Man (EMG) has a long slog ahead to regain the value its shares have lost so far this year. This dire set of first-half results was accompanied by a further 8 per cent share price fall upon their release, although a chunk of that value was regained on the following day. Funds under management fell 3 per cent to $76.4bn (£57.8bn) at period-end, pushed down by a poor investment performance and negative currency movements. The market performance also hindered performance fees, which declined to $42m from $326m in the previous comparable period.
The weakness of Japanese equities damaged the performance of the group's discretionary long-only strategies in particular, which lost $1.7bn negative investment movements. However, the increased popularity of quant strategies, which trade using algorithms rather than trader discretion, did result in group net inflows of $1bn. Institutional assets now account for 77 per cent of the group's total and 64 per cent of sales, which has continued to erode the management fee margin. The group's total net margin declined to 89 basis points, from 96 basis points at the end of December.
Analysts at Numis expect adjusted pre-tax profit of $242m and EPS of 12.3¢ for the year to December 2016 (from $400m and 21.1¢ in 2015).
MAN (EMG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 112.8p | MARKET VALUE: | £1.92bn | |
| TOUCH: | 112.8-112.9p | 12-MONTH HIGH: | 177p | LOW: 103p |
| DIVIDEND YIELD: | 6.2% | PE RATIO: | 28 | |
| NET ASSET VALUE: | 169p* | NET CASH: | $434m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2015 | 625 | 163 | 7.6 | 5.40 |
| 2016 | 421 | 55 | 2.9 | 4.50 |
| % change | -33 | -66 | -62 | -17 |
Ex-div: 11 Aug Payment: 31 Aug *Includes intangible assets of £1.47bn, or 86p a share £1=$1.322 | ||||
