REG - Premier Miton Group - FULL YEAR RESULTS
04/12/2024 07:00
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RNS Number : 6874O Premier Miton Group PLC 04 December 2024
PREMIER MITON GROUP PLC
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2024
Resilient performance in a tough market; strongly positioned as investor
interest returns.
Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'), the AIM
quoted fund management group, today announces its final results for the year
ended 30 September 2024.
Highlights
Resilient performance
· £10.7 billion closing Assets under Management (3) ('AuM') (2023:
£9.8 billion), an increase of 9% for the year
· £10.9 billion closing AuM at 30 November 2024 (4)
· Net outflows of £318 million for the year (2023: £1,147 million
outflow)
· Adjusted profit before tax (1,3) of £12.2 million (2023: £15.7
million)
· Adjusted earnings per share (2,3) of 6.3 pence (2023: 8.8 pence)
· Profit before tax of £3.2 million (2023: £5.9 million)
· Cash balances were £35.9 million at 30 September 2024 (2024:
£37.9 million)
· Final proposed dividend of 3.0 pence per share (2023: 3.0 pence
per share)
· Total proposed dividend for the year of 6.0 pence per share
(2023: 6.0 pence per share)
Strongly positioned
· Strong investment performance with 68% of funds in the first or
second quartile of their respective sectors since launch or fund manager
tenure
· Continued flows into Fixed Income and ex-UK funds
· Tellworth acquisition now fully integrated and synergies
delivered
· Offshore fund platform now established in Ireland alongside new
distribution channels via South Africa
· A continued focus on inorganic opportunities alongside our clear
organic growth strategy
Notes
(1) Adjusted profit before tax is calculated before the deduction of taxation,
amortisation, share-based payments and non-recurring items. Reconciliation
included within the Financial Review section.
(2) Adjusted earnings per share is calculated before the deduction of
amortisation, share-based payments and non-recurring items.
(3) These are Alternative Performance Measures ('APMs').
(4) Unaudited estimate.
Mike O'Shea, Chief Executive Officer of Premier Miton Group, commented:
"We closed the year with £10.7 billion of assets under management and we saw
good investment performance across many of our strategies as investment
markets broadened out and mid and small cap stocks performed better, relative
to large which has allowed us to deliver good long-term results for our
investors.
During the year, we saw continued inflows into our Fixed Income, Absolute
Return and International Equity funds although the UK equity market remained
very much out of favour.
We are pleased to report that we completed the integration of the Tellworth
business onto our platform and have delivered the synergies we identified at
the time of the transaction. The final changes to the outsourcing arrangements
on these funds will be completed in the first quarter of 2025, bringing them
into line with our target operating model. In the meantime, it is pleasing to
note that we have seen net inflows into the Tellworth funds over the period
since the acquisition.
Looking forward, we see investor demand improving and being focussed on Fixed
Income, US & Global equities and Absolute Return strategies post the UK
budget and the US election. We also expect demand to remain strong for MPS
solutions and low cost, high performance multi-asset strategies where changes
to the UK CGT regime will support ongoing interest from advisers.
The business focus during this more difficult period for active managers has
been very much on the areas that are within our control. This includes
ensuring that our product mix is well diversified so that we are not overly
exposed in any one area and an absolute focus on delivering strong investment
performance whilst staying loyal to our principles of providing truly active
management and original thinking. Alongside this we have continued to develop
our distribution reach, our brand and our client service as well as
maintaining a disciplined approach to cost control and operational efficiency.
And of course, good execution of M&A activity will remain critical in an
industry that will continue to present opportunities for inorganic growth.
In closing, we report an adjusted profit before tax of £12.2 million, a final
dividend of 3.0p, bringing the total for the year to 6.0p, and year end cash
of £35.9 million on the balance sheet."
ENDS
For further information, please contact:
Premier Miton Group plc
Mike O'Shea, Chief Executive Officer 01483 306 090
Investec Bank plc (Nominated Adviser and Broker)
David Anderson / Ben Griffiths / St John Hunter 020 7597 4000
Camarco
Geoffrey Pelham-Lane / Ben Woodford 07733 124 226 /
07990 653 341
Notes to editors:
Premier Miton Investors is focused on delivering good investment outcomes for
investors through relevant products and active management across its range of
investment strategies, which include equity, fixed income, multi-asset and
absolute return.
LEI Number: 213800LK2M4CLJ4H2V85
Chair's Statement
Results
Our financial results for 2024 reflect the ongoing challenges facing
investment markets in general and the UK's savings industry in particular.
Investment businesses are by their nature cyclical and financial results are
driven by markets, performance and flows. While we have a well-diversified
range of funds and a strong performance track record, the near-term challenges
of the market we operate in have been difficult. However, we continue to
develop our business model and are confident in our fundamental strengths and
abilities. We anticipate more encouraging times when investor confidence
returns and are particularly well positioned to secure positive net inflows
including from the newer markets we are targeting.
The operating model we use and the capacity we have built to manage a range of
attractive funds and grow assets under management put us in an excellent
position to succeed. At year end our AuM was £10.7 billion, the Group had a
cash position of £35.9 million and our adjusted profit before tax for the
year was £12.2 million.
During the year we acquired Tellworth, which adds a highly regarded investment
team and new equity products, including alternative strategies, to our range.
We also acquired an Irish UCITs structure, which is a platform to accelerate
and support our ambitions in the international and institutional markets. We
continue to explore hirings and team add-ons in interesting product areas, and
we actively consider a range of tactical and strategic ideas for how we might
best extend the scale and reach of Premier Miton's business. Inorganic growth
remains a key part of our strategy especially as the industry undergoes its
current changes.
The ESG agenda is evolving in the asset management sector and we participate
in initiatives that we believe will make a positive difference while
continuing to focus on our core purpose which is to actively manage our
clients' investments to achieve their desired financial outcomes. Our
Stewardship Report sets out our principles and how we put these into practice.
Sector background
I have mentioned in previous reports the changing nature of investment
management markets, both internationally and in the UK. The structural
evolution of our industry continues at pace alongside the more cyclical
changes in the
market and these are having a deep impact on many market participants.
Major economic, fiscal and structural decisions affecting the financial
services sector are being made by the new UK Government and will have an
important impact for our home market and on our capital markets and savings
industry. We see some positive aspects of this, for example on reforms to the
long-term savings market and regulatory frameworks, alongside more challenging
elements, such as the increase in financial pressures on UK businesses and
savers. While we welcome many well-intentioned changes, further and deeper
reforms are likely to be needed to restore our economy to health over the
coming years.
