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(Alliance News) - Ninety One PLC on Wednesday reported double-digit profit growth in its recently-ended financial year, but warned on challenges, caused by Covid-19, going forward.
Ninety One completed its demerger from Investec in mid-March. Following an initial public offering in London and Johannesburg, Investec held a 25% stake, with 55% held directly by Investec PLC and Investec Ltd shareholders. Around 20% is held by employees.
"The resilience of our people and technology enabled us to provide all our clients with uninterrupted service and intensified engagement. We successfully facilitated remote working for our staff to ensure their wellbeing just days after the demerger and listing," said Founder & Chief Executive Hendrik du Toit.
The asset management business reported net revenue of GBP609.9 million for the year to the end of March compared to GBP556.9 million a year earlier, a 10% increase.
Pretax profit, meanwhile, grew by 11% to GBP198.5 million from GBP178.4 million year-on-year.
Ninety One said, during the year, its short- and longer-term investment performance, as measured at firm level on an aggregate asset-weighted basis, displayed an improving trend. However, after markets were hit by the Covid-19 pandemic in March, the situation deteriorated, the company said. Value strategies had a particularly tough time.
Positively, Ninety One said other global & emerging markets equity strategies delivered excellent results.
Assets under management reduced by 7%, however, to GBP103.4 billion from GBP111.4 billion a year earlier, as the positive net flows were offset by negative market movements, caused by the impact of Covid-19 in the last month of the year.
Looking ahead, the company said it recognises the challenging market conditions and competitive environment which it faces.
"Ninety One is committed to doing its best for all stakeholders in the ongoing battle against this pandemic and its devastating economic consequences. We will do this by remaining focused on our clients and the investments we make on their behalf," added du Toit.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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