REG - Ashmore Group Plc - Half-year Report
07/02/2025 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250207:nRSG2557Wa&default-theme=true
RNS Number : 2557W Ashmore Group PLC 07 February 2025
Ashmore Group plc
7 February 2025
Results for the six months ended 31 December 2024
Ashmore Group plc (Ashmore, the Group), the specialist Emerging Markets asset
manager, today announces its unaudited results for the six months ended 31
December 2024.
- Improved net flows deliver stable AuM
- Assets under management (AuM) of US$48.8 billion(1) were broadly unchanged
over the six months.
- Positive performance of US$0.6 billion.
- Significant reduction in redemptions delivered improved net outflows of US$1.1
billion.
- Adjusted net revenue of £79.9 million, 14% lower YoY reflecting lower average
AuM.
- Net management fees of £68.3 million, 17% lower YoY.
- Successfully generated performance fees of £7.9 million, in line with the
prior year period.
- Adjusted operating costs reduced by 9% YoY, with variable remuneration accrued
at 30% of EBVCT.
- Efficient operating model produced adjusted EBITDA margin of 42%, on adjusted
EBITDA of £33.7 million.
- Active seed capital programme delivered gains of £5.0 million,
notwithstanding volatile market conditions.
- Diluted EPS of 5.4 pence and on an adjusted basis diluted EPS of 4.8 pence
(-17% YoY).
- The Board has declared an unchanged interim dividend of 4.8 pence per share.
- Balance sheet strength maintained, facilitating investment in future growth.
- Total seed capital investments of £347.9 million.
- Ashmore's active investment processes continue to generate outperformance
- Approximately 60% of AuM outperforming over three and five years.
- Strong Q1 market performance largely reversed in Q2.
- Over the six months, EM fixed income indices increased by +1% to +4%.
- EM equity indices returned -1% to +2%.
- Strategy building a more diversified business with growth in equities and
local platforms
- Equities net inflows drive 4% increase in AuM to US$7.0 billion, representing
14% of Group AuM.
- Alternatives capital raising continues alongside successful realisations.
- First close of debt infrastructure fund, raising more than US$300 million.
- Private equity realisations in Latin America and Middle East contributed to
performance fees.
- Local platforms now manage US$7.6 billion AuM, client flows driving notable
AuM growth in India (+16%) & Colombia (+21%).
- EM-domiciled clients represent 38% of Group, an increase from 36% a year ago.
- Positive macro outlook centred on robust EM economies
- Robust fundamentals, resilience and reforms evident across emerging markets,
delivering superior economic growth.
- Meaningful upside to asset prices in EM if US policy implementation is more
measured than campaign rhetoric.
- Significant rebalancing required to address investors' cyclically low EM
allocations and to capture the potential upside to asset prices.
Commenting on the Group's results, Mark Coombs, Chief Executive Officer,
Ashmore Group said:
"Ashmore's net flows continue to improve and AuM was largely unchanged at the
end of the period. Ongoing strong control of operating costs helped to
mitigate the impact of lower average AuM on the financial results, and the
Group continues to invest in strategic growth and diversification
opportunities including through its seed capital investments.
"There are strong arguments for investors to rebalance allocations from
heavily overweight US positions in favour of the attractive valuations and
investment opportunities in emerging markets. These markets offer significant
diversification and growth, which is increasingly recognised by clients and
reflected in activity levels. Ashmore's active investment management processes
are delivering for clients and the Group is well-positioned to navigate the
asset price volatility resulting from the US election, and to capture the
longer-term upside from current market levels."
1. As reported on 15 January 2025.
Analysts briefing
There will be a presentation for sell-side analysts at 9.00am on 7 February
2025 at UBS, 5 Broadgate, London, EC2M 2QS. A copy of the presentation will be
made available on the Group's website at ir.ashmoregroup.com.
Contacts
For further information please contact:
Ashmore Group plc
Tom Shippey, Group Finance Director +44 (0)20 3077 6191
Paul Measday, Investor Relations +44 (0)20 3077 6278
ir@ashmoregroup.com
Cardew Group
Tom Allison +44 (0)7789 998020
Will Baldwin-Charles +44 (0)7834 524833
ashmore@cardewgroup.com
Chief Executive Officer's report
Against a backdrop of volatile global capital markets over the six months to
31 December 2024, emerging markets performed relatively well with positive
returns across fixed income and certain key equity markets, reflecting the
ongoing robust macroeconomic fundamentals in many emerging countries and
attractive valuations.
Ashmore's AuM ended the period broadly unchanged at US$48.8 billion (30 June
2024: US$49.3 billion), with positive investment performance of US$0.6 billion
and an improved total net outflow of US$1.1 billion (H1 2024: US$4.5 billion;
H2 2024: US$4.0 billion). During the period, increasing client engagement and
improving sentiment towards emerging markets, set against a backdrop of
extremely low investor allocations, meant that subscription levels were
maintained and redemptions fell to deliver reduced net outflows of US$0.4
billion in Q2 compared with US$0.7 billion in Q1.
The Group's operational performance reflects the impact of 6% lower average
AuM compared with the prior year period, which, notwithstanding a reduction in
operating costs, resulted in a 21% decline in adjusted EBITDA. The Group's
efficient business model continues to operate effectively and has delivered an
adjusted EBITDA margin of 42% in this period, which remains relatively high by
industry standards even at this point in the market cycle.
Consistent with the more volatile market environment in this period, a lower
level of mark-to-market gains on the Group's seed capital means that profit
before tax is 33% lower than in the prior year period. Statutory diluted EPS
is 5.4 pence, and on an adjusted basis, diluted EPS is 4.8 pence, 17% lower
than in the prior year period.
The emerging markets continue to offer significant diversification and
resilience, which is reflected in higher client activity levels in this
period. There are increasingly strong arguments for investors to rebalance
allocations from heavily overweight US positions in favour of the attractive
valuations and investment opportunities in emerging markets. Ashmore's active
investment management processes are delivering as expected for clients and the
Group is well-positioned to navigate asset price volatility resulting from the
US election, and to capture the longer-term upside from current market levels.
Based on the Group's performance over the six-month period, the Group's strong
financial position, cash generation, and the near-term outlook, the Board has
maintained the interim dividend at 4.8 pence per share.
Reconciling items:
£m H1 2025 Seed capital FX translation H1 2025 H1 2024
Reported
(gains)/losses
(gains)/losses
Adjusted
Adjusted
Net management fees 68.3 - - 68.3 82.6
Performance fees 7.9 - - 7.9 8.0
Other revenue 1.3 - - 1.3 1.7
Foreign exchange 3.5 - (1.1) 2.4 1.1
Net revenue 81.0 - (1.1) 79.9 93.4
Net losses on investment securities (1.5) 1.5 - - -
Personnel expenses (35.4) - 0.3 (35.1) (38.4)
Other expenses excluding depreciation and amortisation (12.2) 1.1 - (11.1) (12.4)
EBITDA 31.9 2.6 (0.8) 33.7 42.6
EBITDA margin 39% - - 42% 46%
Depreciation and amortisation (1.6) - - (1.6) (1.6)
Operating profit 30.3 2.6 (0.8) 32.1 41.0
Finance income 19.4 (7.6) - 11.8 12.8
Share of profit from associate 0.2 - - 0.2 0.2
Profit before tax 49.9 (5.0) (0.8) 44.1 54.0
Diluted EPS (p) 5.4 (0.5) (0.1) 4.8 5.7
Market review
While most emerging markets indices delivered positive returns over the
six-month period, this masks notable differences in performance between the
first and second quarters.
In the three months to 30 September, index returns were strong and ranged from
+4.5% (corporate debt) to +9% (local currency bonds), reflecting the first Fed
rate cut in this cycle, and government policies to support the Chinese equity
market.
In contrast, over the three months to 31 December, index returns were between
-1% (corporate debt) and -8% (equities) due to the combination of positioning
for the US election, renewed strength in the US dollar and a more hawkish Fed
that resulted in a repricing of the US Treasury curve and other bond markets.
Although the detailed implications of the US election result remain to be
seen, the prospects for emerging markets are skewed to the upside given the
stretched valuation of the US equity market following a period of
outperformance including a post-election boost; investor allocations that are
overweight US markets and have very limited, cyclically low (or, some cases,
nil) exposure to emerging markets, which argues for a significant rebalancing;
and attractive valuations of emerging markets in both absolute and relative
terms.
The sections below briefly describe the performance in each of the main
emerging markets asset classes for the period.
External debt
The EMBI GD increased by +4% over the six months to 31 December 2024 (Q1: +6%;
Q2: -2%), outperforming the +1.5% return from the Bloomberg Global Agg bond
index. The EMBI GD was flat in the period following the US election.
The principal driver of performance was spread compression, with the index
spread over US Treasuries tightening from 390bps in June to 325bps in
December. Notably, HY bonds outperformed IG bonds with returns of +7% and +1%,
respectively, over the six months, again due to tighter spreads in the HY
market, in part reflecting the completion of debt restructurings in countries
such as Zambia, together with the higher rates sensitivity evident in the IG
market.
The composition of the EMBI GD is roughly split between IG and HY issuance,
and the index currently yields 7.6%. It is important to recognise that the
simple aggregate index statistics mask the breadth of investment opportunities
among the 72 constituent countries and more than 160 issuers. To illustrate
the wide range of returns available, while the index returned 4% over the past
six months, the range of country returns was between -11% and +91%. Therefore,
active management is critical to maximise the investment return opportunities
presented by this asset class.
Local currency
The GBI-EM GD delivered a +1% return over the period notwithstanding the
headwind of a stronger US dollar following the US election result (Q1: +9%; Q2
-7%). This demonstrates the significant value available in a diverse set of
countries with relatively high real yields and effective economic policies.
The index yield of 6.4% is attractive both in absolute terms and relative to
global bonds, which yield around half that level.
Although the US dollar has some short-term momentum against other currencies,
the stretched state of the US economy with its twin deficits suggests that the
currency may retreat from its current levels in 2025. This will benefit
returns to investors in local currency-denominated assets, both bonds and
equities.
