Polar Capital profits fall as assets under management contract
Polar Capital Holdings
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15:34 15/11/24
Investment manager Polar Capital reported a decrease in assets under management in its full-year results on Monday, as well as declines in both core operating profit and profit before tax.
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The AIM-traded firm reported a 13% decrease in assets under management for the 12 months ended 31 March, to £19.2b.
Average assets under management for the year also experienced a decline, of 14% to £19.6bn, compared to £22.8b in the 2022 financial year.
Polar Capital reported a 31% decrease in core operating profit to £47.9m, while its profit before tax was off 27% at £45.2m.
The company's basic earnings per share for the year totalled 36.8p, decreasing from 50.8p year-on-year.
Adjusted diluted total earnings per share also experienced a decline, of 21% to reach 44.3p.
Despite the challenges, Polar Capital maintained its dividend payment consistency, announcing a second interim dividend of 32p per share, the same as the prior year.
That brought the total dividend for the year to 46p per share, matching the dividend paid in 2022.
“During a difficult period for markets, Polar Capital has demonstrated resilience and improving investment performance,” said chief executive officer Gavin Rochussen.
“The group's strong balance sheet and significant capacity in fund strategies that are currently benefitting from net inflows, positions Polar Capital well for the future.
“Strategic progress has continued under the 'growth with diversification' mantra with much progress diversifying our distribution footprint into new regions.”
Rochussen said the Nordic region had become a significant market where Polar Capital’s funds were finding favour, while it also opened an office in Singapore to serve a growing Asian client base.
“We have continued to develop our US footprint with experienced business development capability covering the major regions within the US.
“This has resulted in promising net inflows into the US 40 Act Fund and increased interest in our Emerging Markets Stars fund strategies.
“The group's strong balance sheet and range of differentiated fund strategies positions us well for the future, supported by our performance led approach and our strong culture.”
At 1005 BST, shares in Polar Capital Holdings were down 0.51% at 492p.
Reporting by Josh White for Sharecast.com.