Highlights:
- Total funds under management at 30 June 2016 were £30.6 billion, up 4.8% from £29.2 billion at 31 December 2015. This compared to an increase of 4.2% in the FTSE 100 Index and an increase of 5.4% in the FTSE WMA Balanced Index over the same period.
- Total net organic and acquired growth in the funds managed by Investment Management was £0.5 billion in the first six months of 2016, representing a net annual growth rate of 4.2% (2015: 5.1%). Net organic growth of £0.3 billion for the first half represents an underlying annualised rate of net organic growth of 2.5% (2015: 2.8%).
- Underlying profit before tax* decreased 5.1% from £37.2 million to £35.3 million in the first six months of 2016. Underlying profit margin remained strong at 29.4% compared to 31.9% in 2015.
- Profit before tax was £22.8 million for the six months ended 30 June 2015, down 28.3% compared to £31.8 million in 2015, reflecting the impact of previously announced non-underlying costs in relation to the acquisition of the Vision businesses, and costs incurred to date in respect of our planned London office move to 8 Finsbury Circus. Basic earnings per share decreased 32.9% to 35.7p (2015: 53.2p).
- The board recommends a 21.0p interim dividend for 2016 (2015: 21.0p).
- Underlying operating income in Investment Management of £108.8 million in the first six months of 2016 (2015: £106.8 million) was up 1.9%, mostly due to growth in funds under management. The average FTSE 100 Index was 6298 on quarterly billing dates in 2016, compared to 6677 in 2015, a decrease of 5.7%.
- Net interest income of £5.7 million in the first six months of 2016 has increased 3.6% from £5.5 million in 2015, largely due to an increase in average liquidity to £1.7 billion for the six months to 30 June 2016 (2015: £1.6 billion).
- Underlying operating expenses of £84.9 million for the six months ended 30 June 2016 were up 6.7% from £79.6 million in the first half of 2015, largely reflecting higher fixed staff costs and higher direct costs.
- Funds under management in Unit Trusts were £3.3 billion at 30 June 2016 (31 December 2015: £3.1 billion). Net inflows were £259 million in the first half of 2016 (2015: £107 million). Underlying operating income in Unit Trusts was £11.4 million in the six months ended 30 June 2016, an increase of 14.0% from £10.0 million in the first half of 2015.
- Shareholders' equity of £279.7 million at 30 June 2016 fell 6.8% from 31 December 2015 (£300.2 million), largely as a result of the value of retirement benefit obligations which increased by £27.5 million from £4.5 million to £32.0 million during the period.