Corporate debt
The CEMBI BD's relatively short duration, high yield (6.6%) and improving
credit quality provided for a resilient performance. The index returned +4%
over the six months (Q1: +5%; Q2: -1%), broadly in line with external
sovereign debt and the US HY index (+5%). While there was some spread
tightening (219bps to 206bps) the performance was underpinned by the rally in
the short end of the US Treasury curve early in the period. The HY component
of CEMBI outperformed with a return of +5% while IG bonds returned +3%.
The 12-month default rate reduced over the period from 6.3% to 4.2%, which is
a little higher than the rates in the US (3.1%) and Europe (3.5%). By emerging
markets region, the default rate remains relatively high in Asia (9.0%) but is
lower in Latin America (4.1%) and Europe (0.9%).
The corporate debt asset class has appealing characteristics that support
higher allocations: diversification with approximately 750 issuers in 63
countries; lower net leverage and higher spreads than developed world issuers
with equivalent credit ratings; and attractive yields in both IG and HY
markets (5.7% and 8.2% index yields, respectively).
Equities
The MSCI EM declined -1% over the six-month period (Q1: +8%; Q2: -8%), with
some weakness after the US election through a combination of the stronger US
currency and softer investor sentiment based on the potential for trade
tariffs to be implemented. Frontier markets were more resilient, with the MSCI
FM index rising by +2% (Q1: +3%; Q2 -2%).
Absolute valuations are appealing with the MSCI EM trading on 12x estimated
2025 earnings, broadly in line with its average of the past 20 years, and with
low-teens earnings growth expected by the market over the next couple of years
to give an attractive price/earnings to growth ratio of less than one.
On a relative basis, the valuations are even more striking since the index
trades at a substantial discount (34%) to the MSCI ACWI's price/earnings ratio
of 18x, which given its US weighting of 66% has been a major beneficiary of
pro-cyclical policies by successive US administrations and also reflects the
short-term momentum in a small number of technology-related companies.
Although US foreign and trade policies will have consequences for emerging
countries, as well as other developed countries, the impact is unlikely to be
uniform. Active management is therefore crucial to deliver alpha in a
diversified asset class with many attractively valued investment
opportunities. As with local bonds, there is the potential for a weaker US
dollar to enhance returns for emerging markets equity investors.
Emerging markets outlook
The near-term outlook for emerging markets centres on two themes: the robust
fundamental position of many economies, and the potential impact of, and other
countries' response to, policy decisions by the new US administration.
Robust fundamentals
In aggregate, emerging markets have demonstrated notable resilience in recent
years and they continue to deliver GDP growth of c.4% (or 3.5% excluding
China), which is more than double the level of the developed world. As the
latter faces structural challenges stemming from unfavourable demographics,
high levels of indebtedness and a lack of reforms, the emerging markets growth
premium is likely to expand over the medium term.
The major emerging countries have managed inflation effectively over the past
few years and they enter 2025 with relatively high real rates and the
potential to ease monetary policy further. There has also been strong fiscal
discipline, notwithstanding a few notable exceptions such as Brazil, with a
period of significant consolidation following COVID-related stimulus. Again,
this is in contrast to the developed world.
Finally, a number of emerging countries held elections in 2024 and many
governments are pursuing reforms that underpin future economic growth, for
example in Colombia, Indonesia and South Africa.
This overall macroeconomic picture is reflected in the recent momentum shown
in credit ratings, with net increases for emerging countries and an increase
in positive outlooks by each of the three main agencies. For example, in
respect of emerging markets, two-thirds of rating changes in 2024 were
upgrades, and all three agencies have significantly more positive than
negative issuer outlooks.
Implications of US election
The US election result exaggerated the already stretched valuation of the US
equity market, contributed to higher volatility in rates markets and kept a
focus on various conflicts and geopolitical risks around the world. While
markets have moved to reflect much of the Trump campaign rhetoric, for example
in terms of trade policy, there is a realistic chance of the eventual policy
mix being less severe and more nuanced. This could involve using tariffs as an
effective negotiating tool alongside growth-focused deregulation and
potentially therefore deliver a less hawkish rates outlook.
Such a scenario would deliver modest growth in the US economy, but more
importantly would provide meaningful upside to current valuations in fixed
income and equity emerging markets. This would therefore put pressure on the
technical position given that investor allocations to these markets are at
extremely low levels, and nil in some instances, in contrast to the heavily
overweight positioning in the US equity market.
Of course, the impact of US policies will be felt not only by emerging
nations, and not uniformly across the world. For example, more aggressive US
tariffs could increase trade between emerging countries. Furthermore, the risk
of short-term political posturing is high and therefore investor sentiment and
asset prices may remain volatile in early 2025.
In this context, the significant diversification available in emerging markets
is notable, with more than 70 countries and multiple investment opportunities
in sovereign debt, corporate credit, listed equities and private markets.
Active management remains critical to navigate the economic and political
'noise' and to optimise the investment opportunities in this broad set of
asset classes.
In conclusion, while some volatility in asset prices may persist, the emerging
markets offer resilience and diversification, and therefore can serve as a
refuge from many of the current tail risks faced by global capital markets.
This should be reflected in rising investor interest in the emerging markets
and a consequent rebalancing of allocations in favour of the highly attractive
market opportunities available.
Assets under management
AuM were broadly unchanged at the end of the six-month period at US$48.8
billion.
Investment performance added US$0.6 billion and net outflows of US$1.1 billion
were significantly lower than in the prior year period (H1 2024: US$4.5
billion net outflow) and the preceding six months (H2 2024: US$4.0 billion).
As described below, this was the result of higher subscriptions across a range
of investment themes and a reduced level of gross redemptions as investors'
risk appetite improves.
Subscriptions of US$4.1 billion represent 8% of opening AuM, higher than in
the prior year period (H1 2024: US$3.0 billion, 5% of opening AuM) as investor
sentiment increasingly recognises the robust fundamentals across a broad range
of emerging economies and consequently the attractive market returns delivered
over the past two years.
The flows reflect new institutional local currency bond mandates as well as
top ups to existing funds in this theme, and also in external debt and
equities. There was a notable US$0.3 billion first close for Ashmore
Colombia's second infrastructure debt fund in the alternatives theme. Gross
subscriptions were at a consistent level through the six-month period.
Redemptions of US$5.2 billion, or 11% of opening AuM, were lower than in the
prior year period (H1 2024: US$7.5 billion, 13% of opening AuM), again
consistent with the steadily improving environment and higher levels of
investor risk appetite. There was no discernible impact on redemptions from
the US election result.
That said, some investors reduced risk in the period, driving redemptions in
the local currency, blended debt and external debt themes. Within the external
debt theme, Ashmore closed a liquidity fund, which included US$0.2 billion of
the Group's cash deposits, and therefore excluding this flow, net client
redemptions in the period were US$5.0 billion or 10% of opening AuM.
Redemptions in the alternatives theme relate to the profitable realisation of
private equity investments in the Middle East and Latin America, and the
subsequent return of capital to investors.
On a net basis, the total outflow of US$1.1 billion in the period, or US$0.9
billion excluding the liquidity fund impact, reduced significantly compared
with both the prior year period (US$4.5 billion) and the preceding six months
(US$4.0 billion). Given the net inflows in the equities and alternatives
themes, the overall improvement in client sentiment and activity, and
adjusting for the liquidity fund flow, the Group delivered a significantly
lower client net outflow of US$0.2 billion in Q2 compared with US$0.7 billion
in Q1.
Average AuM of US$50.1 billion over the six-month period was 6% lower than in
the same period in the prior year (H1 2024: US$53.3 billion).
The Group's AuM remains geographically diverse and the mix is broadly
consistent with recent periods, with 39% of AuM invested in Latin America, 25%
in Asia Pacific, 15% in Eastern Europe and 21% in the Middle East and Africa.
Local platforms
Total AuM in the Group's local offices increased by 2% over the six months to
US$7.6 billion. There was notable growth in Ashmore India (+16% to US$2.1
billion) as a consequence of net client flows, and Ashmore Colombia AuM
increased by 21% to US$1.8 billion, reflecting net inflows to its listed
equity strategy and the first close of its second senior debt infrastructure
fund, partially offset by the return of capital to investors following private
equity realisations. Similarly, Ashmore Saudi Arabia successfully realised the
remaining assets in a private equity fund focused on the education sector.
The private equity realisations contributed to the performance fees delivered
by the Group in this period.
Clients
The Group's clients are predominantly a diversified set of institutions,
representing 96% of AuM, with the remainder sourced through intermediary
retail channels. Segregated accounts represent 83% of AuM (30 June 2024: 82%)
and, in line with the third phase of the Group's strategy, an increasing
proportion (38%) of the Group's AuM has been sourced from clients
domiciled in emerging markets (30 June 2024: 37%).
Overall, the Group's AuM has been sourced from clients across a diversified
mix of geographies with 31% from Asia Pacific, 31% from Europe, 23% from the
Middle East and Africa, 11% from the Americas and 4% from the UK.
Ashmore's principal mutual fund platforms represent AuM of US$3.5 billion in
44 funds. The European SICAV range comprises 32 funds with AuM of US$3.0
billion (30 June 2024: US$3.5 billion in 33 funds) and the US 40-Act range has
12 funds with AuM of US$0.5 billion (30 June 2024: US$0.5 billion in 12
funds).
Investment performance
Ashmore continues to deliver medium- and longer-term outperformance across a
broad range of strategies, and as is typically the case, its active investment
processes have used recent periods of market weakness (as described in the
Market review) to identify opportunities to add risk and to embed in
portfolios the potential for further outperformance. Overall, as of 31
December 2024, 43% of AuM is outperforming over one year, 58% over three years
and 57% over five years (30 June 2024: 40%, 59% and 62%, respectively).
AuM movements by investment theme as classified by mandate
The table below shows the development during the period of AuM by investment
theme. The local currency investment theme includes US$7.8 billion of
overlay/liquidity AuM (30 June 2024: US$7.6 billion).
