10th Aug 2021 09:08
(Alliance News) - M&G PLC on Tuesday reported an increase in assets under management that missed expectations in the first half of 2021.
Assets under management and administration rose 9.2% to GBP370.0 billion from GBP338.7 billion a year ago. The institutional business saw net inflows of GBP2.2 billion, down from GBP2.8 billion a year ago. Outflows at the retail business were GBP3.4 billion, narrowing from GBP7.7 billion.
Revenue jumped to GBP9.21 billion from GBP1.47 billion a year ago. Pretax profit fell 89% to GBP74 million from GBP665 million, after M&G recorded high charges.
Shares in the investment manager were down 1.4% to 234.70 pence in London on Tuesday morning.
Assets under management were 1.5% behind consensus expectations of GBP375.8 billion, largely because of a miss at the run-off annuity business Heritage, Shore Capital analyst Abid Hussain said in a note. But adjusted operating profit of GBP327 million beat consensus expectations of GBP293 million by 12%, he added.
M&G declared an interim dividend per share of 6.1p, in line with the company's policy of paying out a third of the previous year's total. For 2020, M&G paid a 6.0p per share interim dividend and 12.23p per share final dividend.
Looking ahead, M&G said it is "optimistic about the recovery in Retail Asset Management," and Institutional Asset Management is "well-placed for strong growth, with GBP4 billion of committed client capital and a further GBP5.5 billion of client wins yet to be funded."
The London-based company said it expects to become a more international business over time, with Europe presenting the most attractive opportunities.
"Today's results show good progress on our actions to reposition the business for sustainable growth and continued strong total capital generation," Chief Executive John Foley said.
By Ivan Edwards; [email protected]
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