Group Audited Results for year ended 31 March 2026
POLAR CAPITAL HOLDINGS plc
Group Audited Results for year ended 31 March 2026
"The financial year ended 31 March 2026 was one of significant progress for Polar Capital, with record year-end AuM of £30.6bn, positive net inflows of £902m and strong investment performance across our core strategies, despite a turbulent market backdrop. Momentum has continued into FY27, with AuM reaching £44.7bn as at 19 June 2026. These results demonstrate the strength of our specialist model and the value of differentiated active management. Our strategy is clear: to scale through differentiation and focus, and to deliver long-term value for our clients and shareholders."
Iain Evans, CEO
Highlights
• Assets under Management (AuM) up 43% to £30.6bn at 31 March 2026 (31 March 2025: £21.4bn)
• Average AuM for the year up 14% to £26.0bn (2025: £22.9bn)
• AuM has risen further to £44.7bn at 19 June 2026 with net inflows of £2.3bn in the period 1 April to 19 June 2026
• Core operating profit† up 11% to £62.8m (2025: £56.7m)
• Statutory profit before tax up 49% to £76.9m (2025: £51.6m)
• Adjusted diluted total earnings per share† up 10% to 57.8p (20251: 52.6p)
• Second interim dividend of 32.0p per share (2025: 32.0p) bringing the total dividend for the year to 46.0p per share (2025: 46.0p). The dividend payment date is 7 August 2026, with an ex-dividend date of 9 July 2026 and a record date of 10 July 2026
• Share buyback programme of £15.0m initiated
† The non-GAAP alternative performance measures shown here are described and reconciled to IFRS measures in the Alternative Performance Measures (APM) section.
1. Comparative figures have been restated to correct the adjusted profit before tax figure used in the calculation for Adjusted basic and Adjusted diluted EPS. See Note 1 for further information.
This RNS does not constitute an offer or recommendation to invest in any of the funds referenced within.
Iain Evans, Chief Executive Officer, commented:
"The financial year ended 31 March 2026 was one of significant progress for Polar Capital. Group AuM closed the year at a record year-end level of £30.6bn, up 43%, supported by £8.8bn of fund performance and market movements and £902m* of net inflows, our second consecutive year of positive net inflows.
"Flow momentum improved materially as the year progressed. After a more challenging first half, the Group returned to positive net inflows in December and delivered a strong finish, with £1.4bn of net inflows in the final quarter. Encouragingly, this momentum has continued into FY2027, with Group AuM of £44.7bn as at 19 June 2026.
"Inflows were led by our Technology and Artificial Intelligence strategies, reflecting sustained client demand for exposure to structural growth themes and the strength of our specialist credentials in these areas. Given the scale of Technology inflows and the strength of recent performance in the sector, we remain disciplined in assessing the durability of these flows. We are encouraged by the breadth of client demand across selected strategies, including Healthcare, Smart Energy, Japan Value and Global Absolute Return, but our focus remains on converting demand into durable net flows.
"Investment performance improved during the year and remains the primary measure of the value we deliver to clients and the engine of long-term organic growth. Across the Polar Capital UCITS fund range, which represents approximately 75% of Group AuM, 74% of UCITS AuM ranked in the top two quartiles over one year and three years, 85% over five years and 100% since inception. Global Technology, Artificial Intelligence and Smart Energy strategies significantly outperformed their respective benchmarks, while Healthcare and Convertibles also delivered strong performance. Performance was more mixed across selected regional and single-country strategies, and targeted actions are under way where improvement is required.
"Since my appointment as Chief Executive, the Board, Executive team and I have refined and formalised the Group's strategic plan. The core of that strategy is to scale through differentiation and focus: investing where we have clear performance, capacity and client demand, while remaining disciplined about where we deploy time, resources and capital. We are also investing in data and AI in a controlled and practical way, with the ambition to grow AuM without proportional long-term growth in headcount or operating costs.
"The Board remains committed to disciplined and sustainable capital allocation. With effect from 1 April 2026, it has adopted a revised shareholder return policy whereby, in normal circumstances, the Group expects to return at least 50% of adjusted core profits to shareholders through an ordinary dividend, paid on a half-yearly basis. The first interim dividend, paid in January each year, will, in normal circumstances, be 50% of the first half's core profits. The Group aims to grow returns to shareholders over time through a combination of dividends and share repurchases. After taking account of future growth plans and investment requirements, excess performance fee profits and surplus capital will be returned to shareholders over time through special dividends or share repurchases, as determined by the Board, depending on prevailing market conditions. Based on current market levels, and current expectations of earnings for FY27, we do not anticipate next year's full year ordinary dividend being lower than 46p.
"We have started the year with positive momentum. Although the structural headwinds facing active equity managers have not abated, we believe the environment is increasingly supportive of genuine differentiation, making the case for specialist active management more compelling than ever. We will continue to scale where we are strongest and diversify our client base and product range, while preserving the culture and focus that define us, building on our specialist heritage to deliver long-term value for clients and shareholders."
(*Figure excludes corporate actions and fund closures).
For further information please contact:
Polar Capital
Iain Evans (Chief Executive Officer)
Samir Ayub (Chief Financial Officer)
+44 (0)20 7227 2700
Deutsche Numis - Nomad and Joint Broker
Duncan Monteith
Charles Farquhar
+44 (0)20 7260 1000
Peel Hunt LLP- Joint Broker
Andrew Buchanan
Thomas Philpott
+44 (0)20 3597 8680
Camarco - PR
Ed Gascoigne-Pees
Jennifer Renwick
Phoebe Pugh
+44 (0)20 3757 4980
Assets under Management Analysis
AuM split by type
31 March 2026
31 March 2025
£bn
%
£bn
%
Open ended funds
23.4
76%
Open ended funds
16.0
75%
Investment trusts
6.6
22%
Investment trusts
4.8
22%
Segregated mandates
0.6
2%
Segregated mandates
0.6
3%
Total
30.6
100%
Total
21.4
100%
AuM split by strategy
Ordered according to launch date
31 March 2026
31 March 2025
£bn
%
£bn
%
Technology
16.8
55%
Technology
9.0
42%
Healthcare
4.7
15%
Healthcare
3.5
16.5%
Global Insurance
2.4
8%
Global Insurance
2.6
12%
Financials
0.4
1%
Financials
0.7
3%
Convertibles
0.4
1%
Convertibles
0.3
1.5%
North America
0.5
2%
North America
0.5
2.5%
Japan Value
0.3
1%
Japan Value
0.2
1%
European Income
0.1
0.5%
European Income
0.2
1%
UK Value
0.9
3%
UK Value
0.9
4%
Emerging Markets and Asia
3.5
11%
Emerging Markets and Asia
3.0
14%
European Opportunities1
-
-
European Opportunities1
0.2
1%
Sustainable Thematic Equities
0.5
2%
Sustainable Thematic Equities
0.2
1%
European Small Cap2
-
-
European Small Cap2
-
-
Global Small Company
0.1
0.5%
Global Small Company
0.1
0.5%
Total
30.6
100%
Total
21.4
100%
AuM split by geography of investors
31 March 2026
%
UK
55%
Europe
29%
Asia
8%
Nordics
4%
North America
2%
Other
2%
Total
100%
31 March 2025
%
UK
63%
Europe
23%
Asia
7%
Nordics
5%
North America
1%
Other
1%
Total
100%
1. Polar Capital Melchior European Opportunities Fund managed under this strategy was closed in December 2025.
2. The AuM of the Polar Capital European Small Cap Fund managed under this strategy was £9.5m as at 31 March 2026 (2025: £8.0m).
Chair's Statement
Introduction
I want to begin my statement this year by thanking Gavin Rochussen who stepped down as Chief Executive at the AGM in September 2025 to be succeeded by Iain Evans. The Board is grateful to Gavin for his leadership and the strong foundation he leaves. The leadership transition went smoothly, enabling Iain and his executive, working with the Board, to focus on the business, and the development of our strategy for the years ahead. This is covered in more detail below, and in Iain's Chief Executive report.
Iain has been with Polar Capital for over 20 years, most recently serving as Global Head of Distribution. He brings deep industry experience and a strong understanding of the Group's culture, strategy and client relationships. Under Iain's leadership, I am confident that Polar Capital can continue to prosper and grow.
In my introduction to the 2024 statement, I began with the following sentence, "While the financial year saw the continuation of significant geopolitical and global economic narratives from the previous year, it proved eventful in its own right." Two years on and you would be forgiven for having a sense of Déjà vu.
