REG - Ninety One PLC - Final Results
05/06/2024 07:00
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RNS Number : 1164R Ninety One PLC 05 June 2024
Ninety One plc
Ninety One Limited
Incorporated in England and Wales
Incorporated in the Republic of
South Africa
Registration number 12245293
Registration number
2019/526481/06
Date of registration: 4 October 2019
Date of registration: 18
October 2019
LSE share code: N91
JSE share
code: NY1
JSE share code: N91
ISIN:
ZAE000282356
ISIN: GB00BJHPLV88
5 June 2024
Results for the year ended 31 March 2024
Highlights
‒ Solid financial performance, with adjusted operating profit margin of
32.0%.
‒ Basic earnings per share increased by 1% to 18.4 pence and adjusted
earnings per share decreased by 8% to 15.9 pence.
‒ Business conditions remain challenging.
‒ Assets under management decreased by 3% to £126.0 billion.
‒ Net outflows of £9.4 billion.
‒ Proposed final dividend of 6.4 pence per share, resulting in a full
year dividend of 12.3 pence per share.
‒ Staff shareholding increased to 30.6%.
Key financials((1)) 2024 2023 Change
%
AUM (£'bn) 126.0 129.3 (3)
Net flows (£'bn) (9.4) (10.6) 11
Average AUM (£'bn) 123.9 134.9 (8)
Profit before tax (£'m) 216.8 212.6 2
Adjusted operating profit (£'m) 190.5 206.9 (8)
Adjusted operating profit margin (%) 32.0 32.7 n.m.
Basic earnings per share (p) 18.4 18.2 1
Adjusted earnings per share (p) 15.9 17.3 (8)
Dividend per share (p) 12.3 13.2 (7)
Note: (1) Please refer to explanations and definitions, including alternative
performance measures, on pages 13 to 14 and 162 to 163 of the Integrated
Annual Report.
Hendrik du Toit, Founder and Chief Executive Officer, commented:
"Ninety One, and many other public-markets-centric active investment managers,
faced headwinds over the reporting period. Despite these conditions, we
delivered robust financial results. Looking ahead, we remain confident of the
underlying strength of our business and the long-term relevance and quality of
our proposition to clients. Our people are united and motivated to provide our
clients with excellent service and competitive investment outcomes. The
combination of focus on carefully chosen investment capabilities, distribution
reach into large markets and our relentless quest to improve execution will
realise the growth potential of Ninety One. Despite short-term challenges, our
attention is firmly fixed on the compelling long-term opportunity."
Availability of the Integrated Annual Report and Notices of Annual General
Meetings ("AGMs")
The Ninety One Integrated Annual Report for the year ended 31 March 2024,
containing the audited annual financial statements, and the Notices of the
AGMs have been published today, 5 June 2024. Copies of the documents listed
below can be viewed on the Ninety One website:
https://ninetyone.com/full-year-results-2024. In accordance with paragraphs
9.6.1 and 9.6.3 of the FCA Listing Rules and of the FCA Disclosure Guidance
and Transparency Rules ("DTC"), the documents have been submitted to the
National Storage Mechanism where they will be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
‒ Ninety One Integrated Annual Report 2024
‒ Ninety One Limited Annual Financial Statements
‒ Ninety One plc and Ninety One Limited Notice of the 2024 Annual
General Meeting
‒ Ninety One Limited Form of Proxy for the 2024 Annual General Meeting
This announcement is made in accordance with DTR 6.3.5R(1A).
For further information please contact:
Investor relations
Varuni Dharma
varuni.dharma@ninetyone.com
(mailto:varuni.dharma@ninetyone.com) +44(0) 203 938 2486
Media
Media enquiries
Jeannie Dumas (for UK & International)
jeannie.dumas@ninetyone.com (mailto:jeannie.dumas@ninetyone.com)
+44 (0) 203 938 3084
Kotie Basson (for South Africa)
kotie.basson@ninetyone.com +27 (0) 82 375 1317
Investor presentation
A presentation to investors and financial analysts will be held at our London
office (55 Gresham Street, EC2V 7EL) at 9.00am BST on 5 June 2024. There will
be a live webcast available for those unable to attend. The webcast
registration link is available https://ninetyone.com/full-year-results
(https://ninetyone.com/full-year-results) .
A copy of the presentation will be made available on the Company's website
https://ninetyone.com/full-year-results-2024 at 8.00 am BST.
