Ashmore Group (ASHM) H2 2024 earnings summary

Executive summary

• Statutory profit before tax rose 15% to GBP 128.1 million, driven by strong performance fees and balance sheet returns, despite a 10% drop in average AUM and net outflows.

• Operating margin remains robust at 41%, even as adjusted EBITDA declined 27% year-on-year to GBP 77.9 million.

• Dividend per share held steady at 16.9p, reflecting confidence in the group's financial strength.

• Diluted EPS increased 12% to 13.6p, supported by balance sheet returns.

• Strong and liquid balance sheet with approximately GBP 700 million in financial resources and no debt.

Financial highlights

• Assets under management ended at $49.3 billion, down 12% year-on-year, with net outflows reduced by 26% to $8.5 billion.

• Net management fees fell 12% to GBP 160 million, while performance fees surged to GBP 22.7 million from GBP 5.1 million in 2023.

• Adjusted net revenue decreased 4% YoY to GBP 187.8 million, offset by higher performance fees.

• Operating cash flow reached GBP 113.5 million, and cash and deposits rose to GBP 505.7 million.

• Dividends paid totaled GBP 124.4 million.

Outlook and guidance

• Expectation of continued strong performance in EM asset classes, supported by superior growth, attractive valuations, and likely U.S. rate cuts.

• Performance fees for the next year estimated in the mid-single-digit millions, with alternatives as a potential upside.

• Non-VC operating costs for 2025 expected to remain at current levels.

• Variable compensation guidance for modeling set at 31%, with actual outcome dependent on full-year performance.

• Active management remains critical to capturing available alpha; positive momentum in investor interest expected into 2025.