Schroders (SDR) delivered a solid half-year earnings hike and fund under management grew 21 per cent year on year to £235.7bn - but the shares still slipped over 5 per cent on the day these figures appeared. That's significantly down to a weaker second quarter, when fears that the US Federal Reserve might withdraw its stimulus measures resulted in a £1.1bn net fund outflow at the asset manager.
But Schroders' asset management arm still grew pre-tax profit by a robust 21 per cent to £212m and net institutional inflows reached £2.1bn. Net inflows in the division's intermediary side amounted to £2.7bn, but inflows in branded funds offset outflows in the lower margin sub-advisory business. The performance of the smaller private banking side was flat - pre-tax profit rose just 2 per cent to £10.6m and the division suffered a £300,000 net fund outflow. However, last month's acquisition of Cazenove Capital's wealth management business should bolster the scale of the private banking operation - that came with £20.1bn of assets under management.
Overall, and despite the second-quarter glitch, net fund inflows reached £4.5bn, while performance and management fees grew 17 per cent (to £11.8m) and 18 per cent (to £708m), respectively.
Broker Oriel Securities expects full-year pre-tax profit of £437m, giving EPS of 124p (from £360m and 101p in 2012) and a dividend of 50p.
SCHRODERS (SDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,362p | MARKET VALUE: | £6.43bn* | |
| TOUCH: | 2,360-2,362p | 12-MONTH HIGH: | 2,579p | LOW: 1,374p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 769p* | |||
| Half-year to 30 Jun | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2012 | 177 | 50.7 | 13.0 |
| 2013 | 222 | 64.2 | 16.0 |
| % change | +25 | +27 | +23 |
Ex-div: 14 Aug Payment: 26 Sep *Includes non-voting shares | |||
