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"This has been a year of strategic and operational delivery for Old Mutual despite the tough macro-economic environment. We have produced strong financial results and have taken significant steps in executing our strategic plan.
"Old Mutual has a strong base from which to drive growth. We have exposure to fast growing emerging markets, which we expect to continue to perform well in 2012, and specialist, low-risk businesses in Europe where we also anticipate growth albeit in tougher market conditions. These are markets in which we have significant expertise and where we see the opportunity for profitable growth, and together with our financial strength and flexibility, will allow us to continue to deliver value to our shareholders."
Julian Roberts - Group Chief Executive
View Preliminary Results Announcement
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Highlights
| Financial Summary1 |
2011
|
Movement
|
| Adjusted operating profit before tax (IFRS basis)* |
£1,515m
|
14%
|
| Adjusted operating earnings per share (IFRS basis)** |
15.7p
|
13%
|
| Net client cash flows - LTS |
£3.2bn
|
£(1.1)bn
|
| Net client cash flows - USAM2 |
£(4.2)bn
|
£4.0bn
|
| Funds under management |
£267.2bn
|
(5)%
|
| Group return on equity |
14.6%
|
+40bps
|
| Dividend - Final |
3.5p
|
21%
|
| Dividend - Interim |
1.5p
|
36%
|
| Total profit after tax attributable to equity holders of the parent |
£667m
|
+£949m
|
| Adjusted Group MCEV per share |
194.1p
|
(8.1)p
|
| Surplus generated3 |
£986m
|
+£238m
|
- Except for total profit after tax and adjusted Group MCEV per share, all figures in the table are in respect of core continuing businesses only and the 2010 comparatives have been restated accordingly. Nordic was classified as a discontinued business in 2011 as it is subject to a sale agreement. Percentage movements are shown on a constant currency basis.
- USAM excludes NCCF from Dwight, Lincluden and OMCAP, which were sold or held for sale at 31 December 2011.
- Surplus generated is the adjusted net worth of the operating business units not required to support capital requirements.
Strong financial performance
- Profits up 14% at £1,515 million
- EPS up 13% to 15.7p
- Ordinary dividend up 25% to 5.0p
Positive foundation for growth
- Selected, high-return emerging markets: increasing Africa presence anchored by three strong South African businesses
- Low-risk, modern European business: leading UK platform, £20.1 billion FUM at 29 February, well positioned for Retail Distribution Review
- Our FGD surplus of £2.0 billion and liquidity headroom of £1.5 billion enables us to invest for profitable growth and reward shareholders
Strategic activities continue to pay dividends for shareholders
- Disposal of Nordic and Finnish businesses; closure of Switzerland to new business; disposal of Dwight and OMCAP
- Proposed special dividend of 18p; 7 for 8 share consolidation
- On track to meet or exceed all our 2012 targets