<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Act of 1934
For the month of October, 1999
AMVESCAP PLC
(Translation of registrant's name into English)
11 DEVONSHIRE SQUARE, LONDON EC2M 4YR, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F__X___ Form 40-F_____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2 (b) under the Securities Exchange Act of
1934.
Yes_____ No__X__
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2 (b): 82-
N/A
---
Description of document filed: AMVESCAP PLC Reports Results for
Quarter Ended 30 September 1999
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[AMVESCAP LOGO APPEARS HERE]
PRESS RELEASE
CONTACTS: ROBERT F. MCCULLOUGH ANGUS MAITLAND
Chief Financial Officer The Maitland Consultancy
404-724-4251 44-171-379-5151
AMVESCAP PLC REPORTS RECORD RESULTS
LONDON, OCTOBER 27, 1999 - AMVESCAP reported that profit before tax and
goodwill amortisation for the three months ended 30 September 1999 amounted
to (pound sterling)85.9 million ($141.7 million) compared to (pound
sterling)57.3 million ($97.4 million) for the third quarter of 1998, an
increase of 49.9%. Revenues increased to (pound sterling)276.6 million ($456.4
million) from (pound sterling)226.3 million ($384.7 million) in 1998. Diluted
earnings per share before goodwill amortisation amounted to 8.7p for the 1999
period (1998: 5.8p), an increase of 50.0% for the period. (NYSE: AVZ)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
RESULTS FOR THREE MONTHS ENDED
30 SEPT 1999+ 30 Sept 1998+ 30 SEPT 1999 30 Sept 1998
--------------- --------------- ---------------------- -----------------------
<S> <C> <C> <C> <C>
Revenues $456.4m $384.7m (pound sterling)276.6m (pound sterling)226.3m
Profit before tax and goodwill amortisation $141.7m $ 97.4m (pound sterling) 85.9m (pound sterling) 57.3m
Earnings per ordinary share before
goodwill amortisation:
--basic $ .75* $ .53* 9.1p 6.2p
--diluted $ .72* $ .49* 8.7p 5.8p
Earnings per ordinary share:
--basic $ .63* $ .41* 7.6p 4.8p
--diluted $ .60* $ .38* 7.3p 4.5p
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Per American Depositary Share, equivalent to 5 ordinary shares.
+ For the convenience of the reader, pounds sterling for the period
ended 30 September 1999 have been translated to US dollars using $1.65 per
(pound sterling)1.00 (1998: $1.70 per (pound sterling)1.00).
Revenues for the nine months ended 30 September 1999 amounted to
(pound sterling)776.7 million ($1,281.6 million) compared to (pound
sterling)580.2 million ($986.3 million) for the corresponding period of 1998.
Profit before tax, goodwill amortisation and exceptional item increased by
32.5% during the nine month period of 1999 to (pound sterling)231.8 million
($382.5 million) (1998: (pound sterling)174.9 million). Diluted earnings per
share before goodwill amortisation and
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exceptional item amounted to 23.5p (1998: 18.2p) for the nine months ended 30
September 1999, an increase of 29.1%.
The 1998 nine month period includes the results of the GT Global businesses from
1 June 1998 and includes an exceptional charge of (pound sterling)48.6 million
relating to the integration of the GT Global business activities.
Funds under management totaled $291.6 billion ((pound sterling)176.7 billion)
at 30 September 1999, a decline of 1.4%, for the third quarter of 1999. Average
funds under management during the third quarter were $291.8 billion
compared to $286.7 billion for the preceding quarter. Average funds under
management for the nine months ended 30 September 1999 were $285.4 billion,
an increase of $61.0 billion over the average funds in the nine months of
1998. Net new business amounted to $1.5 billion and $5.2 billion for the
third quarter and the nine months ended 30 September 1999.
Earnings before interest, taxes, amortisation and depreciation reached
(pound sterling)113.6 million ($187.4 million) and (pound sterling)313.1
million ($516.6 million) for the third quarter and nine months ended 30
September 1999. Net debt at 30 September 1999 amounted to (pound sterling)
502.8 million ($829.6 million), a decrease of (pound sterling)127.6 million
since the end of 1998 (excluding amounts held for deposit in the Company's
unit trusts).
