Old Mutual shares jump on IPO confirmation and Intrinsic acquisition
Old Mutual has posted promising 2013 results this morning, announcing it’s bought adviser firm Intrinsic for an undisclosed amount.
The international group also confirmed it’s taking its US Asset Management business to market, with a minority initial public offering this year.
Last year, it saw reported profit before tax of £1.5bn – a 9.5 per cent increase of 2012’s £1.4bn figure.
Shares have risen over three per cent in early trading this morning.
Funds under management increased 19 per cent in the year to £294bn on a constant currency basis.
Old Mutual generated £811m of free surplus, with return on equity hitting 13.6 per cent – in the middle of its 12-15 per cent target range.
One-off costs and its debt repayment programme in 2013 meant adjusted operating profit was the same last year as in 2012 – at £1.6bn.
Intrinsic will keep its brand and management team as part of the acquisition deal.
When it came to operations in Africa, Old Mutual saw significant growth in South Africa (750,000 new customers for it and Nedbank) and new businesses in East and West Africa bringing in nearly 600,000 new customers.
Nedbank headline earnings rose 15.9 per cent in 2013, to 8.7bn rand (£486m).
But despite the much-improved conditions seen in US and UK markets, the volatility of the rand continued to impact results, the group said.
Chief executive Julian Roberts commented:
While the external environment is likely to remain uncertain, and in particular the impact of the movement of the rand on our reported results, we believe that the long-term structural growth trends in Africa and strong demand for banking, protection and savings products remain intact and will continue to drive sustainable and profitable growth for Old Mutual.
Old Mutual will pay a final dividend for 2013 of 6p per share up 14 per cent.