We have engaged and will continue to engage with supporting progressive
reforms for the betterment of the UK and are disappointed that the Government
has abandoned plans to introduce a British ISA, an idea we initiated. It
seems wholly sensible that our home markets should benefit from any tax
advantages conferred by the Government. A large and successful domestic
long-term savings market and the efficient allocation of capital into
productive domestic investments are essential features for a successful modern
economy and is and will continue to be fundamental for the health and wealth
of our society. As a business, we are agile, resilient and well placed to work
with like-minded organisations and individuals to promote valuable ideas to
achieve this outcome.
Discussions are also ongoing about the roles and merits of different forms of
capital and investment, whether active or passive, public or private, domestic
or international. We believe that all have a place to play in the market and
that genuinely active investing has a core and important role for savers,
investors and capital users. Our approach is to offer a range of genuinely
active funds with strategies that have a clear place in the investment
landscape. There are times when some funds may underperform and we would seek
to ensure that recovery is achievable and that, through management action if
needed, we have confidence in a return to positive long-term performance.
Strategy
We are seeking to grow a successful and high performing business for the
benefit of all our stakeholders.
Our strategy remains the same:
• We create and manage an investment product range relevant for our
chosen markets
• We look to access pools of capital and savings, within and outside
the UK, that welcome our investment skills and capabilities
• We make sure we have strong organic growth capabilities and a
robust operating model
• We will use a mix of tactical and strategic deals, including
M&A, to achieve our ambitions
A particular focus in the year was on how our distribution strategy responds
to the changing markets for investment products and makes the most of the
progress we are making on building our product capabilities. The review
confirmed our belief that, despite the near-term challenges, we are on the
right track in key areas of our continued plans for creating a successful,
genuinely active asset manager, focused on investment markets and products
that differentiate us.
Dividend
We operate a pragmatic and prudent approach to paying dividends, reflecting
the recent uncertainties of the market and mindful of the importance of
maintaining the confidence and support of our shareholders as we build an
increasingly valuable business. Over time we anticipate returning to our
stated dividend policy of paying a dividend in the range of 50- 65% of
adjusted profit after tax.
Accordingly, alongside the interim dividend of 3.0p we recommend a final
dividend of 3.0p, bringing the total dividend for the year to 6.0p.
People
Our people drive our business and I thank all of them for their hard work and
efforts last year in times that have been amongst the toughest many have
known. Our leadership team has years of experience at managing businesses in
our sector through a number of cycles and their contribution is deeply
appreciated. The
Board has continued to be highly engaged and supportive and I am grateful to
each of the members for their ongoing commitment and support. We want Premier
Miton to be a business known for its capable and talented people and with a
positive culture that brings out and uses their full range of skills,
experience and talent. I believe we are making strong progress here.
Outlook
There are always many reasons to feel concerned about the condition of the
world and markets, especially in times of change and uncertainty. Yet the
business of aggregating and managing savings is likely to endure and it
matters for many good and positive reasons that we care about. We know that
with interest rates likely to fall and the market environment improving,
demand will return for thoughtful, active fund management. We remain confident
and resilient, proud of what we are creating at Premier Miton and will
continue with energy, thought and ambition to seek opportunities to perform
for our clients, to allow our people to flourish, and for our shareholders to
benefit.
Robert Colthorpe
Chair
03 December 2024
Chief Executive Officer's Statement
Performance
Given the difficult backdrop for active fund management that has existed for
much of the last three years, our focus during the year has been on four main
areas.
First and foremost, we have been making sure that our investment performance
has been as strong as it can be for our investors.
I am pleased that investment performance across our fund range has improved
along with the returns from underlying investment markets.
We have produced good absolute and relative performance in each of our key
investment areas of equities, fixed income, multi-asset and absolute return.
Within each of these key areas, certain funds will have performed slightly
better than others, but that is to be expected given the diversified range of
products we manage and our approach to running funds with high active share.
Our second key focus has been on ensuring that our business is managed as
effectively as possible in terms of both operational efficiency and cost
control. During the year this has involved reviewing our operating platform
and reducing costs where possible without compromising our ability to take
full advantage of a market recovery.
We will continue to focus on this as we move through the coming year to ensure
that not only do we have the capability to scale our business in terms of AuM,
but also that we are getting the most out of our business in terms of cost
effectiveness at our current level of assets under management.
Our third focus has been the integration of the Tellworth business that we
acquired earlier in the year. This has been a successful process with the
funds and the investment team now operating out of our offices and being
managed on our risk, compliance and operational platform. This has helped to
deliver the synergies we expected at the time of the transaction, and we
intend to make a further change to the ACD arrangements early in 2025.
This will drive further efficiencies for both investors in the funds and the
business. Pleasingly, investment performance has remained strong on the
Tellworth funds and segregated mandates since the acquisition, and we have
seen AuM increase from £490 million at completion in January 2024 to £630
million as at the end of November 2024.
Our fourth area of focus has been on our distribution and marketing activity.
Having acquired a small Dublin ICVC earlier in the year, we have been working
hard to build our presence internationally. To this end, we are in the process
of registering several of our funds in overseas jurisdictions, we have
developed our distribution relationships in overseas markets and attracted our
first pension fund investors from Latin America. Following demand from both UK
based and international investors, we are in the process of launching two new
funds within the Dublin ICVC for global credit and US equity strategies.
Strategy
Our UK distribution team is actively engaged within its key market and,
notwithstanding the slowdown in activity we saw in the run up to the budget in
October 2024, it is having many positive conversations with investors and fund
buyers right across the range of strategies we manage.
For many investors, passive holdings are now forming the core of many of their
portfolios and where they are looking to add active strategies to deliver
alpha and diversification, they are seeking out those funds that can
demonstrate strong investment process and which differ significantly from the
core indices they can buy so cheaply. These are exactly the type of funds we
manage at Premier Miton and we are confident that our offering can capture
strong market share within underlying portfolios as market breadth increases
and interest rates begin to decline.
As well as working across our existing fund range, the distribution team have
also been building momentum for our Model Portfolio Service ('MPS'). We have a
long track record dating back to the 1990s for the successful management of
fund portfolios within our multi-asset multi-manager range and within our
existing Portfolio Management Service where we run over £250 million for
several financial advisers. Investment performance across these funds and
portfolios has been good over many years and will, we believe, allow us to
grow a strong position in the rapidly growing MPS market.
We have also been working with an external agency to better present the
Premier Miton brand into our core markets and the output from this work will
be rolled out as we move through FY25.
