Assets outflow continues at New Star
New Star Asset Management posted 2007 results in line with expectations but said current trading patterns have confirmed its belief that the first half of 2008 will see a net outflow of assets.
In the year to 31 December 2007 the company’s pre-tax profit rose to £62.8m from £50m in 2006 on revenue that grew from £200.7m to £263.2m.
Operating earnings, which are calculated before taxation, interest, exceptional items and amortisation, rose to £98.1m from £72m in 2006.
Assets under management climbed 9% to £23.1bn at the end of 2007, although since then the company has seen an outflow of assets. Assets under management as at 18 March had declined to £20.3bn.
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The company said the trading environment remains challenging but there are early signs that conditions have stopped deteriorating. In particular, the UK commercial property market, which endured a torrid second half of 2007, has started the year in healthier form at the prime end of the market where New Star’s UK property fund invests.
“We remain confident that through a combination of investment performance, marketing and service we can return over the medium term to generating significant value for shareholders in our company,” said chairman John Duffield.
A final dividend of 1p has been proposed, making a total of 5p for the year.