Forward-looking statements
This announcement does not constitute or form part of any offer, advice,
recommendation, invitation or inducement to any person to underwrite,
subscribe for or otherwise acquire or dispose of securities in Ninety One plc
and its subsidiaries or Ninety One Limited and its subsidiaries (together,
"Ninety One"), nor should it be construed as legal, tax, financial, investment
or accounting advice.
This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or other
variations or comparable terminology, or by discussions of strategy, plans,
objectives, goals, future events or intentions. Forward-looking statements may
and often do differ materially from actual results. Any forward-looking
statements contained in the announcement reflect Ninety One's current view
with respect to future events and are subject to risks relating to future
events and other risks, uncertainties and assumptions relating to the Ninety
One's business, results of operations, financial position, liquidity,
prospects, growth and strategies. Forward-looking statements speak only as of
the date of this announcement.
Except as required by any applicable law or regulation, Ninety One expressly
disclaims any obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained in this announcement or
any other forward-looking statements it may make whether as a result of new
information, future developments or otherwise.
About Ninety One
Ninety One is an active investment manager, investing capital on behalf of its
clients to help them achieve their long-term financial objectives. Ninety One
is listed on the London and Johannesburg Stock Exchanges.
OPERATING REVIEW
Assets under management ("AUM")
Closing AUM decreased by 3% to £126.0 billion (31 March 2023: £129.3
billion), reflecting net outflows, which outweighed the positive market and
foreign exchange impact of £6.1 billion (2023: negative £4.0 billion).
AUM by asset class
£ million 31 March 2024 31 March 2023 Change %
Equities 58,367 59,782 (2)
Fixed income 31,920 32,976 (3)
Multi-asset 20,359 22,605 (10)
Alternatives 4,312 3,990 8
South African fund platform 11,068 9,913 12
Total 126,026 129,266 (3)
Our AUM remained well diversified across asset classes, with the mix of AUM
broadly unchanged from the prior year. Our three largest asset classes saw net
outflows in the year.
AUM by client group
£ million 31 March 2024 31 March 2023 Change %
United Kingdom 24,182 24,890 (3)
Africa 51,259 51,418 (0)
Europe 14,559 15,480 (6)
Americas 15,373 16,846 (9)
Asia Pacific 20,653 20,632 0
Total 126,026 129,266 (3)
AUM remains well diversified by client geography ("client groups") and the
split remained broadly in line with the prior year. All regions, except the
Africa client group, suffered net outflows.
AUM by client type
£ million 31 March 2024 31 March 2023 Change %
Institutional 80,488 82,800 (3)
Advisor 45,538 46,466 (2)
Total 126,026 129,266 (3)
The split of AUM between the institutional and advisor channels remained
consistent with the prior year and both channels experienced net outflows.
Net flows
Ninety One experienced net outflows of £9.4 billion in the financial year
2024, representing a modest slowdown compared to the prior year (2023: net
outflows of £10.6 billion). Outflows in the second half of the year were
marginally higher than the first half. For the full year, net outflows were
driven by reduced inflows relative to the prior year, as clients elected to
delay allocations to risk assets; outflows declined relative to the 2023
financial year.
Net flows by asset class
£ million 31 March 2024 31 March 2023
Equities (6,861) (6,912)
Fixed income (1,923) (2,942)
Multi-asset (1,231) (1,166)
Alternatives 295 42
South African fund platform 304 330
Total (9,416) (10,648)
The primary driver of net outflows was equities, particularly from global
strategies, followed by European and UK equities. Notwithstanding this, there
were net inflows into some of our focus areas such as sustainable and
international equities. Fixed income net outflows were driven largely by
emerging market sovereign strategies, which countered net inflows into
inflation-linked, liquidity and income strategies. Multi-asset net outflows
were broadly spread, including from South African and income strategies.
Inflows into our fund platform remained healthy while net inflows into
alternatives were driven by our multi-asset credit capability.
Net flows by client group
£ million 31 March 2024 31 March 2023
United Kingdom (2,832) (2,283)
Africa 10 (1,170)
Europe (1,740) (1,521)
Americas (2,810) (954)
Asia Pacific (2,044) (4,720)
Total (9,416) (10,648)
The UK client group's net outflows were driven by certain clients rebalancing
their portfolios, reducing demand for UK equities and some pockets of
investment underperformance. The Americas, Asia Pacific and Europe client
groups' net outflows were largely from institutional clients and driven by
fewer allocations into active global equities and emerging markets, as well as
reallocations away from risk-on strategies. Fund platform net inflows into the
Africa client group were largely offset by net outflows from South African
multi-asset and global equity strategies.
