Schroders (SDR) managed to attract net inflows of £9.4bn last year, up sharply from £3.2bn a year earlier, but profits were lower due to higher costs and lower net margins. Asset management fee income was just under 5 per cent lower, reflecting a fall in performance fees from £36.6m to £28.4m, while pre-tax profits on the asset management side fell from £389.4m to £348.5m. And given the uncertain economic outlook this leaves little obvious room for a re-rating.
Net institutional inflows amounted to £6.4bn, and assets under management rose from £108.4bn to £123.7bn. Despite weak retained investor demand at the start of the year, net inflows totalled £3.3bn, reversing the previous year's £3.8bn outflow and helping to take assets up from £62.9bn to £72bn. But the overall increase in assets of 13 per cent to £212bn came largely from a £39.2m positive investment performance.
On the private banking side, net revenue fell 17 per cent to £94.4m - that's because management fee and commission income both declined as a result of subdued client activity and business outflows. And loan losses on previously impaired loans drained a further £7.9m.
Broker Numis Securities forecasts pre-tax profits this year of £402.9m and EPS of 112p (from £349.9m and 96.8p in 2012)
| SCHRODERS (SDR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,073p | MARKET VALUE: | £5.63bn* | |
| TOUCH: | 2,072-2,075p | 12-MONTH HIGH: | 2,108p | LOW: 1,163p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 733p* | |||
| Year to 31 Dec | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) | |
|---|---|---|---|---|
| 2008 | 123 | 27.5 | 31.0 | |
| 2009 | 138 | 34.3 | 31.0 | |
| 2010 | 407 | 112 | 37.0 | |
| 2011 | 407 | 116 | 39.0 | |
| 2012 | 360 | 105 | 43.0 | |
| % change | -12 | -10 | +10 | |
Ex-div: 27 Mar Payment: 9 May *Includes non-voting shares | ||||
