REG - Polar Capital Hldgs - Unaudited Interim Results
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RNS Number : 7649H Polar Capital Holdings PLC 17 November 2025
POLAR CAPITAL HOLDINGS plc ("Polar Capital" or "the Group")
Unaudited Interim Results for the six months ended 30 September 2025
"AuM rose by 25% in the six months to 30 September 2025 to £26.7bn - a new
all-time high."
Iain Evans, CEO
Highlights
• Assets under Management (AuM) at 30 September 2025 up 25% to
£26.7bn (31 March 2025: £21.4bn) and at 7 November 2025 £28.4bn
• Profit before tax up 21% to £27.9m (30 September 2024: £23.1m)
• Net outflows of £690m(1) during the period (six months to 30
September 2024: inflows of £472m)
• Core operating profit(†) down 8% to £25.1m (30 September 2024:
£27.3m)
• Basic earnings per share up 22% to 21.1p (30 September 2024:
17.3p) and adjusted diluted total earnings per share(†) down 8% to 21.9p
(Restated(2): 30 September 2024: 23.8p)
• Interim dividend per ordinary share of 14.0p (January 2025: 14.0p)
declared to be paid in January 2026. The dividend payment date is 9 January
2026, with an ex-dividend date of 11 December 2025 and a record date of 12
December 2025.
† The non-GAAP alternative performance measures shown here are described and
reconciled to IFRS measures in the Alternative Performance Measures (APM)
section.
(1) During the period there was an additional one off £280m return of capital
to investors in June 2025 as the Polar Capital Global Financials Trust plc
underwent a 100% tender offer following which 44% of issued capital was
tendered.
(2) Comparative figures have been restated to correct the adjusted profit
before tax figure in the calculation for adjusted diluted total 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 first half of Polar Capital's financial year ended on a positive note for
equity markets and our meaningful technology exposure was a clear tailwind.
AuM rose by 25% in the six months to 30 September 2025, from £21.4bn to
£26.7bn, and has continued to rise since period end (AuM £28.4bn as at 7
November 2025). Average AuM increased by 4% from £22.4bn to £23.2bn.
"While industry headwinds persisted and we recorded net outflows of £690m,
alongside a £280m one-off return of capital following an investment trust
corporate action - these were heavily weighted in the first quarter. Second
quarter net outflows were £58m versus £632m in the first quarter. Outflows
were concentrated in the Healthcare (£273m), European (£154m) and UK Value
(£59m) strategies, which remained out of favour with investors. Emerging
Market strategies also recorded net outflows (£213m), including the closure
of a separately managed account (SMA). Offsetting this, demand elsewhere was
broad-based, with net inflows of £195m across our Artificial Intelligence,
Global Technology, Asian Stars, Japan Value, Global Insurance, Financial
Credit, Global Absolute Return and International Small Company funds, and a
new Biotechnology SMA was funded by a US endowment with an initial £93m.
"Investment trusts remain a core part of the business, representing roughly
one quarter of total AuM. During the period, shareholders supported the
continuation of both the Global Financials Trust (via a tender and
continuation process) and the Technology Trust (via a continuation vote).
"The Board has declared an interim dividend of 14.0p to be paid in January
2026 (January 2025: 14.0p) reflecting confidence in the business, the
resilience of earnings and the strength of the Group's balance sheet.
"We were also pleased to receive industry recognition: Polar Capital was named
"Best Boutique" and the Polar Capital Global Financials Trust plc won "Best
Sector Specialist" at the QuotedData Awards. In the community, our Polar
Capital Aspire Scheme, which supports students at Westminster School near our
London office, received the "Paying It Forward" award at the Beyond Finance
Awards - a proud moment for the firm.
"The leadership transition has been seamless and, while we cannot be
complacent, I believe Polar Capital is well placed for the cycle ahead.
Looking ahead, the macro environment is uncertain and likely to remain
volatile, but our plan is clear: scale where we are strongest, apply targeted
fixes where needed, diversify selectively, and leverage distribution -
particularly in the US. The environment is unpredictable, but our focus is on
converting gross demand into durable net flows and maintaining margin
discipline.