Net flows by client type
£ million 31 March 2024 31 March 2023
Institutional (6,690) (10,409)
Advisor (2,726) (239)
Total (9,416) (10,648)
The institutional channel represented the bulk of net outflows and were
largely from the Americas, Asia Pacific and Europe client groups. The
institutional net outflows were mainly out of equities, followed by fixed
income. Within the advisor channel, net outflows were driven largely by the UK
client group. Although there were advisor net inflows into the fund platform
and fixed income, these were offset by net outflows from equities.
Investment performance
Firm-wide investment performance((1))
Our short- and medium-term performance has weakened, with one- and three-year
outperformance closing at 46% and 43% respectively (30 September 2023: 50% and
52% respectively).
Our long-term firm-wide investment performance remained competitive, with the
five- and ten-year outperformance closing at 64% and 76% respectively (30
September 2023: 71% and 80% respectively).
1 Year 3 Year 5 Year 10 Year Since inception
Outperformance 46% 43% 64% 76% 73%
Underperformance 54% 57% 36% 24% 27%
Note: (1) Firm-wide outperformance is calculated as the sum of the total
market values for individual portfolios that have positive active returns on a
gross basis expressed as a percentage of total AUM. Our percentage of firm
outperformance is reported on the basis of current AUM and therefore does not
include terminated funds. Total AUM excludes double-counting of pooled
products and third party assets administered on our South African fund
platform. Benchmarks used for the above analysis include cash, peer group
averages, inflation and market indices as specified in client mandates or fund
prospectuses. For all periods shown, market values are as at the period end
date.
Mutual fund investment performance((1))
At the end of the financial year 2024, Ninety One's mutual fund investment
performance declined marginally on a one-year basis, with 46% of mutual funds
in the first or second quartiles (30 September 2023: 49%).
Over longer periods, the mutual fund performance either declined or remained
broadly stable, with 62% and 91% of mutual funds in the first or second
quartile, on a five- and ten-year basis respectively (30 September 2023: 82%
and 90% respectively).
1 Year 3 Year 5 Year 10 Year
First quartile 20% 34% 19% 44%
Second quartile 26% 27% 43% 47%
Third quartile 12% 23% 34% 6%
Fourth quartile 42% 17% 4% 4%
Note: (1) Mutual fund performance and ranking as per Morningstar data using
primary share classes, as defined by Morningstar, net of fees to 31 March
2024. Peer group universes are either Investment Association, Morningstar
Categories or ASISA sectors as classified by Morningstar. Cash or
cash-equivalent funds are excluded from the tables. Mutual fund performance
weighted by AUM. Percentages may not add up to 100% due to rounding.
Alternative performance measures
Ninety One uses non-IFRS measures, which include measures used by management
to monitor and assess the financial performance of Ninety One.
Items are included in, or excluded from, adjusted operating revenue and
expenses based on management's assessment of whether they contribute to the
core operations of the business. In particular:
‒ Share of profit from associates, as well as net gain on investments
and other income, are included in other operating revenue as these items are
directly attributable to operations;
‒ deferred employee benefit scheme movements are deducted from adjusted
operating revenue and adjusted operating expenses as the movements offset and
do not impact operating performance;
‒ subletting income is excluded from adjusted operating revenue and
deducted from adjusted operating expenses as it is a recovery of costs rather
than a core revenue item;
‒ the share scheme net expense/credit is excluded from adjusted
operating expenses and employee remuneration so that they reflect the position
as though all awards during the period were fully expensed in the same period;
and
‒ interest expense on lease liabilities is included in adjusted
operating expenses to reflect the operating costs of offices.
Adjusted earnings per share is calculated on the after tax adjusted operating
profit divided by the number of shares in issue at the end of the period, as
management's assessment is that this is a reliable measure of Ninety One's
operating performance.
These non-IFRS measures are considered additional disclosures and in no case
are intended to replace the financial information prepared in accordance with
the basis of preparation detailed in the consolidated financial statements.
Moreover, the way in which Ninety One defines and calculates these measures
may differ from the way in which these or similar measures are calculated by
other entities. Accordingly, they may not be comparable to measures used by
other entities in Ninety One's industry.