Investment theme AuM Gross subscriptions Gross redemptions(1) Net flows Performance AuM
30 June
US$bn
US$bn
US$bn
US$bn
31 December
2024
2024
US$bn
US$bn
External debt 7.2 0.4 (0.7) (0.3) 0.2 7.1
Local currency 17.7 1.8 (2.3) (0.5) 0.1 17.3
Corporate debt 4.7 0.1 (0.1) - (0.1) 4.6
Blended debt 11.7 0.1 (0.8) (0.7) 0.3 11.3
Fixed income 41.3 2.4 (3.9) (1.5) 0.5 40.3
Equities 6.7 1.4 (1.1) 0.3 - 7.0
Alternatives 1.3 0.3 (0.2) 0.1 0.1 1.5
Total 49.3 4.1 (5.2) (1.1) 0.6 48.8
1. Redemptions in the external debt theme include US$0.2 billion of Group cash
that was returned to the balance sheet on the closure of a liquidity fund in
the period.
Financial review
Revenues
Net management fees were £14.3 million lower than in the prior year period
and the Group delivered a comparable level of performance fees. Consequently,
net revenue declined by 14% compared with the prior year period to £81.0
million. On an adjusted basis, excluding FX translation effects, net revenue
also fell by 14% to £79.9 million.
Net revenue
H1 2025 H1 2024
£m
£m
Net management fees 68.3 82.6
Performance fees 7.9 8.0
Other revenues 1.3 1.7
FX: hedges 2.4 1.1
Adjusted net revenue 79.9 93.4
FX: balance sheet translation 1.1 1.1
Net revenue 81.0 94.5
Net management fee income declined by 17% to £68.3 million, reflecting lower
average AuM together with an average net management fee margin of 36 basis
points (H1 2024: 39 basis points) and a less favourable average GBP:US$ rate
of 1.2876 over the period (H1 2024: 1.2572). At constant H1 2024 exchange
rates, net management fee income fell by 15%.
The reduction in the average net management fee margin is due to a number of
factors. For example, while there was a positive impact from investment theme
mix, for example higher average AuM in equities, this was more than offset by
the impact of growth in lower margin overlay mandates, successful private
equity realisations and subsequent return of capital by alternatives funds,
the effect of higher margin redemptions and lower margin subscriptions,
together with the ongoing impact of competition by other active investment
managers.
Performance fees of £7.9 million were realised in the period by funds in the
alternatives, external debt and blended debt themes. The proportion of AuM
eligible to earn performance fees is 22% as of 31 December 2024 (30 June 2024:
23%).
Translation of the Group's non-Sterling assets and liabilities, excluding seed
capital investments, resulted in an unrealised FX gain of £1.1 million. The
combination of hedging and active selling of US dollars for Sterling delivered
an FX gain of £2.4 million over the period. Therefore, the total FX gain for
the period recognised in revenues was £3.5 million.
Fee income and net management fee margin by investment theme
Net management fees Performance fees Net management fee margin
Investment theme H1 2025 H1 2024 H1 2025 H1 2024 H1 2025 H1 2024
£m
£m
£m
£m
bps
bps
External debt 9.2 11.1 1.5 - 32 29
Local currency 17.7 21.1 - 6.9 26 29
Corporate debt 6.3 7.1 - - 34 32
Blended debt 14.2 20.4 0.1 0.1 31 43
Fixed income 47.4 59.7 1.6 7.0 29 33
Equities 14.6 13.6 - 0.7 54 55
Alternatives 6.3 9.3 6.3 0.3 123 161
Total 68.3 82.6 7.9 8.0 36 39
Operating costs
Total operating costs of £49.2 million include £1.1 million of expenses
incurred by seeded funds that are required to be consolidated under IFRS 10.
On an adjusted basis, taking into account the impact of seed capital and the
proportion of the variable remuneration accrual that relates to FX translation
gains, operating costs were reduced by 9% compared with the prior year period.
Adjusted operating costs 8% lower at constant H1 2024 exchange rates.
Operating costs
H1 2025 H1 2024
£m
£m
Staff costs (15.8) (16.1)
Other operating costs (11.1) (12.4)
Depreciation and amortisation (1.6) (1.6)
Operating costs before VC (28.5) (30.1)
Variable compensation (VC) (19.6) (22.5)
VC accrual on FX gains/losses 0.3 0.2
Adjusted operating costs (47.8) (52.4)
Consolidated funds costs (1.1) (0.8)
Add back VC on FX gains/losses (0.3) (0.2)
Total operating costs (49.2) (53.4)
Staff costs of £15.8 million were slightly lower than in the prior year
period, due to lower average headcount of 283 compared with 290 in the prior
year period, adjusted for the impact of business disposals in FY2024. The
Group's headcount was stable in the period at 284 (30 June 2024: 283).
Other operating costs, excluding consolidated fund expenses and depreciation
and amortisation, were reduced by £1.3 million year-on-year to £11.1
million, primarily because of lower legal and professional fees.
Variable remuneration has been accrued at 30.0% of EBVCT, resulting in a
charge of £19.6 million for the six-month period (H1 2024: 27.5%; FY2024:
31.0%).
Adjusted EBITDA
Consistent with the decline in net revenue and notwithstanding the reduction
in operating costs, adjusted EBITDA reduced by 21% to £33.7 million (H1 2024:
£42.6 million).
Ashmore's efficient operating model continues to deliver a relatively high
operating margin across market cycles, and in this period delivered an
adjusted EBITDA margin of 42% (H1 2024: 46%; FY2024: 41%).
Finance income
Net finance income of £19.4 million (H1 2024: £40.1 million) includes
profits relating to seed capital investments, which are described in more
detail below. Excluding these profits, net interest income for the period of
£11.8 million (H1 2024: £12.8 million) reflects lower average cash balances.
Seed capital
The table below summarises the principal IFRS items relating to the Group's
seed capital programme and its impact on profit before tax. The Group's seed
capital investments generated realised gains of £0.2 million (£0.6 million
on a life-to-date basis) and an unrealised mark-to-market gain of £4.8
million to give a total gain of £5.0 million for the six months.
The overall gain is lower than in the prior year period as a result of higher
market returns experienced in the six months to 31 December 2023.
Impact of seed capital investments on profits
H1 2025 H1 2024
£m
£m
Consolidated funds (note 15):
Net losses on investment securities (1.5) (6.9)
Operating costs (1.1) (0.8)
Investment income 7.4 7.7
Sub-total: consolidated funds 4.8 -
Unconsolidated funds (note 7):
Market return 1.7 16.8
FX (1.5) 2.8
Sub-total: unconsolidated funds 0.2 19.6
Total seed capital gains/(losses) 5.0 19.6
- realised 0.2 3.1
- unrealised 4.8 16.5
Profit before tax
Taking into account the level of adjusted EBITDA and the lower mark-to-market
gains on the Group's seed capital investments, PBT declined by 33% to £49.9
million (H1 2024: £74.5 million).
Taxation
The effective tax rate of 21.6% (H1 2024: 19.2%) is lower than the prevailing
UK corporation tax rate of 25.0% primarily because of the geographic mix of
the Group's profits for the period.
Note 9 to the interim condensed financial statements provides a reconciliation
of the tax charge to the UK corporation tax rate.
The Group's current effective tax rate, based on its geographic mix of profits
and prevailing tax rates, is approximately 21% to 22%.
Diluted earnings per share
Consistent with the PBT development, diluted earnings per share fell by 37%
from 8.5 pence to 5.4 pence. On an adjusted basis, excluding the effects of FX
translation, seed capital-related items and relevant tax, diluted earnings per
share were 17% lower at 4.8 pence (H1 2024: 5.7 pence).
Balance sheet
As of 31 December 2024, following the payment of the final ordinary dividend
in respect of FY2024, total equity attributable to shareholders of the parent
was £818.1 million (31 December 2023: £867.1 million; 30 June 2024: £882.6
million).
The Board has determined that the level of capital required to support the
Group's activities, including its regulatory requirements, is £96.8 million.
As of 31 December 2024, the Group had total capital resources of £646.1
million, equivalent to 91 pence per share, and representing an excess of
£549.3 million over the level of required capital.
Cash
Ashmore maintains a strong, liquid cash position and has £347.5 million of
cash and deposits as of 31 December 2024.
Excluding cash held in consolidated funds, the Group's cash and deposits
declined by £163.4 million over the six-month period to £342.3 million (30
June 2024: £505.7 million). This movement primarily reflects three factors:
the payment of the final ordinary dividend and variable remuneration in
respect of the prior financial year, both of which impact cash flows only in
the first half of the financial year; seed capital investments to underpin
future AuM growth; and the purchase of ordinary shares to satisfy employee
equity awards.
Cash and deposits by currency
31 December 30 June
2024
2024
£m
£m
Sterling 189.4 241.8
US dollar 124.3 229.8
Other 33.8 40.2
Total 347.5 511.8
Ashmore's business model delivers a high conversion rate of operating profits
to cash. Based on operating profit of £30.3 million for the period (H1 2024:
£34.2 million), the Group generated £26.9 million of cash from operations
(H1 2024: £39.0 million). The operating cash flows after excluding
consolidated funds represent 84% of adjusted EBITDA (H1 2024: 94%).
Seed capital investments
Ashmore invests seed capital in its funds to achieve a number of commercial
objectives, including to provide initial scale, to support the development of
an investment track record, and to enhance existing funds' scale for
intermediary distributors.
The Group's seed capital programme has delivered growth in third-party AuM,
with nearly US$5 billion of AuM in funds that have been seeded, representing
10% of current Group AuM.
The diversified mix of seed capital investments means that the underlying fund
portfolios, some of which are consolidated in accordance with IFRS 10, have
exposure to a range of emerging markets asset classes, including sovereign and
corporate fixed income, listed equities and alternatives.
Movements in seed capital
Market value
£m
30 June 2024 257.6
Additions 89.9
Realisations (9.0)
Mark-to-market 9.4
31 December 2024 347.9
The additions in the period were i) to establish new funds in the
alternatives, equities and blended debt themes, including a frontier debt
product and a senior debt infrastructure fund; and ii) to provide additional
scale to existing funds in anticipation of client demand as investor interest
in the emerging markets asset classes continues to gain momentum.
Realisations were mainly from funds in the fixed income themes, as client
flows facilitated the profitable recycling of the Group's investments.
The positive index performance over the period, as described in the Market
review, combined with the alpha delivered by Ashmore's active investment
processes, resulted in a 4% uplift in the market value of the seed capital
investments.
