13 Apr 2012
GlobeOp Financial Services S.A. ("GlobeOp®" or "the Company", LSE:GO.), a leading independent provider of business process outsourcing, financial technology services and analytics to the hedge fund industry and other targeted sectors of the financial services industry, today publishes its Interim Management Statement covering the period since 31 December 2011. Unless otherwise stated, figures are for the quarter ended 31 March 2012.
Trading for the first quarter was in line with management’s expectations. Revenues, adjusted operating profit1 and cash flows were strong. Assets under Administration (AuA) increased $13 billion to a record total of $187 billion2 as at 31 March 2012 from $174 billion at 31 December 2011.
During the first quarter, GlobeOp attracted nine new middle and back office, fund administration (MBA) clients with an aggregate $5 billion of AuA. Existing clients launched new funds with $2 billion of AuA while client investor subscriptions totaled $16 billion for the quarter versus redemptions and terminations of $16 billion. Fund performance added $5 billion to client asset balances for the period and there was a $1 billion increase in client AuA due to the impact of foreign exchange rates on non-US dollar-denominated funds. The average yield of MBA revenue relative to AuA remained approximately 12 basis points.
Hans Hufschmid, chief executive officer, said: “We are pleased with our growth so far this year. We added new business throughout the first quarter. Costs remain under control and profit margins continue to be strong. We officially opened the fourth office in our Mumbai network, further increasing capacity to meet growing client service demand. We also hosted a very successful conference on Form PF in New York City during late March that demonstrated our ability to help clients meet expanding regulations and reporting requirements.”
The Company’s financial position remains strong. Cash totaled $112 million (unaudited) as at 31 March 2012, an increase of $39 million, or 53%, since March 2011.
So far in April subscriptions into clients’ funds have totaled $4 billion and have been offset by redemptions and terminations of a similar amount. Looking ahead, although global economic uncertainty remains, we are encouraged by recent industry performance and we continue to see a broad range of revenue opportunities. GlobeOp’s pipeline of new client business is solid and we are targeting revenue growth from new initiatives such as Form PF reporting. In the coming months, we will maintain investments to exploit these opportunities but we will also continue to prudently manage our cost structure. We believe we are well positioned for a successful year in 2012.
1 A non-IFRS financial measure that is calculated by the Company as operating profit prior to depreciation and amortization expense, employee costs related to share-based compensation, integration and redundancy costs and costs related to the Company’s strategic review process.
2 Assets under Administration. Consistent with past disclosure the performance of clients’ funds for the current month is not included in the measurement of AuA at the end of that month. Thus, March 2012 client fund performance is not within the 31 March 2012 figure.
|GlobeOp Financial Services|
|Martin Veilleux, Chief Financial Officer||(US) +1 646 827 2000|
Gill Ackers / Sheena Shah
|(UK) +44 (0)20 7404 5959|
Notes to Editors — About
GlobeOp Financial Services (LSE:GO.) is an independent financial administrator specializing in middle and back office services and integrated risk reporting to hedge funds, asset management firms and other sectors of the financial industry -- including family wealth offices, banks, insurance companies, pension funds and corporate treasuries. By outsourcing to GlobeOp, clients can reduce their technology investments and operational risks, while increasing their focus on asset generation and portfolio management. Established in 2000, GlobeOp's innovative scope of services is engaged by approximately 200 clients worldwide representing $187 billion in assets under administration. Headquartered in London and New York, GlobeOp employs over 2,300 people on three continents through its 11 offices in the Cayman Islands, India, Ireland, the UK and U.S. Further information: www.globeop.com; www.twitter.com/GlobeOp; www.globeopindex.com.
® 2012 - GlobeOp Financial Services LLC (GlobeOp). All rights reserved. GlobeOp and the GlobeOp "G" are trade and service marks of GlobeOp and its affiliates.
Certain statements in this announcement are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends or activities should not be taken as representation that such trends or activities will continue in the future. Accordingly, undue reliance should not be placed on forward looking statements.