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Investing.com -- Polar Capital Holdings plc (LON:POLR) reported a 27% increase in core operating profit to £56.7 million for the financial year ended March 31, even as its closing assets under management declined 2% to £21.4 billion due to adverse market movements in the final quarter.
The asset manager said average assets under management rose 17% to £22.9 billion, helping to lift net management fees by 16% to £178.3 million.
Performance fees fell to £16 million from £18.7 million the previous year. The net management fee yield remained at 78 basis points.
Statutory profit before tax dropped 6% to £51.6 million, down from £54.7 million in 2024, following a £13.6 million impairment charge related to goodwill and intangible assets from the Dalton Capital acquisition.
The impairment included £6.7 million in goodwill and £6.9 million in intangible assets.
Basic earnings per share declined 13% to 36.6p, while diluted EPS fell to 36.5p from 41.8p. Adjusted diluted total earnings per share rose 22% to 53.5p.
The board declared a second interim dividend of 32p per share, bringing the total dividend for the year to 46p, unchanged from the prior year.
Net fund flows for the year were flat, as inflows into strategies such as Biotechnology, Healthcare Blue Chip and Emerging Market Stars were offset by outflows from others, including Technology.
The Polar Capital International Small Company Fund, launched in September 2024, reached more than $100 million in assets within six months.
At March 31, 2025, the breakdown of AuM by fund type was 75% in open-ended funds, 22% in investment trusts and 3% in segregated mandates.
By strategy, Technology accounted for 42% of total AuM, followed by Healthcare at 16.5% and Emerging Markets and Asia at 14%.
AuM by client geography showed 63% from the United Kingdom (TADAWUL:4280), 23% from Europe, 7% from Asia, 5% from the Nordics, and 1% each from North America and other regions. This compared with 60% from the United Kingdom and 29% from Europe a year earlier.
Performance fee profits were £7.9 million, down from £9.6 million. Other income rose to £4 million, driven by marked-to-market gains.
Total (EPA:TTEF) operating and finance costs increased 22% to £146.7 million, reflecting higher staff compensation and the impairment charge.
As of June 20, total assets under management stood at £22.6 billion, up from £21.4 billion at the end of March, with £0.6 billion in net outflows recorded in the period between April 1 and June 20.
The company announced that Chief Executive Officer Gavin Rochussen will retire following the annual general meeting in September 2025. Rochussen joined Polar Capital in 2017.
During his tenure, AuM grew from £9.3 billion to £21.4 billion, and adjusted diluted total EPS rose from 20.4p to 53.5p. Iain Evans, currently Global Head of Distribution, will succeed him as CEO.
The company said 84% of its UCITS fund AuM was in the top two quartiles over three years as of May 31, 2025.
For the financial year, several strategies recorded strong relative performance, including Japan Value and Europe ex U.K. Income. The Polar Capital Financials Trust plc was up 17% over the year.
Total surplus capital at year end was £65.1 million. Cash and cash equivalents were £121.8 million, with an additional £6.7 million in term deposits and £37.3 million invested in the company’s funds. The dividend payout represented 86% of adjusted diluted total earnings.
Separately, the U.K.-based company also said Gavin Rochussen will retire as CEO of Polar Capital on September 25, after eight years, during which AuM increased by 130% and EPS by 162%.
He’ll be succeeded by Iain Evans, the current Global Head of Distribution, who will take over as CEO in September, subject to regulatory approval.