<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 August, 2000
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AMVESCAP PLC
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(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
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[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
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Description of document filed: AMVESCAP PLC Announces Interim Results
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<PAGE> 2
AMVESCAP PLC
562429
EMBARGOED UNTIL 12:00 NOON ON 3RD AUGUST 2000
PLEASE CONFIRM RELEASE
MICHAEL PERMAN TEL: 020 7454 3942
AMVESCAP PLC REPORTS RESULTS FOR SIX MONTHS ENDED 30 JUNE 2000
LONDON, AUGUST 3, 2000 - AMVESCAP reported that profit before tax and goodwill
amortisation for the six months ended 30 June 2000 amounted to (pound sterling)
255.6 million compared to (pound sterling)145.8 million for the six months of
1999, an increase of 75%. Diluted earnings per share before goodwill
amortisation amounted to 25.6p (1999: 14.8p), an increase of 73% for the period.
Revenues increased to (pound sterling)754.3 million from (pound sterling)500.1
million in 1999.
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
Results for six months ended
30 JUNE 2000+ 30 June 1999+ 30 JUNE 2000 30 June 1999
------------- ------------- ----------------- -----------------
<S> <C> <C> <C> <C>
(pound (pound
Revenues $1,139.0m $790.2m sterling) 754.3m sterling) 500.1m
(pound (pound
Profit before tax and goodwill amortisation $386.0m $230.4m sterling) 255.6m sterling) 145.8m
Earnings per ordinary share before
goodwill amortisation:
--basic $2.02* $1.22* 26.7P 15.4p
--diluted $1.93* $1.17* 25.6P 14.8p
Dividends per share $0.30* $0.28* 4.0P 3.5p
----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Per American Depositary Share, equivalent to 5 ordinary shares.
+ For the convenience of the reader, pounds sterling for the period ended 30
June 2000 have been translated to US dollars using $1.51 per (pound sterling)
1.00 (1999: $1.58 per(pound sterling)1.00).
"The results for the first half of 2000 continue to reflect the strength of our
businesses throughout the world," said Mr. Charles W. Brady, Chairman and Chief
Executive Officer. "Our Company has reached record levels of revenues,
operating profit and earnings per share in the second quarter and first half of
2000. The Company also had record levels of net new business in the first half
of the year."
"Although the global markets were very volatile throughout the second quarter
our average funds under management continued to grow," noted Mr. Brady. "We
expect that these market fluctuations will continue; however, we remain very
positive about the future due to our excellent investment performance and
client service--the fundamentals that drive our business."
Profit before tax and goodwill amortisation increased by 72% during the second
quarter of 2000 to (pound sterling)130.9 million (1999: (pound sterling)76.2
million). Diluted earnings per share before goodwill amortisation amounted to
13.1p (1999: 7.7p) for the three months ended 30 June 2000, an
<PAGE> 3
increase of 70% over the corresponding period of 1999. Revenues for the three
months ended 30 June 2000 amounted to (pound sterling)384.7 million compared to
(pound sterling)259.0 million.
Funds under management totalled $389.0 billion ((pound sterling)257.6 billion)
at 30 June 2000, an increase of $31.6 billion or 9% from 31 December 1999.
Average funds under management for the six months ended 30 June 2000 were $375.1
billion, an increase of $67.4 billion over the average funds in the second half
of 1999 and $93.0 billion over the first half of 1999. Average funds under
management during the second quarter were $379.6 billion compared to $370.6
billion for the preceding quarter.
The Board has declared an interim dividend of 4.0p per share (1999: 3.5p), an
increase of 14%. The interim dividend will be paid on 5 October 2000 to
shareholders on the register on 8 September 2000. The ex-dividend date for the
dividend will be 4 September 2000.
Earnings before interest, taxes, depreciation and amortisation (EBITDA)
reached (pound sterling)299.0 million ($451.5 million) and (pound
sterling)152.5 million ($230.3 million) for the six months and second
quarter ended 30 June 2000. Net debt at 30 June 2000 amounted to (pound
sterling)418.4 million compared to (pound sterling)510.9 million at 31
December 1999.