Overall, the market value of the Group's seed capital investments increased to
£347.9 million as of 31 December 2024 (30 June 2024: £257.6 million). The
unrealised life-to-date gains on seed capital investments increased over the
six months from £32.3 million to £40.7 million.
Ashmore has seed capital commitments to funds of £19.3 million that were
undrawn at the period end, giving a total value for the Group's seed capital
programme of approximately £367 million.
Shares held by the EBT
The Group's EBT continues to purchase and hold shares in anticipation of the
vesting of employee share awards. As of 31 December 2024, the EBT owned
56,975,506 ordinary shares (30 June 2024: 49,481,410 ordinary shares),
representing 8.0% of the Group's issued share capital (30 June 2024: 6.9%).
Foreign exchange
The GBP:US$ rate moved from 1.2641 to 1.2524 over the period but traded within
a relatively wide range and therefore the average rate for the six months was
1.2876 (H1 2024: 1.2572).
Dividend
The Board's policy is to pay a progressive ordinary dividend over time, taking
into consideration factors such as the financial performance over the period,
the Group's strong financial position, cash generation and the near-term
outlook.
Accordingly, the Board has declared an interim dividend of 4.8 pence per share
(H1 2024: 4.8 pence per share), which will be paid on 31 March 2025 to all
shareholders on the register on 28 February 2025.
Mark Coombs
Chief Executive Officer
6 February 2025
Risk management
A detailed description of Ashmore's risk management function and internal
control framework, which provides a process for identifying, evaluating, and
managing the Group's emerging and principal risks, was included in the Risk
management section of the 2024 Annual Report and Accounts, together with a
list of principal risks and examples of associated controls and mitigants.
There have been no material changes to the principal risks and associated
controls and mitigants during the six-month period.
Interim Condensed Consolidated Statement of Comprehensive Income
For the six months ended 31 December 2024
Notes Unaudited Unaudited Audited
6 months to
6 months to
12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Management fees 69.3 83.7 162.6
Performance fees 7.9 8.0 22.7
Other revenue 1.3 1.7 3.7
Total revenue 5 78.5 93.4 189.0
Distribution costs (1.0) (1.1) (2.2)
Foreign exchange gains 6 3.5 2.2 2.5
Net revenue 81.0 94.5 189.3
Net losses on investment securities 15 (1.5) (6.9) (17.2)
Personnel expenses (35.4) (38.6) (85.1)
Other expenses (13.8) (14.8) (29.8)
Operating profit 30.3 34.2 57.2
Finance income 7 19.4 40.1 70.4
Share of profit from associate 0.2 0.2 0.5
Profit before tax 49.9 74.5 128.1
Tax expense 9 (10.8) (14.3) (29.9)
Profit for the period 39.1 60.2 98.2
Other comprehensive income/(loss), net of related tax effect
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences arising on foreign operations 2.1 (4.6) (4.6)
Other comprehensive income/(loss), net of tax 2.1 (4.6) (4.6)
Total comprehensive income for the period 41.2 55.6 93.6
Profit attributable to:
Equity holders of the parent 37.1 58.2 93.7
Non-controlling interests 2.0 2.0 4.5
Profit for the period 39.1 60.2 98.2
Total comprehensive income attributable to:
Equity holders of the parent 39.0 53.7 89.6
Non-controlling interests 2.2 1.9 4.0
Total comprehensive income for the period 41.2 55.6 93.6
Earnings per share attributable to equity holders of the parent
Basic 10 5.52p 8.65p 13.94p
Diluted 10 5.36p 8.47p 13.55p
Interim Condensed Consolidated Statement of Financial Position
As at 31 December 2024
Notes Unaudited Unaudited Audited
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Assets
Non-current assets
Goodwill and intangible assets 12 87.8 86.6 87.0
Property, plant and equipment 13 6.7 5.6 7.3
Investment in associates 2.9 2.5 2.7
Financial assets at fair value 15 58.8 67.8 57.6
Deferred acquisition costs 0.1 0.2 0.2
Deferred tax assets 18.1 21.7 18.9
174.4 184.4 173.7
Current assets
Investment securities 15 329.7 229.3 200.9
Financial assets at fair value 15 19.0 36.3 32.8
Derivative financial instruments 0.4 − 0.2
Trade and other receivables 58.4 66.7 60.3
Cash and deposits 16 347.5 452.4 511.8
755.0 784.7 806.0
Total assets 929.4 969.1 979.7
Equity and liabilities
Capital and reserves - attributable to equity holders of the parent
Issued capital 18 0.1 0.1 0.1
Share premium 15.6 15.6 15.6
Retained earnings 796.9 848.2 863.3
Foreign exchange reserve 5.5 3.2 3.6
818.1 867.1 882.6
Non-controlling interests 8.9 14.0 8.2
Total equity 827.0 881.1 890.8
Liabilities
Non-current liabilities
Lease liabilities 13 3.5 3.0 4.5
Deferred tax liabilities 9.4 9.0 8.9
12.9 12.0 13.4
Current liabilities
Lease liabilities 13 2.5 2.0 1.9
Derivative financial instruments 0.1 - -
Third-party interests in consolidated funds 15 65.2 51.8 39.4
Trade and other payables 21.7 22.2 34.2
89.5 76.0 75.5
Total liabilities 102.4 88.0 88.9
Total equity and liabilities 929.4 969.1 979.7
Interim Condensed Consolidated Statement of Changes in Equity
For the six months ended 31 December 2024
Attributable to equity holders of the parent
Issued Share premium Retained earnings Foreign exchange reserve Total Non-controlling interests Total
capital
£m
£m
£m
£m
£m
equity
£m
£m
Audited balance at 30 June 2023 0.1 15.6 875.4 7.7 898.8 14.2 913.0
Profit for the period - - 58.2 - 58.2 2.0 60.2
Other comprehensive loss:
Foreign currency translation differences arising on foreign operations - - - (4.5) (4.5) (0.1) (4.6)
Total comprehensive income/(loss) - - 58.2 (4.5) 53.7 1.9 55.6
Transactions with owners:
Purchase of own shares - - (12.0) - (12.0) - (12.0)
Share-based payments - - 12.5 - 12.5 - 12.5
Dividends to equity holders - - (85.9) - (85.9) - (85.9)
Dividends to non-controlling interests - - - - - (2.1) (2.1)
Total contributions and distributions - - (85.4) - (85.4) (2.1) (87.5)
Unaudited balance at 31 December 2023 0.1 15.6 848.2 3.2 867.1 14.0 881.1
Profit for the period - - 35.5 - 35.5 2.5 38.0
Other comprehensive income/(loss):
Foreign currency translation differences arising on foreign operations - - - 0.4 0.4 (0.4) -
Total comprehensive income - - 35.5 0.4 35.9 2.1 38.0
Transactions with owners:
Purchase of own shares - - (1.8) - (1.8) - (1.8)
Share-based payments - - 15.4 - 15.4 - 15.4
Movements in non-controlling interests - - - - - (5.5) (5.5)
Dividends to equity holders - - (34.0) - (34.0) - (34.0)
Dividends to non-controlling interests - - - - - (2.4) (2.4)
Total contributions and distributions - - (20.4) - (20.4) (7.9) (28.3)
Audited balance at 30 June 2024 0.1 15.6 863.3 3.6 882.6 8.2 890.8
Profit for the period − − 37.1 − 37.1 2.0 39.1
Other comprehensive income:
Foreign currency translation differences arising on foreign operations − − − 1.9 1.9 0.2 2.1
Total comprehensive income − − 37.1 1.9 39.0 2.2 41.2
Transactions with owners:
Purchase of own shares − − (27.1) − (27.1) − (27.1)
Share-based payments − − 9.8 − 9.8 − 9.8
Dividends to equity holders − − (86.2) − (86.2) − (86.2)
Dividends to non-controlling interests − − − − − (1.5) (1.5)
Total contributions and distributions − − (103.5) − (103.5) (1.5) (105.0)
Unaudited balance at 31 December 2024 0.1 15.6 796.9 5.5 818.1 8.9 827.0
INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the six months ended 31 December 2024
Unaudited Unaudited Audited
6 months to
6 months to
12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Operating activities
Profit after tax 39.1 60.2 98.2
Adjustments for non-cash items:
Depreciation and amortisation 1.6 1.6 3.1
Share-based payments 9.8 12.6 28.0
Foreign exchange gains (3.5) (2.2) (2.5)
Net losses on investment securities 1.5 6.9 17.2
Finance income (19.4) (40.1) (70.4)
Tax expense 10.8 14.3 29.9
Share of profit from associate (0.2) (0.2) (0.5)
Cash generated from operations before working capital changes 39.7 53.1 103.0
Changes in working capital:
Decrease/(increase) in trade and other receivables 3.1 (11.9) (0.1)
Decrease/(increase) in derivative financial instruments 0.3 (0.2) (0.4)
Increase/(decrease) in trade and other payables (16.2) (2.0) 10.0
Cash generated from operations 26.9 39.0 112.5
Taxes paid (11.1) (9.8) (23.4)
Net cash from operating activities 15.8 29.2 89.1
Investing activities
Interest received 16.6 12.5 21.2
Investment income received 10.7 11.2 19.8
Disposal from/(investment in) term deposits 68.0 (32.3) (203.8)
Purchase of non-current financial assets measured at fair value (3.0) (0.9) (4.0)
Purchase of financial assets measured at fair value (61.6) - (10.4)
Purchase of investment securities (43.0) (8.5) (8.0)
Sale of non-current financial assets measured at fair value 1.4 3.3 20.2
Sale of financial assets measured at fair value 7.3 7.5 34.8
Sale of investment securities 5.1 20.0 28.3
Cash movement on funds consolidated or deconsolidated 1.0 5.0 (5.7)
Purchase of property, plant and equipment (0.2) (0.2) (0.8)
Net cash generated from/(used in) investing activities 2.3 17.6 (108.4)
Financing activities
Dividends paid to equity holders (86.2) (85.9) (119.9)
Dividends paid to non-controlling interests (1.5) (2.1) (4.5)
Third-party subscriptions into consolidated funds 7.0 4.0 4.7
Third-party redemptions from consolidated funds (4.8) (2.8) (7.8)
Distributions paid by consolidated funds (0.4) (5.4) (7.4)
Payment of lease liabilities (1.1) (1.1) (2.2)
Interest paid on lease liabilities (0.2) (0.1) (0.3)
Purchase of own shares (27.1) (12.0) (13.8)
Net cash used in financing activities (114.3) (105.4) (151.2)
Net decrease in cash and cash equivalents (96.2) (58.6) (170.5)
Cash and cash equivalents at beginning of period 308.0 478.6 478.6
Effect of exchange rate changes on cash and cash equivalents (0.1) 0.1 (0.1)
Cash and cash equivalents at end of period (note 16) 211.7 420.1 308.0
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1) General information
These interim condensed consolidated financial statements of Ashmore Group plc
(the Company or Ashmore) and its subsidiaries (together the Group) for the six
months ended 31 December 2024 were authorised for issue by the Directors on 6
February 2025. Ashmore is listed on the London Stock Exchange and incorporated
and domiciled in the United Kingdom.
