7th Feb 2025 09:06
(Alliance News) - Ashmore Group PLC on Friday said a drop in assets under management contributed to lower revenue in the first half of the financial year.
Shares in Ashmore were 1.4% lower at 169.20 pence each in London on Friday morning.
The London-based investment firm said pretax profit plunged 33% to GBP49.9 million in the six months to December 31 from GBP74.5 million a year prior, while diluted earnings per share declined 37% to 5.36 pence from 8.47p.
Net revenue fell 14% to GBP81.0 million from GBP94.5 million a year prior, reflecting lower average assets under management. Within this, net management fee income declined by 17% to GBP69.3 million from GBP83.7 million.
Assets under management edged down to USD48.8 billion at the end of December from USD49.3 billion at June 30, 2024. Average AuM of USD50.1 billion over the six-month period was 6.0% lower than USD53.3 billion a year prior.
Investment performance added USD0.6 billion and net outflows of USD1.1 billion were significantly lower than in the prior year period, USD4.5 billion net outflow, and the preceding six months, USD4.0 billion.
However, the company left its dividend unchanged at 4.8p per share.
Mark Coombs, chief executive, said: "Ashmore's net flows continue to improve and AuM was largely unchanged at the end of the period.
"Ongoing strong control of operating costs helped to mitigate the impact of lower average AuM on the financial results, and the group continues to invest in strategic growth and diversification opportunities including through its seed capital investments."
By Jeremy Cutler, Alliance News reporter
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