There could be light at the end of the tunnel for asset manager Polar Capital (POLR). Chief executive Tim Woolley says fund inflows have picked up “markedly”subsequent to the US Presidential Election, noticeable across a a range of funds including its biotechnology, North America and income opportunities strategies. However, Mr Woolley admitted that it is too early to suggest the tough conditions faced by the long-only fund specialist are in reversal.
Revenue was constricted by outflows from its Japan and North America UCITS funds during the six months to the end of September. In particular, assets under management for its Japanese strategy reduced by more than a third to $1.4bn (£1.09bn). Management flagged the possibility of further redemptions on the Japan fund, although said "market conditions are turning decidedly more favourable".
Net outflows across all its funds totalled £763m. The strength of the dollar generated a £1.1bn benefit for the asset manager, meaning overall assets under management increased in sterling terms by £0.4bn to £7.7bn. Assets under management had grown a further £0.4bn by the end of November. Management held the dividend steady and said it also expects to maintain the full-year dividend, which last year totalled 25p a share.
Analysts at Numis expect adjusted pre-tax profits of £21.8m for the 12 months to March 2017 and EPS of 21.5p. This is down from £24.2m and 23.6p respectively in the previous year.
POLAR CAPITAL HOLDINGS (POLR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 288.25p | MARKET VALUE: | £263m | |
| TOUCH: | 287.75-294.75p | 12-MONTH HIGH: | 433p | LOW: 262p |
| DIVIDEND YIELD: | 8.7% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 72p | NET CASH: | £32m | |
| Half-year to 30 Sept | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 39.9 | 11.7 | 10.4 | 5.5 |
| 2016 | 33.6 | 9.1 | 7.4 | 5.5 |
| % change | -16 | -22 | -29 | - |
Ex-div: 29 Dec Payment: 13 Jan | ||||
