H1-25 revenue and profits jump on higher AUM
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 (page 3). Furthermore, post-interim-results, AUM has increased another 5% to £23.9bn on 8 Nov 24.Polar’s prospects remain strong, despite current headwinds for active managers which we believe will abate (page 16), 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 the Dalton impairment). Our fundamental valuation remains 650p/share, 27% above today’s price. With strong margins, balance sheet, and dividend yield we also think Polar should trade at a higher PER than its current 10.7 (page 19).
Polar Capital Holdings is an investment management company providing professional and institutional investors a range of geographical and sector funds. Co. manages 25 funds and four managed accounts across a range of long only and alternative products. Co. has one class of business, being the provision of investment management and advisory services. As of Mar 31 2017, Co. had total assets under management of £9.27 billion.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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