Premier Asset Management Group PLC – Final Results

Premier Asset Management Group PLC – Final Results

Premier Asset Management Group PLC (AIM: PAM) today announces its audited results for the year ended 30 September 2018.

Assets under management

  • £6.9 billion as at 30 September 2018 (30 September 2017: £6.1 billion)
  • 6.6 billion as at close of business on 23 November 2018

Investment performance

  • Continued strong investment performance:
    Over five years: 83% of AUM above median1
    Over five years: 78% of AUM in first quartile of IA sectors1 

Net inflows

  • Net flows of £734 million (FY17: £747m)
  • 22 consecutive quarters of net positive flows

Financial results

  • Adjusted EBITDA2 of £19.1 million (2017: £15.0m), an increase of 27.3%
  • Adjusted profit before tax3 of £18.9 million (2017: £14.7 million), an increase of 28.6%
  • Profit before tax of £15.9 million (2017: £11.5 million), an increase of 38.3%
  • Basic earnings per share of 12.09p (2017: 8.53p), an increase of 41.7% 

Full year dividend

  • Total dividend: 10.25p (2017: 8.00p) an increase of 28%

1 Performance figures represent 82% of Premier’s total AUM as at 30 September 2018 and exclude absolute return funds, investment trusts and segregated mandates. Median and quartile ranking figures are shown relative to respective Investment Association sectors. Source: FE Analytics, data to 30 September 2018.  Net income reinvested. Data shown net of all fund charges. C share class, or, where a C share class was not available for the full time period, the pre RDR bundled or equivalent retail share class has been used for the period the C share class was not available.

2 Earnings before interest, tax, depreciation, amortisation, share based payments and exceptional items

3 Profit stated before exceptional items, amortisation, interest expense, share based payments and tax

Mike O’Shea, Chief Executive Officer, commented:

I am pleased to report another strong year for the business in terms of continuing to deliver good long term investment performance for our clients, continued flows into Premier funds and good financial results for shareholders. 

Although investment and political conditions have remained uncertain, Premier achieved another year of strong net inflows supported by good performance, relevant products, including our broad range of multi-asset funds and our strong distribution capabilities.

We remain a market leader for multi-asset investments1 and believe we have strengthened our future position in this area by the continued development of our multi-asset product range to include both multi-manager and directly invested multi-asset funds. We are confident that in a more difficult investment environment, there will continue to be strong demand for good actively managed products, including both multi-asset and single strategy funds.

Independent recognition for the quality of our investment managers, products and performance continued during the year. Premier won a number of individual fund and company awards including Specialist Management Group of the Year (under £10 billion AUM) in the Investment Week Specialist Investment Awards 2018.

The need for individuals to save and invest for their future remains critically important even if the economic and political environment is uncertain. We believe that our combination of relevant investment products, good investment performance, strong distribution capability, strong brand and experienced investment managers means we are well placed to take advantage of the opportunities that arise for both our investors and shareholders.

Trading during the early part of the current financial year has been more challenging as the UK government seeks to finalise an acceptable withdrawal agreement with the EU. Anecdotal evidence suggests that retail investors are taking a wait-and-see approach and, as a result, fund flows have been slower in the first few weeks of the current year than they have been in recent months. Despite this, investment performance, particularly across our multi asset range has remained resilient on a relative basis.”

 1 Source: Bdifferent Financial Services Market Research. Based on UK adviser fieldwork from 2 May 2018 to 5 June 2018.

Dividend

The Company’s dividend for the financial year ended 30 September 2018 will be 10.25p, comprising three interim dividends of 1.65p per share, paid on 2 March 2018, 1 June 2018 and 31 August 2018, and a final interim dividend of 5.30p per share which will go ex-dividend on 6 December 2018 with a record date of 7 December 2018, and which will be paid on 4 January 2019.

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