --For the third consecutive year, Atlantic Trust was recognized in the Barron's ranking of top wealth managers in the U.S. for 2004. The ranking was based on private banking assets under management for individual clients with accounts of $1 million or more. Client Service Achievements --AIM Investment Services (AIS), received a National Quality Review (NQR NQR Nuclear Quadrupole Resonance NQR Not Quite Right NQR Nationaler Qualifikationsrahmen (German) NQR Network Quality Review ) 5-Star rating for superior customer service for each quarter in 2004. AIS's telephone service also received NQR's "Best in Class" designation DESIGNATION, wills. The expression used by a testator, instead of the name of the person or the thing he is desirous to name; for example, a legacy to. the eldest son of such a person, would be a designation of the legatee. Vide 1 Rop. Leg. ch. 2. 2. during the 2nd and 3rd quarters of 2004. --The Profit Sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of Council of America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. awarded AMVESCAP Retirement (ARI ARI Acute respiratory infection, see there ) two awards for participant communication campaigns, including first place for an "Off the Shelf" standard campaign and second place for "Targeted Communications" to a manufacturing firm. --INVESCO Continental Europe's partnership with a major client was recognized in December when the "Invest for Life" plan received the 2004 Investment & Pensions Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). award for Best
Product.--AIM Trimark's contact center was ranked No. 1 in the industry for the second time in three years by Environics Research Group's Call Audit Study. --AIM Investments ranked among the three most popular fund families for brokers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a survey of 1,033 financial intermediaries Financial intermediaries institution that provide the market function of matching borrowers and lenders or traders. conducted by kasina In Buddhism, kasina are a class of basic visual objects of meditation. There are ten kasina:
LLC - Logical Link Control , a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a to the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. Business Developments --In November, AIM launched a national advertising campaign in the U.S. featuring employees sharing their thoughts about how AIM can build solutions to meet investment needs. Television commercials aired on a number of national networks with print ads featured in The Wall Street Journal and Barron's. --Atlantic Trust completed the acquisition of Stein Stein , William Howard 1911-1980. American biochemist. He shared a 1972 Nobel Prize for pioneering studies of ribonuclease. Roe Investment Counsel LLC, expanding the footprint The amount of geographic space covered by an object. A computer footprint is the desk or floor surface it occupies. A satellite's footprint is the earth area covered by its downlink. See form factor. 1. of our Private Wealth Management Division in the U.S. and bringing their assets under management to $15 billion. --In June June: see month. , our joint venture company in China successfully completed its second fund launch, raising over $300 million at the end of the initial one month offer period. --INVESCO Fixed Income's Global CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the Group added $2.6 billion in new Collateralized Debt Obligation Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, (CDO) funds, bringing the total amount managed to $7.0 billion and adding to its reputation as a leading worldwide CDO manager. --AIM's Subadvised group recorded sales of $2.4 billion, an increase of 18% over 2003, and assets rose to $5.7 billion, an increase of 12% over 2003. --INVESCO Real Estate launched an open-ended o·pen-end·ed adj. 1. Not restrained by definite limits, restrictions, or structure. 2. Allowing for or adaptable to change. 3. Core Real Estate Fund with five existing separate account clients as founding investors. The fund opened with $460 million of real estate properties and $90 million of available capital to call once new investments are identified. --AIM Private Asset Management (APAM APAM Antipersonnel/Antimaterial APAM Association des Pompiers Auxiliaires de la Montérégie (French; Quebec firefighters) APAM Archives of Pediatric and Adolescent Medicine ) reached $2.8 billion in assets under management. APAM's year-over-year growth was 111%, earning the group a ranking by Cerulli Associates as one of the ten fastest growing separately managed account managers. 