Polar Capital's financial year was once again marked by considerable global and market volatility. It started with a US-led trade war and ended with co-ordinated US and Israeli strikes on Iran. Meanwhile the conflict in Ukraine continued without resolution. Geopolitics aside, investor attention focused on AI, with billions of dollars invested in AI infrastructure and AI models showing rapid and continuing improvement. In the year ahead, we expect Polar Capital, in common with most companies, to expand its use of AI in a controlled and governed way as the industry looks to capitalise on the opportunities and advantages of the technology.
There is no doubt that the geopolitical backdrop has become more uncertain, contributing to heightened market sensitivity, particularly in energy markets. Despite this, we remain confident in our positioning as a specialist boutique. As markets broaden and the pace of technological disruption, including AI, accelerates, the case for specialist active management is becoming increasingly compelling. Our focus on differentiated capabilities, deep expertise and disciplined execution positions us well to navigate the uncertainty and capture opportunities ahead for our clients and shareholders.
Results
AuM increased by 43% to £30.6bn, from £21.4bn at the end of March 2025, reflecting a combination of net inflows, fund performance and market movements. Average AuM increased by 14% to £26.0bn. Higher average AuM, together with a carefully managed cost base, contributed to an 11% increase in core operating profit† to £62.8m (2025: £56.7m).
Net performance fee profits†, after staff allocations, increased to £16.1m (2025: £7.9m). Combined with the absence of the goodwill and intangible asset impairment charges recorded in the prior year, profit before tax rose by 49% to £76.9m (2025: £51.6m).
This progress reflects the strength of our specialist franchises, improving investment performance across key strategies and continued focus on disciplined execution.
Dividend
The Board remains committed to a disciplined and sustainable capital allocation approach. We recognise the importance that shareholders place on a predictable dividend stream and, in making our recommendation, we have taken into account the Group's earnings resilience, cash generation and the strength of the balance sheet, alongside the investment required to support our strategy. The Board has recommended a final dividend of 32.0p per share, bringing the full-year dividend to 46.0p. We will continue to balance investment in the business with returning excess capital to shareholders, including through the ongoing £15.0m share buyback programme announced in January 2026.
Effective 1 April 2026, the Board announces a revised shareholder return policy whereby, in normal circumstances, the Group expects to return at least 50% of adjusted core profits to shareholders through an ordinary dividend paid on a half-yearly basis. The first interim dividend, paid in January each year, will, in normal circumstances, be 50% of the first half's core profits. The Group aims to grow returns to shareholders over time through a combination of dividends and share repurchases. After taking account of future growth plans and investment requirements, excess performance fee profits and surplus capital will be returned to shareholders over time through special dividends or share repurchases, as determined by the Board, depending on prevailing market conditions.
Strategy
Following the CEO transition in September 2025, the Board and Executive team refined and formalised a clear three-year strategic plan. The strategy is anchored in a simple objective: to be the specialist active manager of choice, recognised for distinctive high-conviction strategies, superior client outcomes and a culture that empowers independent thinking and high performance.
The core of the plan is to scale through differentiation and focus, concentrating resources behind areas where Polar Capital has a clear edge and demonstrable client demand, while remaining disciplined in how we allocate time, investment and capital. Delivery is organised around four pillars: investment and product; distribution; people, culture and ways of working; and financial discipline. The Board will monitor progress through an outcomes-based scorecard and regular reporting, ensuring accountability and pace of execution.
Culture
The Board regards culture and talent as fundamental to the durability of Polar Capital's boutique model. Our entrepreneurial, meritocratic and collegiate culture, underpinned by accountability, has been central to attracting and retaining high-quality investment teams and to delivering for clients through multiple market cycles.
As the business scales, the Board is focused on ensuring that this culture is protected and strengthened, alongside continued investment in leadership development, succession planning and disciplined ways of working. These priorities support long-term continuity across key franchises and reinforce the standards expected of the firm as a listed company and fiduciary.
Board
As already mentioned, there was one significant change to the Board during the year, with Iain Evans taking over as CEO at the AGM in September 2025 from Gavin Rochussen, on his retirement.
I also want to announce one further change to the Board. Having been appointed to the Board in June 2017, Win Robbins is to step down as a Non-Executive Director and Chair of the Remuneration Committee at the AGM in September 2026. Win has given excellent service during her tenure, with her broad experience and deep knowledge of investment markets a real added value to Polar Capital.
A new Non-Executive Director will be named shortly and Andrew Ross will take over as Chair of the Remuneration Committee after the AGM.
Annual General Meeting
We are planning to hold the Company's forthcoming Annual General Meeting at 2.00pm on Thursday 24 September 2026 at the Company's registered office. Shareholders are encouraged to submit any questions to our Company Secretary before the meeting (by using investorrelations@polarcapital.co.uk, using the subject title 'PCH AGM') who will arrange for a response to be provided to the questions. There will not be a presentation at the meeting, but a video of the CEO and CFO presenting the results will be available on the Company's website ahead of the meeting. The notice of the meeting is also available on the Company's website.
Thank you
Polar Capital continues to develop as a strong and successful business, and I am proud to serve as its Chair. The success seen by the business over the last year reflects the dedication of our people, as well as the continued support of our clients, suppliers and partners.
I would like to extend my thanks to everyone involved, and especially to our staff and investment teams, for their hard work and resilience during what has been a challenging year for the industry overall. Both the Board and I greatly value the commitment and professionalism demonstrated across the firm.
David Lamb
Chair
30 June 2026
† The non-GAAP alternative performance measures mentioned here are described and reconciled in the APM section.
Chief Executive Officer's Report
Introduction
The financial year ended 31 March 2026 was a year of significant operational progress, set against an unusually turbulent market backdrop. I was formally appointed Chief Executive at the AGM on 25 September 2025, following the Board's announcement in June. With 21 years at Polar Capital, I came to the role knowing our people, our clients and the culture that drives performance. The leadership handover completed smoothly, and I am grateful to my predecessor, Gavin Rochussen, for the strong foundation that was in place.
In January 2026 we marked Polar Capital's 25th anniversary, a significant milestone for any independent boutique. The firm was founded with a clear purpose: to build a specialist asset manager, with an uncompromising focus on investment performance and client outcomes. That ethos of independent investment teams supported by a strong platform, disciplined risk management and a long-term mindset, has helped the firm navigate multiple market cycles and remain resilient. It is a genuine privilege to be leading the business as we move into the next phase of growth.
Polar Capital enters the new financial year with assets under management of £30.6bn - up 43% from £21.4bn at the start of the period - a second consecutive year of positive net inflows, and a strategic plan that positions the business to capture future growth opportunities. The pages that follow set out how we intend to build on that position.
Assets under management and fund flows
Group AuM closed the year at £30.6bn, an increase of £9.2bn over the twelve months, reflecting £8.8bn of fund performance and market movements and net inflows of £902m, partially offset by £396m of investment trust corporate actions and £75m of fund closures.
The year unfolded in two distinct halves. The first six months were characterised by net outflows of £690m, alongside a £280m one-off capital return following an investment trust corporate action, concentrated in strategies that remained out of favour, most notably Healthcare, European and UK equity strategies, alongside a number of client-specific redemptions. After a period of strong inflows, Emerging Markets also recorded net outflows, including the closure of a separately managed account.
Redemptions slowed markedly during the second quarter (July-Sept), with net outflows of £58m compared with £632m in the first quarter. That improvement carried through into the second half of the year. In the third quarter (Oct-Dec), AuM rose to £28.4bn and the Group recorded positive net inflows. The fourth quarter (Jan-Mar) provided the strongest finish to the year, with net inflows of £1.4bn - the highest quarterly net flow figure in the Group's history.
Flow dynamics
Inflows were led by our Technology and AI-related strategies, reflecting sustained client demand for exposure to structural growth themes, with both Polar Capital Global Technology and Artificial Intelligence Funds attracting particularly strong flows from wealth and private bank channels in Europe and Asia. Healthcare also contributed positively in the second half, supported by improving investment performance and new institutional mandate activity, including a new separately managed account. Elsewhere, Polar Capital Smart Energy, Polar Capital Japan Value and Polar Capital Global Absolute Return Funds each generated net inflows, demonstrating the range of strategies across which clients are allocating.
Net outflows were more concentrated and, in most cases, reflected specific client decisions rather than any broad shift in sentiment toward the firm or its strategies.
