Magellan shares up 16% as firm announces improved profits
Magellan has announced a 24% in net profit after tax to $251.6 million, causing shares in the financial group to rise 16%.
Announcing its half-yearly results to the 31 December, 2021 to the Australian Securities Exchange (ASX), the firm said net profit after tax was $251.6 million, a 24% rise from a year ago when it was about $202 million.
Average funds under management were $112 billion, up 12% from $100.9 billion a year ago. However, they had since declined to $87 billion in February after chair Hamish Douglass took a leave of absence.
Performance fees were $11.5 million, down 8% from $12.4 million a year ago.
Kirsten Morton, interim chief executive, said: “Magellan has faced a number of challenges over recent months, however the group remains in a robust financial position and has delivered strong financial results for the period.
“We are focused on our core management business and delivering upon our investment objectives for our clients.”
Shares in the firm were up 16% on the news, however they remained down 53% over the past six months.
The firm declared an interim dividend of 110.1 cents per share but suspended the dividend reinvestment plan from 18 February and participants would instead receive cash dividends. It was also considering an on-market share buyback.
AUTHOR
Laura Dew
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
