REG - Close Bros Grp PLC - Preliminary Results Year Ended 31 July 2014 <Origin Href="QuoteRef">CBRO.L</Origin> - Part 2
29/10/2014 13:38
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uncertainty and a rotation out of mid caps
into large caps in the third quarter of our financial year created periods of uncertainty, but overall, conditions have
been more favourable than those seen in 2012 and 2013.
Adjusted operating income increased 20% to £127.4 million (2013: £106.3 million) reflecting increased trading volumes in
the division and a change in mix towards higher margin sectors at Winterflood. Adjusted operating expenses increased 17%
to £93.9 million (2013: £80.6 million) principally driven by higher variable costs as a result of the improved financial
performance. Overall, the expense/income ratio improved to 74% (2013: 76%) and the compensation ratio was stable at 45%
(2013: 45%).
During 2013 we recorded £0.9 million of associate income in relation to Mako, which was subsequently reclassified as an
available for sale equity investment and is therefore no longer reported as part of the Securities division. The group's
current investment holding in Mako is 8.5% (2013: 21.3%).
In total, adjusted operating profit for the division increased by 30% to £33.5 million (2013: £25.7 million), corresponding
to an improved operating margin of 26% (2013: 24%). The division's return on opening equity increased to 26%, up from 20%
in 2013.
Improved trading in smaller cap stocks in Winterflood
Winterflood's broad market coverage, trading capacity and expertise allow it to respond quickly to changes in investor
demand. As retail investor risk appetite increased, specifically in the volatile and less liquid AIM and small cap sectors
where its market-makers are particularly experienced, Winterflood's performance improved.
Winterflood's adjusted operating income increased 29% to £96.1 million (2013: £74.6 million) reflecting an increase in
income per bargain and stronger trading volumes. Despite periods of market volatility in the second half of the year, the
number of loss days declined to four (2013: eight).
Income per bargain increased to £6.81 (2013: £6.33) principally due to a change in mix towards more profitable AIM trading.
Investors were also encouraged by positive market sentiment and increased IPO activity; there were 80 IPOs on AIM in our
2014 financial year (2013: 49).
Average bargains per day also increased from 46,610 in 2013 to 55,749 due to stronger trading in AIM and international
sectors. Winterflood joined the European exchange, Equiduct in 2013 and, as its brand has become more established, has
benefited from an increase in international order flow. This trading generates strong revenues for Winterflood but it is
high volume and low margin. This increased trading activity has had a positive impact on Winterflood's volumes per day but
a negative impact on income per bargain, particularly in the second half of the year.
As market activity has improved, Winterflood has been able to benefit from its core operational efficiency. Adjusted
operating expenses increased 20% to £69.5 million (2013: £57.7 million) predominantly reflecting an increase in variable
performance related costs and settlement fees.
Overall Winterflood delivered a 57% increase to adjusted operating profit of £26.6 million (2013: £16.9 million) in the
year with performance in the second half broadly consistent with the first.
Consistent performance in Seydler
Seydler's adjusted operating income remained broadly stable on 2013 at £31.3 million (2013: £30.8 million) as improved
trading volumes on the Frankfurt Stock Exchange were offset by a modest decline in capital markets fees. Adjusted
operating expenses were up 7% to £24.4 million (2013: £22.9 million) due to the recruitment of a number of senior hires,
resulting in a £1.0 million decrease to adjusted operating profit to £6.9 million (2013: £7.9 million).
Seydler maintains its market leading position, with an established client base and strong capital markets franchise in the
German small and mid cap market.
Well positioned for stronger cyclical recovery
We have demonstrated the resilience of our model through the difficult trading conditions in 2012 and 2013; Winterflood, in
particular, has generated stronger returns as markets and investor sentiment have improved. By maintaining our trading
capability and market leading position, we are well placed to benefit should equity markets and retail investor risk
appetite continue to recover. However, performance will continue to be sensitive to market conditions which have been
subdued at the start of the 2015 financial year.
BUSINESS REVIEW
Asset Management
The Asset Management division has been shaped and positioned to benefit from regulatory, market and demographic changes.