Investment performance
Investment performance is the primary measure of the value we deliver to clients and, over time, the engine of sustainable organic growth. During the year, fund performance and market movements contributed £8.8bn to AuM growth, reflecting the quality of our investment teams and the alignment of several specialist strategies with the structural themes that shaped equity markets.
Technology strategies were a particularly strong contributor. Results were consistent with the teams' high-conviction, thematic approach and disciplined implementation. A number of other specialist strategies, including Convertibles, Healthcare and Smart Energy, also delivered strong performance during the year.
Performance was not uniformly strong across the platform. Certain regional strategies lagged over the period. Where improvement is required, we have targeted actions under way, while preserving the investment independence that is central to our boutique model.
Across the Polar Capital UCITS fund range, which represents approximately 75% of Group AuM, 74% of UCITS AuM ranked in the top two quartiles of the appropriate Lipper peer group over one year to 31 March 2026; 74% over three years; 85% over five years; and 100% since inception. We regard these figures as a meaningful measure of the value delivered to clients.
Strategy and positioning
Since my appointment as Chief Executive, the Board, Executive team and I have refined and formalised Polar Capital's strategic plan. The plan is built around a clear ambition: to be the specialist active manager of choice, recognised for distinctive high-conviction strategies, superior client outcomes, and a culture that empowers independent thinking and high performance.
The core of the strategy is to scale through differentiation and focus, by concentrating on fewer, higher-impact priorities, scaling areas where we have a clear edge and client demand, and remaining disciplined about where we invest time, resources and capital. This approach is designed to protect what makes Polar Capital distinctive while ensuring the platform is positioned to capture future growth.
Investment and product
We are streamlining the platform around high-conviction specialist strategies, with an ultimate target of approximately 12 to 15 investment teams. A structured review of the full product range is ongoing, with actions already taken during the year, including a number of fund closures.
We are also reinforcing our position as a high-conviction thematic equity manager in Technology, Healthcare, Financials and Sustainable Thematics strategies, all areas where we have built deep capability and strong track records. In parallel, we are actively searching for complementary investment talent to broaden the platform selectively, without diluting our core identity.
Distribution
Broadening our client base remains a strategic priority. The UK remains the Group's largest market, accounting for 55% of AuM, with Europe accounting for 29% and the Nordics a further 4%. We have seen meaningful growth in Europe and South-East Asia during the year and see further opportunities to deepen client relationships and broaden access to our specialist strategies across both regions.
Progress in the US has been slower than our ambition, but it remains an important strategic priority given the size of the addressable market and our current low penetration. We are reviewing additional investment vehicles and wrappers in the US and other priority markets, where appropriate, to improve access to our strategies across new markets and channels.
This targeted approach supports long-term diversification by geography and client channel, while remaining true to our specialist franchise.
People, culture and ways of working
Our entrepreneurial, meritocratic and collegiate culture is the foundation of the firm, and it is what attracts and retains the investment talent that drives performance. We are reinforcing the behaviours and ways of working that have served Polar Capital well: clearer accountability, faster decision-making and stronger collaboration across the firm, alongside a more consistent strategic narrative so that teams are aligned on what matters most.
Developing and retaining talent is central to the durability of a specialist boutique. We continue to strengthen leadership and coaching programmes, alongside a more structured framework for identifying and developing the next generation of portfolio managers and analysts. Credible succession plans for key investment teams and senior roles are a Board-level priority, and we are making progress.
On cost efficiency, data and productivity, our ambition is clear: to grow AuM without proportional growth in headcount or operating costs. AI and data will be important enablers of that ambition, not as a productivity overlay, but as the foundation for how the firm scales. We are running targeted pilots with a clear filter: adopt what delivers measurable benefit and robust controls, and discard what does not. This is underpinned by continued investment in our data foundations and governance, ensuring information is reliable, controlled and usable across the firm. Subsequent to year end, we further strengthened technology leadership to support delivery of this agenda.
Financial discipline and operating model
We are focused on maintaining disciplined economics, ensuring each investment team operates with clear performance and profitability expectations, while preserving the investment independence that underpins our boutique model. At the same time, we continue to strengthen the support provided from the centre to help teams scale effectively.
Alongside this, we remain committed to efficiency: streamlining and automating where we can, stopping low-value activity, and reinvesting the capacity released into the growth priorities that matter most. Our aim is to ensure that every pound of expenditure is working as hard as possible for clients and shareholders.
The Board's decision to initiate a £15.0m share buyback programme during the year reflects the strength of the balance sheet and confidence in the business. We will maintain that financial strength and the flexibility it provides to invest in new teams, to act on selective bolt-on opportunities where they arise, and to continue returning capital to shareholders in a disciplined and consistent manner.
Financial results
Average AuM for the twelve months to 31 March 2026 increased by 14% compared with the prior year, rising from £22.9bn to £26.0bn, reflecting strong fund performance and market movements and a second consecutive year of positive net inflows.
Net management fees† increased by 10% to £196.9m (2025: £178.3m). The management fee yield† margin declined by 2bps to 76bps, reflecting continued product-mix effects as well as long-term industry trends.
Net performance fee profits†, after staff allocations, were £16.1m (2025: £7.9m), reflecting disciplined risk management through a volatile period.
Excluding exceptional items, total operating costs were 6% higher than in the prior year, driven principally by higher share-based payment charges and continued investment in US distribution and digital content. As a result, core operating profit† increased by 11% to £62.8m (2025: £56.7m), and adjusted diluted total EPS† was 57.8p, 10% higher than the prior year.
On a statutory basis, total operating costs increased by 3% to £151.6m (2025: £146.5m), reflecting higher staff compensation costs as variable compensation increased due to improved profitability, offset by the absence of the goodwill and intangible asset impairment charges recorded in the prior year. Statutory profit before tax rose by 49% to £76.9m (2025: £51.6m), and basic EPS increased by 66%.
The balance sheet remains strong, providing the flexibility to invest in the business while continuing to return capital to shareholders.
Responsible business and sustainability
How we conduct ourselves - as investors, as employers and as a listed company - matters to our clients, our people and our wider stakeholders. Our approach is pragmatic and performance-led: our investment teams integrate material ESG considerations into research and portfolio construction in a manner consistent with each strategy's mandate and objectives, and our stewardship activity is designed to complement - not override - our specialist, decentralised model.
The sustainability landscape continues to evolve and remains increasingly complex. Regional divergence, particularly between the US and the UK and Europe, has shaped market sentiment, and political and regulatory scrutiny has intensified in some jurisdictions. Client expectations, however, have remained relatively consistent: robust and evidence-based ESG integration, and meaningful stewardship where it is additive to the investment process. We remain focused on delivering strong client outcomes and clear value for money across our fund range. We continue to respond to evolving disclosure requirements in a thoughtful and proportionate manner, ensuring communications are accurate and genuinely informative.
During the year we enhanced our stewardship activity, evolving from primarily fund-specific engagements towards more proactive and thematic engagement - coordinated internally across investment teams and, where appropriate, through collaborative initiatives. We believe this approach strengthens the impact of our stewardship while remaining authentic to our specialist investment model, supported by the central Sustainability team. We have also refined our climate approach to place greater emphasis on portfolio alignment and outcomes-driven stewardship, including enhancements to our internal net-zero alignment assessment methodology to improve consistency of analysis and support engagement.
We are also proud to support the communities around us, including our Aspire Scheme, which supports students near our London office and was recognised during the year with the 'Paying It Forward' award at the Beyond Finance Awards.
Outlook
We have entered the new financial year with positive net inflow momentum, following the Group's strongest quarterly net flow figure in history in the final quarter of the financial year. Encouragingly, after a slight moderation in March 2026 as geopolitical uncertainty escalated, particularly in energy markets, that momentum has continued into the first quarter of the new financial year.
The structural headwinds facing active equity managers, such as passive substitution, fee compression, and client consolidation, have not abated. Yet we believe the environment is increasingly supportive of what Polar Capital offers. As markets broaden, as the pace of technological disruption accelerates and as investors seek genuine differentiation, the case for specialist active management becomes more, not less, compelling.
Our plan is clear. We will scale where we are strongest. We will apply targeted, decisive action where improvement is needed. We will diversify our client base and product range selectively, without diluting the focus and culture that define us. Polar Capital starts the year from a position of strength, with record AuM, a strong balance sheet, and the talent and conviction to convert gross demand into durable net flows. I am confident that we are well placed to deliver long-term value for our clients and shareholders.
Iain Evans
Chief Executive Officer
30 June 2026
† The non-GAAP alternative performance measures mentioned here are described and reconciled in the APM section.
