Ninety One declares maiden dividend of 5.9 pence a share
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DURBAN - NINETY ONE yesterday declared a maiden dividend of 5.9 pence a share despite the independent investment manager experiencing net outflows of £300 million (R6.1 billion) for the six months to end September, the first outflows since 2017.
Ninety One was unbundled from Investec in March and listed separately on the London Stock Exchange and the JSE.
The group reported reported net inflows of £3.2bn last year. The company last saw half-yearly outflows in the six months to end-March 2017. Chief executive Hendrik du Toit said they were pleased to have maintained their earnings and declared a maiden interim dividend in these conditions.
“Ninety One has further built up its capital base, enhancing its balance sheet. Notwithstanding the weak economic landscape and the impact of Covid-19, our strategy remains unchanged. We remain committed to keeping our business simple. In this context we have announced the intended disposal of Silica, our third party administration business in South Africa, and our plan to sub-advise the remainder of our Africa Private Equity business,” Du Toit said. Assets under management increased by 15 percent to £119bn despite operating under challenging conditions as a result of the Covid-19 outbreak.
Its net revenue was marginally down by 1 percent to £297.3m, but profit after tax increased by 1 percent to £72.7m and basic earnings per share inched up by 1 percent to 7.9p.
Du Toit said in the face of challenging operating conditions, Ninety One remained focused on what really matters by serving and supporting their clients in these unprecedented times.
“We are mindful of the fact that the communities we serve have suffered from the health and economic consequences of the pandemic. These results evidence the resilience of our diversified, capital-light, organic business model,” he said.
He added that their sustained investment in technology in the past years and the positive mindset of their people supported the shift to virtual client engagement and remote working and then a partial return to the office over the reporting period. Looking ahead, Du Toit said Ninety One was in a better place than at the beginning of the reporting period in terms of performance and pipeline visibility, but the firm expected flows to remain performance sensitive for the near-term.
Ninety One shares closed 3.03 percent higher at R47.66 on the JSE yesterday.