We remain focused on meeting the needs of our clients through our high quality, integrated proposition which offers
financial advice, investment management and an online investment portal. The division is well positioned for future growth
having performed well against its strategic priorities in the year:
· Driving organic private client inflows
· Continuing to build scale and maximise revenue generation
· Identify opportunities to further enhance the division
Overview of financial performance
Key Financials
2014£ million 2013£ million Change%
Adjusted operating income 84.4 78.1 8
Income on AuM 83.8 76.3 10
Advice and other services1 36.6 35.2 4
Investment management 47.2 41.1 15
Other income2 0.6 1.8 (67)
Adjusted operating expenses (74.5) (74.1) 1
Adjusted operating profit 9.9 4.0 148
Key Performance Indicators
Assets under Management (£ billion) 9.7 9.1
Revenue margin (bps)3 89 88
Operating margin 12% 5%
Return on opening equity4 25% 10%
1 Income from financial advice and self directed services, excluding investment management income.
2 Net interest income, income on investment assets and other income.
3 Income from advice and other services and investment management over average AuM.
4 Adjusted operating profit after tax and non-controlling interests on opening equity less non-controlling interests.
The Asset Management division has built on the momentum it established in 2013, more than doubling its adjusted operating
profit to £9.9 million (2013: £4.0 million).
Adjusted operating income increased 8% to £84.4 million (2013: £78.1 million). Income on Assets under Management ("AuM")
was up 10% to £83.8 million (2013: £76.3 million), reflecting the 7% growth in AuM to £9.7 billion (31 July 2013: £9.1
billion) and a slightly improved revenue margin of 89 basis points (2013: 88 basis points). Other income declined to £0.6
million (2013: £1.8 million) as the prior year included the one-off gain on the sale of the division's residual investment
in a private equity fund.
Demonstrating the operational efficiency within the division, adjusted operating expenses were held broadly flat at £74.5
million (2013: £74.1 million) despite the increased levels of income and AuM in the year. The expense/income ratio
continued to improve to 88% (2013: 95%) and the compensation ratio declined to 58% (2013: 60%).
As a result the operating margin improved to 12% (2013: 5%), on track to meet our medium-term profitability target of 15%
in 2015, and the return on opening equity increased to 25% (2013: 10%).
Good inflows across our distribution channels
Movement in Assets under Management
£ million
At 1 August 2013 9,080
Inflows 1,312
Outflows (874)
Net inflows 438
Market movement 187
At 31 July 2014 9,705
Change 7%
Reflecting the quality of our advice and investment proposition and the breadth of our distribution, AuM increased 7% to
£9.7 billion at 31 July 2014 (31 July 2013: £9.1 billion). The increase was driven by good net inflows across our
distribution channels and supported by positive market movements.
Gross inflows, at £1.3 billion, were 9% greater than the prior year. Validating the quality of our investment management,
the strongest inflows have been from third party IFAs, where we are benefiting from a growing distribution network. We have
also seen good inflows both from our high net worth business, where we have recruited a number of bespoke portfolio
managers, and from our private client advisers.
The level of outflows reduced to £0.9 billion (2013: £1.4 billion) predominately due to client drawdowns in the normal
course of business, although the prior year included £0.5 billion of one-off outflows. Overall net flows were positive at
£0.4 billion and, at 5% of opening AuM, represent an improvement on the prior year's net outflows.
Over the last year the Diversified Income, Balanced and Growth funds have all outperformed their benchmarks whereas the
Bond and Conservative funds, which provide high quality income while maintaining a low risk approach, underperformed their
respective IMA benchmarks. In addition, we are benefiting from the continued strong investment performance in our bespoke
high net worth portfolios, all of which have consistently outperformed their ARC peer groups over a five year period.
Continuing to build scale and maximise revenue generation
We are continuing to build scale and are establishing ourselves as a leading provider of wealth management services to the
UK private client market. Our experienced team of advisers and investment managers have been able to leverage our
infrastructure and client service capabilities and deliver good organic growth in revenue and assets.