We know from the market research we conduct that we already score quite well
in terms of brand recognition but it is clear that we can do more, and we can
do it better.
This work will support the hard work and activity of our distribution team and
help to portray our business in a positive light to as wide an audience of
advisers and wealth managers as possible.
Outlook
Looking forward into 2025, we recognise that over the last two or three years
market conditions for active fund management businesses such as ours have been
difficult. Our response to this has been to make sure that our business is
well diversified by asset class and by fund so that we are not overly exposed
to any one investment theme, manager, or risk.
By diversifying our business across equities, fixed income, multi-asset and
absolute return we aim to ensure that our revenue stream from the assets that
we manage is less volatile than it would be if we concentrated on a single
asset class. This allows us the freedom to manage funds and mandates the way
we believe they should be managed - taking and managing risks that will allow
our investors to produce returns over time that are ahead of comparable market
indices.
We do recognise, however, that scale is important in terms of delivering
improving margins to our shareholders and for this reason, alongside our
organic growth plans highlighted above, we continue to look for opportunities
to add to our business through acquisitions.
The Tellworth acquisition is a good example of how we can successfully acquire
and integrate a business and return it to a growth path. The senior management
team at Premier Miton is experienced in undertaking these integrations and has
a good track record of completing them successfully.
As we move through the coming year, we will continue to look for additional
value enhancing acquisition opportunities.
We are a people business, and it is only down to the hard work and enthusiasm
of everyone within the organisation that we can deliver for our investors. I
would like to thank the whole team at Premier Miton for everything they have
achieved during the last twelve months and for their positivity and drive that
will allow us to move forwards as a business in 2025.
Mike O'Shea
Chief Executive Officer
03 December 2024
Financial Review
Financial performance
Profit before tax was £3.2 million (2023: £5.9 million). The profit for the
year is after charging £0.5 million of acquisition and restructuring costs
(see note 4).
Adjusted profit before tax*, which is after adjusting for amortisation,
share-based payments and non-recurring items, decreased to £12.2 million
(2023: £15.7 million). The decline reflects the fall in the Group's average
assets under management arising from
the more difficult trading environment.
Adjusted profit* and profit before tax
2024 2023 %
£m £m Change
Gross profit 62.0 66.9
Administration expenses (51.2) (51.7)
Finance income 0.8 0.2
Non-recurring items (see note 4) 0.5 0.3
Adjusted profit before tax * 12.2 15.7 (22)
Adjusted operating margin * 19.7% 23.5% (16)
Amortisation (5.1) (4.8)
Share-based payments (3.4) (4.7)
7)
Non-recurring items (see note 4) (0.5) (0.3)
Profit before tax 3.2 5.9 (46)
* These are Alternative Performance Measures ('APMs').
Assets under Management * ('AuM')
AuM ended the year at £10,683 million (2023: £9,821 million), an increase of
9%. Net outflows for the year were £318 million (2023: £1,147 million
outflows), this includes net inflows from acquisitions and disposals of £440
million (2023: £nil). The average AuM for the year decreased by 5% to
£10,336 million (2023: £10,845 million).
Gross profit, net management fees and net management fee margin *
The Group's revenue represents management and performance fees generated on
the assets being managed by the Group net of rebates paid to customers.
The Group's net management fee margin for the year was 58.9bps. The decrease
on the comparative period continues to be driven by the changing business mix
combined with the impact of flows and markets on the existing business.
2024 2023 %
£m £m Change
Management fees 62.5 68.3
Other income 0.4 0.1
Cost of sales (2.0) (1.5)
Net management fees (*) 60.9 66.9 (9)
Performance fees 1.1 -
Gross profit (see note 3) 62.0 66.9 (8)
Average AuM * 10,336 10,845 (5)
Net management fee margin * (bps) 58.9 61.7 (5)
* These are Alternative Performance Measures ('APMs').
Administration expenses
Administration expenses totalled £51.2 million (2023: £51.7 million), a
decrease of 1%.
Staff costs remain the largest component of administration expenses, these
consist of both fixed and variable elements. The fixed staff costs decreased
to £22.0 million (2023: £22.8 million) reflecting lower staff numbers. The
average headcount for the year has decreased from 163 to 153. At the year end,
full time equivalent headcount was 160 (2023: 159). Variable staff costs
totalled £8.6 million (2023: £9.7 million). These costs move with the net
revenues and profitability of the Group.
Overheads and other costs increased by £1.5 million to £19.9 million (2023:
£18.4 million). This increase includes £0.8 million of additional costs
associated with the dual running of Tellworth during its integration into the
Group's operating model. There was an additional £0.2 million of
non-recurring items during the year when compared to the prior year, see note
4 for further detail. The balance of the increase reflects an increased spend
on sales and marketing activities and rebranding exercise commenced in the
second half of the year.
The Group continues to invest in the business to ensure it remains well placed
to capture growth when demand returns.
2024 2023 %
£m £m Change
Fixed staff costs 22.0 22.8
Variable staff costs 8.6 9.7
Overheads and other costs 19.9 18.4
Depreciation - fixed assets 0.2 0.3
Depreciation - leases 0.5 0.5
Administration expenses 51.2 51.7 (1)
Share-based payments
The share-based payment charge for the year was £3.4 million (2023: £4.7
million). Of this charge, £2.6 million related to nil cost contingent share
rights ('NCCSRs') (2023: £4.0 million).
At 30 September 2024 the Group's Employee Benefit Trusts ('EBTs') held
7,429,544 ordinary shares representing 5% of the issued ordinary share capital
(2023: 9,452,500 shares).
Balance sheet and cash
Total shareholders' equity as at 30 September 2024 was £119.0 million (2023:
£121.1 million).
At the year end the cash balances of the Group totalled £35.9 million (2023:
£37.9 million). The Group has no external bank debt.
Capital management
The Board is recommending a final dividend payment of 3.0p per share, bringing
the total dividend payment for 2024 to 6.0p per share (2023: 6.0p).
If approved at the Annual General Meeting, the dividend will be paid on 14
February 2025 to shareholders on the register at the close of business on 17
January 2025.
The Group's dividend policy is unchanged and remains to target an annual
ordinary dividend pay-out of approximately 50 to 65% of profit after tax,
adjusted for non-recurring items, share-based payments and amortisation.
Regulatory Capital
The Group maintains a strong capital base to support the future development of
the business whilst ensuring compliance with regulatory capital and liquidity
requirements.
