9th Apr 2020 13:20
(Alliance News) - Premier Miton Group PLC said Thursday it saw a jump in assets in the first half due its recent merger, but has vowed to adopt a new dividend policy amid the Covid-19 pandemic.
The asset manager ended March 31 with GBP9.15 billion in assets under management, up from the GBP6.56 billion seen at October 1, the beginning of its financial year.
The jump can be attributed to the GBP4.70 billion funds added from the group's merger.
Premier Asset Management merged with peer Miton Group PLC, which took effect on November 14 2019.
In the first half, Premier Miton recorded GBP389 million in net outflows, with market movements shaving off a further GBP1.72 billion.
"This financial quarter initially saw a solid overall performance for the group and good progress on our integration plans. However, in the past few weeks, the market turbulence from the Covid-19 pandemic has significantly affected our business," Chief Executive Mike O'Shea said.
Premier Miton said the full implications of Covid-19 are "difficult to determine", but the asset manager did say it was "actively managing" its financial position.
The company has proposed a dividend policy that will pay-out 60% to 65% of profit after tax going forward. This will result in a 0.75 pence distribution for the the first half. As part of this move, Premier Miton will no longer be paying quarterly dividends, instead issuing two a year.
The asset manager said it continues to be cash generative, but has already implemented cuts to discretionary expenditure across the business and has agreed a measured approach to making further changes if needed. In addition, the senior management team have elected to take a reduction in salary for a period of six months.
O'Shea continued: "It is clear that the current market conditions are particularly challenging for any business in the asset management sector. I am proud of how well our people have responded. Our fund management teams, as we would expect, have all been actively monitoring markets and looking to take advantage of investment opportunities that may emerge throughout the crisis.
"It is likely that the current uncertainty will create attractive opportunities in the UK's long-term savings and investment market for firms that have a strong sense of purpose and a full commitment to their clients and their people. Well run, active fund management firms will be in a position to capitalise on this for the long-term benefit of investors. My fellow directors and I continue to believe that the group, with its broad range of investment capabilities, collegiate investment culture and strength of operating base, remains well positioned for the long-term."
Shares in Premier Miton Group were 2.7% higher in London on Thursday at 94.00 pence each.
By Paul McGowan; [email protected]
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