Assets under Management by type
2014 2013 Change
£ million £ million %
Total AuM 9,705 9,080 7
Advised AuM1 5,151 5,067 2
Managed AuM2 6,922 6,193 12
Both advised and managed AuM 2,368 2,180 9
1 All personal and corporate advised and self directed client assets, including those which are also managed by Close
Brothers.
2 All client assets which are invested in Close Brothers' investment products, including funds, separately managed accounts
and bespoke high net worth client portfolios.
Total advised AuM grew 2% to £5.2 billion (31 July 2013: £5.1 billion) largely due to positive market movements. We
continue to focus on improving the operational capacity of our personal advisers to increase net flows. Income from
advice and other services increased 4% to £36.6 million (2013: £35.2 million) due to the uplift in higher margin private
client assets and improved levels of initial fees. We have seen a small reduction in corporate advice income and as a
result the revenue margin has declined slightly to 71 basis points (2013: 73 basis points).
Total managed AuM grew 12% to £6.9 billion (31 July 2013: £6.2 billion) due to strong inflows from third party IFAs and our
bespoke portfolio managers, supported by modest market movements. In particular we have seen strong demand for our
multi-asset Close Discretionary Funds. These Funds now manage £2.6 billion (2013: £2.1 billion) of assets, up 23% on the
prior year. Investment management income increased 15% to £47.2 million (2013: £41.1 million), with the revenue margin
improving to 72 basis points (2013: 71 basis points) due to the stronger growth in higher margin high net worth assets.
Importantly, we saw good inflows into our core integrated proposition providing both management and advice. These assets
grew by 9% to £2.4 billion (2013: £2.2 billion), and now represent 46% (2013: 43%) of total advised assets. We are
encouraged by the good demand from new clients, particularly in the second half of the financial year, as well as the
continued progress in migrating existing clients.
Opportunities to further enhance our business
In a highly competitive and regulated market place, we believe our proposition, multi-channel distribution and diverse
sources of revenue are strong differentiators.
Our primary focus is organic growth. To support this, we are developing the concept of the financial planner as a true
professional who provides the highest quality financial advice to their clients. In addition, we will increase our
advisers' capacity with more efficient processes and capitalise on our longer-term investment performance to help build
stronger relationships with third party IFAs.
We will look to take advantage of opportunities to add further scale and geographic presence through selected infill
acquisitions and hiring of advisers and portfolio managers.
We are positive about the far reaching reforms to the savings and retirement income rules announced earlier this year by
the UK Government which should result in increased demand for high quality financial advice and flexible investment
propositions. As our distribution channels continue to mature and the capability of our advice proposition improves, we
are confident that we are well placed to deliver profitable growth at attractive and improving margins.
Consolidated Income Statement
for the year ended 31 July 2014
2014 20131
Note £ million £ million
Interest income 491.3 450.2
Interest expense (139.2) (150.7)
Net interest income 352.1 299.5
Fee and commission income 194.8 189.0
Fee and commission expense (27.7) (26.4)
Gains less losses arising from dealing in securities 100.8 80.3
Share of profit of Mako - 0.9
Other income 39.2 39.6
Non-interest income 307.1 283.4
Operating income 659.2 582.9
Administrative expenses (414.5) (365.1)
Impairment losses on loans and advances 7 (44.1) (50.6)
Total operating expenses before exceptional income and amortisation of intangible assets on acquisition (458.6) (415.7)
Operating profit before exceptional income and amortisation of intangible assets on acquisition 200.6 167.2
Exceptional income 3 - 1.6
Amortisation of intangible assets on acquisition (4.9) (5.0)
Operating profit before tax 195.7 163.8
Tax 4 (45.5) (42.7)
