Unsurprisingly, equity and multi-asset investment specialist Premier Asset Management (PAM) has found it harder to gain new business during the past two months, due to a combination of market volatility and Brexit-induced jitters. The effects of some of that market volatility showed up during the year to September, with the asset manager gaining just £44m in market returns, down on £342m the prior year.
The good news was that new business remained steady, with the group gaining net inflows of £734m, representing 22 consecutive quarters of positive net new business. That is more impressive given the group caters primarily to retail investors – via a network of intermediaries – who are more easily spooked by market fluctuations. That took assets under management up 13 per cent to £6.9bn by the end of September, although that had fallen back to £6.6bn almost two months later.
Analysts at Numis expects adjusted pre-tax profits of £18.9m for the year to September 2019, giving EPS of 14.6p (from £18.9m and 14.8p in 2018).
| PREMIER ASSET MANAGEMENT (PAM) | ||||
| ORD PRICE: | 202p | MARKET VALUE: | £214m | |
| TOUCH: | 200-204p | 12-MONTH HIGH: | 312p | LOW: 194p |
| DIVIDEND YIELD: | 5.1% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 43p* | NET CASH: | £21m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014** | 30.7 | -2.8 | na | na |
| 2015** | 35.8 | -0.8 | -48.4 | na |
| 2016 | 39.1 | 2.5 | 71.7 | nil |
| 2017 | 46.0 | 11.5 | 8.5 | 8 |
| 2018 | 53.4 | 15.9 | 12.1 | 10.25 |
| % change | +16 | +38 | +42 | +28 |
| Ex-div: | 6 Dec | |||
| Payment: | 4 Jan | |||
| *includes intangible assets of £29m, or 27p a share **Pre-IPO | ||||
