Ashcourt Rowan (ARP) has undergone a lengthy - and costly - transformation into a provider of financial planning and investment management. But the process is now complete, and the benefits are starting to show through. Headline losses were reduced significantly in the first half, but more importantly underlying cash profits more than doubled to £1.9m.
Total assets under management grew from £4bn in March to £5.3bn, and higher-margin discretionary and managed assets jumped 40 per cent to £2.3bn. The group also purchased UK Wealth Management (UKWM) from Duke Street Capital, and its successful integration is likely to generate more than the £2.25m target for annual cost savings.
The group is also attracting greater customer loyalty, with recurring revenues accounting for more than three quarters of the total. Crucially, organic inflows (ie, without UKWM) rose from £65m to £78m - more than enough to offset fund outflows of £52m, down marginally from £54m a year earlier.
Analysts at N+1 Singer are forecasting full-year adjusted pre-tax profits of £5.7m and EPS of 13.5p (from £2.2m and 8.3p in 2013-14).
| ASHCOURT ROWAN (ARP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 182p | MARKET VALUE: | £64.6m | |
| TOUCH: | 178-185p | 12-MONTH HIGH: | 194p | LOW: 174p |
| DIVIDEND YIELD: | nil | PE RATIO: | 152 | |
| NET ASSET VALUE: | 168p* | NET CASH: | £10m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 15.2 | -2.5 | -8.8 | nil |
| 2014 | 19.9 | -0.8 | -1.9 | nil |
| % change | +31 | - | - | - |
Ex-div:- Payment:- *Includes intangible assets of £50m or 141p a share | ||||
