Press Releases - 2010
Interim Management Statement
27 Apr 2010
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 2009. Unless otherwise stated, figures are for the quarter ended 31st March 2010.
Financial Performance Update
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
to a record total of $115 billion2 as at 31 March 2010
from $109 billion at 31 December 2009.
The positive trends experienced in the second half of 2009 have continued so far in 2010. New clients brought $2 billion of assets to our platform during the first quarter, while existing clients launched funds totaling another $1 billion. Client subscriptions totaled $11 billion, partially offset by redemptions of $9 billion. Fund performance added nearly $2 billion to client asset balances.
Hans Hufschmid, chief executive officer, said: "We are very pleased with our financial performance so far this year. The momentum generated in the second half of last year has continued to positively impact our results. During the first quarter we added 12 new clients to our middle-, back-office and fund administration (MBA) business and subscriptions into client funds registered their fifth consecutive sequential quarterly gain. MBA growth was augmented by additional Transaction Solutions revenue. Costs remain well within our expectations and we have continued to see excellent operating leverage."
Financial Position
The Company’s financial position remains strong. Cash
exceeded $47 million (unaudited) as at 31 March 2010 – up $5
million since December 2009. The Company will make a dividend
payment relating to 2009 on 27 May 2010 totaling approximately $2.1
million.
Outlook
Recent favorable trends across the hedge fund industry and amongst
our clients have extended into the second quarter of 2010. Our new
client pipeline continues to be promising and we are exploring an
expanding array of business opportunities. We are making excellent
progress toward meeting our key financial targets. We are well
positioned for growth and remain optimistic about 2010.
Notes:
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 and legal claims and tax reserves.
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 2010 client fund performance is not within the 31 March 2010 figure.
Enquiries
GlobeOp Financial Services
Martin Veilleux, Chief Financial Officer
(US) +1 646 827 2000
Brunswick Group
Gill Ackers / Roberta Governale
(UK) +44 (0)20 7404 5959
Notes to Editors — About
GlobeOp
GlobeOp Financial Services (LSE:GO.) is a
leading, independent financial technology specialist providing
automated, integrated middle- and back-office, administration and
risk reporting services to hedge funds and asset management
firms-including banks, insurance companies, mutual & pension
funds and proprietary traders. Clients trading a wide range of
asset classes and derivatives outsource to GlobeOp to reduce
technology investments and operational risks, and to focus
resources on asset generation and portfolio management. Established
in 2000, GlobeOp serves approximately 190 clients worldwide,
representing $115 billion in assets under administration (AuA).
With headquarters in London and New York, GlobeOp employs
approximately 1,600 people on three continents; offices are also
located in Dublin, Ireland; George Town, Cayman Islands; Harrison
and Yorktown Heights, NY and Hartford, CT, U.S.A.; and Mumbai
(Bombay), India. Further information:
www.globeop.com
® 2010 - GlobeOp Financial Services LLC (GlobeOp). All rights reserved. GlobeOp and the GlobeOp "G" are trade and service marks of GlobeOp and its affiliates.
Important notice
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.