2004 FINANCIAL SUMMARY AIM U.S. The AIM U.S. business reported revenues of GBP 443.1 million during 2004 compared to GBP 491.7 million for the prior year. Operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. were GBP 165.9 million, compared to GBP 190.6 million in 2003. The group generated approximately $16.3 billion of gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. , had net redemptions of $12.4 billion and market gains of $7.3 billion in 2004. Funds under management amounted to $137.6 billion at December 31, 2004, including $41.7 billion of institutional money market funds. AIM Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of The AIM Canada business reported revenues of GBP 174.4 million during 2004 compared to GBP 154.8 million for the prior year. Operating profits were GBP 96.6 million in 2004 compared to GBP 77.6 million in 2003. The group generated approximately $5.3 billion of gross sales in 2004. Market gains were $2.7 billion for the year. Funds under management amounted to $34.6 billion at December 31, 2004. INVESCO U.S. The INVESCO U.S. business reported revenues and operating profits of GBP 187.2 million and GBP 47.1 million in the 2004 period, compared to revenues of GBP 176.6 million and operating profits of GBP 41.2 million in 2003. This group generated approximately $19.6 billion in gross sales during 2004; market gains were $8.1 billion, and net redemptions were $6.1 billion. Funds under management amounted to $121.0 billion at December 31, 2004. INVESCO U.K. INVESCO U.K.'s revenues amounted to GBP 188.1 million for 2004 compared to GBP 174.2 million in 2003. Operating profits totaled GBP 23.8 million for the year ended December 31, 2004 versus GBP 29.4 million for the prior year. Funds under management were $49.6 billion at December 31, 2004. Gross sales for 2004 totaled approximately $11.3 billion; market gains totaled $5.6 billion and net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $1.5 billion for the year. INVESCO Europe/Asia INVESCO Europe/Asia's revenues amounted to GBP 77.8 million for 2004 compared to GBP 77.7 million in 2003. Operating profits totaled GBP 0.8 million for the year ended December 31, 2004 versus GBP 0.3 million for the prior year. Funds under management were $24.1 billion at December 31, 2004. Gross sales for 2004 totaled approximately $10.2 billion; market gains totaled $2.0 billion, and net redemptions were $3.0 billion for the year. Private Wealth/Retirement Revenues and operating profits for these businesses totaled GBP 87.8 million and GBP 2.5 million for 2004. Funds under management were $15.2 billion at December 31, 2004. AMVESCAP Retirement's assets under administration were $28.0 billion at December 31, 2004. Net redemptions for the group amounted to $1.4 billion for 2004. This group services 1,115 plans with 569,000 participants at December 31, 2004. AMVESCAP is a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, INVESCO, INVESCO Perpetual and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional products for clients around the world. The Company is listed on the London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto stock exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. with the symbol "AVZ." Additional information is available at www.amvescap.com. Members of the investment community and general public are invited to listen to the conference call today, Tuesday Tuesday: see week. , February February: see month. 1, 2005, at 2:30 p.m. GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 (9:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ), by dialing one of the following numbers: 610-769-9391 or 1-888-201-4990 for U.S. callers. An audio replay of the conference call will be available until Tuesday, February 8, 2005, at 10:00 p.m. GMT by calling 203-369-1058 or 1-866-441-1051 for U.S. callers. The presentation slides that will be reviewed during the conference call will be available on AMVESCAP's Web site at www.amvescap.com. This release may include statements that constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " under the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this report, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects" and future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "may," "could," "should," and "would" or any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 20-F, as filed with the United States Securities and Exchange Commission (SEC). You may obtain these reports from the SEC's Web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . AMVESCAP PLC Group Profit and Loss Account (in thousands)
