Miton sees profits increase 34% and inflows up by £1 billion in 2018

The UK asset manager unveiled its full-year results on Monday, with the company reporting a 34% hike in pre-tax profit and net inflows more than double to £1 billion.

Miton Group saw its adjusted pre-tax profit climb from 6.8 million in 2017 to £9.2 million in its full-year 2018 results, helping it share price jump more than 11%.

Meanwhile, total assets under management (AuM) increased by 14% to £4.4 billion by the end of last year, with that number increasing to £4.6 billion by the end of February 2019.

‘2018 was a year of positive progress for Miton,’ CEO David Barron said in a statement. ‘Record net flows of just over £1 billion demonstrated the appeal of strategies that are genuinely active.’

Miton’s inflows double to £1 billion

The company’s growth in AuM in 2018 more than doubled the £494 million the asset manager recorded at the end of the previous financial year.

The LF Miton UK Multi Cap Income fund was the primary driver of the asset manager’s inflows over the course of 2018, bringing in around £400 million.

‘we have continued to broaden the business as evidenced by the strong growth in our newer funds,’ Barron said. ‘We are confident that we can maintain our longer-term momentum, despite the subdued markets in the short term.’

‘Overall, the strength of our strategies, the effectiveness of out distribution and our scalable platform, support by out robust financial foundations, give us confidence in Miton’s future,’ he added.

Miton implements new renumeration structure

The UK asset manager used its full-year results to announce a new renumeration structure that will see the company reward managers based on a revenue-based structure, with the aim of providing greater transparency of earnings and stop future shareholder dilution.

The new structure took effect in October last year, with all fund managers renumeration recognised in personnel costs rather than through the issuance of shares, shareholder dilution and share-based payments, the firm said.

‘This unification of the remuneration arrangements means that there is greater clarity on the free-cash generation of the business,’ Barron said. ‘Historically, we have undertaken share buybacks to mitigate the dilutive impact of the Growth Share Plan (GSP).’

Miton’s 2019 outlook

Looking ahead to the next 12 months of trading, the firm boasts a strong a balance sheet with good cash resources, a profitable business and offers clients a range of differentiated strategies, well-equipped to the current investment environment, the company said.

Nevertheless, the company did acknowledge that Brexit has introduced significant uncertainty and has changed the perception of UK market and equities, especially amongst overseas investors.

However, the firm remained optimistic about opportunities that may arise once there is greater clarity on Britain’s future relationship with the EU.


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