31st Jul 2025 12:25
(Alliance News) - Schroders PLC on Thursday reported stable assets under management and kept its interim dividend unchanged, saying it is making "strong progress on transformation", though the cost of this restructuring programme hurt its bottom line in the first half.
The London-based financial services firm operates three divisions: Public Markets, Schroders Capital and Wealth Management.
Assets under management, including joint ventures and associates, was GBP776.6 billion on June 30, down marginally from GBP773.7 billion a year before. Schroders said positive market movements and investment performance was outweighed by negative currency movements due to the weaker dollar.
Gross inflows were GBP68.2 billion in the first half, up 8% from a year before, but Schroders suffered a net outflow of GBP1.0 billion. The net outflow is primarily due to outflows from money market funds in the first quarter in its Fund Management Co venture with China's Bank of Communications. The two banks have worked together since 2005.
JVs & Associates had GBP5.5 billion in net outflows in total in the first half of the year. Additionally, the Public Markets division had GBP500 million in net outflows. However, Asset Management had GBP1.8 billion in net inflows and Wealth Management had GBP4.5 billion in net inflows.
Net new business, excluding JVs and associates, was GBP4.5 billion, including positive GBP2.7 billion for Wealth Management and GBP2.3 billion for Schroders Capital.
Pretax profit in the six months that ended June 30 was GBP196.9 million, down 29% from GBP276.3 million a year before. This reflected portfolio restructuring charges of GBP56.0 million and "transformation" costs of GBP44.9 million.
Excluding these, adjusted operating profit was GBP316.0 million, up 7.4% from GBP294.1 million a year before on adjusted net operating income of GBP1.21 billion, up 2.9% from GBP1.18 billion.
Schroders declared an interim dividend of 6.5 pence per share, unchanged from a year before.
"Our three-year transformation programme sets out a clear strategy to create a high performing, resilient, and growing business," said Chief Executive Richard Oldfield. "I'm pleased with our progress - we're ahead of plan and moving at pace. Since March, we have quickly taken bold and difficult actions, as we right-size our business and focus on the areas where we have competitive edge, positioning us for profitable growth."
Schroders shares were down 0.6% to 387.60 pence midday Thursday in London.
By Tom Waite, Alliance News editor
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