Financial Review
AuM
AuM movement in twelve months to 31 March 2026 (£bn)
Open ended funds
Investment Trusts
Segregated mandates
Total
AuM at 1 April 2025
16.0
4.8
0.6
21.4
Net flows
1.2
(0.2)
(0.1)
0.9
Corporate actions
-
(0.4)
-
(0.4)
Fund closures
(0.1)
-
-
(0.1)
Market movement and performance
6.3
2.4
0.1
8.8
Total AuM at 31 March 2026
23.4
6.6
0.6
30.6
AuM at 31 March 2026 increased by 43% to £30.6bn from £21.4bn at 31 March 2025 through a combination of net flows of £0.9bn and market movement and fund performance of £8.8bn offset by fund closures and one off returns of capital, totalling £0.5bn, related to corporate actions on closed ended investment trusts.
The mix of AuM between open ended funds, investment trusts and segregated mandates remained materially unchanged compared to the prior year.
Average AuM for the year was £26.0bn which was a 14% increase compared to £22.9bn for the previous year.
Revenue
Management fees
31 March 2026
£'m
31 March 2025
£'m
Management and research fees
232.6
206.1
Commissions and fees payable
(35.7)
(27.8)
Net management fees†
196.9
178.3
The higher average AuM over the year offset by the lower yield translated into the Group's net management fees† increasing by 10% from £178.3m in 2025 to £196.9m this year.
Net management fee yield
31 March 2026
31 March 2025
Average AuM (£'bn)
26.0
22.9
Net management fees† (£'m)
196.9
178.3
Net management fee yield† (bps)
76
78
Net management fee yield† over the year measured 76bps (2025: 78bps). Over the medium term our stated guidance is to expect an annual decrease of at least 1-2bps due to changing client and product mix as well as long-term industry trends.
Performance fees
31 March 2026
£'m
31 March 2025
£'m
Performance fees
31.7
16.0
The strong performance posted by certain underlying funds resulted in performance fees earned for the financial year to 31 March 2026 of £31.7m (2025: £16.0m).
Operating and finance costs
31 March 2026
£'m
31 March 2025
£'m
Salaries, bonuses and other staff costs1
41.9
39.6
Core distributions2†
58.9
50.6
Share-based payments3
5.9
5.0
Performance fee interests†
15.6
8.1
Total staff compensation
122.3
103.3
Other operating costs
29.3
28.4
Exceptional items
-
14.8
Total operating costs
151.6
146.5
Finance costs
0.2
0.2
Operating and finance costs
151.8
146.7
1. Including share awards under deferment plan of £1.0m (2025: £0.8m).
2. Including share awards under deferment plan of £0.8m (2025: £1.2m).
3. Share-based payments on preference shares of £1.8m (2025: £1.9m), LTIPs of £3.3m (2025: £2.4m) and equity incentive plan of £0.8m (2025: £0.7m). Refer to note 5 below.
† The non-GAAP alternative performance measures mentioned here are described and reconciled in the APM section.
Total operating and finance costs increased 3% to £151.8m (2025: £146.7m) with the increase resulting mainly from higher staff compensation costs as variable compensation increased due to improved profitability, offset by the year-on-year reduction in exceptional costs with an impairment charge on goodwill and intangible assets having been recognised in the prior year.
Core distributions, which are variable compensation amounts payable to investment teams from management fee revenue, increased as a direct consequence of the higher average AuM over most of the year and the resulting higher management fee revenues and core operating profit.
Performance fee interests, which are variable compensation amounts payable to staff from performance fee revenue, also increased due to the larger amount of such fees generated this year.
Other operating, non-staff compensation-related costs increased 3% compared to prior year.
Exceptional items
31 March 2026
£'m
31 March 2025
£'m
Recorded in operating costs
Amortisation of intangibles
-
1.2
Impairment of goodwill and intangibles
-
13.6
Total exceptional items recorded in the consolidated statement of profit or loss
-
14.8
Exceptional items for 2025 were comprised of significant items of income or expenditure related to the non-cash amortisation and impairment of previously acquired goodwill and intangible assets. The items are presented separately to allow a supplemental understanding of the Group's results.
Profit before tax
31 March 2026
£'m
31 March 2025
£'m
Core operating profit†
62.8
56.7
Performance fee profit†
16.1
7.9
Other (expense)/income^
(0.2)
3.7
Share-based payments on preference shares
(1.8)
(1.9)
Exceptional items
-
(14.8)
Profit before tax
76.9
51.6
Core operating profit margin† 4
32%
32%
† The non-GAAP alternative performance measures mentioned here are described and reconciled on the APM page.
^ A reconciliation to reported results is given in the APM section.
4. This measure is calculated as core operating profit divided by net management fee.
The statutory profit before tax for the year has increased by 49% to £76.9m (2025: £51.6m) through a combination of higher average AuM resulting in improved core operating profits, higher performance fee profits and lower exceptional costs.
The analysis of the three key components of profits shows that:
• Core operating profit
Increased by 11% to £62.8m (2025: £56.7m) reflecting higher average AuM over the year and continued discipline around operating costs. Over time, we expect to grow core operating profit† as a proportion of the Group's total earnings and thereby reduce the volatility of total earnings due to performance fees.
• Performance fee profit
Performance fee profits† were higher than the prior year and reflected the strong investment performance on certain specific strategies during the current year.
• Other income
The decrease in other income was mainly due to realised and unrealised marked-to-market losses on the Group's seed portfolio net of hedging costs.
Earnings per share
Basic EPS increased by 66% to 60.6p during the year (2025: 36.6p) and diluted EPS increased by 64% to 59.2p (2025: 36.1p) while adjusted diluted total EPS†1 increased year on year by 10% to 57.8p (2025 Restated: 52.6p). The effect of the adjustments made in arriving at the adjusted diluted total EPS†1 and adjusted diluted core EPS†1 figures of the Group is as follows:
(Pence)
31 March 2026
Restated 1
31 March 2025
Diluted earnings per share
59.2
36.1
Impact of share-based payments on preference shares
1.8
2.0
Impact of deferment, where staff compensation costs are deferred into future periods
(3.2)
(0.6)
Impact of exceptional items
-
15.1
Adjusted diluted total EPS†
57.8
52.6
Of which: Performance fee profit and other income
11.4
9.6
Adjusted diluted core EPS†
46.4
43.0
† The non-GAAP alternative performance measures mentioned here are described and reconciled on the APM page.
1. Comparative figures have been restated to correct the adjusted profit before tax figure used in the calculation for Adjusted basic and Adjusted diluted EPS. See Note 1 for further information.
Preference shares
A separate class of preference share has historically been issued by Polar Capital Partners Limited for purchase by each new team of fund managers on their arrival at the Group.
These shares provide each manager with an economic interest in the funds that they run and ultimately enable the manager to convert their interest in the revenues generated from their funds into equity in Polar Capital Holdings plc.
The equity is awarded in return for the forfeiture of their current core economic interest and vests over three years with the full quantum of the dilution being reflected in the diluted share count (and so diluted EPS) from the point of conversion.
The event has been designed to be, at both the actual and the diluted levels, earnings enhancing to shareholders.
In the year to 31 March 2026 there were no conversions of preference shares into Polar Capital Holdings plc equity (2025: one conversion).
As at 31 March 2026 five sets of preference shares (2025: five sets) have the ability to call for a conversion.
The call must be made on or before 30 November 2026 if any conversion is to take place with effect from 31 March 2026.
As indicated last year, no further preference shares are expected to be issued.
Balance sheet and cash
At the year end, the Group's cash and cash equivalents were £151.0m (2025: £121.8m). In line with the Group's treasury policy, cash and cash equivalents are held across several UK banking counterparties on maturity terms ranging from 30 to 90 days. At the balance sheet date the Group also held £26.0m of investments in its funds (2025: £37.3m).
Capital management
The Group believes in retaining a strong balance sheet. The capital that is retained in the business is used to seed new investment products, as a buffer for times of uncertainty, provide returns to shareholders through dividends and share buybacks and fund the EBT to buy Company shares to reduce the dilutive effects of Group share awards. Depending on the market outlook, and as the Group grows in size, the allocation of overall capital amongst these four categories may vary over time as we seek to balance returns to shareholders with the need to re-invest in the business for future growth.
As at 31 March 2026 £26.0m (2025: £37.3m) of the Group's balance sheet was invested to seed fledgling funds and during the year the Group advanced loans to the EBT of nil (2025: £0.5m) to buy shares in the Company.
