Jupiter Fund Management has made a good debut since its flotation at the end of June in the face of a troubled market background, depressed by worries about sovereign debt and flagging economic recovery. Net revenue rose 40 per cent to £112m boosted by a £29m increase in net management fees on net inflows of £814m, largely into mutual funds. As a result assets under management rose 2 per cent to £19.8bn, at a time when the FTSE 100 dropped by 9 per cent.
The fund performance has been strong with 71 per cent of Jupiter's funds showing above average performance over the past year. So in spite of the £1.7m costs of flotation and a £1.8m reduction in other gains, operating profits rose from £17.6m to £37.3m. As expected there is no interim dividend, but Jupiter expects to pay a final and pay out 40 per cent of underlying earnings. Numis Securities expects a dividend of 4.4p this year, and 7.8p in 2011, so the forecast yield rises from 2.2 to 3.8 per cent. The broker estimates that full year underlying pre-tax profits will increase from £74.5m to £103.5m, giving EPS of 16.3p (2009: 11.7p), rising again to £123m and 19.4p, respectively, in 2011.
JUPITER FUND MANAGEMENT (JUP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 204p | MARKET VALUE: | £ 938m | |
| TOUCH: | 203-205p | 12-MONTH HIGH: | 208p | LOW: 165p |
| DIVIDEND YIELD: | Nil | PE RATIO: | 13 | |
| NET ASSET VALUE*: | 77p | |||
| Half-year to 30 Jun | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|
| 2009 | -6.5 | -5.8 | Nil |
| 2010 | 14.6 | -0.7 | Nil |
| % change | - | - | - |
* includes intangibles assets of £504m, or 110p a share | |||