Profit after tax 150.2 121.1
Profit attributable to non-controlling interests 0.4 1.1
Profit attributable to shareholders 149.8 120.0
Basic earnings per share 5 101.5p 82.0p
Diluted earnings per share 5 100.0p 80.6p
Interim dividend per share paid 6 16.5p 15.0p
Final dividend per share 6 32.5p 29.5p
1 Restated - see notes 1 and 17.
Consolidated Statement of COMPREHENSIVE INCOME
for the year ended 31 July 2014
2014 20131
£ million £ million
Profit after tax for the year 150.2 121.1
Other comprehensive (expense)/income that may be
reclassified to income statement
Currency translation (losses)/gains (4.2) 4.0
Gains on cash flow hedging 4.7 4.8
Gains/(losses) on financial instruments classified as available for sale:
Gilts - (0.1)
Floating rate notes - 1.1
Equity shares 0.4 1.9
Transfer to income statement of realised currency translation gains - (7.4)
Tax relating to items that may be reclassified (0.8) (1.5)
Total other comprehensive income that may be reclassified to income statement 0.1 2.8
Other comprehensive (expense)/income that will not be reclassified to income statement
Defined benefit pension scheme (losses)/gains (1.6) 2.4
Tax relating to items that will not be reclassified 0.3 (0.5)
Total other comprehensive (expense)/income that will not be reclassified to income statement (1.3) 1.9
Other comprehensive (expense)/income for the year, net of tax (1.2) 4.7
Total comprehensive income for the year 149.0 125.8
Attributable to
Non-controlling interests 0.4 1.1
Shareholders 148.6 124.7
149.0 125.8
1 Restated - see notes 1 and 17.
Consolidated Balance Sheet
at 31 July 2014
2014 20131
Note £ million £ million
Assets
Cash and balances at central banks 1,171.8 935.4
Settlement balances 465.8 471.0
Loans and advances to banks 87.4 89.8
Loans and advances to customers 7 5,289.7 4,645.6
Debt securities 8 94.2 124.9
Equity shares 9 76.1 71.4
Loans to money brokers against stock advanced 63.9 52.1
Derivative financial instruments 27.8 56.8
Intangible assets 10 146.3 141.6
Property, plant and equipment 117.0 89.7
Deferred tax assets 31.7 25.8
Prepayments, accrued income and other assets 128.7 127.0
Total assets 7,700.4 6,831.1
Liabilities
Settlement balances and short positions 13 494.0 475.3
Deposits by banks 14 49.6 66.6
Deposits by customers 14 4,513.7 4,015.4
Loans and overdrafts from banks 14 9.4 37.6
Debt securities in issue 14 1,354.4 1,055.3
Loans from money brokers against stock advanced 28.4 16.4
Derivative financial instruments 19.5 48.4
Current tax liabilities 24.1 10.0
Accruals, deferred income and other liabilities 212.5 192.3
Subordinated loan capital 77.2 77.3
Total liabilities 6,782.8 5,994.6
Equity
Called up share capital 37.7 37.7
Share premium account 283.8 283.7
Retained earnings 589.8 511.9
Other reserves 5.2 (0.5)
