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Q1 Interim Management Statement - Press Release

A strong start to 2015, with profit before tax and exceptional items up 14 per cent. to £149.6 million

30/04/2015

Interim management statement

A strong start to 2015, with profit before tax and exceptional items up 14 per cent. to £149.6 million

30 April 2015

Schroders plc today issues its interim management statement covering the three months to 31 March 2015.

  • Profit before tax and exceptional items £149.6 million* (Q1 2014: £130.7 million)
  • Net inflows £5.1 billion
  • Assets under management £319.5 billion (31 December 2014: £300.0 billion)

Michael Dobson, Chief Executive, commented:

“Schroders’ strong performance in 2014 continued in the first quarter of this year, with profit before tax up 14 per cent. to £149.6 million and assets under management up 7 per cent. to £319.5 billion since the start of the year. We generated net new business of £5.1 billion with net inflows in Institutional, Intermediary and Wealth Management.”

Asset Management
Asset Management net revenue was £348.5 million (Q1 2014: £306.2 million), including performance fees of £1.7 million (Q1 2014: £6.3 million). Profit before tax and exceptional items was up 14 per cent. to £133.7 million (Q1 2014: £117.0 million). Net inflows of £4.9 billion comprised £2.0 billion in Institutional and £2.9 billion in Intermediary, and assets under management at the end of March were £286.9 billion (31 December 2014: £268.9 billion).

Wealth Management
Wealth Management net revenue was £52.2 million (Q1 2014: £50.3 million). Profit before tax and exceptional items was up 12 per cent. to £14.9 million (Q1 2014: £13.3 million). Net inflows were £0.2 billion and assets under management at the end of March were £32.6 billion (31 December 2014: £31.1 billion).

Group
Profit before tax and exceptional items in the Group segment was £1.0 million (Q1 2014: £0.4 million). Shareholders’ equity at 31 March 2015 was £2.7 billion (31 December 2014: £2.5 billion).

Michael Dobson, Chief Executive, and Richard Keers, Chief Financial Officer, will host a conference call for the investment community, to discuss the first quarter interim management statement at 9am BST on Thursday, 30 April 2015.

The conference call telephone number is 0800 694 1515 (International: +44 (0)1452 584 053), conference ID 23227501. For individuals unable to participate in the conference call, a telephone replay will be available until 30 June 2015. Please telephone 0800 953 1533 (International: +44 (0)1452 550 000), conference ID 23227501.

For further information please contact:
Investors
James Grant – Investor Relations
+44 (0) 207 658 6744
james.grant@schroders.com
Alex James – Investor Relations
+44 (0) 207 658 4308
alex.james@schroders.com
Press
Beth Saint – Head of Communications
+44 (0) 207 658 6168
beth.saint@schroders.com
Anita Scott – Brunswick
+44 (0) 207 404 5959
schroders@brunswickgroup.com

 

Appendix

Assets under management

Three months to 31 March 2015

 Institutional£bnIntermediary£bnAssetManagement£bnWealthManagement£bnTotal£bn
31 December 2014 171.1 97.8 268.9 31.1 300.0

Net Flows

Investment returns

2.0

7.9

2.9

5.2

4.9

13.1

0.2

1.3

5.1

14.4

31 March 2015 181.0 105.9 289.9 32.6 319.5

 

Three months to 31 December 2014

 Institutional£bnIntermediary£bnAssetManagement£bnWealthManagement£bnTotal£bn
30 September 2014 151.1 94.6 245.7 30.5 276.2

Net flows

Investment returns

16.1

3.9

1.6

1.6

17.7

5.5

0.1

0.5

17.8

6.0

31 December 2014 171.1 97.8 268.9 31.1 300.0

 

Financial Information

Three months to 31 March 2015

 Asset Management £mWealth Management £mGroup £mTotal £m

Net revenue

Operating expenses

348.5

(216.4)

52.2

(37.3)

3.1

(6.9)

403.8

(260.6)

Operating profit/(loss)

Net finance (charge)/income

Share of profit of associates and joint ventures

132.1

(0.7)

2.3

14.9

-

-

(3.8)

3.6

1.2

143.2

2.9

3.5

 

Profit before tax and exceptional items 133.7 14.9 1.0 149.6

Exceptional items:

Amortisation of acquired intangible assets

Deferred compensation arising from the acquisitions

 

2.4

-

 

 1.9

-

 

-

3.0

 

4.3

3.0 

 

 

Exceptional items within share of profit of associates and joint ventures:

Amoritisation of acquired intangible assets

2.4

 

 

 

0.6

 1.9

 

 

 

-

 3.0

 

 

 

-

 7.3

 

 

 

0.6

Total exceptional items 3.0   1.9 3.0   7.9
Profit/(loss) before tax 130.7 13.0 (2.0) 141.7

  Three months to 31 March 2014

 Asset Management £mWealth Management £mGroup £mTotal £m

Net Revenue

Operating expenses

306.2

(191.7)

50.3

(37.0)

2.3

(4.8)

358.8

(233.5)

Operating profit/(loss)

Net finance (charge)/income

Share of profit of associates and joint ventures

114.5

(0.1)

2.6

13.3

-

-

(2.5)

2.5

0.4

 125.3

2.4

3.0

 

Profit before tax and exceptional items 117.0 13.3 0.4 130.7
     

Exceptional items:

Integration costs

 

(0.1)

 

(1.1)

 

 

(1.2)

Amortisation of acquired intangible assets

(2.9)

(2.5)

-

(5.4)

Deferred compensation arising from acquisitions

-

-

(4.6)

(4.6)

 

(3.0)

(3.6)

(4.6)

(11.2)

Exceptional items within share of profit of associates and joint ventures:

Amortisation of acquired intangible assets

 

 

0.6

 

 

 -

 

 

 -

 

 

0.6

Total exceptional items  (3.6)  (3.6) (4.6)   (11.8)
Profit/(loss) before tax 113.4 9.7   (4.2)  118.9

Forward-looking statements

This interim management statement may contain forward-looking statements with respect to the financial condition, performance and position, strategy, results of operations and businesses of the Schroders Group. Such statements and forecasts involve risk and uncertainty because they are based on current expectations and assumptions but relate to events and depend upon circumstances in the future and you should not place reliance on them. Without limitation, any statements preceded or followed by or that include the words ‘targets’, ‘plans’, ‘sees’, ‘believes’, ‘expects’, ‘aims’, ‘will have’, ‘will be’, ‘estimates’ or ‘anticipates’ or the negative of these terms or other similar terms are intended to identify such forward-looking statements. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts. Forward-looking statements and forecasts are based on the Directors’ current view and information known to them at the date of this interim management statement. The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this interim management statement should be construed as a forecast, estimate or projection of future financial performance.

 

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