"We are well positioned to scale through differentiation and deliver long-term
value for clients and shareholders."
For further information please contact:
Polar Capital +44 (0)20 7227 2700
Iain Evans (Chief Executive)
Samir Ayub (Chief Financial Officer)
Deutsche Numis - Nomad and Joint Broker +44 (0)20 7260 1000
Giles Rolls
Charles Farquhar
Peel Hunt LLP - Joint Broker +44 (0)20 3597 8680
Andrew Buchanan
Thomas Philpott
Camarco - PR +44 (0)20 3757 4980
Ed Gascoigne-Pees
Jennifer Renwick
Phoebe Pugh
Assets under Management Analysis
AuM split by type
30 September 2025 31 March 2025
£bn £bn
Open ended funds 19.9 75% Open ended funds 16.0 75%
Investment trusts 6.3 23% Investment trusts 4.8 22%
Segregated mandates 0.5 2% Segregated mandates 0.6 3%
Total 26.7 Total 21.4
AuM split by strategy
Ordered according to launch date
30 September 2025 31 March 2025
£bn £bn
Technology 13.6 51% Technology 9.0 42%
Healthcare 3.8 14% Healthcare 3.5 16.5%
Global Insurance 2.5 9% Global Insurance 2.6 12%
Financials 0.4 1.5% Financials 0.7 3%
Convertibles 0.4 1.5% Convertibles 0.3 1.5%
North America 0.6 2% North America 0.5 2.5%
Japan Value 0.2 1% Japan Value 0.2 1%
European Income 0.2 1% European Income 0.2 1%
UK Value 0.9 3.5% UK Value 0.9 4%
Emerging Markets and Asia 3.6 13.5% Emerging Markets and Asia 3.0 14%
European Opportunities 0.1 0.5% European Opportunities 0.2 1%
Sustainable Thematic Equities 0.3 1% Sustainable Thematic Equities 0.2 1%
European Small Cap(1) - - European Small Cap(1) - -
Global Small Company 0.1 0.5% Global Small Company 0.1 0.5%
Total 26.7 Total 21.4
1. The AuM of Polar Capital European Small Cap Fund managed
under this strategy was £10m at 30 September 2025 (31 March 2025: £8m).
Investor mix split by geography
30 September 2025
%
UK 61%
Europe 26%
Asia 6%
Nordics 4%
North America 2%
Other 1%
Total 100%
31 March 2025
%
UK 63%
Europe 23%
Asia 7%
Nordics 5%
North America 1%
Other 1%
Total 100%
Chief Executive's Report
Introduction
The first half of Polar Capital's financial year ended on a positive note for
equity markets. Enthusiasm around artificial intelligence (AI) continued to
propel major indices to new highs, supported by robust earnings from leading
technology companies and expectations of substantial investment in AI
infrastructure. Over the six-month period, the Dow Jones Global Technology
Index returned 39%, the Nasdaq 100 rose 28%, and the broader S&P 500
gained 19%.
AI was not the sole driver. Emerging markets outperformed developed markets,
aided by policy support in China, an easing of trade tensions, and a weaker US
dollar. Japanese equities reached all-time highs, driven by
shareholder-friendly reforms and improving growth. In September 2025, an
interest rate cut by the Federal Reserve provided an additional boost.
Despite this strong finish, the period began with significant volatility.
President Trump's "Liberation Day" tariff announcement on 2 April 2025
triggered a sharp selloff across equity and bond markets, which led to AuM
dropping to a low of £19.9bn in early April. Confidence returned as US trade
policy softened and reciprocal tariffs were paused, paving the way for a rapid
recovery.
Against this backdrop, Polar Capital's meaningful technology exposure was a
significant tailwind. AuM rose by 25% in the six months to 30 September 2025,
from £21.4bn to £26.7bn - a new all-time high. The £5.3bn increase
comprised £6.3bn of investment performance and market movement, net outflows
of £690m, and a £280m one-off outflow relating to a return of capital
following an investment trust corporate action.