2024 2023
£m £m
Equity 119.0 121.1
Non-qualifying assets (1) (85.5) (83.9)
Qualifying capital 33.5 37.2
Regulatory capital requirement (13.3) (14.6)
Foreseeable dividends (2) (4.6) (4.5)
Regulatory capital surplus 15.6 18.1
1 Goodwill, intangible assets and associated deferred tax liabilities.
2 Proposed final dividend to be paid in February following the financial year
end.
Going concern
The Directors assessed the prospects of the Group considering all the factors
affecting the business when deciding to adopt a going concern basis for the
preparation of the accounts.
The Directors confirm that they have a reasonable expectation that the Group
will continue to operate and meet its liabilities, as they fall due, up to 3
December 2025.
The Directors' assessment has been made with reference to the Group's current
position and strategy, the Board's appetite for risk, the Group's financial
forecasts, and the Group's principal risks and how these are managed, as
detailed in the Strategic Report.
The Directors have also reviewed and examined the financial stress testing
inherent in the Internal Capital Adequacy and Risk Assessment ('ICARA'). The
forecast considers the Group's profitability, cash flows, dividend payments
and other key variables. Sensitivity analysis is also performed on certain key
assumptions used in preparing the forecast, both individually and combined, in
addition to scenario analysis that is performed as part of the ICARA process,
which is formally approved by the Board.
Alternative Performance Measures ('APMs')
The Directors use the following APMs in evaluating the performance of the
Group and for planning, reporting and incentive-setting purposes.
Unit Used in management appraisals Aligned with shareholder Strategic KPI
returns
Adjusted profit before tax £ • • •
Definition: Profit before taxation, amortisation, share-based payments and
non-recurring items.
Purpose: Except for the noted costs, this encompasses all operating expenses
in the business, including fixed and variable staff cash costs, except those
incurred on a non-cash, non-business as usual basis. Provides a proxy for cash
generated and is the key measure of profitability for management decision
making.
Adjusted operating margin % • •
Definition: Adjusted profit before tax (as above) divided by net revenue.
Purpose: Used to determine the efficiency of operations and the ratio of
operating expenses to revenues generated in the year.
Cash generated from operations £ •
Definition: Profit before taxation adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals and items of income or expense
associated with investing or financing cash flows.
Purpose: Provides a measure in demonstrating the amount of cash generated from
the Group's ongoing regular business operations.
AuM £ • • •
Definition: The value of external assets that are managed by the Group.
Purpose: Management fee income is calculated based on the level of AuM
managed. The AuM managed by the Group is used to measure the Group's size
relative to the industry peer group.
Average AuM £ • •
Definition: The average value of external assets that are managed by the
Group.
Purpose: Average AuM removes volatility of short term net flows.
Reconciliation: Average AuM for the year is calculated using the daily AuM
adjusted for the monthly closing AuM invested in other funds managed by the
Group.
Net management fee £ •
Definition: The net management fee revenues of the Group. Calculated as gross
management fee income, excluding performance fees, less rebates paid to
customers and after the deduction of cost of sales.
Purpose: Provides a consistent measure of the profitability of the Group.
Net management fee margin bps • •
Definition: Net management fees divided by the average AuM.
Purpose: A measure used to demonstrate the blended fee rate earned from the
AuM managed by the Group.
A basis point ('bps') represents one hundredth of a percent. This measure is
used within the asset management sector and provides comparability of the
Group's net revenue generation.
New flows £ • • •
Definition: Total aggregate external sales/inflows into funds and mandates
managed by the Group less the total external redemptions/outflows from the
same funds and mandates. Where positive, these are 'Net inflows' and where
negative as 'Net outflows'.
Purpose: Net flows is a key performance indicator for management and is used
both internally and externally to assess the organic growth of the business.
Adjusted earnings per share (basic) p • • •
Definition: Adjusted profit after tax divided by the weighted average number
of shares in issue in the year.
Purpose: Provides a clear measure to shareholders of the operating
profitability and cash generation of the Group from its underlying operations
at a value per share. The exclusion of amortisation, share-based payments and
non-recurring costs provides a consistent basis for comparability of results
year on year.
Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2024
Notes
2024 2023
£000 restated(1)
£000
Revenue 3 64,041 68,470
Cost of sales 3 (2,045) (1,532)
Gross profit 61,996 66,938
Administration expenses(2) 4 (51,174) (51,658)
Share-based payments 16 (3,361) (4,721)
Amortisation of intangible assets 10 (5,098) (4,861)
Operating profit 5 2,363 5,698
Finance income 7 804 168
Profit for the year before taxation 3,167 5,866
Taxation 8 (1,283) (2,190)
Profit for the year after taxation attributable to equity holders of the 1,884 3,676
Parent
pence pence
Basic earnings per share 9 1.24 2.50
Diluted basic earnings per share 9 1.19 2.35
1 Revenue and cost of sales have been restated, see note 3.
2 Merger related costs and exceptional items have been presented within
administration expenses, see note 4.
No other comprehensive income was recognised during 2024 or 2023. Therefore,
the profit for the year is also the total comprehensive income. All of the
amounts relate to continuing operations.
