Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com -- Ashmore Group Plc (LON:ASHM) on Friday reported its annual profit before tax fell 15% to £108.6 million, as weaker fee income offset investment gains and reduced client withdrawals.
The London-listed emerging markets asset manager reported diluted earnings per share of 11.8 pence, down from 13.6 pence a year earlier.
Adjusted diluted EPS dropped 33% to 7.1 pence. Adjusted net revenue fell 22% to £146.5 million, with performance fees dropping to £10.2 million from £22.7 million the year before.
Assets under management were $47.6 billion at June 30, a 3% decrease from the prior year. The total included $4.1 billion of positive investment performance across funds, offset by $5.8 billion in net outflows, narrower than the $8.5 billion of outflows in the previous year.
Subscriptions reached $6.5 billion, while redemptions stood at $12.3 billion. Equities and alternatives saw inflows, while local currency and blended debt strategies recorded redemptions.
Operating costs declined 14% to £98.7 million, with non-variable compensation costs down 6%.
Adjusted EBITDA was £52.5 million, producing a margin of 36%, compared with 41% a year earlier. Finance income dropped to £51.1 million from £70.4 million, reflecting lower cash balances and reduced interest income.
The company reported more than £600 million in financial resources, including about £350 million in cash and deposits.
The board recommended a final dividend of 12.1 pence per share, unchanged from last year, bringing the total payout for the year to 17.9 pence. Payment is scheduled for Dec. 8 to shareholders on the register Nov. 7.
Chief executive Mark Coombs said the company’s strategy remains focused on emerging markets, where returns outpaced developed economies. “Ashmore’s strategy is aligned with the opportunities in emerging markets and the consistent application of its investment processes through market cycles over the longer term,” he said in a statement.
Coombs said the group had continued to invest in diversification, with equities assets under management increasing to$7.5 billion and alternatives growing by more than 20% over the year.
Local platforms expanded during the year. Assets managed by local offices rose 5% to $7.8 billion.
Ashmore opened a new office in Mexico and another in Qatar, while Colombia, India and Saudi Arabia reported growth in selected strategies.
Coombs said the company was positioned to benefit from changes in global capital flows.
“There is evidence of capital flows reacting to underlying opportunities, putting pressure on overweight positions in US markets and building appetite for the inherent attractions of emerging markets, bolstered by the positive impact of a weaker US dollar,” he said.
Ashmore said 57% of assets under management outperformed benchmarks over one year, 70% over three years and 81% over five years, underscoring the contribution of its active investment approach.