Although industry‑wide headwinds persisted for active equity managers, the
Group made encouraging progress. Investment trusts remain a core part of the
business, representing roughly one quarter of total AuM. During the period,
shareholders supported the continuation of both the Polar Capital Global
Financials Trust plc (via a tender and continuation process) and the Polar
Capital Technology Trust plc (via a continuation vote).
Two new separately managed accounts (SMAs) were funded by institutional
clients - one with the Polar Capital Healthcare team and one with the Polar
Capital Emerging Market team. We also received industry recognition: Polar
Capital was named "Best Boutique" and the Polar Capital Global Financials
Trust plc won "Best Sector Specialist" at the QuotedData Awards. In the
community, our Polar Capital Aspire Scheme, which supports students at
Westminster School near our London office, received the "Paying It Forward"
award at the Beyond Finance Awards - a proud moment for the Group.
Continuity, Clarity and Growth
The leadership handover completed smoothly and I assumed the role as Chief
Executive on 25 September. With 21 years at Polar Capital, I know our people,
our clients, and the culture that drives performance.
Our vision is simple: to be the specialist active manager of choice - known
for high-conviction strategies, superior client outcomes, and an accountable
culture that empowers independent thinking and high performance.
Our ambition is to deliver diversified growth without diluting who we are - by
differentiating and focusing where we have a proven edge. Without clear
differentiation, it is difficult for active managers to compete.
We start from a position of strength - a strong brand and reputation; deep
investment expertise and specialist products; trusted client partnerships and
premium service; and exceptional talent within a strong culture - supported by
a robust balance sheet that gives us flexibility through the cycle.
Our priorities are twofold:
1. Amplify core strengths:
Products: scale our winners; take targeted action where improvement is needed
and allocate resources where we have capacity and a proven edge.
Distribution: use our international footprint to grow priority markets, deepen
relationships and defend market share.
Culture: protect our entrepreneurial, vibrant, collegiate environment, where
staff are empowered, trusted and accountable - with aligned incentives.
2. Diversify selectively: add complementary, differentiated teams;
adjacent strategies; and vehicles only where there is a compelling investment
case and clear client demand.
We will also ensure our strategies remain relevant and deliver value for
money. As part of this discipline, we took the difficult decision to close the
Melchior European Opportunities Fund following sustained redemptions and
reduced scale. We will continue to take such decisions where appropriate, but
our ethos and philosophy will not change.
Investment performance
The period captured a strong rebound in global equities following the
short-lived April 2025 sell off. As trade rhetoric moderated, risk appetite
recovered and indices reached new highs. A defining feature of the rally has
been enthusiasm for AI, which has broadened from the immediate beneficiaries
such as semiconductor companies into adjacent areas, including power
generation and distribution, reflecting expected energy demand from AI
infrastructure build-out.
There were, however, clear laggards, not least the shares of companies which
are thought to be most vulnerable to AI driven disruption. Dispersion in stock
returns rose to multi-year highs and index concentration increased, creating a
challenging backdrop for many active managers. Against this background, Polar
Capital's positioning aided results in several key strategies:
· Polar Capital Technology team: early, high-conviction exposure to AI
supported strong absolute and benchmark-relative returns from the Polar
Capital Global Technology Fund, Polar Capital Technology Trust plc and Polar
Capital Artificial Intelligence Fund, all rebounding sharply after a weak
first quarter.
· Polar Capital Healthcare team: both Polar Capital Healthcare
Opportunities and Polar Capital Biotechnology funds outperformed strongly
after a soft start to the year.
· Polar Capital Smart Energy Fund: delivered good absolute and relative
returns, powered by demand for clean and efficient energy linked to data and
AI infrastructure - a welcome return to form following a period of
policy-related uncertainty around decarbonisation.
· Polar Capital Convertibles team: both the long-only and absolute
return strategies performed well, as primary issuance increased, broadening
opportunities across numerous themes and industries.
