Ashmore Group says its full-year revenue saw a 5% annualised growth

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on Sep 11, 2020
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  • Ashmore Group says its full-year revenue saw a 5% annualised growth.
  • The British firm reports £221.5 million of pre-tax profit in fiscal 2020.
  • The investment manager reveals a 9% decline in assets under management.

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In an announcement on Friday, Ashmore Group plc (LON: ASHM) said that it concluded fiscal 2020 with a higher pre-tax profit than the previous year. The company acknowledged that the Coronavirus pandemic weighed on its assets under management, however, expressed confidence that signs of recovery were now evident and client flow was quickly stabilising.

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Ashmore Group remained almost flat on average in premarket trading on Friday. On market open, however, shares of the company tanked a little under 2%. Ashmore now has a per-share price of 383 pence per share versus a much lower 307 pence per share in March due to COVID-19 restrictions.

At the start of 2020, Ashmore Group was seen trading at 524 pence per share. Learn more about how do people make money on the stock market.

Ashmore reports £221.5 million of pre-tax profit in fiscal 2020

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In the year that concluded on 30th June, the investment manager posted £221.5 million of pre-tax profit as compared to £219.9 million last year. FactSet consensus for Ashmore’s pre-tax profit in fiscal 2020 stood at a higher £225.6 million.

In terms of net revenue, the British firm recorded £330.5 million that represents a 5% year over year increase. According to FactSet, experts had forecast the company to print an even higher £332.4 million in revenue.

Ashmore’s board declared 12.1 pence a share of final dividend on Friday that remained unchanged from last year. The FTSE 250 listed firm reported 25.7 pence of diluted earnings per share in fiscal 2020.

Ashmore reports a 9% decline in assets under management

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The London-based company valued its assets under management at £65.20 billion as of the end of the recent financial year that marks a 9% annualised decline. Ashmore said that £6.32 billion of negative market performance in the fiscal third quarter was attributed to COVID-19 that has so far infected more than 358 thousand people in the United Kingdom and caused over 41 thousand deaths.

The decline in performance, the company added, was also ascribed to tighter liquidity conditions and a sharp slump in global oil prices in recent months. In separate news from the United Kingdom, the oil and gas company, Hurricane Energy, also said on Friday that its underlying pre-tax loss widened in the fiscal first half.

At the time of writing, the British investment manager is valued at £2.73 billion and has a price to earnings ratio of 12.46.

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