GlobeOp Posts Record Year in 2010, Positive Outlook for 2011

2 March 2011

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 announces its preliminary results for the year ended 31 December 2010.

• Assets under Administration (AuA) increased 37% in 2010 to $149 billion as at 31 December 2010 versus $109 billion at the end of the prior year
• Revenues grew 21% to $189.3 million in 2010 versus $156.5 million in the prior year
• Adjusted operating profit increased 52% to $56.1 million in 2010
• Adjusted operating profit margin expanded to 29.6% of revenues in 2010 compared to 23.5% in 2009
• Record net income of $33.7 million and earnings per share of $0.30
• Cash of $73.3 million as at 31 December 2010 versus $42.6 million the prior year
• 122% increase in final dividend to 3.00 pence per share in the current year
• Substantial new business added in 2010 - including expansion to adjacent markets
• Strong start to 2011 with existing clients and new customers

Commenting on the 2010 results, Hans Hufschmid, Chief Executive Officer, said:
"I am pleased to report excellent results for the year. GlobeOp achieved record performance across our key financial metrics. Revenues totaled $189.3 million in 2010, an increase of 21% versus 2009. Adjusted operating profit grew 52% to $56.1 million in 2010 and adjusted operating profit margin expanded to 29.6%. Assets under Administration (AuA) closed the year at $149 billion, an increase of 37% over the prior year. Cash flow from operations totaled $43 million in 2010 and GlobeOp ended the year with over $73 million in cash. In addition to these financial achievements GlobeOp also had a very successful year strategically.

Throughout 2010 GlobeOp added significant new business. The year began with the conversion of a $1 billion AuA client from a competitor and ended with a $300 million new launch for the proprietary trading desk of a bulge bracket investment bank. Mid-year we commenced our landmark lift-out mandate with European Credit Management Limited ("ECM"), a subsidiary of Wells Fargo. We were also selected by Morgan Stanley to provide MBA services for their ALPHAS managed account platform and we added General Motors' treasury department as a Transaction Solutions client. More recently we began providing risk and administration services for two divisions of a global investment bank and asset manager.

Coupled with GlobeOp's significant strategic new business additions in 2009, the mandates won during 2010 demonstrate the broad appeal of our solutions and the expansion of our marketplace. Moreover, the heightened rigor of the vendor selection process utilized by new clients over the past year aligns well with GlobeOp's focus on client satisfaction and continuing investments in technology and people.

Looking ahead, we see an expanding array of revenue opportunities and a strong pipeline of new business. 2011 has begun well, with positive aggregate net inflows for our clients' funds in both January and February. We have also added new business with our existing clients. In addition, in late 2010 we contracted with a major European re-insurance specialist to commence OTC processing services (Transaction Solutions) in early 2011 and we recently signed a new $1.5 billion MBA client who is scheduled to convert onto the GlobeOp platform during the second quarter. We are optimistic about our growth prospects for the year."

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