Total shareholders' equity 916.5 832.8
Non-controlling interests 1.1 3.7
Total equity 917.6 836.5
Total liabilities and equity 7,700.4 6,831.1
1 Restated - see notes 1 and 17.
COnsolidated Statement of CHANGES IN EQUITY
for the year ended 31 July 2014
Other reserves
Called up share capital Share premium account Retained earnings Available for sale movements reserve Share-basedpayments reserve Exchange movements reserve Cashflow hedging reserve Total attributable to equity holders Non-controlling interests Total equity
£ million £ million £ million £ million £ million £ million £ million £ million £ million £ million
At 1 August 2012 37.6 283.4 454.3 6.5 (19.0) 8.6 (5.3) 766.1 3.7 769.8
Restatement (see notes 1 and 17) - - (6.5) - - - - (6.5) - (6.5)
Restated 37.6 283.4 447.8 6.5 (19.0) 8.6 (5.3) 759.6 3.7 763.3
Profit for the year - - 120.0 - - - - 120.0 1.1 121.1
Other comprehensive income/(expense) - - 1.9 2.6 - (3.4) 3.6 4.7 - 4.7
Total comprehensive income/(expense) for the year - - 121.9 2.6 - (3.4) 3.6 124.7 1.1 125.8
Exercise of options - 0.2 - - - - - 0.2 - 0.2
Dividends paid - - (61.5) - - - - (61.5) (0.1) (61.6)
Shares purchased - - - - - - - - - -
Shares issued 0.1 0.1 - - - - - 0.2 - 0.2
Shares released - - - - 5.7 - - 5.7 - 5.7
Other movements - - 0.3 - 0.2 - - 0.5 (1.0) (0.5)
Income tax - - 3.4 - - - - 3.4 - 3.4
At 31 July 2013 37.7 283.7 511.9 9.1 (13.1) 5.2 (1.7) 832.8 3.7 836.5
Profit for the year - - 149.8 - - - - 149.8 0.4 150.2
Other comprehensive (expense)/income - - (1.3) 0.5 - (4.2) 3.8 (1.2) - (1.2)
Total comprehensive income/(expense) for the year - - 148.5 0.5 - (4.2) 3.8 148.6 0.4 149.0
Exercise of options - - - - - - - - - -
Dividends paid - - (67.1) - - - - (67.1) (0.2) (67.3)
Shares purchased - - - - (7.8) - - (7.8) - (7.8)
Shares issued - 0.1 - - - - - 0.1 - 0.1
Shares released - - - - 13.7 - - 13.7 - 13.7
Other movements - - (5.7) - (0.3) - - (6.0) (2.8) (8.8)
Income tax - - 2.2 - - - - 2.2 - 2.2
At 31 July 2014 37.7 283.8 589.8 9.6 (7.5) 1.0 2.1 916.5 1.1 917.6
Consolidated Cash Flow Statement
for the year ended 31 July 2014
2014 20131
Note £ million £ million
Net cash inflow from operating activities 16(a) 339.6 179.9
Net cash (outflow)/inflow from investing activities
Purchase of:
Property, plant and equipment (5.9) (4.1)
Intangible assets - software (19.9) (13.1)
Equity shares held for investment (0.1) (0.3)
Non-controlling interests 16(b) (7.5) (5.0)
Sale of:
Equity shares held for investment 8.7 6.7
Associate 16(c) - 4.8
(24.7) (11.0)
Net cash inflow before financing 314.9 168.9
Financing activities
Issue of ordinary share capital, net of transaction costs 16(d) 0.1 0.4
Purchase of own shares for employee share award schemes (7.8) -
Equity dividends paid (67.1) (61.5)
Dividends paid to non-controlling interests (0.2) (0.1)
Interest paid on subordinated loan capital and debt financing (18.6) (18.6)
Net increase in cash 221.3 89.1
Cash and cash equivalents at beginning of year 1,017.4 928.3
Cash and cash equivalents at end of year 16(e) 1,238.7 1,017.4
1 Restated - see notes 1 and 17.
THE NOTES
1. Basis of preparation and accounting policies
The financial information contained in this announcement does not constitute the statutory accounts for the years ended 31
July 2014 or 31 July 2013 within the meaning of section 435 of the Companies Act 2006, but is derived from those accounts.
The accounting policies used are consistent with those set out in the Annual Report 2013 except for the adoption of the
following amendment with effect from 1 August 2013:
IAS 19 (Revised) "Employee benefits"
· The amendments to IAS 19 (Revised) principally affect the accounting for and disclosure of defined benefit plans.
Actuarial gains and losses arising from the valuation of defined benefit pension schemes are no longer permitted to be
deferred using the "corridor" approach and must be recognised immediately in other comprehensive income. In addition, IAS
19 (Revised) requires a single rate to be applied to the net defined benefit asset or liability to calculate the net
interest income or expense, remove the options for presentation of gains and losses and enhances the disclosure
requirements in respect of defined benefit plans and the risks arising on those plans. The amendments have been applied
retrospectively with comparative information restated accordingly. The impact of the restatement is presented in note 17.
The financial statements are prepared on a going concern basis.
Whilst the financial information has been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards ("IFRS"), this announcement does not itself contain sufficient information to
comply with IFRS. The company expects to publish full financial statements that comply with IFRS by 17 October 2014.
