<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 Exchange Act of 1934
For the month of February, 2000
--------------
AMVESCAP PLC
-----------------------------------------------
(Translation of registrant's name into English)
11 DEVONSHIRE SQUARE, LONDON EC2M 4YR, ENGLAND
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(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 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 Preliminary Results for Year Ended
-----------------------------------------------
31 December 1999
----------------
<PAGE> 2
[AMVESCAP LOGO APPEARS HERE] PRESS RELEASE
CONTACTS: ROBERT F. MCCULLOUGH ANGUS MAITLAND
Chief Financial Officer The Maitland Consultancy
404-724-4251 (44) 0171-379-5151
(44) 0171-626-3434
AMVESCAP PLC REPORTS PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 1999
LONDON, 3 FEBRUARY 2000 - AMVESCAP reported that profit before tax and goodwill
amortisation increased 38% to (pound sterling)319.8 million ($518.1 million)
from (pound sterling)231.3 million ($388.6 million) in 1998. Diluted earnings
per share before goodwill amortisation and exceptional item increased 35% to
32.7p for the 1999 year (1998: 24.3p). Basic earnings per share before goodwill
amortisation and exceptional item increased to 34.0p (1998: 26.0p). Revenues
amounted to (pound sterling)1,072.4 million ($1,737.3 million) compared to
(pound sterling)802.2 million ($1,347.7 million) in 1998 (NYSE: AVZ).
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
RESULTS FOR YEAR ENDED
1999 1998
------------------------ -------------------------
<S> <C> <C>
Revenues 1,072.4m 802.2m
Profit before tax, exceptional item and
goodwill amortisation 319.8m 231.3m
Earnings per ordinary share before
exceptional item and goodwill amortisation:
--basic 34.0p 26.0p
--diluted 32.7p 24.3p
Earnings per ordinary share:
--basic 28.3p 15.7p
--diluted 27.1p 14.7p
Dividends per share 9.0p 8.0p
- ---------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------
RESULTS FOR YEAR ENDED
1999+ 1998+
------------------------- -------------------------
<S> <C> <C>
Revenues $1,737.3m $1,347.7m
Profit before tax, exceptional item and
goodwill amortisation $ 518.1m $ 388.6m
Earnings per ordinary share before
exceptional item and goodwill amortisation:
--basic $2.75* $2.18*
--diluted $2.65* $2.04*
Earnings per ordinary share:
--basic $2.29* $1.32*
--diluted $2.20* $1.23*
Dividends per share $0.73* $0.67*
- ---------------------------------------------------------------------------------------------------
</TABLE>
* Per American Depository Share equivalent to 5 ordinary shares.
+ For the convenience of the reader, pounds sterling for the year ending 31
December 1999 have been translated to U.S. dollars using $1.62 per (pound
sterling)1.00 (1998: $1.68 per(pound sterling)1.00).
"The past year has been outstanding in many ways and the momentum of our
business is exceptional," said Mr. Charles W. Brady, Chairman and Chief
Executive Officer. "The investment performance across our AIM and INVESCO
products is producing results that reflect the discipline we place in each
investment style we follow and we are receiving the benefits from the
investments in infrastructure we made during the early part of the decade.
Marketing and new business generation for 1999 again set records and our
customer service continues to be recognised as one of the industry's best."
The 1998 results include the GT Global business from 1 June 1998 and include an
exceptional charge of (pound sterling)48.6 million relating to the integration
of the GT Global business activities.
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Earnings before interest, taxes, depreciation and amortisation ("EBITDA")
reached (pound sterling)431.1 million ($698.4 million) for 1999, compared to
(pound sterling)309.5 million ($520.0 million) for the 1998 period. Net debt
at 31 December 1999 amounted to (pound sterling)511.0 million ($827.8 million),
a decrease of (pound sterling)119.4 million ($191.6 million) since the end of
1998 (excluding amounts held for deposit in the Company's unit trusts).
Profit before tax and goodwill amortisation for the three months ended 31
December 1999 amounted to (pound sterling)88.0 million ($142.6 million)
compared to (pound sterling)56.4 million ($94.8 million) for the fourth
quarter of 1998, an increase of 56%. Diluted earnings per share before
goodwill amortisation amounted to 9.2p for the 1999 period (1998: 6.2p).
Revenues for the fourth quarter of 1999 increased by 33% from the prior year
and 7% over the previous quarter of 1999. Profit before tax in the last
quarter of 1999 includes charges of approximately (pound sterling)15 million
($25 million) relating to larger bonuses due to the increased volumes of
activity and final costs associated with the Y2K year-end support activities.
