For a company that is increasingly an asset gatherer rather than an insurer, Standard Life (SL.) can be expected to have taken a beating as equity markets shrunk in the latter half of 2015. But over the course of the year its total assets under administration actually increased by 4 per cent, bolstered by £6.3bn in net inflows and positive market movements of £4.5bn. Overall, group operating profit before tax, from continuing operations, rose 9 per cent to £665m.
Strong growth for the group's asset management arm continues to offset a continuing decline in annuity sales for its UK pensions and savings business. Its fund manager, Standard Life Investments, grew its operating profit by a third, thanks to a decent rise in inflows from wholesale and institutional investors, plus a shift in mix towards higher-margin multi-asset investments. The business benefited from net inflows of £5.5bn.
Assets under management within annuities continued to fall, standing at £14.3bn at the close of the period. However, strong inflows into the group's wrap platform - and a 9 per cent increase in regular contributions to workplace pensions, as auto-enrolment marches on - increased UK pensions and savings assets under management to £132bn (2014: £128bn).
Broker UBS expects adjusted EPS of 29.3p in 2016, compared with 27.2p in 2015.
STANDARD LIFE (SL.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 342p | MARKET VALUE: | £6.74bn | |
| TOUCH: | 342.1-342.4p | 12-MONTH HIGH: | 506p | LOW: 325p |
| DIVIDEND YIELD: | 5.4% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 203p | Assets under administration: | £307bn | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 9.09 | 595 | 13.0 | 13.80 |
| 2012 | 19.2 | 963 | 28.3 | 14.70 |
| 2013 | 16.8 | 645 | 14.2 | 15.80 |
| 2014 | 16.6 | 672 | 15.8 | 17.03 |
| 2015 | 8.89 | 549 | 13.5 | 18.36 |
| % change | -46 | -18 | -15 | +8 |
Ex-div: 14 Apr Payment: 24 May | ||||
