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Premier enjoying the bull market

But the retail fund manager is mindful of political risks
November 30, 2017

Full-year results at Alternative Investment Market-listed Premier Asset Management (PAM) didn’t add much to last month’s trading update, on which basis we tipped the stock (Buy, 202p, 7 November 2017). In the two months after the September year-end, assets under management at the equity and multi-asset fund manager have pushed on from £6.1bn to £6.3bn.

IC TIP: Buy at 212p

The rising assets drove net management fees up more than a fifth to £40.9m. Excluding a range of exceptionals, underlying pre-tax profits were up 39 per cent to £14.7m.  

Analysts at Liberum expect adjusted pre-tax profits of £19.2m in the year to September 2018, giving EPS of 14.9p (from £14.8m and 11.7p in FY2017).

PREMIER ASSET MANAGEMENT (PAM) 
ORD PRICE:212pMARKET VALUE:£224m
TOUCH:211-213p12-MONTH HIGH:212pLOW: 124p
DIVIDEND YIELD:3.8%PE RATIO:25
NET ASSET VALUE:43pNET CASH:£15.8m*
Year to 30 SepTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2013**27.3-6.4nana
2014**30.7-2.8nana
2015**35.8-0.8-48.4na
201639.12.571.7nil
201746.011.58.58.0
% change+18+354-88-
Ex-div:07 Dec   
Payment:05 Jan   
*Excludes trading account balances **Pre-IPO figures. Premier joined Aim in Oct 2016