The non-IFRS measures are considered to be pro forma financial information,
have been compiled for illustrative purposes only and are the responsibility
of Ninety One's Board. Due to their nature, they may not fairly present the
issuer's financial position, changes in equity, results of operations or cash
flows. The non-IFRS financial information has been prepared with reference to
JSE Guidance Letter: Presentation of pro forma financial information dated 4
March 2010 and in accordance with paragraphs 8.15 to 8.33 in the JSE Listings
Requirements, the Revised SAICA Guide on Pro forma Financial Information
(issued September 2014) and International Standard on Assurance Engagement
("ISAE") 3420 -Assurance Engagements to Report on the Compilation of Pro forma
Financial Information included in a Prospectus, to the extent applicable given
the Non-IFRS Financial Information's nature. This pro forma financial
information has been reported on by PwC in terms of ISAE 3420 and their
unmodified report is available for inspection on the Ninety One website
(www.ninetyone.com).
These non-IFRS measures, including reconciliations to their nearest condensed
consolidated financial statements equivalents, are as follows:
£ million 2024 2023
Net revenue 588.5 627.1
Share of profit from associates 1.3 1.4
Net gain on investments and other income 12.0 7.0
Adjustments:
Deferred employee benefit scheme gain (4.0) (1.3)
Subletting income (2.0) (1.2)
Adjusted operating revenue 595.8 633.0
£ million 2024 2023
Operating expenses 399.2 428.7
Adjustments:
Share scheme net credit/(expense) 8.6 (3.7)
Deferred employee benefit scheme gain (4.0) (1.3)
Subletting income (2.0) (1.2)
Interest expense on lease liabilities 3.5 3.6
Adjusted operating expenses 405.3 426.1
£ million 2024 2023
Staff expenses 251.5 279.2
Adjustments:
Share scheme net credit/(expense) 8.6 (3.7)
Employee remuneration 260.1 275.5
2024 2023
£ million
Adjusted operating revenue 595.8 633.0
Adjusted operating expenses (405.3) (426.1)
Adjusted operating profit 190.5 206.9
Adjusted operating profit margin 32.0% 32.7%
£ million 2024 2023
Net interest income 14.2 5.8
Adjustments:
Interest expense on lease liabilities 3.5 3.6
Adjusted net interest income 17.7 9.4
£ million (unless stated otherwise) 2024 2023
Profit after tax 163.9 163.8
Adjusted net interest income (17.7) (9.4)
Share scheme net (credit)/expense (8.6) 3.7
Tax on adjusting items 6.8 1.6
Adjusted earnings attributable to ordinary shareholders 144.4 159.7
Number of ordinary shares (m) 907.4 922.7
Adjusted earnings per share (p) 15.9 17.3
SHAREHOLDER INFORMATION AND DIVIDEND ANNOUNCEMENT
In terms of the DLC structure, Ninety One plc shareholders registered on the
United Kingdom share register may receive all or part of their dividend
entitlements through dividends declared and paid by Ninety One plc on their
ordinary shares and/or through dividends declared and paid on the SA DAN share
issued by Ninety One Limited.
Ninety One plc shareholders registered on the South African branch register
may receive all or part of their dividend entitlements through dividends
declared and paid by Ninety One plc on their ordinary shares and/or through
dividends declared and paid on the SA DAS share issued by Ninety One Limited.
Ninety One plc dividend announcement
Notice is hereby given that a gross final dividend of 6.4 pence per ordinary
share has been recommended by the Board from income reserves in respect of the
financial year ended 31 March 2024. The final dividend will be paid on 8
August 2024 to shareholders recorded in the shareholders' registers of the
company on close of business 19 July 2024.
Ninety One plc shareholders registered on the United Kingdom share register,
will receive their dividend payment by Ninety One plc of 6.4 pence per
ordinary share.
Ninety One plc shareholders registered on the South African branch register,
will receive their dividend payment by Ninety One Limited, on the SA DAS
share, equivalent to 6.4 pence per ordinary share.
