Investec signals H1 profits could fall 71%, scraps dividend

Investec forecast a slump in interim earnings of up to 71% as it faced in volatile market conditions caused by the coronavirus pandemic.

The investment manager added that it would scrap an interim dividend as it guided for a fall of in adjusted earnings per share from ordinary operations, to be between 8.3p - 10.5p, compared to 28.9p a year earlier.

Headline earnings per share were forecast to be between 7.3p - 9p 47% to 57% behind the 17.0p reported a year ago.

"The business has proved resilient in a period characterised by COVID-19 stringent lockdowns in the first quarter, followed by a gradual reopening of the economies. Severe GDP contractions and volatile financial markets negatively impacted revenues,” said chief executive Fani Titi.