Polar H1 revenue & profits jump on higher AUM
Polar was one of only two London-listed asset managers with positive net flows over the 6m to 30 Sep, that followed it having the 2nd highest AUM growth rate in its previous financial year
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My Equity Development research note was published earlier this week covering Polar Capital’s interim results. Polar is going strong in really tough times for active asset managers.
Video summary and executive summary below. You may also want to register here to watch management’s presentation to investors on 22nd November 2024 @11am UK time.
Video Summary
Executive Summary
AUM increased £0.8bn (+4%) in H1-25 to £22.7bn on 30 Sep 24. Net flows added +£472m and investment performance +£323m. This was a highly creditable performance relative to peers, with Polar one of only two London-listed asset managers to record positive net flows.
Furthermore, post-interim-results, Polar’s AUM has increased another 5% to £23.9bn on 8 Nov 24.
Polar’s prospects remain strong, despite current headwinds for active managers, and ongoing market uncertainty. It has a range of specialist investment strategies (which it continues to expand e.g. a new International Small Company Strategy), and an enviable longer- and shorter-term investment track record, all of which should generate ongoing demand.
Our AUM, revenue, and profit forecasts move up with the higher-than-forecast current AUM level (other than FY25 statutory profit forecasts which drop on an impairment to its 2021 Dalton acquisition). Our fundamental valuation remains 650p/share. With strong margins, balance sheet, and dividend yield we also think Polar should trade at a higher PER than its current 10.7.
Full research note available here.
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Disclosure: At the time of writing, Paul Bryant was a shareholder of Polar Capital and covered Polar Capital as an analyst on behalf of Equity Development Limited. Read Equity Development’s research on Polar here. And please read this link for the terms and conditions of reading Equity Development’s research.