Funds under management totalled $357.4 billion ((pound sterling)220.6 billion)
at 31 December 1999, an increase of $82.0 billion over 31 December 1998. Average
funds under management were $294.9 billion for the year 1999. Average funds
under management amounted to $323.6 billion for the fourth quarter compared to
$291.8 billion for the previous quarter and $258.3 for the fourth quarter of
1998.
The Group's effective tax rate on ordinary profit (before amortisation and
exceptional item) was 31.9% for the current year compared to 32.5% in 1998.
This decline was due to the realisation of prior year tax losses resulting from
a more efficient tax structure relating to the GT businesses.
The Board has recommended a final dividend of 5.5p resulting in a total
dividend of 9.0p for 1999 (1998: 8.0p). This is an increase of 13% over the
prior year and the seventh consecutive year that the dividend has been
increased. This dividend, if approved by the shareholders at the Annual General
Meeting in April, will be paid on 3 May 2000 to shareholders on the register on
7 April 2000. The ex-dividend date for the dividend will be 3 April 2000.
THE YEAR IN REVIEW
" The year ended 31 December 1999 marks the conclusion of an unparalleled
decade for global capital markets and for our industry," noted Mr. Charles W.
Brady, Chairman and Chief Executive Officer. "Our Company has capitalised on
the rapid build-up in personal equity and is well-positioned to benefit from
the shift toward personal savings in many of the major countries around the
world. AMVESCAP has become a truly global investment company as distinguished
from a company engaged in global investing," said Mr. Brady.
MANAGED PRODUCTS
The Managed Products group had an exceptional year in 1999 with revenues and
operating profits reaching record levels for both AIM and INVESCO fund groups.
AIM and INVESCO had net new business of $7.6 billion and $3.4 billion during
the year, fueled by excellent investment performance, continued promotion of
our brands and record gross sales levels. According to an independent survey,
the diversified equity funds for AIM and INVESCO ranked third in investment
performance among the ten largest US fund groups with a combined return of
35.7% for 1999. Funds under management increased to $199.7 billion at 31
December 1999, an increase of $65.2 billion for the year.
US INSTITUTIONAL
Revenue and operating profits improved by 21% and 9%, respectively over the
prior year. While the unit continues to experience a net loss of assets caused
by the shift to index products, the flow from active to passive management has
declined in the latter part of the year, and the group continues to rank among
the
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<PAGE> 4
largest active-only asset managers in the US. Marketing activity for 1999
produced gross sales of $11.3 billion of new business and about 100 new
clients.
INVESCO GLOBAL
INVESCO Global's performance in generating new business in 1999 was excellent.
This business is leveraging its infrastructure, resulting in operating profits
of (pound sterling)49.6 million ($80.4 million) in 1999, an increase of 56%
over 1998, and a record operating margin level. Funds under management stood
at $57.2 billion at 31 December 1999, compared to $40.8 billion at the end of
the prior year. This 40% increase was due to record gross sales of $23.2 billion
experienced across the business coupled with the strength in the markets. The
business in Continental Europe doubled during 1999, due in large measure to the
impact of the Euro, and Asia saw net sales grow by over 300% from 1998 levels.
INVESCO's presence in the UK markets and in the offshore product range also
reached record levels due to strong investment performance and marketing
successes.
RETIREMENT AND BENEFIT SERVICES
Retirement Benefit Services had strong momentum throughout the year, generating
over $3.3 billion in net new business for various units of AMVESCAP during the
year. It is responsible for over $23.6 billion in funds under management for
all distribution channels and the group currently services over 421 separate
retirement plans with approximately 336,000 plan participants.
OUTLOOK
"I am very optimistic about the future for our industry and our Company," noted
Mr. Brady. "However, as ever, we recognise that capital markets are volatile
and that we must be ready to adjust expense levels to remain in line with our
revenues quickly in the event of major corrections, without altering our
strategy of creating value for our shareholders."
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, Paris and Frankfurt Stock Exchanges with the symbol "AVZ."
