16th May 2006 07:01
Schroders PLC16 May 2006 Schroders plc Trading Update 16 May 2006 Schroders plc is today issuing a trading update for the three months to31 March 2006. The Group made a good start to the year with pre-tax profit of £71.4 million forthe first quarter compared to £50.4 million for the same period in 2005. Asset Management Results Asset Management revenues for the quarter were £152.8 million (Q1 2005: £123.5million). Costs were £102.9 million (Q1 2005: £89.2 million) and profit was£49.9 million (Q1 2005: £34.3 million). Private Banking Results Private Banking revenues for the quarter were £20.4 million (Q1 2005: £17.4million), costs were £16.7 million (Q1 2005: £15.7 million) and profit was £3.7million (Q1 2005: £1.7 million). Private Equity and Group Results Profit from Private Equity was £7.2 million (Q1 2005: £10.5 million). Group netincome was £10.6 million (Q1 2005: £3.9 million). Funds under Management From an opening position of £122.5 billion at 1 January 2006, funds undermanagement rose 4.8 per cent in the quarter to £128.4 billion. Net businessoutflows were £0.2 billion in the quarter, with net inflows of £1.9 billion inthe Retail business and £0.2 billion in Private Banking offset by net outflowsin the Institutional business of £2.3 billion. Schroders completes acquisition of NewFinance Capital The acquisition of NewFinance Capital, the London-based manager of funds ofhedge funds, was completed on 3 May 2006 following receipt of regulatoryapproval from the Financial Services Authority. Results from this business will be included for the first time in the Group's2006 Interim results. Summary Profitability was strong in the quarter on the back of higher equity markets, afurther improvement in margins, increased profits in Private Banking and gainson Group investments. Net new business saw a return to strong inflows in Retail during the quarter,broadly balanced by outflows in Institutional. Net inflows in emerging marketand European equities were offset by net reductions in Japanese and Pan-Pacificequity mandates. Interim results for 2006 will be announced on 11 August. For further information, please contact:Henrietta JowittHead of Marketing and Communications Tel: +44 20 7658 6166 Forward-looking statements This trading update contains certain forward-looking statements with respect tothe financial condition, results, operations and businesses of Schroders plc.These statements and forecasts involve risk and uncertainty because they relateto events and depend upon circumstances that will occur in the future. There area number of factors that could cause actual results or developments to differmaterially from those expressed or implied by these forward-looking statementsand forecasts. Nothing in this trading update should be construed as a profitforecast. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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