Sterling's decline in the wake of the recent EU referendum has already been felt by some companies reporting half-year results. They include Jupiter Fund Management (JUP), which said the foreign exchange gains made on non-sterling assets at the end of June boosted assets under management by 4 per cent to £37bn. Net inflows of £0.6bn also helped, although that was lower than the £1.4bn recorded in inflows this time last year. This relative decline was attributable to increased circumspection on the part of investors in the run up to the June vote.
The investment outlook for the UK may be in a state of flux, but Jupiter's determination to diversify its revenue streams by client type, geography, and product has served the asset manager well overall. With operations in Italy and Spain now "wel advanced" the group offers its services in 19 countries, nine of which have local offices.
And despite lingering uncertainties, chief executive Maarten Slendebroek is keeping his powder dry. He said it was "too early" to comment on the "long-term effects" of the EU vote but went as far to say a full 'Brexit' without a trade deal or mutual passporting arrangements would trigger "a limited amount of legal restructuring" for Jupiter's continental offices, but "no movement of staff".
Analysts at Panmure Gordon expect pre-tax profits of £163m for the year ending December 2016, giving EPS of 28.6p, compared to £168m and 29.2p in FY2015.
| JUPITER FUND MANAGEMENT (JUP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 407.7p | MARKET VALUE: | £1.87bn | |
| TOUCH: | 407.5-408.2p | 12-MONTH HIGH: | 468p | LOW: 325p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 124p* | NET CASH: | £202m | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 207 | 84.0 | 4.9 | 4.0 |
| 2016 | 196 | 86.6 | 15.3 | 4.5 |
| % change | -5 | +3 | +212 | +13 |
Ex-div: 4 Aug Payment: 26 Aug *Includes intangible assets of £346m, or 76p a share | ||||