Not all areas performed as strongly. The Polar Capital Emerging Markets Stars
strategy lagged year to date, reflecting a China underweight and several stock
specific setbacks. Within the Financials strategy, while the Polar Capital
Global Financials Trust plc underperformed, the Polar Capital Financial Credit
Fund outperformed its benchmark. With the exception of Polar Capital Japan
Fund, several single country and European regional strategies also trailed.
Across all teams, our priority remains delivering through-the-cycle
outperformance, and targeted actions are underway where improvement is
required.
Across the Polar Capital UCITS fund range, which represents 75% of the Group's
total AuM, 68% of AuM is in the top two quartiles of the appropriate Lipper
peer group over one year to 30 September 2025. 67% of AuM is in the top two
quartiles over three years, 85% over five years and 100% since inception.
AuM and Fund Flows
Industry-wide, active equity strategies continued to see net outflows. In the
six months to 30 September 2025, Polar Capital recorded net outflows of
£690m, alongside a £280m one-off return of capital following an investment
trust corporate action.
The principal areas of net outflow were the Healthcare (£273m), including the
closure of an SMA by an overseas institutional investor, European (£154m) and
UK Value (£59m) strategies, all of which remained out of favour with
investors. Emerging Market strategies also recorded net outflows of £213m,
including the closure of an SMA.
Encouragingly, redemptions slowed markedly in the second quarter, with total
net outflows of only £58m compared with £632m in the first quarter of the
financial year.
Demand elsewhere was broad-based. Notably, net inflows were seen in the Polar
Capital Artificial Intelligence, Global Technology, Asian Stars, Japan Value,
Global Insurance, Financial Credit, Global Absolute Return and International
Small Company funds, which together generated £195m of net inflows during the
period. In addition, a new Biotechnology SMA was funded by a US endowment with
an initial £93m.
The open-ended Polar Capital Global Technology Fund recorded net inflows of
£226m in the second quarter, reversing net outflows of £162m in the prior
quarter, supported by a return 18% ahead of its benchmark calendar year to
date.
Investment Trusts
In the first quarter, Polar Capital Financials Trust plc successfully
concluded its scheduled tender offer. Having returned £280m of capital to
shareholders, the Trust commenced its new five-year term with net assets of
£360m - a notable increase from around £100m at the time of the previous
continuation event.
At the Polar Capital Technology Trust plc's AGM on 10 September 2025,
shareholders voted overwhelmingly in favour of continuation. Approximately 99%
of votes cast supported the resolution, providing a strong endorsement of the
Trust's long-term strategy and performance.
During the period, the Board of Polar Capital Global Healthcare Trust plc
announced proposals for its scheduled tender offer. Subject to shareholder
approval, the offer is expected to be implemented in early December 2025.
Financial Results
Average AuM for the six months to 30 September 2025 increased by 4% from the
comparable six-month period to 30 September 2024, rising from £22.4bn to
£23.2bn.
Despite the increase in average AuM, net management fees† were broadly
unchanged at £86.8m (30 September 2024: £87.6m). As anticipated, the
management fee yield margin† declined by 3bps to 75bps, reflecting continued
product-mix effects, fee changes on the Polar Capital Technology Trust and US
dollar weakness during the first half of the year.
Total operating costs decreased by 6% to £63.4m (30 September 2024: £67.3m),
reflecting the absence of exceptional costs during the period versus the
impairment of goodwill and intangible assets in the prior comparable period.
As a result, statutory profit before tax rose by 21% to £27.9m, while basic
earnings per share (EPS) increased 22% versus the same period last year.
Excluding exceptional items, total operating costs were 3% higher than in the
same period last year driven mainly by higher share-based payment charges for
share awards and continued investment in US marketing and digital content.
Consequently, core operating profit† decreased by 8% from £27.3m to £25.1m
versus the same period last year.
Adjusted diluted total EPS(†) for the six months to 30 September 2025 was
21.9p, 8% down versus the same period last year.