Year Ended December 31,
------------------------------------
2004 2003
---------------- ---------------
Revenues GBP 1,158,451 GBP 1,158,070
Expenses:
Operating (859,776) (847,220)
Exceptional (249,710) (84,943)
Goodwill amortization (157,820) (148,982)
---------------- ---------------
Operating (loss)/profit (108,855) 76,925
Investment income 15,268 7,740
Interest expense (44,096) (48,270)
---------------- ---------------
(Loss)/profit before taxation (137,683) 36,395
Taxation (35,315) (53,676)
---------------- ---------------
Loss after taxation (172,998) (17,281)
Dividends (61,887) (93,627)
Minority interests (285) --
---------------- ---------------
Retained loss for the period GBP (235,170) GBP (110,908)
================ ===============
Earnings per share before
goodwill amortization and
exceptional items:
--basic 21.9p 23.4p
--diluted 21.7p 23.2p
---------------- ---------------
Earnings per share:
--basic and diluted (21.6)p (2.2)p
---------------- ---------------
Average shares outstanding:
--basic 802,160 802,885
--diluted 808,288 810,371
---------------- ---------------
AMVESCAP PLC Group Profit and Loss Account (in thousands)
Three Months Ended Dec 31,
-----------------------------------
2004 2003
---------------- --------------
Revenues GBP 300,457 GBP 301,219
Expenses:
Operating (225,490) (211,649)
Exceptional -- (22,849)
Goodwill amortization (43,511) (37,049)
---------------- --------------
Operating profit 31,456 29,672
Investment income 4,334 3,038
Interest expense (14,198) (10,417)
---------------- --------------
Profit before taxation 21,592 22,293
Taxation (22,786) (18,535)
---------------- --------------
(Loss)/profit after taxation GBP (1,194) GBP 3,758
================ ==============
Earnings per share before
goodwill amortization and
exceptional item:
--basic 5.3p 7.1p
--diluted 5.3p 7.0p
---------------- --------------
Earnings per share:
--basic and diluted (0.1)p 0.5p
---------------- --------------
Average shares outstanding:
--basic 797,641 800,941
--diluted 803,148 810,311
---------------- --------------
AMVESCAP PLC Group Balance Sheet (in thousands)
Dec 31, 2004 Dec 31, 2003
---------------- --------------
Fixed assets
Goodwill GBP 2,303,403 GBP 2,411,803
Investments 70,070 89,639
Tangible assets 148,404 170,598
---------------- --------------
2,521,877 2,672,040
Currents assets
Debtors 1,016,644 890,534
Investments 84,483 74,652
Cash 284,977 318,713
---------------- --------------
1,386,104 1,283,899
Current liabilities
Current maturities of long-term
debt (41,411) --
Creditors (1,242,388) (1,071,400)
---------------- --------------
(1,283,799) (1,071,400)
Net current assets 102,305 212,499
---------------- --------------
Total assets less current liabilities 2,624,182 2,884,539
Long-term debt (683,215) (730,041)
Provisions for liabilities and
charges (106,234) (105,646)
---------------- --------------
Net assets GBP 1,834,733 GBP 2,048,852
================ ==============
Capital and reserves
Called up share capital GBP 202,664 GBP 200,264
Share premium account 700,888 675,755
Shares held by employee trusts (237,972) (185,809)
Exchangeable shares 308,996 330,629
Profit and loss account 265,247 500,417
Other reserves 593,596 527,215
---------------- --------------
Shareholders' funds
Equity interests 1,833,419 2,048,471
Minority interests 1,314 381
---------------- --------------
GBP 1,834,733 GBP 2,048,852
================ ==============
AMVESCAP PLC Group Cash Flow Statement (in thousands)
Year Ended
-----------------------------
Dec 31, 2004 Dec 31, 2003
-------------- ------------
Operating (loss)/profit GBP (108,855) GBP 76,925
Goodwill amortization and depreciation 203,405 199,937
Change in debtors, creditors and other 109,075 61,805
-------------- ------------
Net cash inflow from operating activities 203,625 338,667
-------------- ------------
Interest paid, net of investment income (34,721) (42,143)
Taxation (57,215) (120,760)
Capital expenditures, net of sales (27,594) (36,585)
Net (purchase)/disposal of fixed asset
investments (1,385) 4,464
Acquisitions and disposals (28,744) (28,039)
Dividends paid (73,823) (93,369)
Purchase of shares, net (47,237) (20,428)
Change in bank overdraft (224) (5,112)
Foreign exchange on cash at bank and in
hand (17,381) (11,177)
Net issuance/(repayment) of debt 50,963 (21,916)
-------------- ------------
Decrease in cash at bank and in hand GBP (33,736) GBP
(36,398)
============== ============
AMVESCAP PLC Segmental segmental /seg·men·tal/ (seg-men´t'l) 1. pertaining to or forming a segment or a product of division, especially into serially arranged or nearly equal parts. 2. undergoing segmentation. Information (in thousands)
