Ninety One surges more than 3% on the JSE after reporting record assets
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NINETY One plc surged more than 3 percent to R53.64 per share on the JSE yesterday as it reported record assets under management of £140 billion (about R2.9 trillion) on positive business momentum.
This record for the six months ending September 30 was up by 7 percent from the previous six months, supported by strong net inflows and portfolio growth.
The dual-listed asset management group said net revenue increased 10 percent to £328.4 million during the period.
Ninety One founder and chief executive Hendrik du Toit said a combination of strategic clarity, disciplined execution, competitive investment performance, and a long-term approach to business continues to work well for the company
“A combination of competitive investment performance, relevant offerings and a stable organisation translated into record earnings, record assets under management and strong net inflows,” he said.
“The combination of organisational stability and strategic clarity allows us to focus on what is really important in this business – serving our clients.”
Du Toit said although the current market conditions remained supportive, there were a range of risk factors that can change this.
He pointed to geopolitical uncertainty, the Covid-19 pandemic, economic protectionism, climate and inflation as factors that may affect future earnings potential.
Nevertheless, Du Toit said they would continue to invest for long-term growth as they see ample opportunities for growth if Ninety One continues to deliver for its clients.
“While the supportive market conditions of this reporting period will not last indefinitely, we see substantial long-term growth opportunities ahead,” Du Toit said.
“We will continue to invest in our people and our business so that we can deliver for our clients. This remains our formula for value creation.”
Ninety One profit before tax rose 39 percent to £132m, including the £14.9m in proceeds from the sale of third-party administration firm, Silica.
Adjusted operating profit climbed 20 percent to £115.6m, a record amount for an interim period.
Ninety One posted a 42 percent increase in basic earnings per share, to 11.2 pence. Adjusted earnings per share rose 21 percent to 9.7 pence.
Basic earnings per share increased by 42 percent to 11.2 pence and adjusted earnings per share increased by 21 percent to 9.7 pence.
As a result, the board declared an interim gross dividend of 6.9 pence (141 SA cents) per ordinary share as the current market conditions remained supportive.
Meanwhile, Ninety One has appointed Nazmeera Moola as chief sustainability officer to be responsible for overseeing the group’s firm-wide sustainability initiatives.
This includes investment integration, advocacy, corporate transition to net zero and developing and implementing efforts to mobilise dedicated funding for an inclusive net zero transition.
BUSINESS REPORT ONLINE