TIDMCLIG
RNS Number : 6075F
City of London Investment Group PLC
16 July 2019
City of London Investment Group PLC
16 July 2019
The information contained within this announcement is deemed by
the Group to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
CITY OF LONDON INVESTMENT GROUP PLC
("City of London" or "the Group" or "the Company")
PRE-CLOSE TRADING UPDATE for the year to 30 June 2019
City of London (LSE: CLIG), a leading specialist asset
management group focused on emerging markets and closed-end funds,
provides a pre-close trading update for its financial year ended 30
June 2019. The numbers that follow are unaudited.
Funds under management were US$5.4 billion (GBP4.2 billion) at
30 June 2019 (2018: US$5.1 billion or GBP3.9 billion), representing
a 6% increase in US$ terms for the year. A breakdown by strategy
follows:
FuM ($mn) Strategy Index
Jun-19 Jun-18 % Net %
(estimate) inc/dec Flows inc/dec
EM 4,221 4,207 0% (184) MSCI EM 1%
DEV 729 481 52% 253 MSCI ACWI 6%
ACWI/Barclays Global
OV* 233 174 34% 48 Agg 6%
Frontier 206 245 -16% (21) MSCI Frontier 5%
5,389 5,107 96
---------- -------------- -------------- -------- --------- --------------------- --------
*Opportunistic Value formerly Global Tactical Asset Allocation,
GTAA
Funds under Management excludes seed investments
The core EM strategy outperformed (by approximately 300 bps, net
of fees) for the full year as discounts narrowed and country
allocation was positive. The Developed, Opportunistic Value
(formerly GTAA) and Frontier strategies all recorded negative
relative performance due to a combination of negative NAV and
country allocation effects.
The Group's overhead for the year to 30 June 2019 is expected to
be GBP12.9 million (2018: GBP12.5 million) and the current monthly
run-rate is c GBP1.1m.
For the year to 30 June 2019, the Group expects that pre-tax
profits will be approximately GBP11.4 million, including NCI profit
of GBP0.2million, (2018: GBP12.8 million, NCI nil). Profits after
an anticipated tax charge of GBP2.4 million (21% of pre-tax
profits) will be approximately GBP9.0 million (2018: profits of
GBP10.1 million after a tax charge of GBP2.7 million, representing
21% of pre-tax profit) of which GBP8.8m will be attributable to
shareholders of the Company. Basic and fully diluted earnings per
share are expected to be 34.9p and 34.1p respectively (2018: 39.5p
and 39.3p).
The Board is recommending a final dividend of 18p per share
(2018: 18p). This would bring the total dividend payment for the
year to 40.5p, including the special dividend of 13.5p paid in
March (2018: 27p, special nil). Dividend cover, excluding the
special dividend, equates to 1.3 times (2018: 1.47 times).
The Board confirms the final dividend timetable for the year to
30 June 2019:
-- ex-dividend date: 10 October 2019
-- dividend record date: 11 October 2019
-- payable: 29 October 2019
City of London expects to announce final results alongside
publication of its Accounts for the year to 30 June 2019 on 16
September 2019. The Group's Annual General Meeting will be held on
21 October 2019.
Template
Please see the attached graph which is based on the following
assumptions and includes the estimated cost of a maintained
dividend:
http://www.rns-pdf.londonstockexchange.com/rns/6075F_1-2019-7-15.pdf
Assumptions:
-- Starting point Current FuM (end June 2019)
-- Net increase in FuM in 2019/2020 (straight-lined to June 2020):
-- emerging market strategies zero
-- diversification strategies $250m
-- Operating margin adjusted monthly for change in product mix and commission run-off
-- Market growth: 0%
-- Increase in overheads: 0%
-- Increased "financing" cost due to IFRS16, net of interest income, GBP0.1m
-- EIP charge: 5% of operating profit (final year)
-- Corporation tax based on an estimated average rate of 21%
-- Exchange rate assumed to be GBP1/$1.27 for entire period
-- Number of CLIG Shares in issue (26.6m) less those held by the
Employee Benefit Trust (1.5m) as at 30 June 2019
This can also be found on our website at:
https://www.citlon.com/investor-relations/dividend-cover.php
For further information, please visit http://www.citlon.co.uk/
or contact:
Tom Griffith, CEO
City of London Investment Group PLC
Tel: 001 610 380 0435
Martin R Green
Zeus Capital Limited
Financial Adviser & Broker
Tel: +44 (0)20 3829 5000
This release includes forward-looking statements, which may
differ from actual results. Any forward-looking statements are
based on certain factors and assumptions, which may prove
incorrect, and are subject to risks, uncertainties and assumptions
relating to future events, the Group's operations, results of
operations, growth strategy and liquidity.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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