2) Basis of preparation
The interim condensed consolidated financial statements have been prepared in
accordance with UK-adopted International Accounting Standard 34 (IAS 34)
Interim Financial Reporting and the DTR of the FCA.
The interim condensed consolidated set of financial statements has been
prepared by applying the accounting policies and presentation that were
applied in the preparation of the Group's published consolidated financial
statements for the year ended 30 June 2024, which were prepared in accordance
with UK-adopted international accounting standards and in conformity with the
requirements of the Companies Act.
These interim condensed consolidated financial statements and accompanying
notes are unaudited, do not constitute statutory accounts within the meaning
of Section 434 of the Companies Act and do not include all the information and
disclosures required in annual statutory financial statements. They should be
read in conjunction with the Group's Annual Report and Accounts for the year
ended 30 June 2024 which are available on the Group's website. Those statutory
accounts were approved by the Board of Directors on 4 September 2024 and have
been filed with Companies House. The auditors' opinion on those accounts was
unmodified, did not contain an Emphasis of Matter paragraph and did not
contain a statement made under Section 498 of the Companies Act.
Going concern
The Board of Directors has considered the resilience of the Group, taking into
account its current financial position, and the principal and emerging risks
facing the business in the context of the current economic outlook. The Board
reviewed cash flow forecasts for a period of 12 months from the date of
approval of these interim financial statements, which indicate that the Group
will have sufficient funds to meet its liabilities as they fall due for that
period. The Board applied stressed scenarios, including severe but plausible
downside assumptions on assets under management, profitability of the Group
and known commitments. While there are wider market uncertainties that may
impact the Group, the stressed scenarios, which assumed a significant
reduction in revenue for the entire forecast period, show that the Group and
Company would continue to meet their liabilities as they fall due for a period
of 12 months from the date of the release of these results. The interim
financial statements have therefore been prepared on a going concern basis.
Principal estimates and judgements
In preparing these interim condensed consolidated financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty, were the same as those
that applied to the Annual Report and Accounts for the year ended 30 June
2024.
3) New accounting standards and interpretations
The Group did not implement the requirements of any standards or
interpretations that were in issue but were not required to be adopted by the
Group at the half year. No other standards or interpretations have been issued
that are expected to have a material impact on the Group's interim
consolidated financial statements.
4) Segmental information
The Group's operations are reported to and reviewed by the Board on the basis
of the investment management business as a whole, hence the Group is treated
as a single segment. The key management information considered is adjusted
EBITDA which is £33.7 million for the period as reconciled in the Financial
review (H1 2024: adjusted EBITDA of £42.6 million).
The disclosures below are supplementary, and provide the location of the
Group's non-current assets at period end, which comprise intangible assets,
property, plant and equipment and investment in associates, excluding
financial assets and deferred tax assets.
Analysis of non-current assets by geography
As at As at As at
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
United Kingdom and Ireland 22.5 23.8 23.1
Americas 72.2 69.4 71.5
Asia and Middle East 2.8 1.7 2.6
Total non-current assets 97.5 94.9 97.2
5) Revenue
Management fees are accrued throughout the period in line with prevailing
levels of assets under management and performance fees are recognised when
they are crystallised, and there is deemed to be a low probability of a
significant reversal in future periods.
The Group is not considered to be reliant on any single source of revenue.
During the period, none of the Group's funds (H1 2024: none; FY2024: none)
provided more than 10% of total revenue in the period respectively when
considering management fees and performance fees on a combined basis.
Disclosures relating to revenue by location are provided below.
Analysis of revenue by geography
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
United Kingdom and Ireland 45.7 59.6 119.4
Americas 11.0 11.5 25.1
Asia and Middle East 21.8 22.3 44.5
Total revenue 78.5 93.4 189.0
6) Foreign exchange
The foreign exchange rates which had a material impact on the Group's results
are the US dollar, the Euro, the Indonesian rupiah, Saudi riyal and the
Colombian peso.
£1 Closing rate Closing rate Closing rate Average rate Average rate Average rate
as at
as at
as at
6 months to
6 months to
12 months to
31 December
31 December
30 June
31 December
31 December
30 June
2024
2023
2024
2024
2023
2024
US dollar 1.2524 1.2748 1.2641 1.2876 1.2572 1.2609
Euro 1.2095 1.1540 1.1795 1.1933 1.1593 1.1653
Indonesian rupiah 20,157 19,628 20,700 20,383 19,309 19,763
Saudi riyal 4.7058 4.7805 4.7424 4.8335 4.7154 4.7292
Colombian peso 5,517 4,939 5,239 5,474 5,075 5,030
Foreign exchange gains are shown below.
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Net realised and unrealised hedging gains 2.4 1.1 1.0
Translation gains on non-Sterling denominated monetary assets and liabilities 1.1 1.1 1.5
Total foreign exchange gains 3.5 2.2 2.5
7) Finance income
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Interest and investment income 19.4 20.6 39.1
Realised gains on disposal of investments − − 5.2
Net realised gains on seed capital investments measured at fair value 0.2 3.1 11.3
Net unrealised gains/(losses) on seed capital investments measured at fair − 16.5 15.1
value
Interest expense on lease liabilities (note 13) (0.2) (0.1) (0.3)
Total finance income 19.4 40.1 70.4
Included within interest and investment income is interest earned on cash
deposits of £12.0 million (H1 2024: £12.9 million; FY2024: £25.2 million)
and investment income of £7.4 million (H1 2024: £7.7 million; FY2024: £13.9
million) on consolidated funds (note 15c).
Included within net realised and unrealised gains on seed capital investments
totalling £0.2 million are £0.5 million losses on financial assets measured
at FVTPL (note 15a), £0.5 million gains on non-current financial assets
measured at fair value (note 15b) and £0.2 million realised gains on
consolidated funds.
8) Share-based payments
The cost related to share-based payments recognised by the Group in the
interim condensed consolidated statement of comprehensive income is shown
below:
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Omnibus Plan 10.4 13.5 29.4
Phantom Bonus Plan 0.1 0.1 0.1
Total share-based payments expense 10.5 13.6 29.5
The total expense recognised for the period in respect of equity-settled
share-based payment awards was £9.8 million (H1 2024: £12.5 million; FY2024:
£27.9 million), of which £0.9 million relates to share awards granted to key
management personnel (H1 2024: £0.7 million; FY2024: £2.0 million).
The Executive Omnibus Incentive Plan (Omnibus Plan)
Share awards outstanding under the Omnibus Plan were as follows:
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
Number of shares subject to awards
Number of
Number of
shares subject
shares subject
to awards
to awards
Equity-settled awards
At the beginning of the period 47,014,898 39,389,867 39,389,867
Granted 15,441,594 16,374,823 16,374,823
Vested (6,472,441) (7,708,290) (7,787,828)
Forfeited (286,181) (418,725) (961,964)
Outstanding at the end of the period 55,697,870 47,637,675 47,014,898
Cash-settled awards
At the beginning of the period 366,899 276,542 276,542
Granted 65,174 146,461 146,461
Vested (63,618) (56,104) (56,104)
Outstanding at the end of the period 368,455 366,899 366,899
Total awards
At the beginning of the period 47,381,797 39,666,409 39,666,409
Granted 15,506,768 16,521,284 16,521,284
Vested (6,536,059) (7,764,394) (7,843,932)
Forfeited (286,181) (418,725) (961,964)
Outstanding at the end of the period 56,066,325 48,004,574 47,381,797
The weighted average share price of awards granted to employees under the
Omnibus Plan during the period was £1.75 (H1 2024: £1.91; FY2024: £1.91),
as determined by reference to the average Ashmore closing share price for
the five business days prior to grant.
The liability arising from cash-settled awards under the Omnibus Plan at the
end of the period and reported within trade and other payables on the Group
consolidated balance sheet is £0.3 million (H1 2024: £0.3 million;
FY2024: £0.3 million) of which £nil relates to vested awards.
9) Taxation
Analysis of tax charge for the period
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Current tax
UK corporation tax on profits for the period 4.9 6.9 12.9
Overseas corporation tax charge 4.8 5.5 11.6
Adjustments in respect of prior periods (0.2) - 0.8
9.5 12.4 25.3
Deferred tax
Origination and reversal of temporary differences 1.3 1.9 4.6
Tax expense for the period 10.8 14.3 29.9
Factors affecting tax charge for the period
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Profit before tax 49.9 74.5 128.1
Profit on ordinary activities multiplied by the prevailing UK tax rate for the 12.5 18.6 32.0
period of 25% (H1 2023: 20.5%; FY2024: 25%)
Effects of:
Non-deductible expenses 0.8 1.3 1.7
Deduction in respect of vested shares (Part 12, Corporation Tax Act 2009) 0.1 (1.6) 3.0
Different rate of taxes on overseas profits (2.2) (2.6) (4.9)
Non-deductible investment returns (0.2) (1.4) (2.7)
Adjustments in respect of prior periods (0.2) - 0.8
Tax expense for the period 10.8 14.3 29.9
10) Earnings per share
Basic earnings per share for the six months to 31 December 2024 of 5.52 pence
(H1 2024: 8.65 pence; FY2024: 13.94 pence) is calculated by dividing the
profit after tax for the financial period attributable to equity holders of
the parent of £37.1 million (H1 2024: £58.2 million; FY2024: £93.7 million)
by the weighted average number of ordinary shares in issue during the period,
excluding own shares.
