Annual Report for the year ended 31 December 2008

More documents

Recommendations

Info

Evolution Securities aims to be the leading investment bank, advising small and mid cap uK public companies with over 75 retained corporate clients to whom it provides corporate finance advice and corporate broking services. its increasing secondary markets business is focused on servicing institutional investors through its teams in equity research, sales and sales trading, market making and fixed income. Evolution securities limited is authorised and regulated by the Financial services Authority. SUmmARY OF KEY INFORmATION SECTION 1 CONSOLIdATEd FINANCIAL STATEmENTS 02 CHAiRMAN’s sTATEMENT 04 CHiEF ExECuTivE’s REpORT 10 FiNANCiAl REviEW 16 THE BOARD 18 DiRECTORs’ REpORT Williams de Broë is one of the uK’s leading firms of investment managers with a business built on the core values of personal service, bespoke portfolio services, a sound investment process, true independence and professional partnerships. Williams de Broë limited is authorised and regulated by the Financial services Authority. 24 CORpORATE GOvERNANCE 30 REpORT FROM THE CHAiRMAN OF THE AuDiT COMMiTTEE 31 DiRECTORs’ REMuNERATiON REpORT 39 iNDEpENDENT AuDiTORs’ REpORT 40 FiNANCiAl sTATEMENTs 44 NOTEs TO THE FiNANCiAl sTATEMENTs B THE EvOluTiON GROup plC ANNuAl REpORT & ACCOuNTs 2008 Evolution Securities China is a specialist Chinese investment banking business with offices in london, Hong Kong and shanghai. it offers institutional clients research and trading in listed Chinese stocks and provides Chinese corporates with access to the capital markets of london and Hong Kong. Restated 6 31 December 2008 31 December 2007 £’000 £’000 ToTal income1 (before fee and commission expenses) 65,161 87,475 adjusTed profiT before Tax from conTinuing operaTions2 1,894 22,131 sTaTuTory (loss)/profiT before income Tax from conTinuing operaTions (12,698) 3,182 adjusTed earnings from conTinuing operaTions2 2,902 17,791 (loss)/profiT for The year from ToTal operaTions (13,496) 3,202 adjusTed basic earnings per share from conTinuing operaTions2 1.36p 8.48p basic/(loss) earnings per share from ToTal operaTions (6.02p) 1.42p SECTION 2 PARENT COmPANY FINANCIAL STATEmENTS 77 THE EvOluTiON GROup plC pARENT COMpANY ACCOuNTs 98 DiRECTORs AND ADvisORs
FINANCIAL ANd OPERATIONAL HIGHLIGHTS strong progress in developing the Group and rebalancing income streams to produce recurring revenues. Robust performance against peer group in exceptionally challenging markets. Total Group income (before fee and commission expenses) 1 of £65.2m, down 25% from £87.5m in 2007. Adjusted profit before tax from continuing operations 2 of £1.9m down 91% from £22.1m 6 in 2007. statutory loss before income tax from continuing operations £12.7m (2007: statutory profit before tax £3.2m 6 ). Continued Balance sheet strength with net assets at £147.2m (2007: £155.3m) of which cash is £125.3m (2007: £122.7m), and of this £125.3m, £10.4m relates to third party investors within the WDB Capital uK Equity Fund limited. in March 2009 the Group re-entered the FTsE 250. increase in final dividend of 2% to 1.27p (2007: 1.25p) following an interim dividend paid on 24 October 2008 of 0.75p (2007: 0.67p), giving a total dividend for the year of 2.02p, which has increased by 5% from prior year (2007: 1.92p). We believe the Group is capable of riding out the continuing difficult conditions and is well positioned for the future. WILLIAmS dE BROë 3 Assets under management up 21% to a record level of £3.4bn (2007:£2.8bn) and income 1 up 10% to £35.7m (2007:£32.6m). Completed the acquisition of singer & Friedlander investment management business on 21 October 2008 acquiring over £1bn of clients under management. The new Edinburgh office was opened in April 2008, this has seen strong growth in assets under management; that is expected to continue into 2009. Adjusted profit before tax 2 of £4.8m decreased by 28% from £6.7m in 2007. The decline in profitability during the year was primarily due to higher initial costs relating to the new Edinburgh and singer & Friedlander teams. Despite the exceptionally challenging environment, the WDB Capital uK Equity Fund limited 3 fund achieved a net positive return of 14.26% since inception in september 2007, and a net positive return of 9.53% in 2008. Based on this performance the fund was nominated in the “New Fund of the Year” Category for 2008 at the EuroHedge awards. 1 Represents total income before fee and commission expenses. 2 Adjusted operating profit from continuing operations, adjusted profit before tax from continuing operations, adjusted earnings from continuing operations and adjusted basic earnings per share are defined in the Financial Review section on pages 10 and 11. 