"We are very pleased with the operating results for the third quarter and the
year," noted Mr. Charles W. Brady, Chairman and Chief Executive Officer.
"Our growth in new business is a result of our dedication to excellence in
investment performance and client service. We continue to be focused on the
fundamentals of our business and we are optimistic about the future, even
though the global capital markets remain volatile due to the uncertainty
surrounding interest rate levels," said Mr. Brady.
AMVESCAP is one of the world's largest independent investment managers,
operating under the AIM and INVESCO brand names. AMVESCAP is a holding
company offering a broad array of investment products and services to
institutions and individuals across all distribution channels. The Company
is listed on the London, New York, and Paris Stock Exchanges with the
symbol "AVZ."
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AMVESCAP PLC
Group Profit and Loss Account
(IN THOUSANDS)
THREE MONTHS ENDED
--------------------------------------
30 SEPT 30 Sept
1999 1998
----------------- --------------
(pound (pound
REVENUES sterling)276,571 sterling)226,344
Operating expenses (182,200) (157,817)
----------------- --------------
94,371 68,527
Goodwill amortisation (9,332) (8,553)
----------------- --------------
OPERATING PROFIT 85,039 59,974
Investment income 2,281 1,082
Interest payable (10,719) (12,263)
----------------- --------------
PROFIT BEFORE TAXATION 76,601 48,793
Taxation (27,933) (19,148)
----------------- --------------
(pound (pound
PROFIT AFTER TAXATION sterling)48,668 sterling)29,645
================= ==============
EARNINGS PER ORDINARY SHARE:
---basic 7.6p 4.8p
---diluted 7.3p 4.5p
EARNINGS PER ORDINARY SHARE
BEFORE GOODWILL AMORTISATION:
---basic 9.1p 6.2p
---diluted 8.7p 5.8p
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AMVESCAP PLC
Group Profit and Loss Account
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED 30 SEPT
------------------------------------
Year
1999 1998 1998
----------------- --------------- --------------
<S> <C> <C> <C>
(pound (pound (pound
REVENUES sterling)776,651 sterling)580,197 sterling)802,172
Operating expenses (518,303) (388,142) (544,856)
----------------- --------------- --------------
258,348 192,055 257,316
Exceptional item - integration -- (48,600) (48,600)
Goodwill amortisation (27,483) (11,409) (21,221)
----------------- --------------- --------------
OPERATING PROFIT 230,865 132,046 187,495
Investment income 7,428 8,542 12,183
Interest payable (34,002) (25,673) (38,200)
----------------- --------------- --------------
PROFIT BEFORE TAXATION 204,291 114,915 161,478
Taxation (75,332) (51,325) (67,373)
----------------- --------------- --------------
PROFIT AFTER TAXATION 128,959 63,590 94,105
Dividends (22,700) (18,947) (50,594)
----------------- --------------- --------------
(pound (pound (pound
RETAINED PROFIT FOR THE PERIOD sterling)106,259 sterling)44,643 sterling)43,511
================= =============== ==============
EARNINGS PER ORDINARY SHARE:
---basic 20.2p 10.7p 15.7p
---diluted 19.3p 10.0p 14.7p
EARNINGS PER ORDINARY SHARE
BEFORE GOODWILL AMORTISATION
AND EXCEPTIONAL ITEM:
---basic 24.5p 19.5p 26.0p
---diluted 23.5p 18.2p 24.3p
</TABLE>
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AMVESCAP PLC
Group Balance Sheet
(IN THOUSANDS)
30 SEPT 1999 31 Dec 1998
--------------- ---------------
FIXED ASSETS
(pound (pound
Tangible assets sterling)99,396 sterling)88,781
Investments 137,544 131,738
Goodwill 673,490 711,795
-------------- ---------------
910,430 932,314
-------------- ---------------
CURRENT ASSETS
Debtors 614,034 479,381
Investments 62,208 79,469
Cash at bank and in hand 162,193 119,651
-------------- ---------------
838,435 678,501
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR (666,905) (544,461)
-------------- ---------------
