19th Mar 2025 08:52
(Alliance News) - M&G PLC on Wednesday said it is moving to a "progressive" dividend policy after delivering a mixed set of annual results with operating profit ahead of expectations but net flows missing projections.
In response, shares in M&G were up 3.7% at 229.37 pence each in London on Thursday morning.
The London-based asset manager reported a pretax loss of GBP332 million in 2024, compared to a profit of GBP421 million in 2023, despite revenue growing 1.5% to GBP1.01 billion from GBP995 million.
This was largely driven by a GBP643 million loss on short-term fluctuations in investment returns, widened from a GBP171 million loss the year before.
Adjusted operating profit increased 5.0% to GBP837 million from GBP797 million, 8.8% ahead of GBP769 million company compiled consensus, reflecting a 19% increase in the Asset Management contribution and stable results from the Life and Corporate Centre segments.
Assets under management & administration at December 31 was GBP345.9 billion, 0.7% higher than GBP343.5 billion at the same time a year prior, a touch below GBP347.2 billion consensus.
Total net client outflows were GBP9.5 billion in 2024, more than double last year's GBP4.7 billion, and worse than GBP7.2 billion consensus.
The Solvency II coverage ratio improved to 223% at December 31 from 203% a year ago, ahead of 216% consensus.
M&G set its total dividend for the year at 20.1 pence per share, up 2.0% on-year from 19.7p. This includes a second interim dividend of 13.5p, up 2.3% from 13.2p last year.
Rossi said the increase was the first step in a new "progressive" dividend policy.
Chief Executive Officer Andrea Rossi said M&G delivered strategic and operational momentum in 2024 despite a tough market environment. It is now entering a "new phase", he added.
Rossi introduced two new financial targets for 2025 to 2027: to grow adjusted operating pretax profit on average by 5% or more per annum, and to generate GBP2.7 billion of operating capital.
M&G is also seeking further cost savings, upgrading its target, for the second time, to GBP230 million from GBP220 million by the end of 2025.
By Jeremy Cutler, Alliance News reporter
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