Results round-up

Fund manager Schroders reported flat profits in the first nine months of the year as its assets under management increased despite a fall in net inflows.

For the nine months ended 30 September, the FTSE 100 company had £375bn assets under management, a 27% increase from last year, helped by a £38.6bn benefit from the weakening of sterling since 1 January 2016.

Pre-tax profit fell slightly by 0.6% to £436.2m, whereas profit before tax and exceptional items was up 0.4% to £455.3m.

Chief executive Peter Harrison said the company delivered “solid results” as its diversified business model generated £2.7bn of net new business. This was a 67% fall from last year in the amount of new money raised.

He added that the company had made “progress against our strategic objectives, particularly in North America."

For the asset management business, operating revenue increased by 3.8% to £1.07bn, which included performance fees of £13.3m. Profit before tax was down 1.15% to £386.8m.

Net inflows for the nine months was £3.2bn, comprising of inflows of £5.4bn in Institutional and net outflows of £2.2bn in Intermediary. Assets under management were £339.4bn, up from £263.9bn.

For wealth management operating revenue rose 3% to £162.6m, while profit before tax fell 10% to £42.7m. There were net outflows of £0.5bn and assets under management were £35.6bn, up from £30.9bn.

Randgold Resources announced a new focus on three new projects over the next five years on Thursday, as it reported a strong third quarter performance keeping it on track to meet its 2016 guidance.

The FTSE 250 firm said forecast cash flows generated from operations were expected to support funding for the three new projects the company has set, as well as increasing dividends.

Results for the quarter showed profit of $77.3m in the three months to 30 September, up 32% on the previous quarter and 58% on Q3 2015, while earnings per share increased by 35% quarter on quarter and 17% on 2015.

Production of 301,163 ounces was up 7% quarter on quarter and in line with the previous year, and total cash cost per ounce of $663 was 9% lower quarter on quarter and 5% down on the prior year's corresponding quarter.

Net cash generated by the operations increased by 18% quarter-on-quarter, leading to a cash balance of $361.1m at period end.

Chief executive Mark Bristow said Kibali and Tongon had bounced back well from the technical issues that had plagued them in the first half of the year, while the flagship Loulo-Gounkoto complex continued on its steady course.

He said it was worth noting that despite the high level of activity, there had been zero lost-time injuries across the group during the quarter.

Sweeteners and food ingredients producer Tate & Lyle said its full year profits were likely to be higher than first thought after profits were lifted 83% in the first half of the year by a tasty mix of organic growth and currency fluctuations.

The FTSE 250 group, which takes less than 2% of its revenues from the UK, enjoyed a £15m increase in earnings during the six months to 30 September from movements in currencies, particularly the collapse of the pound, and if current rates prevail it estimated full year earnings would be inflated by a total of around £40m.

This helped sales increase 13% to £1.3bn in the half, when otherwise they would have been up just 1%.

Adjusted profit before tax was up 37% to £140m, 22% stronger without currency benefits, with reported PBT up 83% to £128m.

The profit growth was driven by strong performance in both divisions, with a 12% increase in speciality food ingredients from all regions apart from North America and 18% increase in sales from New Products to US$51m.

Bulk ingredients delivered a 36% increase in profits thanks to solid demand in the key summer beverage season and margins, strong manufacturing performance and a benefit from the one-off sell-down of excess inventory in Sucralose.