Diluted earnings per share is calculated based on basic earnings per share
adjusted for dilutive potential ordinary shares. There is no difference
between the profit for the year attributable to equity holders of the parent
used in the basic and diluted earnings per share calculations.
The weighted average number of shares used in calculating basic and diluted
earnings per share are shown below.
6 months to 6 months to 12 months to
31 December 2024
31 December 2023
30 June
Number of ordinary shares
Number of ordinary shares
2024
Number of ordinary shares
Basic weighted average number of shares 670,769,909 672,573,896 672,458,961
Diluted weighted average number of shares 690,636,992 686,977,809 691,730,988
11) Dividends
Dividends paid
Company 6 months to 6 months to 12 months to
31 December 2024
31 December 2023
30 June
£m
£m
2024
£m
Final dividend for FY2024: 12.10p (FY2023: 12.10p) 86.2 85.9 85.9
Interim dividend for FY2024: 4.80p − - 34.0
86.2 85.9 119.9
In addition, the Group paid £1.5 million (H1 2024: £2.1 million; FY2024:
£4.5 million) in dividends to non-controlling interests.
Dividends declared/proposed
Company 6 months to 6 months to 12 months to
31 December 2024
31 December 2023
30 June
pence
pence
2024
pence
Interim dividend declared per share 4.80 4.80 4.80
Final dividend proposed per share − - 12.10
4.80 4.80 16.90
The Board has approved an interim dividend for the six months to 31 December
2024 of 4.80 pence per share payable on 31 March 2025 to shareholders on the
register on 28 February 2025.
12) Goodwill and intangible assets
Goodwill Fund management intangible assets Total
£m
£m
£m
Cost (at original exchange rate)
At 31 December 2023 70.4 0.9 71.3
Disposal (0.2) (0.9) (1.1)
At 31 December 2024 and 30 June 2024 70.2 − 70.2
Accumulated amortisation
At 30 June 2023 - (0.7) (0.7)
Amortisation charge for the period - - -
At 31 December 2023 - (0.7) (0.7)
Amortisation charge for the period − (0.1) (0.1)
Disposal − 0.8 0.8
At 31 December 2024 and 30 June 2024 − − −
Net book value
At 30 June 2023 86.7 0.2 86.9
Accumulated amortisation for the period - - -
FX revaluation through reserves* (0.3) - (0.3)
At 31 December 2023 86.4 0.2 86.6
Accumulated amortisation for the period − (0.1) (0.1)
Disposal (0.2) (0.1) (0.3)
FX revaluation through reserves* 0.8 − 0.8
At 30 June 2024 87.0 − 87.0
FX revaluation through reserves* 0.8 − 0.8
At 31 December 2024 87.8 − 87.8
* FX revaluation through reserves is a result of the retranslation of US
dollar-denominated intangibles and goodwill.
Goodwill
The Group's goodwill balance relates to the acquisition of the business from
ANZ in 1999 and subsidiaries in subsequent periods.
The Group's goodwill is allocated to a single cash-generating unit, and it is
the Group's judgement that the lowest level of cash-generating unit used to
determine impairment is the investment management segment level.
Goodwill is tested for impairment at least annually or whenever there is an
indication that the carrying amount may not be recoverable. The key assumption
used to determine the recoverable amount is based on fair value less costs of
disposal calculation using the Company's market share price.
Based on the calculation as at 31 December 2024 using a market share price of
£1.60, the recoverable amount was substantially in excess of the carrying
value of goodwill. In terms of the sensitivity of the recoverable amount to
impairment, the Company's share price could decline by at least 15% and there
would not be an impairment. Therefore, no impairment loss has been recognised
in the current or preceding periods.
13) Property, plant and equipment
The Group's property, plant and equipment include right-of-use assets
recognised on office leases for which the Group is a lessee under operating
lease arrangements. Information about leases is provided below.
31 December 31 December 30 June
2024
2023
2024
£m
£m
£m
Property, plant and equipment owned by the Group 1.2 1.1 1.3
Right-of-use assets 5.5 4.5 6.0
Total property, plant and equipment 6.7 5.6 7.3
Lease liabilities are presented in the interim condensed consolidated
statement of financial position as follows:
31 December 2024 31 December 2023 30 June
£m
£m
2024
£m
Current 2.5 2.0 1.9
Non-current 3.5 3.0 4.5
Total lease liabilities 6.0 5.0 6.4
The carrying value of the Group's right-of-use assets, lease liabilities and
the movement during the period are set out below.
Right-of-use assets Lease liabilities
£m
£m
At 30 June 2023 5.3 5.8
Additions 0.2 0.3
Lease payments - (1.2)
Interest expense - 0.1
Depreciation charge (1.0) -
At 31 December 2023 4.5 5.0
Additions 2.9 2.8
Remeasurement (0.2) (0.2)
Lease payments - (1.3)
Interest expense - 0.2
Depreciation charge (1.1) -
Foreign exchange revaluation through reserves (0.1) (0.1)
At 30 June 2024 6.0 6.4
Additions 0.6 0.6
Remeasurement 0.1 0.1
Lease payments − (1.3)
Interest expense − 0.2
Depreciation charge (1.2) −
At 31 December 2024 5.5 6.0
Total cash outflow included within financing activities in the interim
condensed consolidated cash flow statement in respect of principal and
interest paid on lease liabilities during the period amounted to £1.3
million.
14) Fair value of financial instruments
The accounting policies relating to the estimation of fair values are
consistent with those applied in the preparation of the Group's Annual Report
and Accounts for the year ended 30 June 2024.
The Group has an established control framework with respect to the measurement
of fair values. This framework includes committees that have overall
responsibility for all significant fair value measurements. Each committee
regularly reviews significant inputs and valuation adjustments. If third-party
information is used to measure fair value, the valuation committee assesses
and documents the evidence obtained from the third parties to support such
valuations.
Fair value hierarchy
The Group measures fair values using the following fair value levels that
reflect the significance of inputs used in making the measurements, based on
the degree to which the fair value is observable:
- Level 1: Valuation is based upon a quoted market price in an active market for
an identical instrument. This fair value measure relates to the valuation of
quoted and exchange traded equity and debt securities.
- Level 2: Valuation techniques are based upon observable inputs, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). This fair
value measure relates to the valuation of quoted equity securities in inactive
markets or in interests in unlisted funds whose net asset values are
referenced to the fair values of the listed or exchange traded securities held
by those funds. Valuation techniques may include using a broker quote in an
inactive market or an evaluated price based on a compilation of primarily
observable market information utilising information readily available via
external sources.
- Level 3: Fair value measurements are derived from valuation techniques that
include inputs not based on observable market data.
For financial instruments that are recognised at fair value on a recurring
basis, the Group determines whether transfers have occurred between levels in
the hierarchy by reassessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of
each reporting period.
The fair value hierarchy of financial instruments which are carried at fair
value is summarised below:
At 31 December 2024 At 31 December 2023 At 30 June 2024
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
Financial assets
Investment securities 117.7 169.2 42.8 329.7 114.7 87.9 26.7 229.3 98.1 75.1 27.7 200.9
Financial assets at FVTPL - non-current − 28.0 30.8 58.8 − 26.9 40.9 67.8 − 28.3 29.3 57.6
Financial assets at FVTPL - current − 19.0 − 19.0 − 36.3 − 36.3 - 32.8 - 32.8
Derivative financial instruments − 0.4 − 0.4 - − - - - 0.2 - 0.2
Total financial assets 117.7 216.6 73.6 407.9 114.7 151.1 67.6 333.4 98.1 136.4 57.0 291.5
Financial liabilities
Third-party interests in consolidated funds 24.6 22.3 18.3 65.2 34.1 7.8 9.9 51.8 24.9 4.0 10.5 39.4
Derivative financial instruments − 0.1 − 0.1 - - - - - - - -
Total financial liabilities 24.6 22.4 18.3 65.3 34.1 7.8 9.9 51.8 24.9 4.0 10.5 39.4
Transfer between levels
Investments with a carrying value of £2.8 million were transferred out of
level 2 into level 3 as their value was determined based on valuation
techniques that include unobservable inputs as at 31 December 2024. There were
no transfers between level 1 and level 2 of the fair value hierarchy during
the period.
Financial instruments not measured at fair value
Financial assets and liabilities that are not measured at fair value include
cash and cash equivalents, trade and other receivables, and trade and other
payables. The carrying value of financial assets and financial liabilities not
measured at fair value is considered a reasonable approximation of fair value
as at 31 December 2024, 31 December 2023 and 30 June 2024.
Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in level 3 financial assets and
liabilities for the period.