Consolidated Statement of Changes in Equity
For the year ended 30 September 2024
Notes Share Merger reserve Own shares held by an EBT Capital redemption reserve Retained Total
capital £000 £000 £000 earnings equity
£000 Share premium £000 £000
£000
At 1 October 2022 60 - 94,312 (16,744) 4,532 44,604 126,764
Profit for the year - - - - - 3,676 3,676
Own shares purchased - - - (381) - - (381)
Exercise of options - - - 4,457 - (4,457) -
Share-based payments 16 - - - - - 4,721 4,721
Other amounts direct to equity - - - - - (78) (78)
Deferred tax direct to equity - - - - - (38) (38)
Dividends 17 - - - - - (13,601) (13,601)
At 30 September 2023 60 - 94,312 (12,668) 4,532 34,827 121,063
Profit for the year - - - - - 1,884 1,884
Issue of share capital 15 1 2,639 - - - - 2,640
Own shares purchased - - - (760) - - (760)
Exercise of options - - - 4,697 - (4,697) -
Share-based payments 16 - - - - - 3,361 3,361
Other amounts direct to equity - - - - - (121) (121)
Dividends 17 - - - - - (9,053) (9,053)
At 30 September 2024 61 2,639 94,312 (8,731) 4,532 26,201 119,014
Consolidated Statement of Financial Position
As at 30 September 2024
Notes
2024 2023
£000 £000
Non-current assets
Goodwill 10 74,086 70,688
Intangible assets 10 15,079 17,655
Other investments 100 100
Property and equipment 576 518
Right-of-use assets 2,108 2,724
Deferred tax asset 8(d) 756 1,147
Trade and other receivables 11 204 482
92,909 93,314
Current assets
Financial assets at fair value through profit and loss 22 1,207
Finance lease receivables - 77
Trade and other receivables 11 95,491 124,467
Cash and cash equivalents 12 35,912 37,942
131,425 163,693
Total assets 224,334 257,007
Current liabilities
Trade and other payables 13 (98,930) (128,553)
Lease liabilities (461) (265)
(99,391) (128,818)
Non-current liabilities
Provisions 14 (374) (374)
Deferred tax liability 8(d) (3,701) (4,414)
Lease liabilities (1,854) (2,338)
Total liabilities (105,320) (135,944)
Net assets 119,014 121,063
Equity
Share capital 15 61 60
Share premium 2,639 -
Merger reserve 94,312 94,312
Own shares held by Employee Benefit Trusts (8,731) (12,668)
Capital redemption reserve 4,532 4,532
Retained earnings 26,201 34,827
Total equity shareholders' funds 119,014 121,063
Consolidated Statement of Cash Flows
For the year ended 30 September 2024
Notes
2024 2023
£000 £000
Net cash flow from operating activities 18 7,945 5,832
Cash flows from investing activities:
Interest received 837 188
Purchase of Tellworth Investments LLP net of cash acquired 10 (1,666) -
Acquisition of financial assets (150) (140)
Disposal of financial assets 1,373 1,104
Purchase of property and equipment (282) (160)
Disposal of property and equipment - 250
Net cash flow from investing activities 112 1,242
Cash flows from financing activities:
Lease payments (274) (914)
Purchase of own shares (760) (381)
Dividends paid 17 (9,053) (13,601)
Net cash flow from financing activities (10,087) (14,896)
Decrease in cash and cash equivalents (2,030) (7,822)
Opening cash and cash equivalents 37,942 45,764
Closing cash and cash equivalents 12 35,912 37,942
Selected notes to the Consolidated Financial Statements
For the year ended 30 September 2024
1. Corporate information and authorisation of financial statements
The Company is a public limited company incorporated and domiciled in England
and Wales. The Company's ordinary shares are traded on the Alternative
Investment Market ('AIM').
The Consolidated Financial Statements of Premier Miton Group plc (the
'Company') and its subsidiaries (the 'Group') for the year ended 30 September
2024 were authorised for issue by the Board of Directors on 3 December 2024
and the Consolidated Statement of Financial Position was signed on the Board's
behalf by Mike O'Shea and Piers Harrison.
2. Accounting policies
Basis of preparation
The Consolidated Group Financial Statements have been prepared on a going
concern basis in accordance with UK-adopted International Accounting standards
and according to the requirements of the Companies Act 2006. The principal
accounting policies adopted by the Group are set out in note 2 to the
Consolidated Group Financial Statements.
The Consolidated Financial Statements are presented in Sterling with numbers
rounded to the nearest thousand (£'000), except when otherwise stated.
Going concern
The Directors have assessed the prospects of the Group and its Parent Company
considering all the factors affecting the business when deciding to adopt a
going concern basis for the preparation of the accounts. This assessment has
been made with reference to the Group's current position and strategy, the
Board's appetite for risk, the Group's financial forecasts, and the Group's
principal risks and how these risks are managed, as detailed in the Strategic
Report. The forecasts consider the Group's profitability, cash flows, dividend
payments and other key variables. The Directors have also reviewed and
examined the financial stress testing in the Internal Capital Adequacy and
Risk Assessment ('ICARA').
The Directors confirm that they have a reasonable expectation that the Group
and its Parent Company will continue to operate and meet liabilities, as they
fall due, up to 3 December 2025. The Directors therefore continue to adopt the
going concern basis of accounting in preparing the Consolidated Financial
Statements.
3. Revenue and cost of sales
Revenue is presented net after deducting rebates paid to customers. In
accordance with IFRS 15, the comparative revenue figure has been re-presented
on this basis.
Previously revenue was shown gross with rebates paid to customers being
deducted to arrive at net revenue as reported in the Consolidated Statement of
Comprehensive Income. In the comparative period, revenues have been reduced by
£6.1 million with a corresponding decrease in fees and commission expenses
which has been renamed as cost of sales.
Gross profit was previously reported as net revenue. This year it has been
renamed as gross profit to aid presentational comparability with standard
market practice.
The restatement and presentational change does not impact gross profit.
All revenue is derived from the UK and Ireland. The Group operates a single
business segment of asset management for reporting and control purposes.
There are no additional operating segments to disclose.
As Group operations are solely in the UK and Ireland, there are no additional
geographical segments to disclose.
Revenue and gross profit recognised in the Consolidated Statement of
Comprehensive Income is therefore presented as follows:
2023
2024 restated
£000 £000
Management fees 67,015 74,450
Rebates paid to customers (4,476) (6,080)
Performance fees 1,129 -
Commissions 3 3
Other income 370 97
Revenue 64,041 68,470
Cost of sales (2,045) (1,532)
Gross profit 61,996 66,938
Costs of sales includes the costs of external Authorised Corporate Directors,
Ongoing Charges Figure ('OCF') capping costs, direct research costs and
corporate access charges.
4. Administration expenses
Administration expenses for the year totalled £51,174,000 (2023:
£51,658,000), these include the following non-recurring and/or non-operating
items recognised in arriving at operating profit from continuing operations:
2024 2023
£000 £000
Acquisition and restructuring costs 482 -
Closure of Connect - 250
Merger related professional fees 51 51
Total adjusting items 533 301
Previously these amounts were presented separately as exceptional items and
merger related costs, however now they are reflected within the operating
costs of the Group.
Adjusted profit is an APM, the above items are removed from the statutory
measures when calculating adjusted profit.
Acquisition and restructuring costs related primarily to corporate finance,
due diligence and legal fees associated with acquisitions completed in the
year (2023: exceptional costs net of associated income were incurred in
relation to the cessation of the development of the Group's online portal
'Connect' resulting in net expenditure of £250,000).