In January 2026 the Group also announced its first share buyback programme to return up to £15.0m to the Company's shareholders via open market purchases of the Company's ordinary shares.
Effective 1 April 2026, the Board announces a revised shareholder return policy whereby, in normal circumstances, the Group expects to return at least 50% of adjusted core profits to shareholders through an ordinary dividend paid on a half-yearly basis. The first interim dividend, paid in January each year, will, in normal circumstances, be 50% of the first half's core profits. The Group aims to grow returns to shareholders over time through a combination of dividends and share repurchases. After taking account of future growth plans and investment requirements, excess performance fee profits and surplus capital will be returned to shareholders over time through special dividends or share repurchases, as determined by the Board, depending on prevailing market conditions.
As at 31 March 2026 the Group had surplus capital of £71.6m (2025: £65.1m) above its regulatory capital requirement of £26.0m (2025: £26.0m) and the August dividend commitment of £30.6m (2025: £30.9m).
Going concern
The Financial Reporting Council has determined that all companies should carry out a rigorous assessment of all the factors affecting the business in deciding to adopt a going concern basis for the preparation of the accounts.
The Directors have reviewed and examined the outcomes of financial and other processes embedded in the business, in particular the annual budget process and the financial stress testing inherent in the Internal Capital Adequacy and Risk Assessment (ICARA) process.
Based on this review and the significant liquid assets underpinning the balance sheet relative to the Group's predictable operating cost profile, the Directors consider that the adoption of a going concern basis, covering a period of at least 12 months from the date of this report, is appropriate.
Samir Ayub
Chief Financial Officer
30 June 2026
Alternative Performance Measures (APMs)
The Group uses the non-GAAP APMs listed below to provide users of the Annual Report with supplemental financial information that helps explain its results for the current accounting period. There have been no changes to the APMs compared to the prior year.
APM
Definition
Reconciliation
Reason for use
Core operating profit
Profit before performance fee profits, other income and tax.
APM reconciliation
To present a measure of the Group's profitability excluding performance fee profits and other components which may be volatile, non-recurring or non-cash in nature.
Performance fee profit
Gross performance fee revenue less performance fee interests due to staff.
APM reconciliation
To present a clear view of the net amount of performance fee earned by the Group after accounting for staff remuneration payable that is directly attributable to performance fee revenues generated.
Core distributions
Variable compensation payable to investment teams from management fee revenue.
APM reconciliation
To present additional information thereby assisting users of the Annual Report in understanding key components of variable costs paid out of management fee revenue.
Performance fee interests
Variable compensation payable to investment teams from performance fee revenue.
APM reconciliation
To present additional information thereby assisting users of the Annual Report in understanding key components of variable costs paid out of performance fee revenue.
Adjusted diluted total EPS
Profit after tax but excluding (a) cost of share-based payments on preference shares, (b) the net cost of deferred staff remuneration and (c) exceptional items which may either be non-recurring or non-cash in nature, and in the case of adjusted diluted earnings per share, divided by the weighted average number of ordinary shares.
Finance review
The Group believes that (a) as the preference share awards have been designed to be earnings enhancing to shareholders adjusting for this non-cash item provides a useful supplemental understanding of the financial performance of the Group, (b) comparing staff remuneration and profits generated in the same time period (rather than deferring remuneration over a longer vesting period) allows users of the Annual Report to gain a useful supplemental understanding of the Group's results and their comparability year on year and (c) removing non-cash amortisation and impairment of goodwill and intangible assets provides a useful supplemental understanding of the Group's results.
Adjusted diluted core EPS
Core operating profit after tax excluding the net cost of deferred core distributions divided by the weighted average number of ordinary shares.
Finance review
To present additional information that allows users of the Annual Report to measure the Group's earnings excluding those from performance fees and other components which may be volatile, non-recurring or non-cash in nature.
Core operating profit margin
Core operating profit divided by
net management fees revenue.
Finance review
To present additional information that allows users of the Annual Report to measure the core profitability of the Group before performance fee profits, and other components, which can be volatile and non-recurring.
Net management fee
Gross management fees less commissions and fees payable.
Finance review
To present a clear view of the net amount of management fees earned by the Group after accounting for commissions and fees payable.
Net management fee yield
Net management fees divided by average AuM.
Finance review
To present additional information that allows users of the Annual Report to measure the fee margin for the Group in relation to its assets under management.
Summary of non-GAAP financial performance and reconciliation of APMs to reported results
The summary below reconciles key APMs the Group measures to its reported results for the current year and also reclassifies the line-by-line impact on consolidation of seed investments to provide a clearer understanding of the Group's core business operation of investment management.
Any seed investments in newly launched or nascent funds, where the Group is determined to have control, are consolidated. As a consequence, the statement of profit or loss of the fund is consolidated into that of the Group on a line-by-line basis. Any seed investments that are not consolidated are fair valued through a single line item (other income) on the Group consolidated statement of profit or loss.
2026
Reported
Results
£'m
Reclassification
on consolidation
of seed
investments
£'m
Reclassification
of costs
£'m
2026
Non-GAAP
results
£'m
2025
Non-GAAP
results
£'m
APMs
Investment management and research fees
232.6
-
-
232.6
206.1
Commissions and fees payable
(35.7)
-
-
(35.7)
(27.8)
196.9
-
-
196.9
178.3
Net management fees
Operating costs
(151.6)
0.3
76.3
(75.0)
(70.8)
Finance costs
(0.2)
-
-
(0.2)
(0.2)
-
-
(58.9)
(58.9)
(50.6)
Core distributions
45.1
0.3
17.4
62.8
56.7
Core operating profit
Performance fees
31.7
-
-
31.7
16.0
Performance fee interests
-
-
(15.6)
(15.6)
(8.1)
Performance fee interests
31.7
-
(15.6)
16.1
7.9
Performance fee profits
Other (expense)/income
0.1
(0.3)
-
(0.2)
3.7
Exceptional items
-
-
-
-
(14.8)
Share-based payments
on preference shares
-
-
(1.8)
(1.8)
(1.9)
Profit for the year before tax
76.9
-
-
76.9
51.6
Consolidated Statement of Profit or Loss
For the year ended 31 March 2026
31 March 2026
£'000
31 March 2025
£'000
Revenue
264,296
222,111
Other income
103
3,997
Gross income
264,399
226,108
Commissions and fees payable
(35,732)
(27,775)
Net income
228,667
198,333
Operating costs
(151,613)
(146,483)
Finance costs
(198)
(205)
Profit before tax
76,856
51,645
Taxation
(18,174)
(16,335)
Profit for the year attributable to ordinary shareholders
58,682
35,310
Earnings per share
Basic
60.6p
36.6p
Diluted
59.2p
36.1p
Adjusted basic (Non-GAAP measure) Restated1
59.2p
53.2p
Adjusted diluted (Non-GAAP measure) Restated1
57.8p
52.6p
1. Comparative figures have been restated to correct the adjusted profit before tax figure used in the calculation for Adjusted basic and Adjusted diluted EPS. See Note 1 for further information.
Consolidated Statement of Comprehensive Income
For the year ended 31 March 2026
31 March 2026
£'000
31 March 2025
£'000
Profit for the year attributable to ordinary shareholders
58,682
35,310
Other comprehensive income- items that will be reclassified to profit or loss statement in subsequent periods
Exchange differences on translation of foreign operations
320
345
Other comprehensive income for the year
320
345
Total comprehensive income for the year, net of tax, attributable to ordinary shareholders
59,002
35,655
All of the items in the above statements are derived from continuing operations.
