Premier Miton Group (PMI) H2 2024 earnings summary

Executive summary

• Assets under management (AUM) closed at £10.7bn, up 9% year-over-year, with further growth to £10.9bn post year-end, despite net outflows during the year.

• Adjusted profit before tax was £12.2m, with a total dividend of 6p per share, and £35.9m cash on the balance sheet with no debt.

• Strong investment performance, with 68% of funds ranked in the first or second quartile since launch or fund manager tenure, especially as mid and small-cap stocks outperformed large caps.

• Integration of Tellworth business completed, delivering expected synergies, broadening distribution, and contributing positively to AUM and net flows.

• Distribution expanded with new fund registrations in South Africa, Ireland, and the launch of a Managed Portfolio Service (MPS).

Financial highlights

• Adjusted profit before tax declined 22% year-over-year to £12.2m, down from £15.7m.

• Gross profits fell 7% to £62m, driven by a 5% decline in average AUM and a lower management fee margin (58.9bps vs 61.7bps prior year).

• Administration expenses decreased 1% to £51.2m, with fixed staff costs down 4% and variable staff costs down 11%.

• Non-recurring items of £0.5m related to acquisition costs.

• Cash at year-end was £35.9m, with no debt.

Outlook and guidance

• Demand expected to focus on fixed income, US equities, and absolute return strategies post UK budget and US election.

• Continued focus on MPS solutions and multi-asset strategies, supported by changes to UK Capital Gains Tax.

• Management remains open to further M&A aligned with strategic objectives and is planning a brand re-launch for early 2025.

• Optimism for recovery as market sentiment improves and cash is redeployed to risk assets.

• Positioned for an upturn with a focus on active asset management, enhanced distribution, and inorganic growth opportunities.