Edition:
United Kingdom

GAM Holding Revises 2018 Results, Announces Comprehensive Restructuring Programme And Proposes Suspension Of 2018 Dividend


Thursday, 13 Dec 2018 

Dec 13 (Reuters) - GAM HOLDING AG ::PROVIDES AN ESTIMATE ON ITS 2018 RESULTS AND ANNOUNCES A COMPREHENSIVE RESTRUCTURING PROGRAMME AS WELL AS A PROPOSED SUSPENSION OF THE 2018 DIVIDEND.UNDERLYING PROFIT BEFORE TAXES FOR 2018 EXPECTED TO BE APPROXIMATELY CHF 125 MILLION COMPARED WITH CHF 172.5 IN 2017.ESTIMATED IFRS NET LOSS OF APPROXIMATELY CHF 925 MILLION FOR 2018.LOSS DRIVEN BY EXPECTED GOODWILL IMPAIRMENT CHARGE FOR GROUP OF APPROXIMATELY CHF 885 MILLION.APPROXIMATELY 10% OF ROLES BEING ELIMINATED ACROSS GROUP DURING 2019, SUBJECT TO LEGAL AND REGULATORY REQUIREMENTS.LOSS ALSO DRIVEN BY EXPECTED IMPAIRMENT CHARGE OF APPROXIMATELY CHF 62 MILLION IN SECOND HALF 2018 RELATED TO CANTAB INVESTMENT MANAGEMENT AND CLIENT CONTRACTS.REVISING DIVIDEND POLICY FOR 2019 AND BEYOND TO TARGET A MINIMUM PAY-OUT OF 50% OF UNDERLYING NET PROFITS.GAM - RESTRUCTURING MEASURES ARE EXPECTED TO RESULT IN REDUCTION OF FIXED STAFF COSTS AND GENERAL EXPENSES RUN RATE OF AT LEAST CHF 40 MILLION BY END 2019.EXPECTS FINANCIAL RESULTS FOR FIRST HALF AND FULL YEAR 2019 TO BE MATERIALLY BELOW THOSE OF FIRST HALF AND FULL YEAR 2018.NO DIVIDEND WILL BE PAID FOR 2018 TO ACCELERATE GROUP'S CAPITAL REBUILD.GROUP ASSETS UNDER MANAGEMENT(1) (AUM) OF CHF 139.1 BILLION AT 30 NOVEMBER 2018, DOWN FROM CHF 146.1 BILLION AS AT 30 SEPTEMBER 2018.ASSETS UNDER MANAGEMENT DRIVEN BY NET OUTFLOWS OF CHF 4.2 BILLION AND NEGATIVE MARKET AND FOREIGN EXCHANGE MOVEMENTS OF CHF 1.6 BILLION.