Investment securities Financial assets at FVTPL - non-current Third-party interests in consolidated funds
£m
£m
£m
At 31 December 2023 26.7 40.9 9.9
Additions - 2.3 -
Disposals (0.1) (17.7) (0.1)
Unrealised gains recognised in finance income 0.9 3.8 0.7
Unrealised gains recognised in foreign exchange reserve 0.2 - -
At 30 June 2024 27.7 29.3 10.5
Additions 12.0 3.1 5.3
Disposals − (1.5) −
Transfers in 2.8 − 1.2
Unrealised gains recognised in finance income 0.1 0.3 1.3
Unrealised gains/(losses) recognised in foreign exchange reserve 0.2 (0.4) −
At 31 December 2024 42.8 30.8 18.3
Valuation of level 3 financial assets recognised at fair value on a recurring
basis using valuation techniques
Investments valued using valuation techniques include financial investments
which, by their nature, do not have an externally quoted price based on
regular trades, and financial investments for which markets are no longer
active as a result of market conditions, e.g. market illiquidity. The
valuation techniques used in the estimation of fair values are consistent with
those applied in the preparation of the Group's Annual Report and Accounts for
the year ended 30 June 2024. The following tables show the valuation
techniques and the significant unobservable inputs used to estimate the fair
value of level 3 investments as at 31 December 2024 and 30 June 2024, and the
associated sensitivity to changes in unobservable inputs to a reasonable
alternative:
Asset class and valuation technique Fair value at Significant Range of estimates Sensitivity factor Change in
31 December 2024
unobservable input
fair value
£m
£m
Unquoted securities
Market approach 3.5 EBITDA multiple 15x +/- 1x +/- 0.5
Marketability adjustment 30% +/- 5% -/+ 0.6
Discounted cash flow 39.7 Discount rate 10%-18% +/- 1% -/+ 1.3
Marketability adjustment 30%-54% +/- 5% -/+ 3.0
Unquoted funds
Net assets approach 30.4 Net asset value 1x +/- 5% +/- 1.5
Total financial assets within level 3 73.6
Third-party interests in consolidated funds (18.3) Net asset value 1x +/- 5% -/+ 0.9
Asset class and valuation technique Fair value at Significant Range of estimates Sensitivity factor Change in
30 June 2024
unobservable input
fair value
£m
£m
Unquoted securities
Market approach 5.8 EBITDA multiple 16x +/- 1x +/- 0.3
Marketability adjustment 30% +/- 5% -/+ 0.7
Discounted cash flow 20.0 Discount rate 10%-18% +/- 1% -/+ 1.0
Marketability adjustment 30%-54% +/- 5% -/+ 2.2
Unquoted funds
Net assets approach 31.2 Net asset value 1x +/- 5% +/- 1.6
Total financial assets within level 3 57.0
Third-party interests in consolidated funds (10.5) Net asset value 1x +/- 5% -/+ 0.5
The sensitivity demonstrates the effect of a change in one unobservable input
while other assumptions remain unchanged. There may be a correlation between
the unobservable inputs and other factors that have not been considered. It
should also be noted that some of the sensitivities are non-linear, therefore,
larger or smaller impacts should not be interpolated or extrapolated from
these results.
15) Seed capital investments
a) Financial assets measured at fair value through profit or loss
Financial assets measured at FVTPL comprise shares held in debt and equity
funds as follows:
31 December 2024 31 December 30 June
£m
2023
2024
£m
£m
Equity funds 13.0 22.7 23.5
Debt funds 6.0 13.6 9.3
Total 19.0 36.3 32.8
Included within finance income are net losses of £0.5 million (H1 2024: net
gains of £2.0 million; FY2024: net gains of £4.7 million) on the Group's
financial assets measured at FVTPL.
b) Non-current financial assets measured at fair value
Non-current financial assets include the Group's interests in funds that are expected to be realised within a period longer than 12 months from the balance sheet date.
31 December 2024 31 December 30 June
£m
2023
2024
£m
£m
Infrastructure funds 26.5 25.5 25.0
Debt funds 28.0 26.9 27.3
Other funds 3.9 15.0 5.0
Total(1) 58.4 67.4 57.3
1. Excludes £0.4 million (31 December 2023: £0.4 million; 30 June 2024: £0.3
million) of other non-current financial assets measured at fair value that are
not classified as seed capital.
Included within finance income are net gains of £0.5 million (H1 2024: net
gains of £15.9 million; FY2024: net gains of £19.1 million) on the Group's
non-current financial assets measured at fair value.
c) Consolidated funds
The Group has consolidated 24 investment funds as at 31 December 2024 (31
December 2023: 18 investment funds; 30 June 2024: 18 investment funds), over
which the Group is deemed to have control. Consolidated funds are seed capital
investments where the Group interest represents a controlling stake in the
fund in accordance with IFRS 10. Consolidated fund assets and liabilities are
presented line by line after intercompany eliminations.
The table below sets out an analysis of the carrying amounts of fund assets
and liabilities consolidated by the Group.
31 December 2024 31 December 30 June
£m
2023
2024
£m
£m
Investment securities(1) 329.7 229.3 200.9
Cash and cash equivalents 5.2 6.5 6.1
Other(2) 0.7 0.7 (0.1)
Third-party interests in consolidated funds (65.2) (51.8) (39.4)
Consolidated seed capital investments 270.4 184.7 167.5
1. Investment securities represent trading securities held by consolidated
investment funds and are measured at FVTPL. Further detailed information at
the security level is available in the individual fund financial statements.
2. Other includes trade receivables, trade payables and accruals.
The maximum exposure to loss is the carrying amount of the assets held. The
Group has not provided financial support or otherwise agreed to be responsible
for supporting any consolidated or unconsolidated funds financially.
Included within the interim condensed consolidated statement of comprehensive
income are £4.8 million gains (H1 2024: £nil; FY2024: net losses of £4.7
million) relating to the results of the consolidated funds, as follows:
31 December 2024 31 December 30 June
£m
2023
2024
£m
£m
Fair value losses on investment securities (1.7) (12.4) (30.5)
Third-party interests' share of losses in consolidated funds 0.2 5.5 13.3
Net losses on investment securities (1.5) (6.9) (17.2)
Investment income 7.4 7.7 13.9
Audit fees (0.1) (0.1) (0.2)
Operating expenses (1.0) (0.7) (1.2)
Net gains/(losses) on consolidated funds 4.8 - (4.7)
Included in the Group's cash generated from operations is £1.5 million cash
utilised in operations (H1 2024: £1.2 million cash utilised in operations;
FY2024: £1.0 million cash utilised in operations) relating to consolidated
funds.
As at 31 December 2024, the Group's consolidated funds were domiciled in
Guernsey, Cayman Islands, Luxembourg, Indonesia, India and the United States.
16) Cash and deposits
31 December 2024 31 December 30 June
£m
2023
2024
£m
£m
Cash at bank and in hand 32.7 50.2 53.5
Daily dealing liquidity funds 132.3 103.9 213.2
Short-term deposits 46.7 266.0 41.3
Cash and cash equivalents 211.7 420.1 308.0
Term deposits 135.8 32.3 203.8
Total cash and deposits 347.5 452.4 511.8
Term deposits are fixed term interest-yielding cash investments with an
original maturity of greater than three months. Term deposits have an average
annual interest rate of 4.9% and average remaining maturity term of six months
as at 31 December 2024.
17) Financial risk management
The Group is subject to strategic, business, client, investment, operational
and treasury risks throughout its business as discussed in the Risk management
section of the Group's Annual Report and Accounts for the year ended 30 June
2024, which provides further detail on the Group's exposure to and the
management of risks derived from the financial instruments it uses.
Those risks and the risk management policies have not changed significantly
during the six months to 31 December 2024.
18) Share capital
Authorised share capital
Number of Nominal value
shares
£'000
Ordinary shares of 0.01p each at 31 December 2024, 30 June 2024 and 31 900,000,000 90
December 2023
Issued share capital - allotted and fully paid
Number of Nominal value
shares
£'000
Ordinary shares of 0.01p each at 31 December 2024, 30 June 2024 and 31 712,740,804 71
December 2023
All the above ordinary shares represent equity of the Company and rank pari
passu in respect of participation and voting rights.
As at 31 December 2024, there were equity-settled share awards issued under
the Omnibus Plan totalling 55,697,870 shares (31 December 2023: 47,637,675
shares; 30 June 2024: 47,014,898 shares) that have release dates ranging from
September 2025 to October 2029.
19) Own shares
The Trustees of The Ashmore 2004 Employee Benefit Trust (EBT) acquire and hold
shares in Ashmore with a view to facilitating the vesting of share awards. The
EBT is periodically funded by the Company for these purposes.
The total number of shares in the Company held within the EBT comprise:
31 December 2024 31 December 30 June
2023
2024
Number of ordinary shares 56,975,506 49,154,371 49,481,410
Nominal value at 0.01p per ordinary share (£) 5,698 4,915 4,948
Cost value (£m) 152.7 149.8 149.5
20) Related party transactions
Related parties of the Group include key management personnel, close family
members of key management personnel, subsidiaries, associates, Ashmore funds,
the EBT and the Ashmore Foundation.
Key management personnel
The compensation paid to or payable to key management personnel is shown
below:
6 months to 6 months to 12 months to
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Short-term benefits 0.3 0.3 1.6
Defined contribution pension costs − - −
Share-based payment benefits 0.9 0.7 2.0
1.2 1.0 3.6
Short-term benefits include salary and fees, benefits and cash bonus.
Share-based payment benefits represent the cost of equity-settled awards
charged to the interim condensed consolidated statement of comprehensive
income.
Aggregate key management personnel interests in consolidated funds at 31
December 2024 were £37.5 million (31 December 2023: £39.2 million; 30 June
2024: £32.2 million). During the period, there were no other transactions
entered into with key management personnel (H1 2024 and FY2024: none).
Transactions with Ashmore funds
During the period, the Group received £24.7 million of gross management fees
and performance fees (H1 2024: £27.1 million; FY2024: £61.7 million) from
the 98 funds (H1 2024: 96 funds; FY2024: 96 funds) it manages and which are
classified as related parties. As at 31 December 2024, the Group had
receivables due from funds of £4.8 million (31 December 2023: £5.4 million;
30 June 2024: £4.9 million) that are classified as related parties.
Transactions with the EBT
The EBT has been provided with a loan facility to allow it to acquire Ashmore
shares in order to satisfy outstanding unvested share awards. The EBT is
consolidated within the results of the Group. As at 31 December 2024, the loan
outstanding was £151.7 million (31 December 2023: £149.2 million; 30 June
2024: £138.4 million).
Transactions with the Ashmore Foundation
The Ashmore Foundation is a related party to the Group. The Foundation was set
up to provide financial grants to worthwhile causes within the Emerging
Markets countries in which Ashmore invests and/or operates with a view to
giving back into the countries and communities. The Group made donations of
£0.2 million to the Foundation during the period to 31 December 2024 (H1
2024: £0.3 million; FY2024: £0.6 million).
21) Commitments
The Group has undrawn investment commitments relating to seed capital
investments as follows:
As at As at As at
31 December
31 December
30 June
2024
2023
2024
£m
£m
£m
Ashmore Andean Fund II, LP 0.1 0.1 0.1
Ashmore Avenida Colombia Real Estate Fund I (Cayman) LP − 0.1 −
Ashmore I - CAF Colombian Infrastructure Senior Debt Fund 3.5 5.6 4.4
Fondo Ashmore Andino III - FCP 0.8 3.8 2.7
Ashmore 2 - CAF-AM Colombian Infrastructure Senior Debt Fund 14.9 - −
Total undrawn investment commitments 19.3 9.6 7.2
22) Contingent assets and liabilities
The Company and its subsidiaries can be party to legal claims arising in the
normal course of business. The Directors do not anticipate that the outcome of
any such proceedings and claims will have a material adverse effect on the
Group's financial position and at present there are no such claims where their
financial impact can be reasonably estimated. There are no other material
contingent assets or liabilities.
