Full-year figures for Polar Capital (POLR) were undermined by a collapse in performance fee profits, which fell by nearly two-thirds to £8.8m. Admittedly, the fall-away was set against a tough comparator in FY2019, but performance across most of its strategies was underwhelming.
Core operating profit, ex-performance fees, contracted slightly to £41.6m, although this was largely due to increased headcount and further expansion in the North American and Nordic markets.
The sudden deterioration in bond and equities markets exacerbated the existing divergence between the performance of growth and value stocks, as investors cast around for companies that can deliver above-average growth rates. It helps to explain why Polar’s technology strategies, which account for 43 per cent of assets under management (AuM), have outperformed.
Numis forecasts EPS of 42.6p through to March 2021, rising to 45.6p in the following year.
POLAR CAPITAL (POLR) | ||||
ORD PRICE: | 492p | MARKET VALUE: | £483m | |
TOUCH: | 483-493p | 12-MONTH HIGH: | 628p | LOW: 282p |
DIVIDEND YIELD: | 6.7% | PE RATIO: | 11 | |
NET ASSET VALUE: | 118p | NET CASH: | £105m |
Year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
2016 | 84.2 | 23.6 | 20.5 | 25.0 |
2017 | 73.8 | 20.4 | 17.8 | 25.0 |
2018 | 134 | 41.3 | 36.4 | 28.0 |
2019 | 178 | 64.1 | 57.8 | 33.0 |
2020 | 152 | 50.9 | 43.5 | 33.0 |
% change | -15 | -21 | -25 | - |
Ex-div: 2 July | ||||
Payment: 31 July |