The Company completed its acquisition of Trimark Financial Corporation on
1 August 2000. The results of Trimark will be included from August 2000.
The consideration for this acquisition amounted to approximately
(pound sterling)1.2 billion, including transaction costs and was
satisfied by the payment of C$738 million ((pound sterling)332 million)
in cash and the issuance of 26.4 million ordinary shares or shares
exchangeable for ordinary shares and C$1.280 billion ((pound sterling)576
million) in Equity Subordinated Debentures.
"The combination of AIM and Trimark positions us among the top three investment
management companies in the Canadian marketplace and fits well with our
strategy of securing a leading position in each of the world's major investment
markets," noted Mr. Brady.
The first half of 2000 was very successful for the Managed Products group, with
both AIM and INVESCO reaching new record levels of revenues and operating
profits. Revenues increased 58% to (pound sterling)470.5 million during the
first six months of 2000. Operating profits were (pound sterling)226.0 million,
an increase of 69% during the period, due primarily to increased revenues
resulting from higher assets under management.
The Managed Products group generated net new business of $20.5 billion during
the first six months of 2000, reflecting the strength of the AIM and INVESCO
brands and continued superior investment performance over a broad range of
products. Total funds under management were $229.3 billion at 30 June 2000.
The US Institutional group generated $7.2 billion of gross sales in the first
half of 2000 compared with $6.7 billion in the same period of 1999 as a result
of strong marketing and the continued acceptance of investment products in the
marketplace. Revenues and operating profits totalled (pound sterling)95.7
million and (pound sterling)19.9 million in the 2000 period,
<PAGE> 4
and funds under management amounted to $89.5 billion at 30 June 2000, a
decrease of $3.0 billion during the period. This group continues to invest in
projects which will enhance back office operations and administration and
update technology platforms. These projects have resulted in increased costs
and reduced operating profits during this period of implementation.
INVESCO Global's revenues amounted to (pound sterling)166.0 million for the
first half of 2000 and operating profits were (pound sterling)53.2 million for
the period. This group continues to benefit from the strong momentum across its
businesses, reflecting the shift toward greater individual savings around the
world. Investment performance and strong marketing results are also benefiting
the businesses. Gross and net new business flows remained at record levels with
net new business reaching $7.7 billion in the first half of the year. Total
funds under management have grown 10% to $62.7 billion at 30 June 2000.
The Retirement and Benefit Services group experienced a 22% increase in assets
under administration during the six month period, reaching $28.8 billion at 30
June 2000. The US defined contribution group brought in over $3.4 billion of
net new business for various AMVESCAP units. This group services 368,000 plan
participants at 30 June 2000, up from 336,000 participants at the end of 1999.
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 Toronto Stock Exchanges with the symbol "AVZ."
<PAGE> 5
AMVESCAP PLC
GROUP PROFIT AND LOSS ACCOUNT
(IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
----------------------------------------------
30 JUNE 30 JUNE YEAR
2000 1999 1999
---------------------- ----------------------- --------------------------
<S> <C> <C> <C>
REVENUES (pound sterling)754,253 (pound sterling)500,080 (pound sterling) 1,072,350
OPERATING EXPENSES (485,962) (336,103) (719,637)
----------------------- ----------------------- --------------------------
268,291 163,977 352,713
GOODWILL AMORTISATION (18,370) (18,151) (36,754)
----------------------- ----------------------- --------------------------
OPERATING PROFIT 249,921 145,826 315,959
7,423 5,147 11,809