Year Ended Dec 31, 2004
-------------------------------------------
Revenues Expenses Operating
Profit(a)
-------------- -------------- ------------
AIM
U.S. GBP 443,085 GBP (277,196) GBP 165,889
Canada 174,417 (77,809) 96,608
-------------- -------------- ------------
617,502 (355,005) 262,497
-------------- -------------- ------------
INVESCO
U.S. 187,235 (140,099) 47,136
U.K. 188,108 (164,279) 23,829
Europe/Asia 77,773 (76,924) 849
-------------- -------------- ------------
453,116 (381,302) 71,814
-------------- -------------- ------------
Private Wealth/Retirement 87,833 (85,300) 2,533
Corporate -- (38,169) (38,169)
-------------- -------------- ------------
GBP 1,158,451 GBP (859,776) GBP 298,675
============== ============== ============
Year Ended Dec 31, 2003
----------------------------------------------
Revenues Expenses Operating
Profit(a)
-------------- --------------- ------------
AIM
U.S. GBP 491,722 GBP (301,167) GBP 190,555
Canada 154,758 (77,177) 77,581
-------------- --------------- ------------
646,480 (378,344) 268,136
-------------- --------------- ------------
INVESCO
U.S. 176,595 (135,396) 41,199
U.K. 174,164 (144,741) 29,423
Europe/Asia 77,725 (77,385) 340
-------------- --------------- ------------
428,484 (357,522) 70,962
-------------- --------------- ------------
Private
Wealth/Retirement 83,106 (86,368) (3,262)
Corporate -- (24,986) (24,986)
-------------- --------------- ------------
GBP 1,158,070 GBP (847,220) GBP 310,850
============== =============== ============
(a) before goodwill amortization and exceptional items Note: The Denver-based investment management team has been reflected with AIM U.S. in this analysis. Previous presentations included these amounts with the INVESCO U.S. business. Notes 1. The taxation charge is primarily due to overseas taxation. A significant proportion of the tax charge is expected to arise from U.S. operations. After adjusting for the amortization of goodwill and the exceptional items, the effective tax rate was 35.0% in 2004 (2003: 30.6%). 2. Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods. Diluted earnings per share takes into account the effect of dilutive potential ordinary and exchangeable shares outstanding during the period.
2004
-------------------------------------
Loss after Number of Per share
taxation shares
GBP '000 '000 amount
------------ ---------- ---------
Basic and diluted earnings per
share (172,998) 802,160 (21.6)p
============ ========== =========
2003
------------------------------------
Loss after Number of Per share
taxation shares
GBP '000 '000 amount
------------ ----------- ---------
Basic and diluted earnings per
share (17,281) 802,885 (2.2)p
============ =========== =========
Profit before goodwill amortization and exceptional items is a more appropriate basis for the calculation of earnings per share since this represents a more consistent measure of the year-by-year performance of the business; therefore, the calculation below is presented on that basis.
2004
----------------------------------------
Profit before Number of Per share
goodwill shares
amortization
and
exceptional
items
GBP '000 '000 amount
-------------- ------------ ----------
Basic earnings per share 175,401 802,160 21.9p
==========
Dilutive effect of options -- 6,128
-------------- ------------
Diluted earnings per share 175,401 808,288 21.7p
============== ============ ==========
2003
------------------------------------------
Profit before Number of Per share
goodwill shares
amortization
and exceptional
items
GBP '000 '000 amount
---------------- ------------ ----------
Basic earnings per share 187,602 802,885 23.4p
==========
Dilutive effect of options -- 7,486
---------------- ------------
Diluted earnings per share 187,602 810,371 23.2p
================ ============ ==========
3. The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: profit and loss account includes exceptional charges in 2004 as follows:
GBP '000
------------------------
U.S. regulatory investigation:
Settlement costs 208,918
Other related costs 20,249
Lease costs 20,224
Redundancy & reorganization 5,545
Other (5,226)
------------------------
Total exceptional items 249,710
------------------------
Total exceptional items net of tax 190,579
========================
Diluted per share impact 23.6p