Consolidated Balance Sheet
As at 31 March 2026
31 March 2026
£'000
31 March 2025
£'000
Non-current assets
Property and equipment
3,944
6,129
Deferred tax assets
5,658
4,264
9,602
10,393
Current assets
Assets at fair value through profit or loss
57,467
63,347
Trade and other receivables
29,805
22,880
Other financial assets
-
1,539
Cash and cash equivalents
150,987
121,819
Current tax assets
242
149
238,501
209,734
Total assets
248,103
220,127
Non-current liabilities
Provisions and other liabilities
2,899
5,123
Liabilities at fair value through profit or loss
-
68
2,899
5,191
Current liabilities
Liabilities at fair value through profit or loss
4,304
5,808
Trade and other payables
85,545
71,158
Other financial liabilities
3,034
-
Current tax liabilities
1,522
3,527
94,405
80,493
Total liabilities
97,304
85,684
Net assets
150,799
134,443
Capital and reserves
Issued share capital
2,514
2,539
Share premium
19,364
19,364
Investment in own shares
(27,137)
(29,731)
Capital and other reserves
13,994
12,277
Retained earnings
142,064
129,994
Total equity - attributable to ordinary shareholders
150,799
134,443
Consolidated Statement of Changes in Equity
For the year ended 31 March 2026
Issued share capital £'000
Share premium
£'000
Investment in own shares
£'000
Capital reserves
£'000
Other reserves
£'000
Retained earnings
£'000
Total equity
£'000
As at 1 April 2024
2,530
19,364
(34,652)
695
11,324
136,637
135,898
Profit for the year
-
-
-
-
-
35,310
35,310
Other comprehensive income
-
-
-
-
345
-
345
Total comprehensive income
-
-
-
-
345
35,310
35,655
Dividends paid to shareholders
-
-
-
-
-
(44,403)
(44,403)
Issue of shares
9
-
-
-
-
-
9
Own shares acquired
-
-
(1,598)
-
-
-
(1,598)
Release of own shares
-
-
6,519
-
-
(4,559)
1,960
Share-based payments
-
-
-
-
-
7,009
7,009
Current tax in respect of employee share options
-
-
-
-
(112)
-
(112)
Deferred tax in respect of employee share options
-
-
-
-
25
-
25
As at 1 April 2025
2,539
19,364
(29,731)
695
11,582
129,994
134,443
Profit for the year
-
-
-
-
-
58,682
58,682
Other comprehensive income
-
-
-
-
320
-
320
Total comprehensive income
-
-
-
-
320
58,682
59,002
Dividends paid to shareholders
-
-
-
-
-
(44,524)
(44,524)
Issue of shares
-
-
-
-
-
-
-
Own shares acquired
-
-
(3,006)
-
-
-
(3,006)
Share buy back
(25)
-
-
25
-
(6,260)
(6,260)
Release of own shares
-
-
5,600
-
-
(3,494)
2,106
Share-based payments
-
-
-
-
-
7,666
7,666
Current tax in respect of employee share options
-
-
-
-
28
-
28
Deferred tax in respect of employee share options
-
-
-
-
1,344
-
1,344
As at 31 March 2026
2,514
19,364
(27,137)
720
13,274
142,064
150,799
Consolidated Cash Flow Statement
For the year ended 31 March 2026
31 March 2026
£'000
31 March 2025
£'000
Cash flows generated from operating activities
Cash generated from operations
90,984
80,707
Tax paid
(20,294)
(19,371)
Interest received
1,864
2,682
Net cash inflow generated from operating activities
72,554
64,018
Cash flows generated from investing activities
Investment income
1,089
345
Sale of assets/liabilities at fair value through profit or loss
75,925
44,010
Purchase of assets at fair value through profit or loss
(53,459)
(46,945)
Redemption of assets at amortised cost
-
6,698
Purchase of property and equipment
(164)
(170)
Sale of property and equipment
45
12
Payments in respect of asset acquisition
(5)
(39)
Net cashflow from deconsolidation of seed investment
(11,194)
-
Net cash inflow from investing activities
12,237
3,911
Cash flows generated from financing activities
Dividends paid to shareholders
(44,524)
(44,403)
Lease payments
(2,376)
(1,501)
Interest on lease
(198)
(205)
(Purchase)/sale of own shares
(7,161)
364
Third-party subscriptions into consolidated funds
3,700
1,411
Third-party redemptions from consolidated funds
(5,186)
(1,102)
Net cash outflow from financing activities
(55,745)
(45,436)
Net increase in cash and cash equivalents
29,046
22,493
Cash and cash equivalents at start of the year
121,819
98,880
Effect of exchange rate changes on cash and cash equivalents
122
446
Cash and cash equivalents at end of the year
150,987
121,819
Selected notes to the Consolidated Financial Statements for the year ended 31 March 2026
1. General information, Basis of Preparation and Accounting policies
Corporate information
Polar Capital Holdings plc (the 'Company') is a public limited company incorporated and domiciled in England and Wales whose shares are traded on the Alternative Investment Market ('AIM') of the London Stock Exchange.
Group information
Details of operating subsidiaries, seed capital investments and indirectly held entities consolidated into the Group are disclosed in Note 7 below.
Basis of preparation
The consolidated Group financial statements have been prepared on a going concern basis in accordance with UK-adopted international accounting standards and in conformity with the requirements of the Companies Act 2006. The accounting policies used in the preparation of these financial statements have been consistently applied, except when otherwise stated.
The consolidated financial statements have been prepared under the historical cost convention, modified by the measurement at fair value of certain financial assets and liabilities and derivative financial instruments. The consolidated financial statements are presented in Sterling and all values are rounded to the nearest thousand (£'000), except when otherwise stated.
Restatement of prior period information
During the year, the Group restated the earnings used in the calculation of adjusted basic, diluted and core EPS to correct the deferment adjustment in the numerator of the calculation for the year ended 31 March 2025. The correction has resulted in a reduction of adjusted basic EPS† from 54.2p to 53.2p, a reduction of adjusted diluted EPS† from 53.5p to 52.6p and a reduction of adjusted diluted core EPS† from 44.0p to 43.0p for the year ended 31 March 2025. The comparative figures have been restated accordingly on the face of the consolidated statement of profit or loss and Note 6.
There is no impact on retained earnings or total comprehensive income.
† The non-GAAP alternative performance measures mentioned here are described and reconciled to IFRS measures in APM section.
Going concern
The Directors have made an assessment of going concern taking into account both the Group's results as well as the impact of the Group's outlook. As part of this assessment the Directors have used a range of information available to the date of issue of these financial statements and considered the Group budget, longer term financial projections, cash flow forecasts and an analysis of the Group's liquid assets and its regulatory capital position and forecasts. The stress testing scenarios applied as part of the Group's ICARA, which included consideration of the impact of severe but plausible downside scenarios on key liquidity and capital metrics, have also been revisited to ensure they remain appropriate.
The Group continues to maintain a robust financial resources position, access to cashflow from ongoing investment
management contracts and the Directors believe that the Group is well placed to manage its business risks. The Directors also have a reasonable expectation that the Group and the Company have adequate resources to continue operating for a period of at least 12 months from the date of signing the financial statements. Therefore, the Directors continue to adopt the going concern basis of accounting in preparing the consolidated financial statements.
Basis of consolidation
The consolidated financial statements of the Group comprise the financial statements of the Company and its subsidiaries for the year ended 31 March 2026. Subsidiaries are those entities over which the Group has control. The Group controls an investee if, and only if, the Group has:
• Power over the investee;
• Exposure, or rights, to variable returns from its involvement with the investee; and
• The ability to use its power over the investee to affect returns.
The Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including the purpose and design of an investee, relevant activities, substantive and protective rights, voting rights and potential voting rights.
The financial statements of subsidiaries are either prepared for the same reporting period as the parent company or where necessary, adjustments are made to the financial statements of subsidiaries to bring their reporting period and results in line with those of the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation.
When the Group loses control over a subsidiary, it derecognises the related assets, liabilities, third-party interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.
Seed capital investments in funds that the Group manages are accounted for as subsidiaries, associates or financial assets at fair value through profit or loss (FVTPL) depending on the holdings of the Group, on the level of influence and control that the Group is judged to have and whether the Group assesses it is acting as an agent or principal for its holdings in the seed capital investments. There is no fixed minimum percentage at which the Group consolidates, and each exposure is reviewed individually.
Where the Group concludes it is acting as a principal the entity is consolidated. This assessment is based on the Group's total exposure. This incorporates direct holdings, income earned from management and performance fees and the assessed strength of third-party kick-out rights. The funds consolidated at 31 March 2026 are disclosed in Note 8.
The Group concludes that it acts as an agent when the power it has over an entity is deemed to be exercised for the benefit of third-party investors.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Subsidiaries are fully consolidated from the date on which the Group obtains control and continue to be consolidated until the date when such control ceases.
Where external investors hold redeemable shares in funds controlled by the Group, the portion of profit or loss and net assets held by these third-party interests is included within other income in the consolidated statement of profit or loss and as financial liabilities at FVTPL in the consolidated balance sheet respectively.
Net cashflows on initial consolidation or deconsolidation are presented as investing activities within the consolidated cashflow statement. Cashflows from third-party interests into consolidated funds are presented as financing activities.
Investment in associates
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. Generally, it is presumed that the Group has significant influence where it has voting rights of 20% or more, but not control of an investee.