The relevant dates for the payment of the dividend are as follows:
Last day to trade cum-dividend
On the Johannesburg Stock Exchange ("JSE") Tuesday, 16 July 2024
On the London Stock Exchange ("LSE") Wednesday, 17 July 2024
Shares commence trading ex-dividend
On the JSE Wednesday, 17 July 2024
On the LSE Thursday, 18 July 2024
Record date (on the JSE and LSE) Friday, 19 July 2024
Payment date (on the JSE and LSE) Thursday, 8 August 2024
Share certificates on the South African branch register may not be
dematerialised or rematerialised between Wednesday, 17 July 2024 and Friday,
19 July 2024, both dates inclusive, nor may transfers between the United
Kingdom share register and the South African branch register take place
between Wednesday, 17 July 2024 and Friday, 19 July 2024, both dates
inclusive.
Additional information for Ninety One shareholders registered on the South
African branch register
‒ The final dividend paid by Ninety One plc to shareholders registered on
the South African branch register is a local payment derived from funds
sourced in South Africa.
‒ Shareholders registered on the South African branch register are
advised that the distribution of 6.40000 pence, equivalent to a gross dividend
of 153.09504 cents per share (rounded to 153.00000 cents per share), has been
arrived at using the rand/pound Sterling average buy/sell spot rate of
ZAR23.9211/GBP, as determined at 11:00 (SA time) on Tuesday, 4 June 2024.
Consequently, tax will be calculated on the gross dividend of 153.00000 cents
per share.
‒ Ninety One plc United Kingdom tax reference number: 623 59652 16053.
‒ The issued ordinary share capital of Ninety One plc is 622,624,622
ordinary shares.
‒ The dividend paid by Ninety One plc to South African resident
shareholders registered on the South African branch register and the dividend
paid by Ninety One Limited to Ninety One plc shareholders on the SA DAS share
are subject to South African Dividend Tax ("Dividend Tax") of 20% (subject to
any available exemptions as legislated).
‒ Shareholders registered on the South African branch register who are
exempt from paying the Dividend Tax will receive a net dividend of 153.00000
cents per share, paid by Ninety One Limited on the SA DAS share.
‒ Shareholders registered on the South African branch register who are
not exempt from paying the Dividend Tax will receive a net dividend of
122.40000 cents per share (gross dividend of 153.00000 cents per share less
Dividend Tax of 30.60000 cents per share) paid by Ninety One Limited on the SA
DAS share.
By order of the board
Amina Rasool
Company Secretary
4 June 2024
Ninety One Limited dividend announcement
Notice is hereby given that a gross final dividend of 153.00000 cents per
ordinary share has been recommended by the Board from income reserves in
respect of the financial year ended 31 March 2024. The final dividend will be
paid on 8 August 2024 to shareholders recorded in the shareholders' register
of the company on close of business 19 July 2024.
The relevant dates for the payment of the dividend are as follows:
Last day to trade cum-dividend Tuesday, 16 July 2024
Shares commence trading ex-dividend Wednesday, 17 July 2024
Record date Friday, 19 July 2024
Payment date Thursday, 8 August 2024
The final gross dividend of 153.09504 cents per ordinary share (rounded to
153.00000 cents per ordinary share) has been determined by converting the
Ninety One plc distribution of 6.40000 pence per ordinary share into rands
using the rand/pound sterling average buy/sell spot rate of ZAR23.9211/GBP, as
determined at 11:00 (SA time) on Tuesday, 4 June 2024. Consequently, tax will
be calculated on the gross dividend of 153.00000 cents per share.
Share certificates may not be dematerialised or rematerialised between
Wednesday, 17 July 2024 and Friday, 19 July 2024, both dates inclusive.
Additional information to take note of:
‒ The final dividend paid by Ninety One Limited to shareholders
registered on the South African register is a local payment derived from funds
sourced in South Africa.
‒ Ninety One Limited South African tax reference number: 9661 9311
71.
‒ The issued ordinary share capital of Ninety One Limited is
284,754,801 ordinary shares.
‒ The dividend paid by Ninety One Limited is subject to South
African Dividend Tax ("Dividend Tax") of 20% (subject to any available
exemptions as legislated).
‒ Shareholders who are exempt from paying the Dividend Tax will
receive a net dividend of 153.00000 cents per ordinary share.
‒ Shareholders who are not exempt from paying the Dividend Tax will
receive a net dividend of 122.40000 cents per ordinary share (gross dividend
of 153.00000 cents per ordinary share less Dividend Tax of 30.60000 cents per
ordinary share).
By order of the board
Ninety One Africa Proprietary Limited
Company Secretary
4 June 2024
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