Miton Group plc acquires Psigma Asset Management Holdings

Acquisition of PSigma Asset Management Holdings Limited for up to £13m, Placing and Trading Update

Miton Group plc, the AIM quoted fund management group, today announces the acquisition of the entire issued share capital of PSigma Asset Management Holdings Limited, a placing of Ordinary Shares and a trading update.

Acquisition of PSigma Asset Management

The Acquisition of PSigma Asset Management Holdings Limited from Punter Southall Group Limited is expected to complete on 3 July 2013, bringing together two profitable businesses.

  • PSigma’s total assets under management were £750m on 30 June 2013 with UK Income mandates representing some 91%.
  • The PSigma franchise is built upon Bill Mott’s and Ian Chimes’ success in UK Income Funds.
  • The investment style of both fund management teams is complementary. The role of Bill Mott and his team will be unchanged ensuring continuity for PSigma’s clients.
  • Ian Chimes will head up Miton’s enlarged UK sales and marketing operation.
  • The Acquisition is expected to be significantly earnings enhancing in 2014.
  • The consideration will be a mixture of cash and ordinary shares in Miton and will be between £6.75m and £13m dependent upon the scale of PSigma’s assets under management retained in two years’ time.
  • The initial cash consideration of £5.25m payable upon the date of completion of the Acquisition will be funded from Miton’s internal cash balances.
  • The Financial Conduct Authority has approved the change of control.

Placing

  • A Placing (conditional on Admission) of 7.47m new Ordinary Shares at 31 pence raising £2.3m in order to maintain a strong cash position.

Trading update

In the first half of the year, Miton Group plc’s assets under management increased by £217m to £2,003m (an increase of 12%) as at 30 June 2013.

  • Two new funds have been launched attracting £40m in their first two months. In addition, Miton was appointed as manager to the £82m Henderson Fledgling Trust plc now renamed the Miton Income Opportunities Trust plc.
  • Group cash balances as at 30 June 2013 have increased to £12.4m after the payment of the dividend, bonuses and the purchase of Miton shares for the EBT.
  • Miton’s current trading is in line with expectations, with the planned scale up of resources accelerating the trajectory of the business.

Ian Dighé, Executive Chairman of Miton Group plc said: “Bringing Bill Mott and his team together with Miton is a significant step forward to the benefit of our joint client base, particularly in the UK Equity Income sector. Both businesses have distinctive and forward-looking investment strategies. With combined assets under management of £2.8bn, we will have an even stronger platform to accelerate the growth of our business.”

Ian Chimes, Managing Director of PSigma Asset Management said: “The whole team at PSigma is excited about the opportunity to grow our assets in the future in combination with Miton. We bring distinctive single strategy funds and our particular expertise in equity income investing, which will increase the breadth and depth of the combined product range, benefitting both current and prospective clients. Both companies have a complementary culture, investment style and product fit, with minimal overlap.”

Jonathan Punter, Group Chief Executive of Punter Southall Group said: “We regard Miton as being the ideal partner for PSigma for the future, with the capability to take it on to the next stage. PSigma has been a successful part of our business and it’s our belief that together the two entities will enjoy even greater success.”

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