Six months to Restated(1)
30 September 2025 Six months to
£'m 30 September 2024
£'m
Average AuM (£'bn) 23.2 22.4
Net management fees(†) 86.8 87.6
Core operating profit(†) 25.1 27.3
Performance fee profit(†) - -
Other income* 4.4 2.8
Share-based payments on preference shares (1.6) (1.0)
Exceptional items - (6.0)
Profit before tax 27.9 23.1
Core operating margin(†) 29% 31%
Management fee yield(†) 75 bps 78 bps
Basic EPS 21.1p 17.3p
Adjusted diluted total earnings per share(†1) 21.9p 23.8p
Adjusted diluted core EPS(†1) 18.2p 19.8p
1 Comparative figures have been
restated to correct the adjusted profit before tax figure in the calculation
for adjusted diluted total EPS(†) and adjusted diluted Core EPS(†). See
Note 1 for further information.
† The non-GAAP alternative
performance measures shown here are described and reconciled in the APM
section below.
* A reconciliation to reported results
is given in the APM section below.
The Board has declared an interim dividend of 14.0p, to be paid in January
2026 (January 2025: 14.0p). Maintaining last year's first interim dividend
represents a covered payout equivalent to 77% of first-half adjusted diluted
core EPS(†) (Restated: September 2024: 71%). This reflects the Board's
confidence in the business, the resilience of earnings and the strength of the
Group's balance sheet.
Outlook
Having assumed the role of Chief Executive, I am confident that we have a
strong foundation on which to build. While we cannot be complacent, I believe
Polar Capital is well placed for the cycle ahead.
Our boutique advantage supports faster decisions; our scalable platform lets
us add vehicles and teams and pursue disciplined bolt-on acquisitions; and our
strong balance sheet provides optionality. From a distribution perspective, we
start from a strong UK and European base; we see a step-change opportunity in
the US, while building on our Asia foothold; and our digital capability
extends reach versus larger groups. Our culture attracts and retains
high-conviction teams, and our specialist brand is recognised and valued by
clients.
As investor interest in active management returns, engagement is rising and
the pipeline for potential inflows is strengthening. In the near term, low
visibility on concentrated redemptions remains a headwind.
Looking ahead, the macro environment is uncertain and likely to remain
volatile, but our plan is clear: scale where we are strongest, apply targeted
fixes where needed, diversify selectively, and leverage distribution. The
environment is unpredictable, but our focus is on converting gross demand into
durable net flows and maintaining margin discipline.
We are well positioned to scale through differentiation and deliver long-term
value for clients and shareholders.
Iain Evans
Chief Executive
14 November 2025
Alternative Performance Measures (APMs)
The Group uses the non-GAAP APMs listed below to provide users of the Interim
Report with supplemental financial information that helps explain its results
for the current accounting period.
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 accounts in
understanding key components of variable costs paid out of management fee
revenue.
Performance Variable compensation payable to investment teams from performance fee APM reconciliation To present additional information thereby assisting users of the accounts in
revenue. understanding key components of variable costs paid out of performance fee
fee interests revenue.
Adjusted diluted total EPS Profit after tax but excluding (a) cost of share-based payments on preference APM reconciliation The Group believes that (a) as the preference share awards have been designed
shares, (b) the net cost of deferred staff remuneration and (c) exceptional to be earnings enhancing to shareholders adjusting for this non-cash item
items which may either be non-recurring or non-cash in nature, and in the case provides a useful supplemental understanding of the financial performance of
of adjusted diluted earnings per share, divided by the weighted average number the Group, (b) comparing staff remuneration and profits generated in the same
of ordinary shares. time period (rather than deferring remuneration over a longer vesting period)
allows users of the accounts to gain a useful supplemental understanding of
the Group's results and their comparability period on period and (c) removing
the non-cash amortisation, and any impairment, of intangible assets and
goodwill 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 APM reconciliation To present additional information that allows users of the accounts to measure
distributions divided by the weighted average number of ordinary shares. 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 Chief Executive's report To present additional information that allows users of the accounts to measure
net management fees revenue. the core profitability of the Group before performance fee profits, and other
components, which can be volatile and non-recurring.