Investment income
INTEREST PAYABLE (20,150) (23,283) (44,726)
----------------------- ----------------------- --------------------------
PROFIT BEFORE TAXATION 237,194 127,690 283,042
TAXATION (81,780) (47,399) (102,010)
----------------------- ----------------------- --------------------------
PROFIT AFTER TAXATION 155,414 80,291 181,032
DIVIDENDS (28,014) (22,425) (58,244)
----------------------- ----------------------- --------------------------
RETAINED PROFIT FOR THE PERIOD (pound sterling)127,400 (pound sterling) 57,866 (pound sterling) 122,788
======================= ======================= ==========================
======================= ======================= ==========================
EARNINGS PER ORDINARY SHARE:
---BASIC 23.9p 12.6p 28.3p
---DILUTED 22.9p 12.0p 27.1p
EARNINGS PER ORDINARY SHARE
BEFORE GOODWILL AMORTISATION:
---BASIC 26.7p 15.4p 34.0p
---DILUTED 25.6p 14.8p 32.7p
</TABLE>
<PAGE> 6
AMVESCAP PLC
GROUP PROFIT AND LOSS ACCOUNT
(IN THOUSANDS)
THREE MONTHS ENDED
--------------------------------------
30 JUNE 30 JUNE
2000 1999
------------------------ -------------------------
REVENUES (pound sterling) 384,737 (pound sterling) 259,028
OPERATING EXPENSES (248,321) (173,838)
------------------------ ------------------------
136,416 85,190
GOODWILL AMORTISATION (9,071) (9,011)
------------------------ -------------------------
OPERATING PROFIT 127,345 76,179
3,945 2,363
Investment income
INTEREST PAYABLE (9,448) (11,370)
------------------------ -------------------------
PROFIT BEFORE TAXATION 121,842 67,172
TAXATION (41,892) (24,761)
------------------------ -------------------------
PROFIT AFTER TAXATION 79,950 42,411
DIVIDENDS (28,014) (22,425)
------------------------ -------------------------
RETAINED PROFIT FOR
THE PERIOD (pound sterling)51,936 (pound sterling) 19,986
------------------------ -------------------------
------------------------ -------------------------
EARNINGS PER ORDINARY SHARE:
---BASIC 12.3p 6.6p
---DILUTED 11.7p 6.3p
EARNINGS PER ORDINARY SHARE
BEFORE GOODWILL AMORTISATION:
---BASIC 13.7p 8.0p
---DILUTED 13.1p 7.7p
<PAGE> 7
AMVESCAP PLC
GROUP BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
30 JUNE 2000 31 DEC 1999
======================== ========================
<S> <C> <C>
FIXED ASSETS
GOODWILL (pound sterling) 646,071 (pound sterling) 664,135
INVESTMENTS 158,909 128,921
TANGIBLE ASSETS 115,538 108,021
------------------------ ------------------------
920,518 901,077
------------------------ ------------------------
CURRENT ASSETS
833,969 675,856
Debtors
65,248 60,135
Investments
160,847 189,732
Cash at bank and in hand
------------------------ ------------------------
1,060,064 925,723
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (850,754) (706,289)
------------------------ ------------------------
NET CURRENT ASSETS 209,310 219,434
------------------------ ------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES 1,129,828 1,120,511
CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
LONG-TERM DEBT (565,130) (659,120)
(23,708) (24,730)
Provisions for liabilities and charges
------------------------ ------------------------
NET ASSETS (pound sterling) 540,990 (pound sterling) 436,661
======================== ========================
======================== ========================
CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL (pound sterling 169,252 (pound sterling) 168,617
SHARE PREMIUM ACCOUNT 484,296 478,860
(620,675) (591,533)
Other reserves
508,117 380,717
Profit and loss account
======================== ========================
SHAREHOLDERS' FUNDS, EQUITY INTERESTS (pound sterling) 540,990 (pound sterling) 436,661
======================== ========================
</TABLE>
<PAGE> 8
AMVESCAP PLC
GROUP CASH FLOW STATEMENT
(IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
---------------------------------------------------
30 JUNE 30 JUNE
2000 1999
------------------------ ------------------------
<S> <C> <C>
OPERATING PROFIT (pound sterling) 249,921 (pound sterling) 145,826
AMORTISATION AND DEPRECIATION 41,668 48,579
