Emerging markets asset manager Ashmore delivered a solid enough performance in the financial year to June, maintaining profit levels despite volatile trading conditions. However, a weak equity performance continued to offset a stronger performance from assets in emerging market debt.
Total assets under management (AUM) at the year-end fell 3 per cent to $65.8bn (£41.1bn) mainly as a result of a $3.4bn negative investment return, which offset a net $1.3bn inflow of funds. External debt and corporate debt segments both delivered a positive investment performance and net inflows, but these were countered by a weak equity performance - AUM slid from $10.1bn to $6.2bn, reflecting $2bn of net outflows and a $1.9bn negative investment return.
Inevitably, the poor investment return hit performance fees, which collapsed from £85.4m to £25.4m, but group profits held steady due to a 21 per cent increase in net management fee income to £303m. This reflected a higher level of average AUM held for much of the year, although margins did decline.
Peel Hunt is forecasting flat current-year adjusted pre-tax profits of £236m and EPS of 23.8p (£238m and 25.8p for 2012), following a 15 per cent downgrade in July.
| ASHMORE (ASHM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 337p | MARKET VALUE: | £2.4bn | |
| TOUCH: | 337-338p | 12-MONTH HIGH: | 413p | LOW: 300p |
| DIVIDEND YIELD: | 4.5% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 76p* | NET CASH: | £347m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 242 | 196 | 21.0 | 12.0 |
| 2009 | 246 | 160 | 17.1 | 12.0 |
| 2010 | 281 | 217 | 23.9 | 13.0 |
| 2011 | 343 | 246 | 28.1 | 14.5 |
| 2012 | 334 | 243 | 26.6 | 15.0 |
| % change | -3 | -1 | -5 | +3 |
Ex-div: 7 Nov Payment: 7 Dec *Includes intangible assets of £98m, or 14p a share | ||||
