Adjusted profits edge higher at Man Group

Adjusted profit before tax (PBT) rose to 278m dollars in the full year to December 31st from 262m dollars in the nine months to December 31st 2011 at Man Group.

Adjusted profit before tax (PBT) rose to 278m dollars in the full year to December 31st from 262m dollars in the nine months to December 31st 2011 at Man Group.

The FTSE 100-listed alternative asset manager reported that funds under management at the end of 2012 were $57bn compared to $58.4bn in the nine months to December 31st in the preceding year.

Gross management and other fees were valued at $1.21bn compared to $1.16bn across the same two time frames.

The group reported a statutory loss before tax for the year ending December 31st of $745m reflecting impairment of goodwill and other adjusting items.

Man Group reported that $95m of operating cost savings announced in January 2012 have been delivered and further annual cost savings of $100m announced in July 2012 were on track for delivery by the end of 2013.

The company recorded surplus regulatory capital of $745m at December 31st 2012 and proposed a final dividend of 12.5 cents per share. The total dividend for the year is expected to be 22 cents.

CEO: "2012 was another tough year"Manny Roman, Chief Executive Officer of Man, said: "2012 was another tough year for Man. Trading conditions were highly challenging as markets continued to be dominated by political uncertainties in Europe and the US and macroeconomic risks. Investor appetite remained muted and as expected there was a further decline in Man's product margin mix and revenues.

"Management's priority last year was to maintain the focus on delivering investment performance for our investors, while reducing our cost base to a level which reflects the economics of a reduced and different mix of asset flows. On both counts we made good progress.

"As of mid-February 2013, most of our strategies were off to a good start and there is no doubt investor sentiment has improved somewhat. The number of requests for proposals and the pipeline of new mandates have increased to a degree. However, given the lead time required by institutional investors to invest, gross sales are likely to remain muted in the first half and we are yet to see a slow down in the rate of redemptions."

Analysts' view: Profits beat Credit Suisse's forecastGurjit Kambo, a research analyst at Credit Suisse, left his target price for the stock unchanged at 104p and retained his 'neutral' rating.

He said: "FY12 adjusted PBT (excluding one-offs totalling c$1.0bn which included a further GLG impairment of $746m) came in at $278m which was ahead of our $187m forecast, driven by revenues $73m higher (of which $46m was performance fees), lower distribution costs of $11m and other costs (inc net interest) c$7.0m lower vs. our forecasts."

Man Group's share price was up 2.33% to 105.40p at 09:16 on Thursday morning.

MF

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Government plans could see NS&I boost interest rates
Savings

Government plans could see NS&I boost interest rates

The government-backed bank has a new funding target, which could prompt it to boost the rates on its Premium Bonds, ISAs and bonds.
16 Mar 2023
Share tips of the week – 17 March
Investments

Share tips of the week – 17 March

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
10 Mar 2023
How to make your child a tax-free millionaire by age 37
Investments

How to make your child a tax-free millionaire by age 37

Exclusive research for MoneyWeek reveals how funding an ISA and a pension for your child until age 18 could build up a seven-figure sum by the time th…
14 Mar 2023