Seed capital investments over which the Group has significant influence, but not control, are carried on the balance sheet as assets at FVTPL as permitted by IAS 28: Investment in Associates, with changes in fair value recognised in the consolidated statement of profit or loss. The fair value of investments in associates is determined by reference to the quoted price at the close of business on the balance sheet date. The Group has no other investments in associates and, therefore, no associates are currently accounted for using the equity method.
Financial assets
The Group's financial assets include seed capital investments, investment securities, trade and other receivables, cash and cash equivalents, term deposits with a maturity greater than three months and derivative financial instruments. The classification adopted by the Group depends on the purpose for which the financial assets were acquired and is determined at initial recognition.
Financial assets are initially recognised at fair value, being the consideration given, plus, any directly attributable transaction costs, except in the case of financial assets recorded at fair value through profit or loss where transaction costs are immediately recognised in the consolidated statement of profit or loss.
Purchases and sales of financial assets are recognised at trade date, being the date when the Group commits to purchase or sell the asset.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets at FVTPL include the Group's investments in the funds that it manages, but does not control, including those which are held by the Group against bonus awards deferred into fund units. Such assets are subsequently carried at fair value, with any gains or losses arising from changes in fair value being recognised in the consolidated statement of profit or loss.
Investment securities
Investment securities represent securities both long and short positions, other than derivatives, held by consolidated funds. These securities are classified as FVTPL and are measured at fair value with gains and losses recognised through the consolidated statement of profit or loss.
Financial liabilities
The Group's financial liabilities include trade and other payables, derivative financial instruments and third-party interests in funds that have been consolidated as subsidiaries.
Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL are carried at fair value, with gains and losses recognised in the consolidated statement of profit or loss within other income in the period in which they arise. Financial liabilities at FVTPL include third-party interests in consolidated funds which are classified as at FVTPL.
Contingent liabilities
Contingent liabilities are potential obligations that may arise due to uncertain future events that are not wholly within the control of the Group. Such liabilities are disclosed when the chance of such events occurring is no longer remote.
Revenue from contracts with customers
Revenue from contracts with customers represents fees receivable, excluding value added tax, for discretionary investment management services and research fees during the year.
Management fees are based on a percentage of assets under management either per day or calendar month and payable monthly or quarterly as set out in the relevant investment management agreements (IMA). Management fees relate specifically to the Group's provision of investment management services for each relevant time period and therefore such services are satisfied over time because either the customer simultaneously receives and consumes the benefits provided by the fund manager as the service is provided or, the fund manager's performance enhances the assets that the fund controls. Management fees are recognised as the service is provided and it is probable that the fee will be collected.
Research fee income relates to research provided in respect of funds managed in accordance with the relevant IMA and is recognised as the service is provided and it is probable that the fee will be collected.
Performance fees are variable consideration based on a percentage of investment performance achieved relative to
predefined benchmarks as set out in the relevant IMA. Performance fees by their nature are highly susceptible to volatility until they are crystallised and are no longer subject to claw back. This is usually at the end of the performance period of a fund when the performance fee calculation can be confirmed with certainty. Therefore, performance fees are recognised at the point when they are crystallised.
Commissions and fees payable
Commissions and fees payable to third parties are in respect of rebates on investment management fees, distribution and research fees, and are recognised over the period for which the service is provided.
Standards and amendments not yet effective
IFRS18 Presentation and Disclosures in Financial Statements
IFRS 18 includes requirements for all entities applying IFRS for the presentation and disclosure of information in financial statements. The standard aims to improve how companies communicate in their financial statements, with a focus on information about financial performance in the statement of profit or loss. IFRS 18 replaces IAS 1 Presentation of Financial Statements. The effective date of IFRS 18 is years beginning on or after 1 January 2027 and accordingly, will be mandatory for the Group and Company to adopt for the year ended 31 March 2028.
The standard was approved for Adoption by the UK Endorsement Board on 10 December 2025. The Group is currently assessing the impact of adoption. It is not anticipated that the adoption of the standard will impact the profit or net assets of the Group or the Parent Company.
Other standards and amendments not yet effective
There are no other new or amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group's consolidated financial statements that would be expected to have a material impact on the Group when they become effective.
Changes in accounting policies and disclosures
No standards or amendments have been issued during the year that have had or are expected to have an impact on the Group's consolidated financial statements.
2. Revenue
31 March 2026
£'000
31 March 2025
£'000
Investment management and research fees
232,605
206,139
Investment performance fees
31,691
15,972
264,296
222,111
Geographical analysis of revenue (by location of the funds) is as follows:
31 March 2026
£'000
31 March 2025
£'000
United Kingdom
41,364
39,068
Ireland
219,638
175,578
Rest of Europe
841
4,123
Cayman Islands
-
1,315
United States of America
2,202
962
Rest of the world
251
1,065
264,296
222,111
3. Operating costs
a) Operating costs include the following expenses:
31 March 2026
£'000
31 March 2025
£'000
Staff costs including partnership profit allocations
122,305
103,282
Depreciation
2,458
2,485
Amortisation and impairment of goodwill and intangible assets
-
14,774
Auditors' remuneration
749
680
b) Auditors' remuneration:
31 March 2026
£'00031 March 2025
£'000Audit of Group and Company financial statements
201
188
Statutory audits of subsidiaries
360
309
Audit-related assurance services
38
34
Other assurance services - internal controls report
150
149
749
680
4. Dividends paid and proposed
Dividends on ordinary shares declared and paid during the year:
31 March 2026
£'000
31 March 2025
£'000
First interim dividend for 2026: 14.0p per share (2025: 14.0p per share)
13,582
13,534
Second interim dividend for 2025: 32.0p per share (2024: 32.0p per share)
30,942
30,869
Total dividend paid and charged to equity
44,524
44,403
The Board has declared a second interim dividend per share of 32.0p (2025: 32.0p) to be paid in August 2026.
Together with the first interim dividend per share of 14.0p paid in January 2026 the total dividend per share for the year amounts to 46.0p (2025: 46.0p).
5. Share-based payments
A summary of the charge to the consolidated statement of profit or loss for each share-based payment arrangement is as follows:
31 March 2026
£'000
31 March 2025
£'000
Preference shares
1,781
1,942
LTIP awards
3,313
2,362
Equity incentive plan
814
708
Deferred remuneration plan
1,758
1,997
7,666
7,009
Certain employees of the Group and partners of Polar Capital LLP hold Manager Preference Shares or Manager Team Member Preference Shares (together 'Preference Shares') in Polar Capital Partners Limited, a group company.
The preference shares are designed to incentivise and retain the Group's investment management teams. These shares provide each manager with an economic interest in the funds that they run and ultimately enable the manager, at their option and at a future date, to convert their interest in the revenues generated from their funds to a value that may (at the discretion of the parent undertaking, Polar Capital Holdings plc) be satisfied by the issue of ordinary shares in Polar Capital Holdings plc. Such conversion takes place according to a pre-defined conversion formula that considers the relative contribution of the manager to the Group as a whole. The equity is awarded in return for the forfeiture of a manager's current core economic interest and is issued over three years from the date of conversion.
The issue of the Preference Shares constitutes a share-based payment under IFRS 2 and the cost is the estimated fair value, at the date of issue of the preference shares, of the effective entitlement to the ordinary shares. At each reporting date the estimated number of ordinary shares to be ultimately issued upon conversion will vary and the holder, initially, and the Group, ultimately, determines the start of the three-year period (Crystallisation) over which the ordinary shares are awarded following conversion. The start of this period will always be at least three years after the end of the financial accounting period in which the preference shares are issued.
The expected life of the Preference Shares is 6 years (2025: 6 years). In the year to 31 March 2026, no team called for a conversion of preference shares into Polar Capital Holdings plc equity (2025: the Convertibles team called for a partial conversion of preference shares into Polar Capital Holdings plc equity).
At 31 March 2026 five sets of preference shares (2025: five sets) have the right to call for conversion.
The following table illustrates the number of, and movements in, the estimated number of ordinary shares to be issued.
