These half-year results look badly timed for Aim-listed asset manager Polar Capital (POLR). The snapshot of its assets under management came in a market dip at the end of September, when its $10.9bn (£7.2bn) compared unfavourably with the $12.3bn held at the end of March. By the end of November the figure had rebounded to $12bn.
There is a case to be made that Japanese equities - one of Polar's key specialisms - are not getting the credit they deserve. Despite the Nikkei 225 being up 10 per cent and the yen-sterling conversion rate remaining fairly flat, UK investors remain "stubbornly negative" towards the asset class, according to a Lloyds sentiment index.
Polar suffered outflows from its core Japan fund that outweighed inflows into its other strategies. Management was keen to highlight improved recent performance - the fund is back in the top quartile of its peer group. "There are encouraging signs that the worst [of the redemptions] may now be behind us," chief executive Tim Woolley told the market.
Core operating profit fell 11 per cent to £12.4m for the period, due to the reduced management fees, while pre-tax profits were boosted by a positive contribution from finance income owing to the group's own investment and hedging strategies.
Analysts at Canaccord Genuity expect adjusted pre-tax profits of £28.9m and EPS of 24.3p for the full year to March 2016, compared with £33.7m and 28.2p in FY2015.
| POLAR CAPITAL (POLR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 360p | MARKET VALUE: | £324m | |
| TOUCH: | 363-373p | 12-MONTH HIGH: | 490p | LOW: 335p |
| DIVIDEND YIELD: | 6.9% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 77p | NET CASH: | £25.1m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 41.8 | 11.6 | 10.6 | 5.5 |
| 2015 | 39.9 | 11.7 | 10.4 | 5.5 |
| % change | -5 | +1 | -1 | - |
Ex-div: 24 Dec Payment: 15 Jan £1=$1.51 | ||||