5. Operating profit
(a) Operating profit is stated after charging:
Notes 2024 2023
£000 £000
Auditor's remuneration 5(b) 752 694
Staff costs 6 32,551 35,798
Interest - leases 86 27
Amortisation of intangible assets 10 5,098 4,861
Depreciation - fixed assets 233 335
Depreciation - leases 514 525
(b) Auditor's remuneration
The remuneration of the auditor is analysed as follows, with 2024 pertaining
to Ernst & Young as auditor and 2023 pertaining to KPMG as auditor:
2024 2023
£000 £000
Audit of Company 150 178
Audit of subsidiaries 301 272
Total audit 451 450
Audit-related assurance services 247 244
Total audit-related assurance services 247 244
Taxation services 54 -
Total fees 752 694
6. Staff costs and Directors' remuneration
Staff costs during the year were as follows:
2024 2023
£000 £000
Salaries and bonus 24,748 26,373
Social security costs 3,272 3,628
Share-based payments 3,361 4,721
Other pension costs 1,170 1,076
Total staff costs 32,551 35,798
The average monthly number of employees of the Group during the year was made
up as follows:
2024 2023
number number
Directors 7 8
Investment management 56 56
Sales and marketing 31 36
Finance and systems 11 11
Legal and compliance 10 12
Administration 38 40
Total employees 153 163
7. Finance income/(expense)
2024 2023
£000 £000
Interest receivable 815 234
Interest payable (11) (66)
Net finance income 804 168
8. Taxation
(a) Tax recognised in the Consolidated Statement of Comprehensive Income
2024 2023
£000 £000
Current income tax:
UK corporation tax 2,184 2,531
Current income tax charge 2,184 2,531
Adjustments in respect of prior periods (23) (12)
Total current income tax 2,161 2,519
Deferred tax:
Origination and reversal of temporary differences (855) (329)
Adjustments in respect of prior periods (23) -
Total deferred tax (income) (878) (329)
Income tax charge reported in the Consolidated Statement of Comprehensive 1,283 2,190
Income
(b) Reconciliation of the total income tax charge
The tax expense in the Consolidated Statement of Comprehensive Income for the
year is higher than the standard rate of corporation tax in the UK of 25%
(2023: 22%).
The differences are reconciled below:
2024 2023
£000 £000
Profit before taxation 3,167 5,866
Tax calculated at UK standard rate of corporation tax of 25% (2023: 22%): 792 1,290
- Other differences 2 1
- Share-based payments 840 1,564
- Expenses not deductible for tax purposes 40 20
- Tax relief on vested options (351) (683)
- Fixed asset differences 6 10
- Adjustments in respect of prior periods (46) (12)
Income tax charge in the Consolidated Statement of Comprehensive Income 1,283 2,190
(c) Change in corporation tax rate
In the spring Budget 2021, the Government announced that from 1 April 2023 the
corporation tax rate will increase to 25% from 19%. This was substantively
enacted on 24 May 2021. The deferred tax balances included within the
Consolidated Financial Statements have been calculated with reference to the
rate of 25% to the relevant balances from 1 April 2023.
(d) Deferred tax
The deferred tax included in the Group's Consolidated Statement of Financial
Position is as follows:
2024 2023
£000 £000
Deferred tax asset:
- Fixed asset temporary differences 55 32
- Accrued bonuses 25 315
- Share-based payments 676 800
Deferred tax disclosed on the Consolidated Statement of Financial Position 756 1,147
2024 2023
£000 £000
Deferred tax liability:
- Arising on acquired intangible assets 2,434 2,764
- Arising on historic business combination 1,267 1,650
Deferred tax disclosed on the Consolidated Statement of Financial Position 3,701 4,414
2024 2023
£000 £000
Deferred tax in the Consolidated Statement of Comprehensive Income:
- Origination and reversal of temporary differences (855) (329)
- Adjustments in respect of prior periods (23) -
Deferred tax (income) (878) (329)
All movements in deferred tax balances relate to profit and loss.
Deferred tax assets are recognised to the extent that it is probable that
future taxable profits will be available against which the deferred tax assets
can be utilised.
Deferred tax assets have not been recognised in respect of the following items
listed below because they relate to historic losses with it being unlikely
that future taxable profits will arise to offset against.
2024 2023
£000 £000
Unprovided deferred tax asset:
- Non-trade loan relationship losses 2,563 2,593
- Excess management expenses 67 67
- Non-trade intangible fixed asset losses 525 525
Unprovided deferred tax asset 3,155 3,185
9. Earnings per share
Basic earnings per share is calculated by dividing the profit for the year
attributable to ordinary equity shareholders of the Parent Company by the
weighted average number of ordinary shares outstanding at the year end.
The weighted average of issued ordinary share capital of the Company is
reduced by the weighted average number of shares held by the Group's EBTs.
Dividend waivers are in place over shares held in the Group's EBTs.
In calculating diluted earnings per share, IAS 33 'Earnings Per Share'
requires that the profit is divided by the weighted average number of ordinary
shares outstanding during the year plus the weighted average number of
ordinary shares that would be issued on conversion of all the dilutive
potential ordinary shares into ordinary shares during the period arising from
the Group's share option schemes.
(a) Reported earnings per share
Reported basic and diluted earnings per share has been calculated as follows:
2024 2023
£000 £000
Profit attributable to ordinary equity shareholders of the Parent Company for 1,884 3,676
basic earnings
2024 2023
Number Number
000 000
Issued ordinary shares at 1 October 157,913 157,913
- Effect of own shares held by an EBT (8,865) (10,778)
- Effect of shares issued 2,778 -
Weighted average shares in issue 151,826 147,135
- Effect of movement in share options 6,951 9,606
Weighted average shares in issue - diluted 158,777 156,741
Basic earnings per share (pence) 1.24 2.50
Diluted earnings per share (pence) 1.19 2.35
(b) Adjusted earnings per share
Adjusted earnings per share is based on adjusted profit after tax, where
adjusted profit is stated after charging interest but before amortisation,
share-based payments and non-recurring items.
