Old Mutual (LON:OML) plans to list two divisions next year as it moves on with its strategy to break up into four parts, the blue-chip financial services group has said. The news came as the company updated investors on its interim performance, delivering a 37-percent rise in profits.
Old Mutual’s share price has fallen into the red this morning, having tumbled 1.29 percent to 198.90p as of 08:15 BST, underperforming the broader UK market, with the benchmark FTSE 100 index currently 0.79 percent worse off at 198.90 points. The group’s shares have lost more than seven percent of their value over the past year, and are down by nearly three percent in the year-to-date.
Old Mutual announced in a statement this morning that it expected to list its OMW and Old Mutual Limited businesses next year at the earliest opportunity after posting its full-year results for 2017. The FTSE 100 company is currently in the process of breaking up into four parts, in an effort to unlock value for shareholders, which the company argues, is trapped within its complex structure. The blue-chip group is further looking to sell down its holding in its US-based Old Mutual Asset Management unit to 5.5 percent.
“We are making excellent progress in delivering the managed separation of Old Mutual,” the financial services firm’s chief executive Bruce Hemphill commented in the statement.
The update came as Old Mutual updated investors on its half-year performance, posting pre-tax adjusted operating profit of £969 million, up 37 percent year-on-year. The group’s IFRS pre-tax profit meanwhile came in at £940 million, from £534 million in the prior-year period. Old Mutual announced an interim dividend of 3.53p per share, marking a 32-percent increase.