Net management fees Gross management fees less commissions and fees payable. APM reconciliation 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. Chief Executive's report To present additional information that allows users of the accounts 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 fund 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 Reclassification 2026 2025
Interim Reported on consolidation Interim Non-GAAP Interim Non-GAAP
Results of seed Reclassification results results
£'m investments of costs £'m £'m
£'m £'m APMs
Investment management and research fees 101.4 - - 101.4 100.6
Commissions and fees payable (14.6) - - (14.6) (13.0)
86.8 - - 86.8 87.6 Net management fees
Operating costs (63.4) 0.2 25.8 (37.4) (35.8)
Finance costs (0.1) - - (0.1) (0.1)
- - (24.2) (24.2) (24.4) Core distributions
23.3 0.2 1.6 25.1 27.3 Core operating profit
Performance fees - - - - -
- - - - - Performance fee interests
- - - - - Performance fee profit
Other income 4.6 (0.2) - 4.4 2.8
Exceptional items - - - - (6.0)
Share-based payments - - (1.6) (1.6) (1.0)
on preference shares
Profit before tax for the period
27.9 - - 27.9 23.1
The effect of the adjustments made in arriving at the adjusted diluted total
EPS and adjusted diluted core EPS figures of the Group is as follows:
Earnings per share Restated(1) (Unaudited)
(Unaudited) 30 September 2024
30 September 2025 Pence
Pence
Diluted earnings per share 21.0 17.1
Impact of share-based payments - preference shares only 1.5 1.0
Impact of exceptional items - 6.0
Impact of deferment, where IFRS defers cost into future periods (0.6) (0.3)
Adjusted diluted total EPS(1) 21.9 23.8
Of which: Other income (3.7) (4.0)
Adjusted diluted core EPS(1) 18.2 19.8
1 Comparative figures have been
restated to correct the adjusted profit before tax figure in the calculation
for adjusted diluted total EPS and adjusted diluted Core EPS. See Note 1 for
further information.
Interim Consolidated Statement of Profit or Loss
For the six months to 30 September 2025
(Unaudited) Restated(1)
Six months to 30 September 2025 (Unaudited)
£'000 Six months to 30 September 2024
£'000
Revenue 101,449 100,616
Other income 4,602 2,884
Gross income 106,051 103,500
Commissions and fees payable (14,676) (12,960)
Net income 91,375 90,540
Operating costs (63,373) (67,309)
Finance costs (111) (100)
Profit before tax 27,891 23,131
Taxation (7,452) (6,484)
Profit for the year attributable to ordinary shareholders 20,439 16,647
Earnings per share
Basic 21.1p 17.3p
Diluted 21.0p 17.1p
Adjusted basic (Non-GAAP measure)(1) 22.1p 24.1p
Adjusted diluted (Non-GAAP measure)(1) 21.9p 23.8p
1 Comparative figures have been
restated to correct the adjusted profit before tax figure used in the
calculation for adjusted basic EPS and adjusted diluted EPS. See Note 1 for
further information.
Interim Consolidated Statement of Other Comprehensive Income
For the six months to 30 September 2025
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
£'000 £'000
Profit for the period attributable to ordinary shareholders 20,439 16,647
Other comprehensive (expense)/income - items that will be reclassified to
profit or loss statement in subsequent periods:
Exchange differences on translation of foreign operations (402) (853)
Other comprehensive expense for the period (402) (853)
Total comprehensive income for the period, net of tax, attributable to
ordinary shareholders
20,037 15,794
All of the items in the above statements are derived from continuing
operations.
