GlobeOp Interim results for the six months ended 30 June 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 hedge funds and other targeted sectors of the financial services industry, today announces its interim results for the six months ended 30 June 2010.
* Assets under Administration (AuA) increased 10% in first half of 2010 to $120 billion as at 30 June 2010, and increased 43% since 30 June 2009
* Revenues grew 13% to $89.4 million versus $79.2 million in first half
* 60% increase in adjusted operating profit to $25.4 million
* Adjusted operating profit margin expanded to 28.4% of revenues versus 20.0% in first half 2009
* Cash of $60.2 million as at 30 June 2010 compared to $53.6 million as at 30 June 2009
* Increase in interim dividend to 1.00 pence per share, up 54% versus first half 2009
* Added strategic new business - lift-out agreement with $14.6 billion client in July 2010
Commenting on the results, Hans Hufschmid, chief executive officer,
"GlobeOp performed very well during the first half of the year. Revenue growth resumed and adjusted operating profit increased 60% compared to the first half of 2009. We also continued to leverage our highly efficient operating model, evidenced by our record level of adjusted operating profit margin of 28.4% and significant cash flow generation.
Once again we grew our AuA, as markets continue to recover, with subscriptions up 150% to $20 billion and redemptions down almost 50% from the first half of last year. We also added $5 billion of AuA coming from new clients and new funds with existing clients. By the end of June, AuA totalled $120 billion, an increase of 43% in the past year."
Commenting on the second half of 2010, Mr. Hufschmid added:
"We are proud of our recent achievements and excited by the opportunities for growth as we continue to expand into new areas. An indication of this is the addition of the $14.6 billion lift-out client that we won in late June. This mandate, which will add to revenue in the second half of 2010, demonstrates the breadth of our business and the potential opportunities for GlobeOp. Nevertheless, while we will seek to leverage our fundamental capabilities more broadly across the financial services industry, we recognise the importance of consistently investing in our operations whilst maintaining superior service levels and providing valuable solutions for new and existing clients. As a result, we believe we are well positioned for a successful 2010 and we are in line with external expectations for the year."