CHANGE IN DEBTORS, CREDITORS, AND OTHER (31,116) (53,833)
------------------------ ------------------------
NET CASH INFLOW FROM OPERATING ACTIVITIES 260,473 140,572
------------------------ ------------------------
(14,246) (16,225)
Interest paid, net of investment income
TAXATION (72,232) (44,828)
CAPITAL EXPENDITURES, NET OF SALES (25,365) (21,424)
NET (PURCHASES) / DISPOSALS OF FIXED ASSET INVESTMENTS (19,180) 12,705
DIVIDENDS PAID (36,439) -
NET REPAYMENT OF DEBT (126,764) (59,209)
FOREIGN EXCHANGE ON CASH AT BANK AND IN HAND 4,868 4,431
------------------------ ------------------------
(DECREASE) / INCREASE IN CASH AT BANK AND IN HAND (pound sterling) (28,885) (pound sterling) 16,022
======================== ========================
</TABLE>
<PAGE> 9
AMVESCAP PLC
SEGMENTAL INFORMATION
(IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED 30 JUNE 2000
------------------------------------------------------------------------------
REVENUES EXPENSES OPER.PROFIT
------------------------- ------------------------- -------------------------
<S> <C> <C> <C>
MANAGED PRODUCTS (pound sterling) 470,512 (pound sterling)(244,482) (pound sterling) 226,030
US INSTITUTIONAL 95,664 (75,811) 19,853
INVESCO GLOBAL 165,980 (112,737) 53,243
RETIREMENT AND BENEFIT SERVICES 21,920 (20,899) 1,021
NEW BUSINESS 177 (6,240) (6,063)
CORPORATE -- (25,793) (25,793)
------------------------- ------------------------- -------------------------
754,253 (485,962) 268,291
GOODWILL AMORTISATION -- (18,370) (18,370)
------------------------- ------------------------- -------------------------
(pound sterling) 754,253 (pound sterling) (504,332) (pound sterling) 249,921
========================= ========================= =========================
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED 30 JUNE 1999
------------------------------------------------------------------------------
REVENUES EXPENSES OPER.PROFIT
------------------------- ------------------------- -------------------------
<S> <C> <C> <C>
MANAGED PRODUCTS (pound sterling) 297,915 (pound sterling)(164,435) (pound sterling) 133,480
US INSTITUTIONAL 84,009 (54,084) 29,925
INVESCO GLOBAL 104,298 (80,790) 23,508
RETIREMENT AND BENEFIT SERVICES 13,858 (15,529) (1,671)
NEW BUSINESS -- (3,816) (3,816)
CORPORATE -- (17,449) (17,449)
------------------------- ------------------------- -------------------------
500,080 (336,103) 163,977
GOODWILL AMORTISATION -- (18,151) (18,151)
------------------------- ------------------------- -------------------------
(pound sterling) 500,080 (pound sterling) (354,254) (pound sterling) 145,826
========================= ========================= =========================
</TABLE>
<PAGE> 10
NOTES
1. The taxation charge for the six months ended 30 June 2000 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 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>
2000
PROFIT BEFORE
GOODWILL
AMORTISATION NUMBER OF
SHARES PER SHARE
(pound sterling) '000 '000 AMOUNT
----------------------- ---------------- ------------
<S> <C> <C> <C>
BASIC EARNINGS PER SHARE 173,784 650,089 26.7P
============
ISSUANCE OF OPTIONS -- 29,545
----------------------- ----------------
DILUTED EARNINGS PER SHARE 173,784 679,634 25.6P
======================= ================ ============
</TABLE>
<TABLE>
<CAPTION>
1999
PROFIT BEFORE
GOODWILL
AMORTISATION NUMBER OF
SHARES PER SHARE
(pound sterling) '000 '000 AMOUNT
----------------------- ---------------- ------------
<S> <C> <C> <C>
BASIC EARNINGS PER SHARE 98,442 637,954 15.4P
============
ISSUANCE OF OPTIONS -- 29,214
----------------------- ----------------
DILUTED EARNINGS PER SHARE 98,442 667,168 14.8P
======================= ================ ============
</TABLE>
<PAGE> 11
INDEPENDENT REVIEW REPORT TO AMVESCAP PLC
INTRODUCTION
We have been instructed by the company to review the financial information set
out on pages four to nine and we have read the other information contained in
the interim report and considered whether it contains any apparent
misstatements or material inconsistencies with the financial information.
