Polar Capital (POLR) delivered an impressive performance in the year to end-March, with growth rates that have comprehensively outstripped the broader asset management sector. Moreover, further progress in the current financial year has boosted assets under management from $7.2bn (£4.6bn) at the year-end to $8.8bn in May. Although management concedes that such a pace is unlikely to be sustained amid increasingly uncertain investment conditions.
A 42 per cent rise in assets under management helped to boost management and advisory fees by 26 per cent to £38.3m, while performance fees rose from £9.3m to £13.5m. Net inflows every quarter of the year were supported by a further broadening of the investment offering, with two new funds launched - Global Alpha Fund and Japan Alpha Fund - and a Global Financials Investment Trust scheduled for the current year. Moreover, diversification is an import constituent of Polar's growth strategy and, of the 11 investments teams, the number now handling assets of over $500m rose from three in 2010 to seven.
Broker Peel Hunt expects adjusted pre-tax profit of £25.9m for 2014, giving EPS of 22p (from £16.8m and 14.8p in 2013).
| POLAR CAPITAL HOLDINGS (POLR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 400p | MARKET VALUE: | £330m | |
| TOUCH: | 393-400p | 12-MONTH HIGH: | 405p | LOW: 168p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 27 | |
| NET ASSET VALUE: | 65p | NET CASH: | £30.9m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 51.1 | 12.1 | 12.1 | 4.50 |
| 2010 | 21.7 | 3.13 | 3.06 | 4.50 |
| 2011 | 39.1 | 9.18 | 8.64 | 7.50 |
| 2012 | 39.9 | 9.62 | 9.48 | 9.00 |
| 2013 | 51.7 | 15.3 | 15.0 | 13.0 |
| % change | +30 | +59 | +58 | +44 |
Ex-div: 10 Jul Payment: 9 Aug | ||||