Estimated number of ordinary shares to be issued against preference shares with a right to call for conversion:
31 March 2026
Number of shares
31 March 2025
Number of
shares
At 1 April
2,409,188
2,234,988
Conversion/crystallisation
-
(114,716)
Movement in the year
164,951
288,916
At 31 March
2,574,139
2,409,188
Number of ordinary shares to be issued against converted preference shares:
31 March 2026
Number of shares
31 March 2025
Number of shares
Outstanding at 1 April
23,907
353,055
Conversion/crystallisation
-
114,716
Adjustment on re-calculation
(13,954)
(79,338)
Issued in the year
(7,969)
(364,526)
Outstanding at 31 March
1,984
23,907
6. Earnings per Share
A reconciliation of the figures used in calculating the basic, diluted, adjusted basic and adjusted diluted total earnings per share (EPS) is as follows:
31 March 2026
£'000
Restated1
31 March 2025
£'000
Earnings
Profit after tax for purpose of basic and diluted EPS
58,682
35,310
Adjustments (post tax):
Add exceptional items - amortisation of intangible assets
-
1,163
Add exceptional items - impairment of goodwill and intangible assets
-
13,611
Add back cost of share-based payments on preference shares
1,781
1,942
Add net amount of deferred staff remuneration
(3,116)
(613)
Profit after tax for purpose of adjusted basic and adjusted diluted total EPS
57,347
51,413
1. Comparative figures have been restated to correct the adjusted profit before tax figure used in the calculation for Adjusted basic and Adjusted diluted EPS. See Note 1 for further information.
The adjusted EPS figure includes an adjustment for deferred remuneration costs. The Group believes that aligning staff remuneration and profits generated in the same period will allow users of the financial statements a useful supplemental understanding of the Group's results and their comparability year on year.
Exceptional items were also excluded from the adjusted EPS calculations as they included non-cash/non-recurring costs such as the amortisation and impairment of previously acquired goodwill and intangible assets.
31 March 2026
Number of shares
'000
31 March 2025
Number of shares
'000
Weighted average number of shares
Weighted average number of ordinary shares, excluding own shares, for the purpose of basic and adjusted basic EPS
96,812
96,556
Effect of dilutive potential shares - LTIPs, share options and preference shares crystallised but not yet issued
2,360
1,313
Weighted average number of ordinary shares, for purpose of diluted and adjusted diluted total EPS
99,172
97,869
31 March 2026
Pence
Restated1
31 March 2025
Pence
Earnings per share
Basic
60.6
36.6
Diluted
59.2
36.1
Adjusted basic
59.2
53.2
Adjusted diluted
57.8
52.6
1. Comparative figures have been restated to correct the adjusted profit before tax figure used in the calculation for Adjusted basic and Adjusted diluted EPS. See Note 1 for further information.
7. Subsidiary undertakings
The consolidated financial statements of the Group include the operating subsidiaries listed below. At 31 March 2026 and 2025 all operating subsidiaries, other than Polar Capital Partners Limited and Polar Capital US Holdings Limited, were indirectly held. During the year, Polar Capital Holdings LLC, a subsidiary of the Group was liquidated. All operating subsidiaries are wholly owned, except for: Polar Capital LLP in which Polar Capital Partners Limited has contributed 64% (2025: 72%) of the capital. The Company is deemed to be the controlling party of Polar Capital LLP.
Name
Country of incorporation
Registered
office
Principal
activities
Polar Capital Partners Limited
UK
16 Palace Street, London, UK
Services company
Polar Capital US Holdings Limited
UK
16 Palace Street, London, UK
Investment holding company
Polar Capital LLP
UK
16 Palace Street, London, UK
Investment management
Polar Capital Secretarial Services Limited
UK
16 Palace Street, London, UK
Corporate secretary
Polar Capital Partners (Jersey) Limited
Jersey
12 Castle Street, St Helier, Jersey
Dormant
Polar Capital (America) Corporation
USA
2711 Centreville Road, Wilmington, Delaware, USA
Investment advisory
Polar Capital (Europe) SAS
France
18 Rue de Londres, Paris, France
Investment management
Polar Capital (Shanghai) Consulting Co Limited
China
Bund Finance Centre S2, No.600 Zhongshan East 2 Road, Shanghai, China
Services company
Polar Capital (Switzerland) AG
Switzerland
Bahnhofstrasse 10, Zurich, Switzerland
Investment management
Polar Capital (Singapore) Private Limited
Singapore
77 Robinson Road, #13-00, Robinson 77, Singapore (068896)
Services company
The consolidated financial statements of the Group also include the following seed capital investments and indirectly held entities which were judged to require consolidation into the Group as at 31 March 2026:
Name
Country of
incorporation
Registered office
Principal activities
Percentage
of ordinary
shares held
Polar Capital Smart Mobility Fund
Ireland
4 Georges Court, 54-62 Townsend Street, Dublin, Ireland
UCITS sub-fund
57%
Polar Capital Emerging Market Healthcare Fund
Ireland
4 Georges Court, 54-62 Townsend Street, Dublin, Ireland
UCITS sub-fund
50%
Polar Capital Emerging ex-China Stars Fund
Ireland
4 Georges Court, 54-62 Townsend Street, Dublin, Ireland
UCITS sub-fund
87%
The Group was deemed to have lost control over two of its seed capital investments during the current financial year. The Group has therefore deconsolidated Polar Capital Emerging Market ex-China Stars Fund, the US 40-Act mutual fund, and Polar Capital China Stars Fund effective 9 and 24 February 2026, respectively.
8. Financial Instruments
The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotation (bid price for long positions and ask price for short positions), without any deduction for transaction costs. For financial instruments not traded in an active market, such as forward exchange contracts, the fair value is determined using appropriate valuation techniques that take into account the terms and conditions of the contracts and utilise observable market data, such as spot and forward rates, as inputs.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
At the end of both the current year as well as the comparative period, all financial instruments at fair value through profit or loss held by the Group were Level 1 except for:
• forward foreign exchange contracts classified as Level 2. These were fair valued using valuation techniques that incorporate foreign exchange spot and forward rates.
• other financial liability classified as Level 3. These were fair valued using a discounted cash flow models that incorporate unobservable inputs.
The fair value hierarchy of financial assets and liabilities which are carried at fair value at the year-end is as follows:
31 March 2026
31 March 2025
Level 1
£'000
Level 2
£'000
Level 3
£'000
Total
£'000
Level 1
£'000
Level 2
£'000
Level 3
£'000
Total
£'000
Financial assets
Assets at FVTPL
57,467
-
-
57,467
63,347
-
-
63,347
Other financial assets
-
-
-
-
1,508
31
-
1,539
57,467
-
-
57,467
64,855
31
-
64,886
Financial liabilities
Liabilities at FVTPL
4,304
-
-
4,304
5,793
-
83
5,876
Other financial liabilities
2,872
162
-
3,034
-
-
-
-
7,176
162
-
7,338
5,793
-
83
5,876
Movement in liabilities at FVTPL categorised as Level 3 during the year were:
31 March 2026
£'000
31 March 2025
£'000
At 1 April
83
294
Repayment
(5)
(39)
Net gain recognised in the statement of profit or loss
(78)
(172)
At 31 March
-
83
The fair value of financial instruments not held at fair value approximates to their carrying value as at reporting date. During the reporting year there were no transfers between levels in fair value measurements.
9. Cash flows generated from operations
A reconciliation of profit before tax to cash generated from operations is as follows:
31 March 2026
£'000
31 March 2025
£'000
Profit before tax
76,856
51,645
Adjustments for:
Interest receivable and similar income
(1,864)
(2,682)
Investment income
(1,089)
(345)
Interest on lease
198
205
Depreciation of non-current property and equipment
2,458
2,485
Amortisation and impairment of goodwill and intangible assets
-
14,775
Increase in assets at FVTPL
(3,815)
(1,772)
Increase in other financial assets and liabilities
5,764
1,567
Increase in receivables
(6,924)
(1,810)
Increase in trade and other payables including other provisions
14,379
5,727
Share-based payment
7,666
7,009
Increase in liabilities at FVTPL1
1,253
60
Changes relating to fund units held against deferred remuneration
(3,898)
3,843
Cash flows generated from operations
90,984
80,707
1. Movement includes those arising from acquiring and/or losing control of consolidated seed funds.
10. Contingent liabilities
There are no contingent liabilities to disclose at 31 March 2026 (2025: nil).
11. Related party transactions
Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not included in this Note.
12. Status of results announcement
The Board of Directors approved this results announcement on 30 June 2026. Whilst the financial information included in this announcement has been prepared in accordance with UK-adopted international accounting standards, this announcement does not itself contain sufficient information to comply with all the disclosure requirements of UK-adopted international accounting standards and does not constitute statutory accounts of the Group for the years ended 31 March 2026 or 31 March 2025.
Neither the contents of the Company's website nor the contents of any website accessible from the hyperlinks on the Company's website (or any other website) is incorporated into or forms part of this announcement.
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