NET CURRENT ASSETS 171,530 134,040
-------------- ---------------
TOTAL ASSETS LESS CURRENT LIABILITIES 1,081,960 1,066,354
CREDITORS: AMOUNTS FALLING DUE
AFTER ONE YEAR
Long-term debt (621,534) (686,010)
Other creditors (5,524) (5,936)
-------------- ---------------
(627,058) (691,946)
PROVISIONS FOR LIABILITIES AND CHARGES (24,936) (43,438)
-------------- ---------------
(pound (pound
NET ASSETS sterling)429,966 sterling)330,970
============== ===============
CAPITAL AND RESERVES
(pound (pound
Called up share capital sterling)168,481 sterling)167,506
Share premium account 477,695 469,382
Other reserves (580,398) (563,847)
Profit and loss account 364,188 257,929
-------------- ---------------
(pound (pound
SHAREHOLDERS' FUNDS, EQUITY INTERESTS sterling)429,966 sterling)330,970
============== ===============
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AMVESCAP PLC
Group Cash Flow Statement
(IN THOUSANDS)
NINE MONTHS ENDED
----------------------------------
30 SEPT 1999 30 Sept 1998
---------------- --------------
(pound (pound
OPERATING PROFIT sterling)230,865 sterling)132,046
Amortisation and depreciation 74,856 38,812
Change in debtors, creditors and other (39,537) 66,955
--------------- --------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 266,184 237,813
--------------- --------------
Interest paid, net of investment income (16,577) (7,414)
Taxation (52,760) (40,214)
Capital expenditures, net of sales (37,590) (32,269)
Purchases of fixed asset investments,
net of sales (7,351) (18,984)
Acquisitions - (126,957)
Dividends paid (31,694) (25,862)
Net (repayment) incurrence of debt (78,744) 115,781
Foreign exchange on cash at bank
and in hand 1,074 (5,547)
--------------- --------------
(pound (pound
INCREASE IN CASH AT BANK AND IN HAND sterling)42,542 sterling)96,347
=============== ==============
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AMVESCAP PLC
Segmental Information
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED 30 SEPT 1999
--------------------------------------------------------
REVENUES EXPENSES OPER. PROFIT
----------------- --------------- ----------------
<S> <C> <C> <C>
(pound (pound (pound
Managed Products sterling)464,362 sterling)(251,680) sterling)212,682
US Institutional 128,257 (82,175) 46,082
INVESCO Global 162,034 (125,379) 36,655
Retirement and Benefit Services 21,998 (21,998) --
-------------- --------------- ----------------
776,651 (481,232) 295,419
Corporate -- (37,071) (37,071)
-------------- --------------- ----------------
776,651 (518,303) 258,348
Goodwill amortisation -- (27,483) (27,483)
-------------- --------------- ----------------
(pound (pound (pound
sterling)776,651 sterling)(545,786) sterling)230,865
============== =============== ================
</TABLE>
<TABLE>
<CAPTION>
Nine Months Ended 30 Sept 1998
--------------------------------------------------------
Revenues Expenses Oper. Profit
----------------- --------------- ----------------
<S> <C> <C> <C>
(pound (pound (pound
Managed Products sterling)360,499 sterling)(215,082) sterling)145,417
US Institutional 103,216 (60,536) 42,680
INVESCO Global 100,594 (78,982) 21,612
Retirement and Benefit Services 15,888 (17,014) (1,126)
-------------- --------------- ----------------
580,197 (371,614) 208,583
Corporate -- (16,528) (16,528)
-------------- --------------- ----------------
580,197 (388,142) 192,055
Goodwill amortisation -- (11,409) (11,409)
-------------- --------------- ----------------
(pound (pound (pound
sterling)580,197 sterling)(399,551) sterling)180,646
============== =============== ================
</TABLE>
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Notes
1. The taxation charge for the nine months ended 30 September 1999 is
estimated based on the total expected tax charge for the year. A
significant proportion of the charge is expected to arise from US
operations.