Adjusted profit for calculating adjusted earnings per share:
2024 2023
£000 £000
Profit before taxation 3,167 5,866
Add back:
- Share-based payments 3,361 4,721
- Amortisation of intangible assets 5,098 4,861
- Adjusting items 533 301
Adjusted profit before tax 12,159 15,749
Taxation:
- Tax in the Consolidated Statement of Comprehensive Income (1,283) (2,190)
- Tax effects of adjustments (1,277) (610)
Adjusted profit after tax for the calculation of adjusted earnings per share 9,599 12,949
Adjusted earnings per share was as follows using the number of shares
calculated at note 9(a):
2024 2023
Pence pence
Adjusted earnings per share 6.32 8.80
Diluted adjusted earnings per share 6.05 8.26
10. Goodwill and other intangible assets
Cost amortisation and net book value of intangible assets are as follows:
2024 Goodwill Other Total
£000 £000 £000
Cost:
At 1 October 2023 77,927 81,025 158,952
Additions 3,398 2,522 5,920
30 September 2024 81,325 83,547 164,872
Amortisation and impairment:
At 1 October 2023 7,239 63,370 70,609
Amortisation during the year - 5,098 5,098
At 30 September 2024 7,239 68,468 75,707
Carrying amount:
At 30 September 2024 74,086 15,079 89,165
At 30 September 2023 70,688 17,655 88,343
2023 Goodwill Other Total
£000 £000 £000
Cost:
At 1 October 2022 and 30 September 2023 77,927 81,025 158,952
Amortisation and impairment:
At 1 October 2022 7,239 58,509 65,748
Amortisation during the year - 4,861 4,861
At 30 September 2023 7,239 63,370 70,609
Carrying amount:
At 30 September 2023 70,688 17,655 88,343
At 30 September 2022 70,688 22,516 93,204
The additions to goodwill and intangible assets in the year relate primarily
to the 100% acquisition of Tellworth Investments LLP ('Tellworth'), a leading
UK equity boutique. The acquisition completed on 30 January 2024 and offers
strategies to wholesale and institutional clients with potential for
institutional distribution. The acquired entity contributed revenues to the
Group of £1,324,597 and a loss of £652,782 for the period to 30 September
2024. The investment management activities of Tellworth were novated to the
Group's core investment management subsidiary, Premier Fund Managers Limited
on 15 June 2024. From this date only residual operational expenses remained in
Tellworth.
The following table summarises the consideration for Tellworth and the fair
value of the net assets acquired at the completion date:
£000
- Equity instruments (4,167,532 shares issued on completion) 2,640
- Cash on completion 3,079
- Contingent consideration 755
Fair value of total consideration 6,474
- Intangible assets 2,221
- Deferred tax liability on intangible assets acquired (555)
- Cash and cash equivalents 1,412
- Property, plant and equipment 10
- Trade and other receivables 1,715
- Trade and other payables (1,727)
Net assets acquired 3,076
Goodwill 3,398
The fair value of the equity consideration of £2,640,131 has been calculated
by reference to the number of shares issued on 30 January 2024 and the ten-day
Volume-Weighted Average Price ('VWAP') prior to the completion date.
Intangible assets acquired relate to the investment management agreements
between Tellworth and the funds to which Tellworth was the investment manager
and the value arising from the underlying client relationships.
Goodwill arising on the acquisition is mainly attributable to the skills and
technical talent of Tellworth's workforce, the differentiation of their funds,
and the expected cash flows from new customers.
Additional consideration for Tellworth of up to £3 million may be payable
depending on AuM growth between completion and the first anniversary of
completion, with the maximum amount payable if AuM at the first anniversary
date exceeds £850 million.
At 30 September 2024 the AuM was £566 million, the fair value of the
liability associated with the payment of the contingent consideration has been
assessed at £755,208.
Impairment tests for goodwill
The Group operates a single CGU for the purposes of assessing the carrying
value of goodwill. This reflects one operating platform, into which acquired
businesses are fully integrated and from which acquisition-related synergies
are expected to be realised. The value of the Group's net assets attributable
to shareholders as at 30 September 2024 of £119.0 million were higher than
the Group's market capitalisation of £98.9 million. This was considered to be
an indicator of impairment of the Company's investments in subsidiaries.
A full impairment review was undertaken whereby the recoverable amount was
calculated using the value-in-use based on a five-year forecast period from
2025-2029. AuM levels were determined by assuming net flows, per fund, over
this five-year period based on two key metrics - demand for the fund (past and
present) and its investment performance against its sector. The Group believes
these two factors are key when making assumptions about the growth of AuM in
the future, and hence expected future cash flows.
Net revenue margins per fund have been assumed at current levels, unless
sufficient reasons exist to deviate (for example share class consolidation).
Increases in operating costs have been considered and include assumed new
business volumes. No allowance has been made for performance fees or any
acquired levels of AuM. Cash flows beyond the explicit forecast period are
extrapolated using a long-term terminal growth rate, see table below.
To arrive at the net present value, cash flows were discounted using a
discount rate determined by the capital asset pricing model (post-tax). The
Group engaged valuation specialists in determining the inputs to the discount
rate, including current assessments of comparative betas, risk-free rates and
the equity market risk premium.
The decrease in the discount rate shown below is largely due to the decrease
in the equity market risk premium. Using a post-tax rate does not produce a
materially different outcome to a pre-tax rate.
The value-in-use amount calculated was greater than the carrying value and
hence no impairment was recognised. As noted above, the most material
assumptions used in determining this conclusion were the discount rate and AuM
levels over the forecast period.
As an additional consideration the Group compared its value-in-use amount and
net assets to market multiples within the UK asset management sector, to
ensure consistency with current market valuations and no obvious impairment
indicators.
2024 2023
Goodwill £74.1m £70.7m
Discount rate (post-tax) 14.0% 14.5%
Discount rate (pre-tax) 16.8% 17.9%
Market risk premium 5.0% 5.25%
Long-term risk-free rate 4.4% 4.6%
Compound Annual AuM growth rate (5-year) * 9.4% 10.3%
Terminal growth rate 1.9% 1.7%
* Represents a combination of market beta, alpha and fund inflows into the
Group's product suite.
Sensitivity analysis was performed to reduce the headroom to zero such that an
impairment of goodwill would be considered. In one scenario the discount rate
(post-tax) was increased and in another the Group's AuM levels were decreased,
shown in the table below. The Group's fixed cost base during this five-year
period remained unchanged.
Change required to reduce headroom to zero, without management actions %
Increase in discount rate to: 24
Reduction in the CAGR over the entire five year period to: 0
The base case annual growth rate for AuM is assumed at 9.4% over the forecast
period and would need to remain at or below 0% per annum over the entire
five-year period before any impairment might be considered (without changing
fixed costs).
Management have concluded no reasonable change in assumptions would trigger an
impairment to goodwill.
Other intangible assets
The Group's other intangible assets comprise of investment management
agreements ('IMAs') purchased by the Group. The carrying amount relates
primarily to two historic transactions, the largest being the merger with
Miton Group plc with a carrying value of £7,515,684 and a remaining
amortisation period of two years (2023: £11,055,890 and a remaining
amortisation period of three years). In addition to the Tellworth intangible
asset noted above, the remaining balance relates to a transaction completed in
2007 to acquire IMAs which now have a carrying value of £5,278,969 and a
remaining amortisation period of four years (2023: £6,599,618 and a remaining
amortisation period of five years).
