Results for the year ended 31 December 2006
Financial highlights
· Adjusted operating profit* up 16% to £1,459 million (2005:
(IFRS basis): £1,261 million)
· Adjusted operating profit (European up 22% to £1,687 million (2005:
Embedded Value (EEV) basis): £1,387 million)
· Profit for the financial year £836 million (2005: £867 million)
attributable to equity holders of the
parent (IFRS basis):
· Adjusted operating earnings per down 18% to 15.1p (2005: 18.5p)
share* (IFRS basis):
· Adjusted operating earnings per down 14% to 17.8p (2005: 20.7p)
share (EEV basis):
· Basic earnings per share (IFRS 17.0p (2005: 25.1p)
basis):
· Net cash flow in relation to funds under management of £24 billion
(2005: £13 billion)
· Funds under management of £239 billion at 31 December 2006 (2005:
£182 billion), an increase of 31%
· Total life assurance sales, on an EEV Annual Premium Equivalent (APE)
basis, of £1,535 million,
an increase of 137% (2005: £648 million)
· Adjusted embedded value per share 157.2p at 31 December 2006 (2005:
(EEV basis): 174.0p)
· Recommended final dividend up 13.7% to 4.15p (58c)**
Old Mutual plc
Results for the year ended 31 December 2006 continued
Jim Sutcliffe, Chief Executive, commented:
“This set of results reflects a healthy overall performance from around
the group. Funds under management grew an impressive 31% with operating
profits benefiting both from a better than expected result from the
Skandia acquisition and from investment in our existing businesses.
Despite earnings being impacted by unfavourable currency translation
impact, our strong financial position has enabled us to declare a final
dividend increase of 13.7%.
The current year has started well. Although exchange rates, the cost of
investing to achieve synergies across Europe, and costs in Sweden and at
our South African life business to put these businesses on a sound basis
for the future will hold back earnings growth for 2007, we have an
excellent set of growing businesses and are clear about the tasks we
must complete. We are on track to achieve over £300 billion of funds
under management by the end of 2008, which should provide a solid basis
for substantial future earnings growth.”
26 February 2007
Wherever the items asterisked in the Highlights are used, whether in the
Highlights, the Chief Executive’s Statement or the Group Business
Review, the following definitions apply:
* For long-term and general insurance business, adjusted operating
profit is based on a long-term investment return, includes investment
returns on life funds' investments in Group equity and debt instruments
and is stated net of income tax attributable to policyholder returns.
For all businesses, adjusted operating profit excludes goodwill
impairment, the impact of acquisition accounting, initial costs of Black
Economic Empowerment schemes, the impact of closure of unclaimed shares
trusts, profit / (loss) on disposal of subsidiaries, associated
undertakings and strategic investments and dividends declared to holders
of perpetual preferred callable securities.
Adjusted operating earnings per ordinary share is calculated on the
same basis as adjusted operating profit. It is stated after tax
attributable to adjusted operating profit and minority interests. It
excludes income attributable to Black Economic Empowerment trusts of
listed subsidiaries. The calculation of the adjusted weighted average
number of shares includes own shares held in policyholders' funds and
Black Economic Empowerment trusts.
** Indicative only, being the Rand equivalent of 4.15p converted at the
exchange rate prevailing on 20 February 2007. The actual amount to be
paid by way of final dividend to holders of shares on the South African
branch register will be calculated by reference to the exchange rate
prevailing at the close of business on 19 April 2007, as determined by
the Company, and will be announced on 20 April 2007.
For further information on Old Mutual plc, please visit our website at
www.oldmutual.com.
Old Mutual plc
Results for the year ended 31 December 2006 continued
Enquiries
Investor Relations
Malcolm Bell UK +44 (0)20 7002 7166
Deward Serfontein SA +27 (0)11 523 9616
Media
James Crampton UK +44 (0)20 7002 7133
Nad Pillay SA + 27 (0)21 504 8026
College Hill (UK)
Tony Friend UK +44 (0)20 7457 2020
Gareth David UK
Forward-looking statements
This announcement contains forward-looking statements with respect to
certain of Old Mutual plc’s plans and its current goals and expectations
relating to its future financial condition, performance and results. By
their nature, all forward-looking statements involve risk and
uncertainty because they relate to future events and circumstances that
are beyond Old Mutual plc’s control, including, among other things, UK
domestic and global economic and business conditions, market-related
risks such as fluctuations in interest rates and exchange rates,
policies and actions of regulatory authorities, the impact of
competition, inflation, deflation, the timing and impact of other
uncertainties or of future acquisitions or combinations within relevant
industries, as well as the impact of tax and other legislation and other
regulations in territories where Old Mutual plc or its affiliates
operate.
As a result, Old Mutual plc’s actual future financial condition,
performance and results may differ materially from the plans, goals and
expectations set forth in Old Mutual plc’s forward-looking statements.
Old Mutual plc undertakes no obligation to update any forward-looking
statements contained in this announcement or any other forward-looking
statements that it may make.
Notes to Editors:
A webcast of the analyst presentation and Q&A will be broadcast live at
9.30 a.m. (UK time), 10.30 a.m. (Swedish time), and 11.30 a.m. (South
African time) today on the Company’s website, www.oldmutual.com. Copies
of these results and the associated analyst presentation, together with
high-resolution images (at http://oldmutual.com/vpage.jsp?page_id=2220)
and biographical details of the executive directors of Old Mutual plc,
are available in electronic format to download from the Company’s
website. An interview with Jim Sutcliffe, Chief Executive, Old Mutual in
video/audio and text is now available on the Company’s website and on
http://www.cantos.com.
The 2006 preliminary results Financial Disclosure Supplement can be
found on the website. This contains a summary of key financial data for
2006 and 2005.
Results for the year ended 31 December 2006
| Source: Old Mutual plc
Attachments
