LONDON (Reuters) - Anglo-U.S. fund management company
Amvescap’s
The parent of the AIM and Invesco fund brands said on Tuesday its pretax profit rose to $360.1 million in the year from just $39 million in 2004.
The profit figure includes a $75.7 million restructuring charge while 2004’s results included a $413.2 million charge linked to a settlement with U.S. regulators, the company said in a statement.
Shares in Amvescap, which had been flat prior to the figures, rose by more than 3 percent to 523 pence at 12:20 p.m..
"Our restructuring actions will allow Amvescap to reduce costs by operating more efficiently and effectively," Martin Flanagan, chief executive officer, said.
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"Assuming a continuation of the current business environment, the actions we are taking should allow us to reduce 2006 operating expenses by approximately $120 million.
Fully diluted earnings per share, before adjustments, were 34 cents, down from 35 cents, and the company announced a full-year dividend of 9.5 pence per share.
The company had previously stated its earnings figures in sterling.
Amvescap logged a total net outflow of $16.2 billion during 2005, compared with an outflow of $19.5 billion in 2004.
Amvescap has been through difficult times due to weak performance at some of its funds and the aftermath of a costly financial scandal that was concluded by a settlement between the company and U.S. authorities in 2004.
Amvescap acquired U.S.-based exchange-traded funds (ETF) business PowerShares in January this year, a move generally welcomed for broadening its product offerings.
