Financial review

This commentary and analysis of our financial results for the year ended 31 March 2010 provides an overview of our financial performance relative to the group's results for the year ended 31 March 2009. Further detail on the performance of our business divisions is provided in the Divisional review section of this report. The financial information discussed below is based on the period under review, and may not necessarily reflect the financial condition or results of the operations of the group going forward.

Presentation of financial information

Introduction

Investec operates under a Dual Listed Companies (DLC) structure with premium/primary listings of Investec plc on the London Stock Exchange and Investec Limited on the JSE Limited.

In terms of the contracts constituting the DLC structure, Investec plc and Investec Limited effectively form a single economic enterprise in which the economic and voting rights of ordinary shareholders of the companies are maintained in equilibrium relative to each other. The directors of the two companies consider that for financial reporting purposes, the fairest presentation is achieved by combining the results and financial position of both companies.

Accordingly, the year end results for Investec plc and Investec Limited present the results and financial position of the combined DLC group under International Financial Reporting Standards (IFRS), denominated in Pounds Sterling.

All references in this document to Investec or the group relate to the combined DLC group comprising Investec plc and Investec Limited.

Exchange rates

Our reporting currency is Pounds Sterling. Certain of our operations are conducted by entities outside the UK. The results of operations and the financial condition of our individual companies are reported in the local currencies of the countries in which they are domiciled, including Rands, Australian Dollars, Euros and US Dollars. These results are then translated into Pounds Sterling at the applicable foreign currency exchange rates for inclusion in our combined consolidated financial results. In the case of the income statement, the weighted average rate for the relevant period is applied and, in the case of the balance sheet, the relevant closing rate is used.

The following table sets out the movements in certain relevant exchange rates against Pounds Sterling over the period.

	31 March 2010		31 March 2009
Currency per £1.00	Period end	Average	Period end	Average
South African Rand	11.11	12.38	13.58	14.83
Australian Dollar	1.66	1.88	2.07	2.19
Euro	1.12	1.13	1.08	1.21
US Dollar	1.52	1.59	1.43	1.73

Exchange rates between local currencies and Pounds Sterling have fluctuated over the period. The most significant impact arises from the volatility of the Rand. The average Rand: Pounds Sterling exchange rate over the period has appreciated by 16.5% and the closing rate has appreciated by 18.2% since 31 March 2009.

The following table provides an analysis of the impact of the Rand appreciation on our reported numbers.

	Results as reported at 31 March 2010	Currency neutral results at 31 March 2010**
Southern African operating profit before taxation (£’000)*	294 799	240 715
Southern African profit after tax and minorities (£’000)*	217 544	176 106
Total group operating profit before taxation (£’000)*	413 456	359 289
Total group adjusted earnings attributable to ordinary shareholders (£’000)*	309 710	272 318
Adjusted EPS (pence)*	45.1	39.6
Total assets (£’million)	46 572	42 298
Total shareholders’ equity (£’million)	3 292	3 047

*	Before goodwill and non-operating items.
**	For balance sheet items we have assumed that the Rand: Pounds Sterling closing exchange rate has remained neutral since 31 March 2009. For income statement items we have used the average Rand: Pounds Sterling exchange rate that was applied in the prior period, i.e. 14.83.