Annual profits beat forecasts at Jupiter, shares spark

22nd Feb 2024 09:44

(Sharecast News) - Shares in Jupiter Fund Management jumped on Thursday, after full-year profits came in comfortably ahead of expectations.

The FTSE 250 investment manager reported a 7% dip in net revenues in the year to 31 December to £368.8m.

But a "disciplined" approach to cost control meant operating costs fell by 12%, helping support a 36% jump in underlying pre-tax profits to £105.2m.

Analysts had been expecting pre-tax profits closer to £91.5m.

Assets under management also rose, by 4% to £52.2bn, driven by positive net inflows from institutional clients.

Total outflows were £2.2bn, though that moderated notably from 2022's £3.5bn.

Matthew Beesley, chief executive, said: "We have delivered a robust performance this year, despite the challenges faced by our industry.

"Our strong capital position means we are well-placed to invest for the future. The market outlook continues to be uncertain but I am confident that we have a strong underlying business and a strategy that can delivered growth over the medium term."

As at 0945 GMT, shares in Jupiter were trading 7% higher at 87.55p.

Deutsche Numis, which has a 'hold' rating on the stock, said: "We estimate that 2024 so far has seen trackable net inflows of £0.2bn, which is an encouraging start compared to prior periods in our view.

"Overall, we think there is little in this statement for the bears, and there are some early signs of improvement. Whether the latter can be sustained remains to be seen, but it is clearly encouraging nonetheless."