The financial information for the year ended 31 July 2014 has been derived from the audited financial statements of Close
Brothers Group plc for that year. Statutory accounts for 2013 have been delivered to the Registrar of Companies and those
for 2014 will be delivered following the company's Annual General Meeting. The auditor, Deloitte LLP, has reported on those
accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain
statements under Section 498(2) or (3) of the Companies Act 2006.
2. Segmental analysis
The Executive Committee, which is considered to be the group's chief operating decision maker, manages the group by class
of business as determined by the products and services offered and presents the segmental analysis on that basis. The
group's activities are organised in three primary operating divisions: Banking, Securities and Asset Management. The Group
segment includes the group's central functions which comprise Group Executive, Finance, Investor Relations, Legal, Human
Resources, Audit, Compliance, Corporate Development, Company Secretariat and Risk. Group administrative expenses include
staff costs, legal and professional fees and property costs attributable to the central functions which support and assist
the development of the divisions. Income within Group is typically immaterial and will include interest on cash balances at
Group. In the segmental reporting information which follows, Group consists of the central functions described above as
well as various non-trading head office companies and consolidation adjustments, in order that the information presented
reconciles to the consolidated income statement and balance sheet.
Divisions charge market prices for services rendered to other parts of the group. Funding charges between Banking
businesses are determined by the Banking division's Treasury operation taking into account commercial demands. Funding
arrangements between other segments is limited. More than 90% of all the group's activities, revenue and assets are
located in the UK.
Banking Securities Asset Management Group Total
£ million £ million £ million £ million £ million
Summary Income Statement for the year ended 31 July 2014
Net interest income/(expense) 352.9 (1.2) (0.3) 0.7 352.1
Non-interest income 93.8 128.6 84.7 - 307.1
Operating income 446.7 127.4 84.4 0.7 659.2
Administrative expenses (194.7) (92.5) (73.1) (24.4) (384.7)
Depreciation and amortisation (26.3) (1.4) (1.4) (0.7) (29.8)
Impairment losses on loans and advances (44.1) - - - (44.1)
Total operating expenses (265.1) (93.9) (74.5) (25.1) (458.6)
Adjusted operating profit/(loss)1 181.6 33.5 9.9 (24.4) 200.6
Exceptional income - - - - -
Amortisation of intangible assets on
acquisition (0.5) - (4.4) - (4.9)
Operating profit/(loss) before tax 181.1 33.5 5.5 (24.4) 195.7
Tax (42.0) (7.8) (0.9) 5.2 (45.5)
Non-controlling interests (0.3) - - (0.1) (0.4)
Profit/(loss) after tax and non-controlling interests 138.8 25.7 4.6 (19.3) 149.8
External operating income/(expense) 459.5 127.4 85.5 (13.2) 659.2
Inter segment operating (expense)/income (12.8) - (1.1) 13.9 -
Segment operating income 446.7 127.4 84.4 0.7 659.2
1 Adjusted operating profit/(loss) is stated before exceptional income, amortisation of intangible assets on acquisition
and tax.