The determination of useful lives, and hence amortisation period, used for
other intangible assets requires an assessment of the length of time the Group
expects to derive benefits from the asset. This depends on a number of
factors, the most significant being the duration of customer investment
timeframes and the type of underlying fund (for example the asset classes
specified by the fund's investment objectives will give insight into its usual
life).
An assessment is performed at each reporting period for each intangible asset
for indicators of impairment. There are two core metrics used in this
assessment - the first being the comparison of AuM levels at the period end
with those included in the original intangible asset valuation and the second
being the investment performance of each individual fund against its
comparable peers and benchmarks. In addition, both internal and external
factors affecting the funds are considered such as current net margin,
potential regulatory changes and future demand for its asset class.
For each intangible asset mentioned above, if required, further analysis is
performed on the estimated aggregate cashflows generated by each fund
management team. These estimated cashflows are modelled on the current level
of AuM for the funds managed by each team and are compared against the
original basis used to value the intangible at acquisition date, along with
the remaining amortisation period. No indicators of impairment were noted when
analysing at a fund management team level.
Notably, the largest other intangible asset has only two years left of its
amortisation period, resulting in the carrying amount being 30% of its
original value on inception.
The long-term investment performance for all investment teams was also
assessed.
11. Trade and other receivables
Current 2024 2023
£000 £000
Due from trustees/investors for open end fund redemptions/sales 84,516 113,310
Other trade debtors 596 374
Fees receivable 6,145 5,180
Prepayments 2,796 2,099
Corporation tax - 1,299
Other receivables 1,438 2,205
Total trade and other receivables 95,491 124,467
Non-current
Other receivables 204 482
Trade and other receivables are all classified as current. They are considered
past due once they have passed their contracted due date.
Non-current other receivables represent deferred compensation awards with
maturities greater than 12 months after the Consolidated Statement of
Financial Position date. Deferred compensation awards are released in
accordance with the employment period to which they relate.
12. Cash and cash equivalents
2024 2023
£000 £000
Cash at bank and in hand 35,882 37,863
Cash held in EBTs 30 79
Total cash and cash equivalents 35,912 37,942
13. Trade and other payables
2024 2023
£000 £000
Due to trustees/investors for open end fund creations/redemptions 84,439 112,541
Other trade payables 921 1,297
Other tax and social security payable 1,761 1,765
Accruals 8,842 11,496
Pension contributions 127 116
Corporation tax 258 -
Other payables 2,582 1,338
Total trade and other payables 98,930 128,553
Trade creditors and accruals principally comprise amounts outstanding for
trade purchases and ongoing costs. The Group has financial risk management
policies in place to ensure that all payables are paid within the pre-agreed
credit terms.
Accruals include amounts for variable remuneration of £6.6 million (2023:
£8.4 million).
Other payables relate predominantly to amounts due to outsource providers for
administrative services provided to the Group's funds. In addition to this,
included within other payables is £755,208 (2023: £nil) of contingent
consideration for the Tellworth acquisition, see note 10 for further details.
14. Provisions
2024 2023
£000 £000
At 1 October 374 374
Movement in the year - -
At 30 September 374 374
Current - -
Non-current 374 374
374 374
Provisions relate to dilapidations for the offices at 6th Floor, Paternoster
House, London, the lease on this property runs to 28 November 2028 and the
provision for dilapidations on this office has been disclosed as non-current.
This provision is based on prices quoted at the time of the lease being taken
on.
15. Share capital
2024 allotted, called up and fully paid: Ordinary shares 0.02 pence each Number Deferred shares Number
Number of shares
At 1 October 2023 157,913,035 1
Issued 4,167,532 -
At 30 September 2024 162,080,567 1
2023 allotted, called up and fully paid: Ordinary shares 0.02 pence each Number Deferred shares Number
Number of shares
At 1 October 2022 157,913,035 1
Movement in the year - -
At 30 September 2023 157,913,035 1
2024 allotted, called up and fully paid: Ordinary shares Deferred Total
shares
Value of shares 0.02 pence each
£000 shares
£000
£000
At 1 October 2023 31 29 60
Movement in the year 1 - 1
At 30 September 2024 32 29 61
2023 allotted, called up and fully paid: Ordinary shares Deferred Total
shares
Value of shares 0.02 pence each
£000 shares
£000
£000
At 1 October 2022 31 29 60
Movement in the year - - -
At 30 September 2023 31 29 60
On 30 January 2024 the Company completed the acquisition of Tellworth Investments LLP. As part of the consideration the Company issued 4,167,532 new ordinary shares of 0.02 pence each ranked pari passu in all respects with the Company's existing shares in issue and gave rise to the movement in the share premium account recognised in the year.
The deferred share carries no voting rights and no right to receive a dividend.
16. Share-based payments
The total charge to the Consolidated Statement of Comprehensive Income for
share-based payments in respect of employee services received during the year
to 30 September 2024 was £3,360,560 (2023: £4,720,721), of which £2,644,244
related to nil cost contingent share rights (2023: £3,953,896).
17. Dividends declared and paid
2024 2023
£000 £000
Equity dividends on ordinary shares:
- Interim dividend: 3.0 (2023: interim 3.0) pence per share 4,640 4,454
- Final dividend for 2023: 3.0 (2022 final 6.3) pence per share 4,413 9,147
Dividends paid 9,053 13,601
The Directors recommend a final dividend of 3.0p per share (2023: 3.0p)
payable on 14 February 2025 to shareholders on the register as at 17 January
2025.
18. Reconciliation of net cash from operating activities
This note should be read in conjunction with the cash flow statement. It
provides a reconciliation to show how profit before tax, which is based on
accounting rules, translates to cash flows.
Notes
2024 2023
£000 £000
Profit for the year 1,884 3,676
Adjustments to reconcile profit to net cash flow from operating activities:
- Tax on continuing operations 8 1,283 2,190
- Finance (income) 7 (804) (168)
- Interest payable on leases 86 27
- Depreciation - fixed assets 233 335
- Depreciation - leases 514 525
- (Gain) on revaluation of financial assets at fair value through profit and (37) (82)
loss
- Loss on disposal of property and equipment - 250
- Amortisation of intangible assets 10 5,098 4,861
- Share-based payments 16 3,361 4,721
Working capital changes:
- Decrease in trade and other receivables 29,294 11,807
- Decrease in trade and other payables (32,363) (20,267)
Cash generated from operations 8,549 7,875
Tax paid (604) (2,043)
Net cash flow from operating activities 7,945 5,832
19. Contingent liabilities
There were no contingent liabilities as at 30 September 2024 other than the
contingent consideration referenced in note 10 for the acquisition of
Tellworth Investments LLP (2023: nil).
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