23) Post-balance sheet events
There are no post-balance sheet events that require adjustment or disclosure
in these interim condensed consolidated financial statements.
Cautionary statement regarding forward-looking statements
It is possible that this document could or may contain forward-looking
statements that are based on current expectations or beliefs, as well as
assumptions about future events. These forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements often use words such as anticipate, target,
expect, estimate, intend, plan, goal, believe, will, may, should, would, could
or other words of similar meaning.
Undue reliance should not be placed on any such statements because, by their
very nature, they are subject to known and unknown risks and uncertainties and
can be affected by other factors that could cause actual results, and the
Group's plans and objectives, to differ materially from those expressed or
implied in the forward-looking statements. There are several factors that
could cause actual results to differ materially from those expressed or
implied in forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are changes in the global, political, economic,
business, competitive, market and regulatory forces, future exchange and
interest rates, changes in tax rates and future business combinations or
dispositions. The Group undertakes no obligation to revise or update any
forward-looking statement contained within this document, regardless of
whether those statements are affected as a result of new information, future
events or otherwise.
RESPONSIBILITY STATEMENT OF THE DIRECTORS IN RESPECT OF THE HALF-YEARLY
FINANCIAL REPORT
We confirm that to the best of our knowledge:
- the interim condensed consolidated financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted for use in the
UK and that this interim report includes a fair review of the information
required by:
(a) DTR 4.2.7R being an indication of important events that have occurred during
the first six months of the financial year and their impact on the interim
condensed set of financial statements, and a description of the principal
risks and uncertainties for the remaining six months of the financial year;
and
(b) DTR 4.2.8R being related party transactions that have taken place in the first
six months of the current financial year and that have materially affected the
financial position or performance of the entity during that period and any
changes in the related party transactions described in the last Annual Report
that could do so.
By order of the Board
Mark Coombs
Chief Executive Officer
6 February 2025
independent REVIEW REPORT TO ASHMORE GROUP PLC
Conclusion
We have been engaged by the Ashmore Group Plc and its subsidiaries (together
'the Group') to review the interim condensed set of consolidated financial
statements in the half-yearly financial report for the six months ended 31
December 2024, which comprises the interim condensed consolidated statement of
comprehensive income, interim condensed consolidated statement of financial
position, interim condensed consolidated statement of changes in equity,
interim condensed consolidated cash flow statement and the related explanatory
notes (1 to 23). We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial statements in the
half-yearly financial report for the six months ended 31 December 2024 is not
prepared, in all material respects, in accordance with UK adopted
International Accounting Standard 34 and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 2, the annual financial statements of the Group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of consolidated financial statements included in this
half-yearly financial report has been prepared in accordance with UK adopted
International Accounting Standard 34, 'Interim Financial Reporting'.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting, or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the Group's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Group a conclusion on the condensed set of consolidated financial statements
in the half-yearly financial report. Our conclusion, including our Conclusions
relating to going concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for conclusion paragraph of
this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Group in accordance with guidance contained
in International Standard on Review Engagements 2410 (UK) 'Review of Interim
Financial Information Performed by the Independent Auditor of the Entity'
issued by the Financial Reporting Council. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we have formed.
Ernst & Young LLP
London
6 February 2025
Alternative performance measures
Ashmore discloses alternative performance measures (APMs) to assist
shareholders' understanding of the Group's operational performance during the
accounting period and to allow consistent comparisons with prior periods.
The calculation of APMs is consistent with the financial year ended 30 June
2024. Historical disclosures relating to APMs, including explanations and
reconciliations, can be found in the respective interim financial reports and
Annual Reports and Accounts.
Net revenue
As shown in the interim CSCI, net revenue is total revenue less distribution
costs and including FX. This provides a comprehensive view of the revenues
recognised by the Group in the period.
Reference H1 2025 H1 2024
£m
£m
Total revenue CSCI 78.5 93.4
Distribution costs CSCI (1.0) (1.1)
FX CSCI 3.5 2.2
Net revenue 81.0 94.5
Net management fees
The principal component of the Group's revenues is management fees, net of
associated distribution costs, earned on AuM.
Reference H1 2025 H1 2024
£m
£m
Management fees CSCI 69.3 83.7
Distribution costs CSCI (1.0) (1.1)
Net management fees 68.3 82.6
Net management fee margin
The net management fee margin is defined as the ratio of annualised net
management fees to average AuM for the period, in US dollars since it is the
primary currency in which fees are received and it matches the Group's AuM
disclosures. The average AuM excludes assets where fees are not recognised in
revenues, for example AuM related to associates. The margin is a principal
measure of the firm's revenue generating capability and is a commonly used
industry performance measure.
H1 2025 H1 2024
Net management fee income (US$m) 88.3 103.7
Average AuM (US$bn) 49.6 52.8
Net management fee margin (bps) 36 39
Variable compensation ratio
The linking of variable annual pay awards to the Group's profitability is one
of the principal methods by which the Group controls its operating costs. The
variable compensation ratio is defined as the charge for VC divided by EBVCT.
The charge for VC is a component of personnel expenses and comprises
share-based payments and performance-related cash bonuses. It has been accrued
in the interim accounts at 30.0% of EBVCT (H1 2024: 27.5%).
EBVCT is defined as profit before tax excluding the charge for VC, charitable
donations, share of profit from associate and unrealised seed capital-related
items; and including net seed capital gains realised in the period on a
life-to-date basis. The unrealised seed capital items are net gains or losses
on investment securities, expenses in respect of consolidated funds and net
unrealised gains or losses in finance income.
Reference H1 2025 H1 2024
£m
£m
Profit before tax CSCI 49.9 74.5
Remove: Note 7, note 15 (5.0) (19.6)
Seed capital-related (gains)/losses
Share of profit from associate CSCI (0.2) (0.2)
Variable remuneration 19.6 22.5
Charitable donations 0.2 0.3
Add:
Realised life-to-date seed capital gains 0.6 4.4
EBVCT 65.1 81.9
Adjusted net revenue, adjusted operating costs and adjusted EBITDA
Adjusted figures exclude items relating to FX translation and seed capital.
Management assesses the Group's operating performance by excluding the
volatility associated with these items.
Earnings before interest, tax, depreciation and amortisation (EBITDA) provides
a view of the operating performance of the business before certain non-cash
items, financing income and charges, and taxation.
Reference H1 2025 H1 2024
£m
£m
Net revenue CSCI 81.0 94.5
Remove:
FX translation gains Note 6 (1.1) (1.1)
Adjusted net revenue 79.9 93.4
Reference H1 2025 H1 2024
£m
£m
Personnel expenses CSCI (35.4) (38.6)
Other expenses CSCI (13.8) (14.8)
Remove:
Other expenses in consolidated funds Note 15 1.1 0.8
Add:
VC % on FX translation Note 6 0.3 0.2
Adjusted operating costs (47.8) (52.4)
Reference H1 2025 H1 2024
£m
£m
Operating profit CSCI 30.3 34.2
Remove:
Depreciation & amortisation 1.6 1.6
EBITDA 31.9 35.8
Remove:
FX translation Note 6 (1.1) (1.1)
Seed capital-related (gains)/losses Note 15 2.6 7.7
VC % on FX translation Note 6 0.3 0.2
Adjusted EBITDA 33.7 42.6
Adjusted EBITDA margin
The ratio of adjusted EBITDA to adjusted net revenue. This is an appropriate
measure of the Group's operational efficiency and its ability to generate
returns for shareholders.
Adjusted diluted EPS
Diluted earnings per share excluding items relating to FX translation and seed
capital, as described above, and the related tax impact.
Reference H1 2025 H1 2024
pence
pence
Diluted EPS CSCI 5.4 8.5
Remove:
FX translation Note 6 (0.2) (0.1)
Tax on FX translation 0.1 -
Seed capital-related (gains)/losses CSCI, note 7, note 15 (0.7) (2.9)
Tax on seed capital-related items 0.2 0.2
Adjusted diluted EPS 4.8 5.7
Conversion of operating profits to cash
This compares cash generated from operations, excluding consolidated funds, to
adjusted EBITDA, and is a measure of the effectiveness of the Group's
operations in converting profits to cash flows for shareholders. Excluding
consolidated funds also ensures consistency between the cash flow and adjusted
EBITDA.
Reference H1 2025 H1 2024
£m
£m
Cash generated from operations Consolidated cash flow statement 26.9 39.0
Remove:
Cash flows relating to consolidated funds Note 15 1.5 1.2
Operating cash flow 28.4 40.2
Adjusted EBITDA 33.7 42.6
Conversion of operating profits to cash 84% 94%
Capital resources
Ashmore has calculated its capital resources in a manner consistent with the
Investment Firms Prudential Regime (IFPR). Note that goodwill and intangible
assets include associated deferred tax liabilities and deferred acquisition
costs, and foreseeable dividends relate to the declared interim dividend of
4.8 pence per share.
Reference 31 December 2024 30 June
£m
2024
£m
Total equity Interim consolidated statement of financial position 818.1 882.6
Deductions:
Unaudited profits CSCI (37.1) -
Goodwill and intangible assets (79.6) (79.3)
Deferred tax assets Interim consolidated statement of financial position (18.1) (18.9)
Foreseeable dividends (33.9) (85.1)
Investments in financial sector entities (3.3) (3.1)
Capital resources 646.1 696.2
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR SSMFAMEISEFERecent news on Ashmore
See all newsREG - Ashmore Group Plc - Trading Statement
AnnouncementREG - Ashmore Group Plc - Director/PDMR Shareholding
AnnouncementREG - Ashmore Group Plc - Director/PDMR Shareholding
AnnouncementREG - Ashmore Group Plc - Director/PDMR Shareholding
AnnouncementREG - Ashmore Group Plc - Director/PDMR Shareholding
Announcement