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AMVESCAP PLC
GROUP PROFIT AND LOSS ACCOUNT
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED
--------------------------------------------------
31 DEC 31 DEC
1999 1998
------------------------- -----------------------
<S> <C> <C>
REVENUES (pound sterling)1,072,350 (pound sterling)802,172
Operating expenses (719,637) (544,856)
------------------------- -----------------------
352,713 257,316
Exceptional item -- (48,600)
Goodwill amortisation (36,754) (21,221)
------------------------- -----------------------
OPERATING PROFIT 315,959 187,495
Investment income 11,809 12,183
Interest payable (44,726) (38,200)
------------------------- -----------------------
PROFIT BEFORE TAXATION 283,042 161,478
Taxation (102,010) (67,373)
------------------------- -----------------------
PROFIT AFTER TAXATION 181,032 94,105
Dividends (58,244) (50,594)
------------------------- -----------------------
RETAINED PROFIT (pound sterling) 122,788 (pound sterling) 43,511
------------------------- -----------------------
EARNINGS PER ORDINARY
SHARE BEFORE GOODWILL
AMORTISATION AND
EXCEPTIONAL ITEM:
---basic 34.0p 26.0p
---diluted 32.7p 24.3p
------------------------- -----------------------
EARNINGS PER ORDINARY SHARE:
---basic 28.3p 15.7p
---diluted 27.1p 14.7p
------------------------- -----------------------
</TABLE>
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AMVESCAP PLC
GROUP PROFIT AND LOSS ACCOUNT
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------------------------------------
31 DEC 31 DEC
1999 1998
------------------------- -----------------------
<S> <C> <C>
REVENUES (pound sterling) 295,699 (pound sterling)221,975
Operating expenses (201,334) (156,714)
------------------------- -----------------------
94,365 65,261
Goodwill amortisation (9,271) (9,812)
------------------------- -----------------------
OPERATING PROFIT 85,094 55,449
Investment income 4,381 3,641
Interest payable (10,724) (12,527)
------------------------- -----------------------
PROFIT BEFORE TAXATION 78,751 46,563
Taxation (26,678) (16,048)
------------------------- -----------------------
PROFIT AFTER TAXATION 52,073 30,515
Dividends (35,544) (31,694)
------------------------- -----------------------
RETAINED PROFIT (pound sterling) 16,529 (pound sterling) (1,179)
------------------------- -----------------------
EARNINGS PER ORDINARY
SHARE BEFORE GOODWILL
AMORTISATION:
---basic 9.6p 6.5p
---diluted 9.2p 6.2p
------------------------- -----------------------
EARNINGS PER ORDINARY SHARE:
---basic 8.1p 4.9P
---diluted 7.8p 4.7p
------------------------- -----------------------
</TABLE>
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AMVESCAP PLC
GROUP BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
31 DEC 31 DEC
1999 1998
------------------------- -----------------------
<S> <C> <C>
FIXED ASSETS
Tangible assets (pound sterling) 108,021 (pound sterling) 88,781
Investments 128,921 131,738
Goodwill 664,135 711,795
------------------------- -----------------------
901,077 932,314
CURRENTS ASSETS
Debtors: amounts falling due
within one year 675,856 479,381
Investments 60,135 79,469
Cash at bank and in hand 189,732 119,651
------------------------- -----------------------
925,723 678,501
CREDITORS: AMOUNTS FALLING
DUE WITHIN ONE YEAR (706,289) (550,397)
------------------------- -----------------------
NET CURRENT ASSETS 219,434 128,104
------------------------- -----------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES 1,120,511 1,060,418
CREDITORS: AMOUNTS FALLING
DUE AFTER MORE THAN ONE YEAR
LONG-TERM DEBT (659,120) (686,010)
PROVISIONS FOR LIABILITIES
AND CHARGES (24,730) (43,438)
------------------------- -----------------------
NET ASSETS (pound sterling) 436,661 (pound sterling)330,970
========================= =======================
CAPITAL AND RESERVES
Called up share capital (pound sterling) 168,617 (pound sterling)167,506
Share premium account 478,860 469,382
Profit and loss account 380,717 257,929
------------------------- -----------------------
1,028,194 894,817
Other reserves (591,533) (563,847)
------------------------- -----------------------
SHAREHOLDERS' FUNDS,
EQUITY INTERESTS (pound sterling) 436,661 (pound sterling)330,970
========================= =======================
</TABLE>
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AMVESCAP PLC
GROUP CASH FLOW STATEMENT
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED
--------------------------------------------------
31 DEC 31 DEC
1999 1998
------------------------- -----------------------
<S> <C> <C>
OPERATING PROFIT (pound sterling) 315,959 (pound sterling)187,495
Amortisation and depreciation 103,295 61,181
Change in debtors, creditors and other (53,207) (88,815)
------------------------- -----------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 366,047 159,861
------------------------- -----------------------
