Ashmore Dips But Beats Market Expectations

LONDON -- Fund manager Ashmore Group (ISE: ASHM.L) released its audited results for the year ending 30 June 2012 this morning, with revenue, pre-tax profits, and earnings per share all dropping marginally from the year before.

However, the final results beat market expectations, with chief executive officer Mark Coombs saying, "the Group has delivered higher quality revenues, with growing, more diversified management fees replacing the anticipated reduction in performance fees, while maintaining overall levels of profitability" during "a period of significant ongoing market volatility."

The aforementioned management fees were announced as up 21% to 302.6 million pounds. Total net revenue came in at 333.3 million pounds, in line with the previous 12 months' total figure of 333.8 million pounds; the EBITDA margin was reported as 71%, against 2011's 73%; pre-tax profit was only down 1% on the previous full-year figure of 245.9 million pounds, at 243.2 million pounds; while the company announced basic earnings per share of 26.8 pence, down marginally from the 2010/11 period's 28.1 pence.

Despite the slight fall, chairman Michael Benson remains "confident about the future and the growth of the operations," placing the blame in the drop-off squarely at the feet of the current global economic climate. Ashmore's solid performance during this, and the FTSE 100 (UKX) company's commitment to continue its accomplishments, has proposed an increase to the total dividend, to 15 pence per share up from 2010/11's 14.50p figure.

The news hasn't rocked the company's position in the market, with shares down a fraction at 336 pence at the time of writing, only 1.1% less than yesterday's close of 339.70 pence.

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Sam does not own shares in Ashmore.

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