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Man Group to pay higher interim dividend as H1 profit rises YOY

Man Group Plc on Aug. 1 reported first-half statutory profit attributable to owners of the parent company of $62 million, compared to $49 million in the same period in 2016.

EPS rose year over year to 3.8 cents from 2.9 cents. The S&P Capital IQ consensus normalized EPS estimate for the first half was 7 cents.

Funds under management stood at $95.9 billion at the end of June, compared to $80.9 billion at 2016-end and $76.4 billion at June 30, 2016. Net inflows amounted to $8.2 billion in the first half, compared to $1.0 billion a year earlier.

Performance fees increased on a yearly basis to $83 million from $40 million, while gross management and other fees declined year over year to $378 million from $381 million.

"We saw strong inflows from clients during the half and a 19% increase in funds under management with growth across all our investment managers," CEO Luke Ellis said. "However, our revenue margin has compressed during the half as we have won several large, low-margin mandates, meaning our management fees have grown at a much steadier pace."

Ellis added that the company expects both the scale of net inflows and the level of margin compression "to moderate in the second half."

The London-based company's board declared an interim dividend of 5.0 cents per share, up 11% from 4.5 cents per share in the first half of 2016. The interim dividend will be paid Sept. 6 to shareholders on record Aug. 18 at the rate of 3.79 British pence per share.

Man Group also noted that it has completed approximately $93 million of the $100 million share repurchase program announced in October 2016, equivalent to 56.2 million shares. The program is expected to be completed in the coming months.