(Alliance News) - Ninety One PLC and Ltd said on Wednesday its annual profit declined as "unprecedented" risk-aversion hurt assets under management, prompting the money manager to reduce dividend payouts.
The London and Cape Town-based group reported a 20% slump in pretax profit to GBP212.6 million for the financial year to March 31 from GBP267.1 million a year earlier.
Over 12 months, revenue was lower at GBP745.5 million, down 6.2% from GBP795.1 million.
Assets under management dropped 10% to GBP129.3 billion from GBP143.9 billion as the group faced several headwinds.
Ninety One declared a final dividend of 6.7 pence, down 13% from 7.7p. This brought the total payout to 13.2p, 10% lower than 14.6p.
Earnngs per share declined 19% to 18.2p from 22.6p, while headline EPS was 15% lower at 18.2p from 21.4p.
"Coming off a record year in 2022, we faced the combination of higher inflation, the fastest rise in interest rates since we started the business, heightened geopolitical uncertainty, a liability-driven investing crisis in the UK, significant bank failures in the developed world and energy shortages across the world," the group said.
"All of this led to unprecedented risk-aversion among asset owners. This created significant headwinds for a firm like ours, which primarily offers 'risk-on', public-market strategies," it said.
Looking ahead, the money manager said it remained cautious given less supportive market conditions.
"Despite the market rally towards the end of the financial year, the coming reporting period will remain full of challenges and we enter it with appropriate levels of caution," it said.
By Artwell Dlamini, Alliance News reporter
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Ninety One (N91)