17th Sep 2013 10:43
LONDON (Alliance News) - Charlemagne Capital Limited Tuesday said its half-year pretax profits more than doubled after it took in more net management fees.
Charlemagne said it made a USD1.3 million pretax profit for the six months to June 30, compared with GBP608,000 for the corresponding period the year prior.
Charlemagne will pay a 0.5 pence interim dividend on the back of the pretax profit increase, after failing to declare one this time last year.
Charlemagne put the improved profit down to a 16% increase in revenues to USD12.8 million, on the back of increased incoming fee revenues for managing funds.
However, Charlemagne said it will have to increase assets under management, which declined 7.7% to USD2.4 billion on the half-year, in order to ensure sustainable profits on a recurring management fee basis. It said performance fees, which declined 45% to USD500,000 on a net basis this half-year, would be a key indicator of full-year performance.
"Looking ahead, scope for a sustained recovery in asset prices remains uncertain, but emerging market equities are now trading at the widest discount to developed markets since the financial crisis, and we believe that this may prove to be an attractive re-entry point for investors," Chief Executive Jayne Sutcliffe said in a statement, adding: "With our bottom-up stock picking approach based on detailed analysis, we are confident of the long term prospects of our business."
Charlemagne shares were Tuesday quoted at 14.00 pence, up 0.88 pence, or 6.7%.
By Samuel Agini; [email protected]; @samuelagini
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