2. The Directors consider that profit before goodwill amortisation and
exceptional item is a more appropriate basis for the calculation of
earnings per ordinary share since this represents a more consistent
measure of operating performance.
<TABLE>
<CAPTION>
1999
-------------------------------------------------------------------
PROFIT BEFORE
GOODWILL AMORTISATION NUMBER OF SHARES PER SHARE
'000 '000 AMOUNT
--------------------- ---------------- -------------------
<S> <C> <C> <C>
(pound
Basic earnings per share sterling)156,442 638,818 24.5p
===================
Issuance of options -- 27,876
--------------------- ----------------
(pound
Diluted earnings per share sterling)156,442 666,694 23.5p
===================== ================ ===================
</TABLE>
<TABLE>
<CAPTION>
1998
-------------------------------------------------------------------
Profit before
Goodwill Amortisation
and Exceptional Item Number of Shares Per Share
'000 '000 Amount
--------------------- ---------------- -------------------
<S> <C> <C> <C>
(pound
Basic earnings per share sterling)115,799 593,001 19.5p
===================
Issuance of options -- 34,929
Conversion of loan note 472 10,886
--------------------- ----------------
(pound
Diluted earnings per share sterling)116,271 638,816 18.2p
===================== ================ ===================
</TABLE>
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AMVESCAP PLC
Funds Under Management
(IN BILLIONS)
<TABLE>
<CAPTION>
MANAGED PRODUCTS
----------------
TOTAL AIM INVESCO US INST GLOBAL RBS
----- --- ------- ------- ------ ---
<S> <C> <C> <C> <C> <C> <C>
31 Dec 1998 $275.4 $111.6 $22.9 $93.9 $40.8 $6.2
Market gains 11.8 5.9 1.8 1.0 2.9 0.2
Net new (lost) business 5.2 5.4 1.5 (4.7) 2.4 0.6
Change in US
Money Market Funds 1.6 1.6 -- -- -- --
Transfers -- (1.0) 0.2 (1.8) 2.5 0.1
Foreign Currency (0.4) 0.2 -- -- (0.6) --
Other* (2.0) -- -- -- (2.0) --
------------ ---------- ---------- ---------- ----------- ---------
30 SEPT 1999 $291.6 $123.7 $26.4 $88.4 $46.0 $7.1
------------ ---------- ---------- ---------- ----------- ---------
(pound (pound (pound (pound (pound (pound
30 SEPT 1999 + sterling)176.7 sterling)74.9 sterling)16.0 sterling)53.6 sterling)27.9 sterling)4.3
------------ ---------- ---------- ---------- ----------- ---------
</TABLE>
+ Translated @ $1.65 per (pound sterling)1.00.
* Adjusted for assets held in custody without fee and assets replaced by
service fees.
Reconciliation to US Accounting Principles
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED 30 SEPT
-----------------------------------------
1999 1998
------------------ -------------------
<S> <C> <C>
(pound (pound
NET PROFIT UNDER UK GAAP sterling)128,959 sterling)63,590
US GAAP ADJUSTMENTS:
Acquisition accounting (57,847) (4,949)
Taxation (18,765) 1,481
Other (3,609) 812
------------------ -------------------
(pound (pound
NET INCOME UNDER US GAAP sterling)48,738 sterling)60,934
================== ===================
</TABLE>
<TABLE>
<CAPTION>
30 Sept 1999 31 Dec 1998
------------------ -------------------
<S> <C> <C>
(pound (pound
SHAREHOLDERS' FUNDS UNDER UK GAAP sterling)429,966 sterling)330,970
US GAAP ADJUSTMENTS:
Acquisition accounting 985,048 1,022,254
Deferred taxation (455) (1,027)
Treasury stock (130,671) (131,857)
Dividends -- 31,694
Other 1,539 3,072
------------------ -------------------
(pound (pound
SHAREHOLDERS' EQUITY UNDER US GAAP sterling)1,285,427 sterling)1,255,106
================== ===================
</TABLE>
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMVESCAP PLC
Date: October 27, 1999 By: /s/MICHAEL S. PERMAN
--------------------
Michael S. Perman
Company Secretary