Interim Consolidated Balance Sheet
As at 30 September 2025
(Unaudited) (Audited)
30 September 2025 31 March
£'000 2025
£'000
Non-current assets
Property and equipment 5,366 6,129
Deferred tax assets 4,954 4,264
10,320 10,393
Current assets
Assets at fair value through profit or loss 78,944 63,347
Trade and other receivables 25,203 22,880
Other financial assets 20 1,539
Cash and cash equivalents 82,468 121,819
Current tax assets - 149
186,635 209,734
Total assets 196,955 220,127
Non-current liabilities
Provisions and other liabilities 4,276 5,123
Liabilities at fair value through profit or loss - 68
4,276 5,191
Current liabilities
Liabilities at fair value through profit or loss 6,408 5,808
Trade and other payables 56,317 71,158
Other financial liabilities 3,073 -
Current tax liabilities 670 3,527
66,468 80,493
Total liabilities 70,744 85,684
Net assets 126,211 134,443
Capital and reserves
Issued share capital 2,539 2,539
Share premium 19,364 19,364
Investment in own shares (28,477) (29,731)
Capital and other reserves 12,280 12,277
Retained earnings 120,505 129,994
Total equity - attributable to ordinary shareholders 126,211 134,443
Interim Consolidated Statement of Changes in Equity
For the six months to 30 September 2025
Issued share capital £'000 Investment in own shares
Share premium £'000 Capital reserves Other reserves Retained earnings
£'000 £'000 £'000 £'000 Total equity
£'000
As at 1 April 2025 (audited) 2,539 19,364 (29,731) 695 11,582 129,994 134,443
Profit for the year - - - - - 20,439 20,439
Other comprehensive expense - - - - (402) - (402) - -
Total comprehensive income - - - - (402) 20,439 20,037
Dividends paid to shareholders - - - - - (30,942) (30,942)
Own shares acquired - - (3,006) - - - (3,006)
Release of own shares - - 4,260 - - (3,321) 939
Share-based payment - - - - - 4,335 4,335
Current tax in respect of employee share options - - - - - - -
Deferred tax in respect of employee share options - - - - 405 - 405
As at 30 September 2025 2,539 19,364 (28,477) 695 11,585 120,505 126,211
(unaudited)
2,530 19,364 (34,652) 695 11,324 136,637 135,898
As at 1 April 2024 (audited)
Profit for the year - - - - - 16,647 16,647
Other comprehensive expense - - - - (853) - (853)
Total comprehensive income - - - - (853) 16,647 15,794
Dividends paid to shareholders - - - - - (30,869) (30,869)
Issue of shares 9 - - - - (9) -
Own shares acquired - - (1,369) - - - (1,369)
Release of own shares - - 5,396 - - (4,489) 907
Share-based payment - - - - - 3,573 3,573
Current tax in respect of employee share options - - - - 103 - 103
Deferred tax in respect of employee share options - - - - 498 - 498
As at 30 September 2024 2,539 19,364 (30,625) 695 11,072 121,490 124,535
(unaudited)
Interim Consolidated Cash Flow Statement
For the six months to 30 September 2025
(Unaudited) (Unaudited)
Six months to Six months to
30 September 30 September
2025 2024
£'000 £'000
Cash flows generated from operating activities
Cash flows generated from operations 8,802 21,879
Tax paid (10,446) (8,028)
Interest received 1,066 1,198
Net cash (outflow)/inflow from operating activities (578) 15,049
Cash flows generated from investing activities
Investment income 250 239
Sale of assets/liabilities at fair value through profit or loss 22,338 12,841
Purchase of assets at fair value through profit or loss (26,396) (31,388)
Sale of assets at amortised cost - 3,349
Purchase of property and equipment (153) (296)
Payments in respect of asset acquisition (5) (23)
Net cash outflow from investing activities (3,966) (15,278)
Cash flows generated from financing activities
Dividends paid to shareholders (30,942) (30,869)
Lease payments (1,197) (983)
Interest on lease (111) (100)
Purchase of own shares (2,067) (462)
Third-party subscriptions into consolidated funds 746 2,520
Third-party redemptions from consolidated funds (1,459) (300)
Net cash outflow from financing activities (35,030) (30,194)
Net decrease in cash and cash equivalents (39,574) (30,423)
Cash and cash equivalents at start of the period 121,819 98,880
Effect of exchange rate changes on cash and cash equivalents 223 (180)
Cash and cash equivalents at end of the period 82,468 68,277
Selected notes to the Unaudited Interim Consolidated Financial Statements
For the six months to 30 September 2025
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.
Basis of preparation
The unaudited interim condensed consolidated financial statements to 30
September 2025 have been prepared in accordance with IAS 34: Interim Financial
Reporting.
