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 publishes its Interim Management Statement covering the period since 30 June 2010.
GlobeOp is hosting an event for investors and analysts in London today.
The second half of 2010 has started positively and business performance has been strong. Highlights include:
* Increase in Assets under Administration (AuA) to $139 billion at 31 August 2010 from $120 billion at 30 June 2010
* Addition of $15 billion of new clients, including $14.6 billion European Credit Management Ltd lift-out
* Quarterly subscriptions have been the strongest since GlobeOp's IPO in 2007
* Q3 redemptions to date have been the lowest of the year
* Cash balance of $65 million as of 31 August 2010
Financial Performance Update
Trading for the period has been in line with management's expectations. Revenues, adjusted operating profit and cash flows have continued to be strong. Assets under Administration (AuA) increased to a record total of $139 billion as at 31 August 2010 from $120 billion at 30 June 2010.
The positive trends experienced in the first half of 2010 have continued so far in the second half. New clients added $15 billion of assets to our platform during July and August. At the same time client subscriptions totalled $8 billion, partially offset by redemptions of $5 billion. Fund performance added another $1.5 billion to client asset balances and existing clients launched $0.5 billion in new funds.
Hans Hufschmid, Chief Executive Officer, said: "We are very pleased with our progress thus far in the second half of 2010. We initiated our $14.6 billion lift-out mandate for European Credit Management Limited ("ECM") in July. The integration is on schedule and we remain focused on exceptional client service and a smooth transition with ECM. We have also added General Motors' treasury department as a Transaction Solutions client for OTC derivative collateral management services. Costs remain tightly under control and we have continued to experience excellent operating leverage. In addition, the appointment of a new head of global sales in late August strengthens our resources for adding strategic business."
The Company's financial position remains strong with cash balances at 31 August 2010 of $65 million (unaudited) - up $5 million since June 2010. The Company continues to have no borrowings outstanding under its available revolving line of credit.
Recent favourable trends amongst our clients have extended into the third quarter of 2010. Subscriptions into client funds have totalled nearly $3 billion for September. Combined with inflows for July and August quarterly subscriptions have exceeded $11 billion for the first time in the Company's history.
Redemptions so far in September are $1 billion which brings total redemptions for the third quarter to date to $6 billion, the lowest quarterly amount this year.
The ECM lift-out will generate revenue in the second half of 2010. Whilst we anticipate a modest operating loss from this particular mandate for the second half of 2010, we expect steadily improving profit contribution in the first half of 2011 as the integration approaches completion.
We continue to see substantial opportunities in our new client pipeline and we are making excellent progress toward meeting our key financial targets.
Analyst & Investor Event
The management of GlobeOp will today be hosting an event for analysts and investors in London. The event will include a series of presentations from GlobeOp's senior management team providing an overview of the Company's operations. During the event no new material information will be made available, other than that stated in this announcement. A copy of the materials presented will be available to view on the GlobeOp corporate website.
 Assets under Administration. Consistent with past disclosure the performance of clients' funds for the current month is not included in the measurement of AuA at the end of that month. Thus, August 2010 client fund performance is not within the 31 August 2010 figure.
 A non-IFRS financial measure that is calculated by the Company as operating profit prior to depreciation and amortization expense, employee costs related to share-based compensation and legal claims and tax reserves - pre-tax.