The following table provides further detail on operating income:
2014 2013
£ million £ million
Banking
Retail 164.6 152.6
Commercial 187.3 173.4
Property 75.4 60.6
Treasury and other non-lending income 19.4 9.6
Securities
Market-making and related activities 127.4 106.3
Asset Management
Advice and other services 36.6 35.2
Investment management 47.2 41.1
Other income 0.6 1.8
Group 0.7 2.3
Operating income 659.2 582.9
Banking Securities Asset Management Group Total
£ million £ million £ million £ million £ million
Summary Balance Sheet at 31 July 2014
Assets
Cash and loans and advances to banks 1,225.1 16.2 17.5 0.4 1,259.2
Settlement balances, long trading positions and loans to money brokers - 634.8 - - 634.8
Loans and advances to customers 5,289.7 - - - 5,289.7
Non-trading debt securities 45.6 - - - 45.6
Intangible assets 61.7 28.1 56.4 0.1 146.3
Other assets 251.6 19.6 34.0 19.6 324.8
Total assets 6,873.7 698.7 107.9 20.1 7,700.4
Liabilities
Settlement balances, short trading positions and loans from money brokers - 522.4 - - 522.4
Deposits by banks 49.6 - - - 49.6
Deposits by customers 4,510.3 3.4 - - 4,513.7
Borrowings 1,229.7 6.0 - 205.3 1,441.0
Other liabilities 145.5 40.8 52.7 17.1 256.1
Intercompany balances 330.6 27.1 18.8 (376.5) -
Total liabilities 6,265.7 599.7 71.5 (154.1) 6,782.8
Equity 608.0 99.0 36.4 174.2 917.6
Total liabilities and equity 6,873.7 698.7 107.9 20.1 7,700.4
Other segmental information for the year ended 31 July 2014
Property, plant, equipment and intangible asset expenditure 70.1 0.8 0.3 0.7 71.9
Employees (average number) 1,776 321 567 67 2,731
Banking Securities Asset Management Group Total
£ million £ million £ million £ million £ million
Summary Income Statement for the year ended 31 July 20131
Net interest income/(expense) 300.9 (1.0) (0.8) 0.4 299.5
Non-interest income 95.3 107.3 78.9 1.9 283.4
Operating income 396.2 106.3 78.1 2.3 582.9
Administrative expenses (168.2) (78.7) (72.6) (22.5) (342.0)
Depreciation and amortisation (19.0) (1.9) (1.5) (0.7) (23.1)
Impairment losses on loans and advances (50.6) - - - (50.6)
Total operating expenses (237.8) (80.6) (74.1) (23.2) (415.7)
Adjusted operating profit/(loss)2 158.4 25.7 4.0 (20.9) 167.2
Exceptional income - 1.6 - - 1.6
Amortisation of intangible assets on
acquisition (0.6) - (4.4) - (5.0)
Operating profit/(loss) before tax 157.8 27.3 (0.4) (20.9) 163.8
Tax (40.3) (7.1) 0.2 4.5 (42.7)
Non-controlling interests (0.9) - - (0.2) (1.1)
Profit/(loss) after tax and non-controlling interests 116.6 20.2 (0.2) (16.6) 120.0
External operating income/(expense) 408.4 106.3 79.6 (11.4) 582.9
Inter segment operating (expense)/income (12.2) - (1.5) 13.7 -
Segment operating income 396.2 106.3 78.1 2.3 582.9
1 Restated - see notes 1 and 17.
2 Adjusted operating profit/(loss) is stated before exceptional income, amortisation of intangible assets on acquisition
and tax.
Banking Securities Asset Management Group Total
£ million £ million £ million £ million £ million
Summary Balance Sheet at 31 July 20131
Assets
Cash and loans and advances to banks 984.4 24.8 15.3 0.7 1,025.2
Settlement balances, long trading positions and loans to money brokers - 595.5 - - 595.5
Loans and advances to customers 4,645.6 - - - 4,645.6
Non-trading debt securities 96.2 - - - 96.2
Intangible assets 51.2 28.7 61.6 0.1 141.6
Other assets 251.8 30.6 24.9 19.7 327.0
Total assets 6,029.2 679.6 101.8 20.5 6,831.1
Liabilities
Settlement balances, short trading positions and loans from money brokers - 491.7 - - 491.7
Deposits by banks 66.6 - - - 66.6
Deposits by customers 4,014.8 0.6 - - 4,015.4
Borrowings 954.0
- More to follow, for following part double click ID:nRSW2889ScRecent news on Close Brothers
See all newsREG - Close Bros Grp PLC - Holding(s) in Company
AnnouncementREG - Close Bros Grp PLC - Transaction in Own Shares
AnnouncementREG - Close Bros Grp PLC - Director/PDMR Shareholding
AnnouncementREG - Close Bros Grp PLC - Total Voting Rights
AnnouncementREG - Close Bros Grp PLC - Close Brothers completes Winterflood sale to Marex
Announcement