The U.S. regulatory investigation settlement costs comprise $376.7 million in penalties and restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the costs. The related costs are primarily additional legal costs associated with the investigation. Lease costs arise as a result of excess office space in the U.K. and U.S. The provision reflects an estimate of the lease payments in excess of the expected sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. proceeds over the remaining life of the lease. Redundancy Having a secondary peripheral, computer system or network device that takes over when the primary unit fails. See fault tolerant, mirroring, RAID, hot standby and backup types. 1. and reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. costs primarily represent the costs of completing the integration of the U.S. mutual fund businesses. 'Other' represents the release of previously estimated provisions to reflect actual costs incurred. 4. Dividends for 2004 and 2003 were as follows:
GBP '000 2004 2003
------------ -----------
Interim paid: 2.5p per share (2003: 5.0p) 20,909 40,835
Final proposed: 5.0p per share (2003: 6.5p) 40,978 52,792
------------ -----------
61,887 93,627
============ ===========
5. On March 1, 2004 we completed the acquisition of Stein Roe Investment Counsel LLC for consideration totaling GBP 87.6m million, which includes earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. provisions of GBP 23.0 million. Goodwill and management contract intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of GBP 84.5 million have been recorded on this acquisition, net cash paid was GBP 36.7 million, and shares were issued in satisfaction of GBP 25.3 million purchase consideration . On March 31, 2004 we completed the disposal of the U.K. and Jersey businesses of Atlantic Wealth Management. A gain of GBP 3.8 million has been recorded within investment income. 6. Certain prior year amounts have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" current year presentation. The Company adopted Urgent Issues Task Force Abstract 38, "Accounting for ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). trusts" as of June 30, 2004, which requires that the Company's shares owned by employee share ownership trusts be recorded as deductions from equity rather than assets on the balance sheet. 7. The financial information set out above does not constitute the Company's statutory accounts for the years ended December 31, 2004 or 2003. Statutory accounts for 2003 have been reported on by the Company's Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together and delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. . The report of the Auditors was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985. AMVESCAP PLC Funds Under Management (in billions)
AIM INVESCO
-------------- --------------------------
Total U.S. Canada U.S. U.K. Europe/Asia PWM
------- ------- ------ ------- ------ ----------- ------
Dec 31, 2003 $370.6 $151.1 $28.7 $118.5 $39.0 $23.8 $9.5
Market gains 26.0 7.3 2.7 8.1 5.6 2.0 0.3
Net new (lost)
business (19.5) (12.4) 0.7 (6.1) 1.5 (3.0) (0.2)
Change in
Money
Market
Funds (8.3) (8.1) -- -- -- (0.2) --
Transfers -- (0.3) -- 0.2 0.6 -- (0.5)
Acquisitions 6.1 -- -- -- -- -- 6.1
Foreign
currency 7.2 -- 2.5 0.3 2.9 1.5 --
------- ------- ------ ------- ------ ----------- ------
Dec 31, 2004 $382.1 $137.6 $34.6 $121.0 $49.6 $24.1 $15.2
------- ------- ------ ------- ------ ----------- ------
Dec 31, 2004 GBP GBP GBP GBP GBP GBP GBP
(a) 199.0 71.7 18.0 63.0 25.8 12.6 7.9
======= ======= ====== ======= ====== =========== ======
AIM INVESCO
-------------- --------------------------
Total U.S. Canada U.S. U.K. Europe/Asia PWM
------- ------- ------ ------- ------ ----------- ------
Sept 30, 2004 $362.7 $132.1 $31.6 $118.0 $43.3 $23.3 $14.4
Market gains 20.8 8.0 2.0 5.4 3.8 1.0 0.6
Net new (lost)
business (7.6) (3.0) -- (2.9) 0.1 (2.1) 0.3
Change in
Money
Market
Funds 0.8 0.8 -- -- -- -- --
Transfers -- (0.3) -- 0.2 0.1 -- --
Foreign
currency 5.4 -- 1.0 0.3 2.3 1.9 (0.1)
------- ------- ------ ------- ------ ----------- ------
Dec 31, 2004 $382.1 $137.6 $34.6 $121.0 $49.6 $24.1 $15.2
------- ------- ------ ------- ------ ----------- ------
Dec 31, GBP GBP GBP GBP GBP GBP GBP
2004(a) 199.0 71.7 18.0 63.0 25.8 12.6 7.9
======= ======= ====== ======= ====== =========== ======
(a) Translated at $1.92 per GBP 1.00. Note 1: AMVESCAP Retirement had $28.0 billion in assets under administration at December 31, 2004 and September 30, 2004, compared to $27.7 billion at December 31, 2003. Note 2: Institutional money market funds amounted to $41.7 billion at December 31, 2004 and September 30, 2004, and $50.9 billion at December 31, 2003. |
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