StockMarketWire.com - Asset management company Schroders reported a slump in 2018 pre-tax profit on Thursday amid a 6% drop in its assets under management, but said it remained confident in its future growth.
The company saw pre-tax profit fall 15% to £649.9m for 2018 while the company's total assets under management and administration fell 6% to £421.4bn. Declining markets net of FX movements reduced assets under management by £19.6bn.
However, despite headwinds facing the industry, Peter Harrison, Group Chief Executive said the company "... remain confident that our global presence and diversified business model mean we are well positioned to generate growth for both our clients and shareholders over the long term."
Investor sentiment worsened towards the end of the year, leading to net redemptions from clients of £9.5 billion (2017 saw net inflows of £9.6 billion). Outflows were generally from lower margin business while there was continued demand for higher margin strategies, including within its Private Assets and Alternatives capabilities. This left its net operating revenue margin unchanged at 47 basis points.
Nonetheless, the company said it achieved "over £85 billion" of notified net new inflows at the year end.
The company said it would pay a final dividend of 79p/share, unchanged from 2017's level. This would bring the total dividend for the year to 114p, a year-on-year increase of 1p.
At 8:00am: [LON:SDRY] Superdry Plc share price was +2p at 555p
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