Interest paid, net of investment income (31,025) (23,406)
Taxation (56,457) (60,111)
Capital expenditures, net of sales (56,721) (54,644)
Net (disposals) / purchases of fixed asset investments 6,425 (18,706)
Acquisitions - (126,959)
Dividends paid (54,391) (44,410)
Net (repayment) / incurrence of debt (106,744) 220,358
Foreign exchange on cash at bank and in hand 2,947 (3,013)
------------------------- -----------------------
INCREASE IN CASH AT BANK AND IN HAND (pound sterling) 70,081 (pound sterling) 48,970
========================= =======================
</TABLE>
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AMVESCAP PLC
SEGMENTAL INFORMATION
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED 31 DEC 1999
------------------------------------------------------------------------------
REVENUES EXPENSES PROFIT
-------------------------- ------------------------ ------------------------
<S> <C> <C> <C>
Managed Products (pound sterling) 644,814 (pound sterling)(356,912) (pound sterling)287,902
US Institutional 172,657 (112,333) 60,324
INVESCO Global 223,913 (174,340) 49,573
Retirement and Benefit Services 30,966 (33,906) (2,940)
New Business Expense -- (11,840) (11,840)
Corporate -- (30,306) (30,306)
-------------------------- ------------------------ ------------------------
1,072,350 (719,637) 352,713
Goodwill amortisation -- (36,754) (36,754)
-------------------------- ------------------------ ------------------------
(pound sterling)1,072,350 (pound sterling)(756,391) (pound sterling) 315,959
========================== ======================== ========================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED 31 DEC 1999
------------------------------------------------------------------------------
REVENUES EXPENSES PROFIT
-------------------------- ------------------------ ------------------------
<S> <C> <C> <C>
Managed Products (pound sterling) 488,936 (pound sterling)(290,562) (pound sterling)198,374
US Institutional 143,221 (88,027) 55,194
INVESCO Global 150,511 (118,784) 31,727
Retirement and Benefit Services 19,504 (26,811) (7,307)
New Business Expense -- (3,920) (3,920)
Corporate -- (16,752) (16,752)
-------------------------- ------------------------ ------------------------
802,172 (544,856) 257,316
Goodwill amortisation -- (21,221) (21,221)
-------------------------- ------------------------ ------------------------
(pound sterling) 802,172 (pound sterling)(566,077) (pound sterling) 236,095
========================== ======================== ========================
</TABLE>
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NOTES
1. The taxation charge is primarily made up from overseas taxation. After
adjusting for the amortisation of goodwill and the exceptional item, the
effective tax rate for 1999 was 31.9%, compared to 32.5% in 1998.
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 NUMBER OF
AMORTISATION SHARES PER SHARE
(pound sterling)'000 '000 AMOUNT
---------------------- -------------------- ----------------
<S> <C> <C> <C>
BASIC EARNINGS PER SHARE 217,786 639,636 34.0p
=================
ISSUANCE OF OPTIONS -- 27,271
---------------------- -------------------- -----------------
DILUTED EARNINGS PER SHARE 217,786 666,907 32.7p
====================== ==================== =================
</TABLE>
<TABLE>
<CAPTION>
1998
--------------------------------------------------------------
PROFIT BEFORE
GOODWILL 1999
AMORTISATION AND NUMBER OF
EXCEPTIONAL ITEM SHARES PER SHARE
(pound sterling)'000 '000 AMOUNT
----------------------- -------------------- -----------------
<S> <C> <C> <C>
Basic earnings per share 156,126 601,234 26.0p
=================
Issuance of options -- 33,145
Conversion of loan note 521 8,977
---------------------- -------------------- -----------------
Diluted earnings per share 156,647 643,356 24.3p
====================== ==================== =================
</TABLE>
3. Dividends for 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
(pound sterling)'000 (pound sterling)'000
-------------------- --------------------
<S> <C> <C>
Interim paid: 3.5p per share (1998: 3.0p) 22,700 18,900
Final proposed: 5.5p per share (1998: 5.0p) 35,544 31,694
-------------------- --------------------
58,244 50,594
===================== ====================
</TABLE>
Subject to shareholders' approval at the Annual General Meeting in April
2000, the final dividend in respect of 1999 will be paid on 3 May 2000
to shareholders on the register at the close of business on 7 April
2000. The ex-dividend date for the final dividend will be 3 April 2000.
4. The financial information set out above does not constitute the Company's
statutory accounts for the years ended 31 December 1999 or 1998. Statutory
accounts for 1998 have been reported on by the Company's Auditors and
delivered to the Registrar of Companies. The report of the Auditors was
unqualified and did not contain a statement under Section 237 (2) or (3)
of the Companies Act 1985.
