14th Nov 2006 07:02
Schroders PLC14 November 2006 Schroders plc TRADING UPDATE 14 November 2006 Schroders plc is today issuing a trading update for the three months to 30September 2006. Third quarter pre-tax profit was £64.0 million compared to £63.6 million for thesame period in 2005. Pre-tax profit for the nine months to end September was£196.3 million, 17.8 % ahead of underlying+ pre-tax profit for the same periodin 2005 of £166.7 million. Asset Management Asset Management revenues for the quarter were £157.2 million (Q3 2005:£141.2million), costs were £108.9 million (Q3 2005: £95.1 million) and profitwas £48.3 million (Q3 2005: £46.1 million). For the nine months, AssetManagement profit was £145.1 million (first nine months 2005: £125.8 million+). Private Banking Private Banking revenues for the quarter were £23.4 million (Q3 2005: £17.0million), costs were £16.5 million (Q3 2005: £15.5 million) and profit was £6.9million (Q3 2005: £1.5 million). For the nine months, Private Banking profit was£18.1 million (first nine months 2005: £3.4 million+). Private Equity and Group Profit from Private Equity was £6.2 million (Q3 2005: £5.5 million) and fromGroup Net Income/(Costs) was £2.6 million (Q3 2005: £10.5 million). For the ninemonths, profit from Private Equity was £23.9 million (first nine months 2005:£23.5 million), and profit from Group Net Income/(Costs) was £9.2 million (firstnine months 2005: £14.0 million). Funds under Management We continue to focus on growing higher margin products with annualised revenuesfrom business won in the first nine months exceeding those from business lost.Funds under management at the end of September were £122.8 billion (end June2006: £122.3 billion) with net outflows in Institutional of £1.8 billion in thequarter, net outflows in Retail of £0.1 billion and net inflows in PrivateBanking of £0.1 billion. Retail inflows have picked up sharply since the end ofthe quarter and we have a good pipeline of new specialist products in fixedincome, equities and alternatives for both institutional and retail markets. For further information please contact Nik Ekholm +44 207 658 7938 Estelle Bibby +44 207 658 2589 + The term 'underlying' denotes that the relevant 2005 comparative has beenadjusted to remove the impact of the one-off gain recorded in the first half of2005 on the discontinuation of a project to outsource UK custody and portfolioaccounting services. The effect of this adjustment is to reduce profit beforetax in the first nine months of 2005 by £20.4 million (split £20.1 million inthe Asset Management segment and £0.3 million in Private Banking). 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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