DIRECTORS RESPONSIBILITIES
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority and applicable United Kingdom
accounting standards. The Listing Rules require that the accounting policies
and presentation applied to the interim figures should be consistent with those
applied in preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.
REVIEW WORK PERFORMED
We conducted our review in accordance with guidance contained in Bulletin
1999/4 issued in the United Kingdom by the Auditing Practices Board and with
our profession's ethical guidance. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data and, based thereon,
assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an audit opinion on the
financial information.
REVIEW CONCLUSION
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2000.
Arthur Andersen
Chartered Accountants
1 Surrey Street
London
3 August 2000
<PAGE> 12
AMVESCAP PLC
FUNDS UNDER MANAGEMENT
(IN BILLIONS)
<TABLE>
<CAPTION>
MANAGED PRODUCTS
RBS &
TOTAL AIM INVESCO US INST GLOBAL NEW BUS.
----- --- ------- ------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
$357.4 $165.3 $34.4 $92.5 $57.2 $8.0
31 Dec 1999
MARKET GAINS 5.6 3.8 2.0 0.7 (0.7) (0.2)
NET NEW (LOST) BUSINESS 24.1 12.1 8.4 (3.6) 7.7 (0.5)
CHANGE IN US MONEY
MARKET FUNDS 4.0 2.2 1.1 -- 0.7 --
TRANSFERS -- -- -- (0.1) (0.1) 0.2
FOREIGN CURRENCY (2.1) -- -- -- (2.1) --
----------------- ------------------ --------------- --------------- ----------------
30 JUNE 2000 $389.0 $183.4 $45.9 $89.5 $62.7 $7.5
----------------- ------------------ --------------- --------------- ---------------- --------------
30 JUNE 2000+ (pound (pound (pound (pound (pound (pound
sterling) 257.6 sterling) 121.4 sterling) 30.4 sterling) 59.3 (sterling) 41.5 sterling) 5.0
----------------- ------------------ --------------- --------------- ---------------- --------------
</TABLE>
+ TRANSLATED @ $1.51 PER (pound sterling)1.00.
RECONCILIATION TO US ACCOUNTING PRINCIPLES
(IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
-----------------------------------------------------
30 JUNE 30 JUNE
2000 1999
------------------------- ------------------------
<S> <C> <C>
NET PROFIT UNDER UK GAAP (pound sterling) 155,414 (pound sterling) 80,291
US GAAP ADJUSTMENTS:
ACQUISITION ACCOUNTING (31,634) (39,139)
TAXATION (15,381) (10,271)
OTHER 411 (1,011)
------------------------- ------------------------
NET INCOME UNDER US GAAP (pound sterling) 108,810 (pound sterling) 29,870
========================= ========================
EARNINGS PER ORDINARY SHARE BEFORE
GOODWILL AMORTISATION:
--BASIC 21.6P 9.5P
--DILUTED 20.7P 9.0P
EARNINGS PER ORDINARY SHARE:
--BASIC 16.7P 4.7P
--DILUTED 16.0P 4.5P
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------
30 JUNE 30 DEC
2000 1999
------------------------- ------------------------
<S> <C> <C>
SHAREHOLDERS' FUNDS UNDER UK GAAP (pound sterling) 540,990 (pound sterling) 436,661
US GAAP ADJUSTMENTS:
ACQUISITION ACCOUNTING 1,020,834 993,765
TREASURY STOCK (165,874) (132,615)
DIVIDENDS 28,014 35,544
OTHER 5,548 3,957
------------------------- --------------------------
SHAREHOLDERS' EQUITY UNDER US GAAP (pound sterling)1,429,512 (pound sterling) 1,337,312
========================= ==========================
</TABLE>
<PAGE> 13
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 AUGUST, 2000 By /s/ MICHAEL S. PERMAN
---------------- -------------------------
(Signature)
Michael S. Perman
Company Secretary
