PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

GlobeOp posts record year in 2010

GlobeOp Financial Services saw record net income of USD33.7 million in 2010, according to the company’s preliminary results for the year ended 31 December, 2010.

Assets under administration (AuA) increased 37% to USD149 billion as at 31 December 2010 versus USD109 billion at the end of the prior year, while revenues grew 21% to USD189.3 million in 2010 versus USD156.5 million in the prior year. Adjusted operating profit increased 52% to USD56.1 million in 2010, while adjusted operating profit margin expanded to 29.6% of revenues in 2010 compared to 23.5% in 2009.

According to the preliminary results, the company also held cash of USD73.3 million as at 31 December 2010 versus USD42.6 million the prior year, while the final dividend has increased 122% to 3.00 pence per share in the current year.

Hans Hufschmid, Chief Executive Officer, says: "I am pleased to report excellent results for the year. GlobeOp achieved record performance across our key financial metrics. Revenues totalled USD189.3 million in 2010, an increase of 21% versus 2009. Adjusted operating profit grew 52% to USD56.1 million in 2010 and adjusted operating profit margin expanded to 29.6%. Assets under Administration (AuA) closed the year at USD149 billion, an increase of 37% over the prior year. Cash flow from operations totalled USD43 million in 2010 and GlobeOp ended the year with over USD73 million in cash. In addition to these financial achievements GlobeOp also had a very successful year strategically.

"Throughout 2010 GlobeOp added significant new business. The year began with the conversion of a USD1 billion AuA client from a competitor and ended with a USD300 million new launch for the proprietary trading desk of a bulge bracket investment bank. Mid-year we commenced our landmark lift-out mandate with European Credit Management Limited (ECM), a subsidiary of Wells Fargo. We were also selected by Morgan Stanley to provide MBA services for their ALPHAS managed account platform and we added General Motors’ treasury department as a Transaction Solutions client. More recently we began providing risk and administration services for two divisions of a global investment bank and asset manager.

"Coupled with GlobeOp’s significant strategic new business additions in 2009, the mandates won during 2010 demonstrate the broad appeal of our solutions and the expansion of our marketplace. Moreover, the heightened rigour of the vendor selection process utilised by new clients over the past year aligns well with GlobeOp’s focus on client satisfaction and continuing investments in technology and people.

"Looking ahead, we see an expanding array of revenue opportunities and a strong pipeline of new business. 2011 has begun well, with positive aggregate net inflows for our clients’ funds in both January and February. We have also added new business with our existing clients. In addition, in late 2010 we contracted with a major European re-insurance specialist to commence OTC processing services (Transaction Solutions) in early 2011 and we recently signed a new USD1.5 billion MBA client who is scheduled to convert onto the GlobeOp platform during the second quarter. We are optimistic about our growth prospects for the year."

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured