27th Feb 2015 08:00
LONDON (Alliance News) - Old Mutual PLC Friday said that its closely-watched adjusted operating profit was hit by a further weakening of the rand against its sterling reporting currency over the course of 2014.
In a statement, the investment, savings, insurance and banking group said it adjusted pretax operating profit before tax was flat at GBP1.6 billion in 2014, but would have shown a 16% increase if exchange rates had remained constant.
"We saw a further weakening of the rand with the average rate declining by 18% against sterling in the period while the closing year-end rand exchange rate declined only 3%. This has had a negative impact on our sterling reported results," Old Mutual said.
Net client cash flow amounted to GBP4.9 billion, while funds under management rose by 9% to GBP319.4 billion on a reported currency basis.
"We have invested significantly and reallocated capital in our key markets to grow profits over the long term while holding appropriate levels of capital and leverage. Our focus for 2015 is on integrating the acquisitions, delivering the operational improvements and creating value from these investments," Chief Executive Julian Roberts said in a statement.
Old Mutual increased its dividend for the year by 7% to 8.7 pence per share.
By Samuel Agini; [email protected]; @samuelagini
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