28th Jun 2016 06:56
LONDON (Alliance News) - Anglo-South African financial services group Old Mutual PLC on Tuesday said trading has been broadly in line with its expectations in 2016 as it progresses its strategy to separate its operating units and warned the UK's decision to vote to leave the European Union could hit its underlying business.
Old Mutual said gross sales in 2016 have been strong but it has continued to face a weak South African rand, volatility among other African currencies, and lower average equity markets.
The FTSE 100-listed group said it expects its managed separation, which will split the company in four, to be materially complete by the end of 2018. Old Mutual said the plans will involve creating two separate entities, one listed in London and the other in Johannesburg. One will primarily consist of its Wealth operations, with the other to primarily comprise its emerging markets business.
In the meantime, Old Mutual intends to continue the phase reduction of its stake in Old Mutual Asset Managers, whilst supporting the development of that unit's strategy.
Old Mutual added the outcome of the UK's referendum on its EU membership has increased levels of market volatility, which could hit the underlying performance of the business.
By Sam Unsted; [email protected]; @SamUAtAlliance
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