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AMVESCAP PLC
FUNDS UNDER MANAGEMENT
(IN BILLIONS)
<TABLE>
<CAPTION>
MANAGED PRODUCTS
----------------
TOTAL AIM INVESCO US INST
---------------------- ---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C>
31 DEC 1998 $275.4 $111.6 $ 22.9 $ 93.9
MARKET GAINS 57.5 30.0 8.3 5.9
NET NEW (LOST) BUSINESS 10.6 7.6 3.4 (5.8)
CHANGE IN US MONEY 17.0 17.0 -- --
MARKET FUNDS
TRANSFERS -- (1.0) (0.2) (1.5)
FOREIGN CURRENCY (1.1) 0.1 -- --
OTHER * (2.0) -- -- --
---------------------- ---------------------- ---------------------- ----------------------
31 DEC 1999 $357.4 $165.3 $34.4 $92.5
---------------------- ---------------------- ---------------------- ----------------------
31 DEC 1999 + (pound sterling) 220.6 (pound sterling) 102.1 (pound sterling) 21.2 (pound sterling) 57.1
---------------------- ---------------------- ---------------------- ----------------------
</TABLE>
+ Translated at $1.62 per (pound sterling)1.00.
* Adjusted for assets held in custody without fee and assets replaced by
service fees.
<TABLE>
<CAPTION>
MANAGED PRODUCTS
----------------
GLOBAL RBS
---------------------- ----------------------
<S> <C> <C>
31 DEC 1998 $ 40.8 $ 6.2
MARKET GAINS 12.5 0.8
NET NEW (LOST) BUSINESS 4.6 0.8
CHANGE IN US MONEY
MARKET FUNDS -- --
TRANSFERS 2.5 0.2
FOREIGN CURRENCY (1.2) --
OTHER * (2.0) --
---------------------- ----------------------
31 DEC 1999 $ 57.2 $ 8.0
---------------------- ----------------------
31 DEC 1999 + (pound sterling) 35.3 (pound sterling) 4.9
---------------------- ----------------------
</TABLE>
+ Translated at $1.62 per (pound sterling)1.00.
* Adjusted for assets held in custody without fee and assets replaced by
service fees.
AMVESCAP PLC
RECONCILIATION TO US ACCOUNTING PRINCIPLES
(IN THOUSANDS)
<TABLE>
<CAPTION>
YEAR ENDED 31 DEC
--------------------------------------------------
1999 1998
----------------------- -------------------------
<S> <C> <C>
NET PROFIT UNDER UK GAAP (pound sterling)181,032 (pound sterling) 94,105
US GAAP ADJUSTMENTS:
Acquisition accounting differences (76,380) (36,091)
Taxation (14,578) (13,613)
Other (2,040) (150)
----------------------- -------------------------
NET INCOME UNDER US GAAP (pound sterling) 88,034 (pound sterling) 44,251
======================= =========================
EARNINGS PER ORDINARY SHARE:
---basic 14p 7p
---diluted 13p 7p
EARNINGS PER SHARE BEFORE GOODWILL AMORTISATION:
--basic 24p 17p
--diluted 23p 16p
31 DEC 99 31 Dec 98
----------------------- -------------------------
SHAREHOLDERS' FUNDS UNDER UK GAAP (pound sterling)436,661 (pound sterling) 330,970
US GAAP ADJUSTMENTS:
Acquisition accounting differences 993,765 1,022,254
Deferred taxation 584 (1,027)
Treasury stock (132,615) (131,857)
Employee stock ownership plans - (2,309)
Dividends 35,544 31,694
Other 3,373 5,381
----------------------- -------------------------
SHAREHOLDERS' EQUITY UNDER US GAAP (pound sterling)1,337,312 (pound sterling)1,255,106
======================= =========================
</TABLE>
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<PAGE> 12
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
---------------------------
(Registrant)
Date 3rd February, 2000 By /s/ MICHAEL S. PERMAN
------------------ ------------------------
(Signature)
Michael S. Perman
Company Secretary