3 The results of Williams de Broë are defined as those arising from Williams de Broë limited (“WdB”), Williams de Broë Management Company limited and from WDB Capital limited, including the consolidated results of the WDB Capital uK Equity Fund limited. FINANCIAL ANd OPERATIONAL HIGHLIGHTS THE EVOLUTION GROUP PLC 01 THE EvOluTiON GROup plC EVOLUTION SECURITIES 4 Continued successful rebalancing of primary and secondary market activities – realigning profile towards mid-cap brokerage with increased market share in both FTsE 100 and FTsE 250 stocks. With a back drop of the third worst year in stock market history seeing the FTsE All-share fall by 32.78% Evolution securities’ achieved income 1 of £29.8m down 46% from £54.7m in 2007. Expansion of the fixed income franchise saw income 1 increase by 97% to £7.1m from £3.6m. During the first few months of 2009 the expansion of this desk has continued with further key hires. The business reduced its annualised cost base by £7.2m or 14% during the year as part of an ongoing programme to drive efficiency through to the bottom line and streamline the business. The fully annualised benefit of these savings will not been seen until 2009. EVOLUTION SECURITIES CHINA 5 The results of Evolution securities China (loss after tax £2.5m) (2007: profit £0.4m 6 ) are shown as discontinued in the Consolidated Financial statements. On 31 March 2009 the Group completed an agreement with First Eastern Financial Holdings limited (“First Eastern”) whereby First Eastern holds no less than 51% of the ordinary share capital of Evolution securities China. The Group retains approximately 48.5% of the ordinary share capital. The agreement combines the strengths of the Company’s well financed and independent position in london with First Eastern’s considerable experience and proprietary deal flow in the Chinese market. We look forward to capitalising on this unique combination of proven expertise, in both the uK & Far East, that this joint relationship has to offer and which is expected to yield significant opportunities between China and Europe in 2009 and beyond. CURRENT TRAdING UPdATE very encouraging trading in the first quarter, which has been achieved almost completely from our recurring based revenue streams. We continue to recruit and retain quality people to grow the business, while managing Group costs effectively. 4 The results of Evolution securities are defined as those arising from Evolution securities limited (“Esl”) and its subsidiary Evolution securities (us) inc. (“Esus”). 5 The results of Evolution securities China are defined as those arising from Evolution securities China limited (“EsCl”) and its subsidiary Evolution Watterson securities limited (“EWsl”). 6 2007 results have been restated due to EsCl results being treated as a discontinued operation in 2008 following the Board's decision to partly dispose of a controlling interest in the business (see Note 1 accounting policies for details of restatements).
Page 1: Yesterday Today Tomorrow... ANNUAL
Page 5 and 6: Balance Sheet strength and cash bal
Page 7 and 8: evolution securities Evolution secu
Page 9 and 10: Corporate Finance Evolution securit
Page 11 and 12: Wdb capital The Group’s investmen
Page 13 and 14: EARNINGS PER SHARE ON TOTAL OPERATI
Page 15 and 16: evolution securities’ income anal
Page 17 and 18: other activities The Group’s othe
Page 19 and 20: Lord macLaurin of Knebworth, dL (72
Page 21 and 22: principal risks and uncertainties T
Page 23 and 24: share capital Details of the change
Page 25 and 26: The Directors consider that in prep
Page 27 and 28: The Chief Executive, Alex snow, is
Page 29 and 30: The Committee observed that during
Page 31 and 32: appropriate and comprehensive proce
Page 33 and 34: The Board has delegated to the Remu
Page 35 and 36: The concept of a bonus ceiling does
Page 37 and 38: non-executive directors Non-executi
Page 39 and 40: On 8 April 2009, Alex snow was awar
Page 41 and 42: We have audited the Consolidated Fi
Page 43 and 44: ASSETS 2008 2007 Note £’000 £
Page 45 and 46: 2008 2007 £’000 £’000 (loss)/
Page 47 and 48: shareholding of more than one half
Page 49 and 50: ) Distribution channels and custome
Page 51 and 52: (b) Share-based plans The Group’s
Page 53 and 54:
Risk Reporting The Group Board rece
Page 55 and 56:
Neither past Past due but not impai
Page 57 and 58:
By business segment (continued) The
Page 59 and 60:
6. otHeR inCome Restated 2008 2007
Page 61 and 62:
11. aUditoRs’ RemUneRation During
Page 63 and 64:
14. inCome taX eXPense (CONTINuED)
Page 65 and 66:
18. intanGiBle assets notes to tHe
Page 67 and 68:
20. deFeRRed inCome taX (CONTINuED)
Page 69 and 70:
24. tRadinG PoRtFolio assets notes
Page 71 and 72:
31. Consolidated moVement in sHaReH
Page 73 and 74:
33. CasH FloW FRom oPeRatinG aCtiVi
Page 75 and 76:
38. emPloYee sHaRe sCHemes Movement
Page 77 and 78:
38. emPloYee sHaRe sCHemes (CONTINu
Page 79 and 80:
THE EVOLuTION GROuP PLC PARENT COMP
Page 81 and 82:
ASSETS ComPanY BalanCe sHeet AS AT
Page 83 and 84:
statement oF ReCoGnised inCome and
Page 85 and 86:
1. aCCoUntinG PoliCies (CONTINuED)
Page 87 and 88:
2. FinanCial instRUments and RisK m
Page 89 and 90:
2. FinanCial instRUments and RisK m
Page 91 and 92:
5. inVestment in sUBsidiaRies notes
Page 93 and 94:
10. CasH and CasH eQUiValents 2008
Page 95 and 96:
17. Post BalanCe sHeet eVents There
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
FoR YoUR notes 99
Page 103 and 104:
DesiGneD AnD proDuceD BY BesT&co. l
show all

Annual Report for the year ended 31 December 2008

Create successful ePaper yourself

Delete template?

Save as template?