Ashmore Dips But Beats Market Expectations

Published in Company Comment on 11 September 2012

Management satisfied with results amid market volatility.

Fund manager Ashmore Group (LSE: ASHM) released its audited results for the year ending 30 June 2012 this morning, with revenue, pre-tax profits and earnings per share all dropping marginally from the year before. 

However, the final results beat market expectations, with chief executive officer Mark Coombs saying "the Group has delivered higher quality revenues, with growing, more diversified management fees replacing the anticipated reduction in performance fees, while maintaining overall levels of profitability" during "a period of significant ongoing market volatility".

The aforementioned management fees were announced as up 21% to £302.6 million. Total net revenue came in at £333.3m, in line with the previous 12 months' total figure of £333.8m; the EBITDA margin was reported as 71%, against 2011's 73%; pre-tax profit was only down 1% on the previous full-year figure of £245.9m, at £243.2m; while the company announced basic earnings per share of 26.8p, down marginally from the 2010/11 period's 28.1p.

Despite the slight fall, chairman Michael Benson remains "confident about the future and the growth of the operations", placing the blame in the drop-off squarely at the feet of the current global economic climate. Ashmore's solid performance during this, and the FTSE 100 (UKX) company's commitment to continue its accomplishments, has proposed an increase to the total dividend, to 15p per share up from 2010/11's 14.50p figure. 

The news hasn't rocked the company's position in the market, with shares down a fraction at 336p at the time of writing, only 1.1% less than yesterday's close of 339.70p.

If you're keen on companies that can handle themselves well during these turbulent markets, then you may well be interested in The Motley Fool's special free report "Top Sectors Of 2012". In it, our top analysts point towards three favourable industries that can profit from this uncertain economy, and provide share tips within each one. The report will be dispatched immediately to your inbox, completely free of charge -- but all Fool reports are only free for a limited period of time, so don't miss out on this opportunity and click here to get it now!

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

> Sam does not own shares in Ashmore.

Share & subscribe


The opinions expressed here are those of the individual writers and are not representative of The Motley Fool. If you spot any comments that are unsuitable hit the flag to alert our moderators.


There are no comments yet - why not be the first?

Join the conversation

Please take note - some tags have changed.

Line breaks are converted automatically.

You may use the following tags in your post: [b]bolded text[/b], [i]italicised text[/i]. All other tags will be removed from your post.

If you want to add a link, please ensure you type it as as opposed to

Hello stranger

To add your own comment, please login.

Not yet registered? Register now.