Nnety One reports resilient performance amid tough market

(Sharecast News) - Asset manager Ninety One reported a resilient full-year performance despite a challenging market environment on Wednesday, with signs of momentum returning in the second half of the year. For the 12 months ended 31 March, the firm recorded net outflows of £4.9bn, driven by £5.3bn in outflows in the first half.

However, the second half saw a return to positive territory with net inflows of £0.4bn.

Assets under management rose 4% year-on-year to £130.8bn.

Adjusted operating profit slipped 1% to £187.9m, while profit before tax declined 6% to £204.3m.

The adjusted operating margin remained robust at 31.2%, down slightly from 32% a year earlier.

Adjusted earnings per share fell 3% to 15.5p, and basic earnings per share dropped 7% to 17.2p.

The board proposed a final dividend of 6.8p, bringing the full-year payout to 12.2p per share, marginally down on the prior year.

Ninety One highlighted continued strong staff engagement, with employees collectively holding a 32.6% stake in the firm.

While market conditions remained difficult, the company said business momentum had improved heading into the new financial year.

"Ninety One regained positive flow momentum in the second half; business conditions have improved in the final quarter," said founder and chief executive officer Hendrik du Toit.

"These financial results reflect the strength of our business.

"Our previously-announced transaction with Sanlam remains on track."

Du Toit said that, while the company expected the ongoing economic uncertainty and market volatility to persist, it was encouraged by early indications that demand was shifting towards its offering.

"We are committed to our relentless drive to build a better, more focused business.

"This motivates our top talent, and talent is key to the success of Ninety One."

At 0955 BST, shares in Ninety One were up 6.29% at 172.4p.

Reporting by Josh White for Sharecast.com.