The unaudited interim condensed consolidated financial statements do not
include all the information and disclosures required in annual financial
statements and should be read in conjunction with the Group's annual financial
statements as at 31 March 2025, which have been prepared in accordance with
UK-adopted international accounting standards and in conformity with the
requirements of the Companies Act 2006.
The accounting policies adopted, and the estimates and judgements used in the
preparation of the unaudited interim condensed consolidated financial
statements are consistent with the Group's annual financial statements for the
year ended 31 March 2025, except when otherwise stated.
The unaudited interim condensed 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 current interim period, 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 six months ended 30
September 2024.
The correction has resulted in a reduction of adjusted basic EPS from 24.8p to
24.1p, a reduction of adjusted diluted EPS(†) from 24.5p to 23.8p and a
reduction of adjusted diluted core EPS(†) from 20.5p to 19.8p for the period
ended 30 September 2024. The comparative figures have been restated
accordingly on the face of the interim consolidated statement of profit or
loss and note 7.
There is no impact on retained earnings or total comprehensive income.
† The non-GAAP alternative performance measures shown here are described and
reconciled to IFRS measures in the Alternative Performance Measures (APM)
section.
Group information
The Group is required to consolidate seed capital investments where it is
deemed to control them. The operating subsidiaries consolidated at 30
September 2025 are consistent with those reported in the 31 March 2025 annual
report.
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 interim consolidated financial statements and
considered the Group budget, longer term financial projections including
stress testing scenarios applied as part of the Group's ICARA, cash flow
forecasts and an analysis of the Group's forecasted liquid assets and its
regulatory capital position.
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 has adequate
resources to continue operating for a period of at least 12 months from the
date of approval of the interim consolidated financial statements. Therefore,
the Directors continue to adopt the going concern basis of accounting in
preparing the interim consolidated financial statements.
2. Revenue
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
£'000 £'000
Investment management and research fees 101,449 100,616
3. Components of other income
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
£'000 £'000
Interest income on cash and cash equivalents 1,066 1,198
Net loss on other financial assets/ liabilities - short positions (4,290) (1,992)
Net gain on other financial assets/ liabilities - forward currency contracts 1,019 1,127
Net gain on financial assets and liabilities at FVTPL 8,122 2,800
Investment income 250 239
Other gain - attributed to third party holdings (1,565) (488)
4,602 2,884
4. Operating costs
a) Operating costs include the following expenses:
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
£'000 £'000
Staff costs including partnership profit allocations 48,047 46,976
Depreciation 917 1,246
Amortisation and impairment of intangible assets(1) - 5,964
Auditors' remuneration 373 340
1. This balance includes impairment of goodwill amounting to
£5.4m recognised in the prior period.
b) Auditors' remuneration:
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 30 September 2024
£'000 £'000
Audit of Group and Company financial statements 105 97
Statutory audits of subsidiaries 171 153
Audit-related assurance services 19 19
Other assurance services - internal controls report 78 71
373 340
5. Dividends (Unaudited) (Unaudited)
Six months to Six months to
30 September 30 September
2025 2024
£'000 £'000
Dividend paid 30,942 30,869
On 7 August 2025, the Group paid a second interim dividend for the year ended
31 March 2025 of 32p (2024: 32p) per ordinary share.
6. 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:
(Unaudited) (Unaudited)
Six months to 30 September 2025 Six months to 30 September 2024
£'000 £'000
Preference shares 1,585 978
LTIP awards 1,622 1,539
Equity incentive plan 403 346
Deferred remuneration plan 725 710
4,335 3,573
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 fund
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.
No teams have called for a conversion of preference shares into Polar Capital
Holdings equity during the period (30 September 2024: the Convertibles team
called for a partial conversion of preference shares into Polar Capital
Holdings equity).
At 30 September 2025 five sets of preference shares (30 September 2024: five
sets) have the ability 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:
(Unaudited) (Unaudited)
30 September 2025 30 September
Number of shares 2024
Number of shares
At 1 April 2,409,188 2,234,988
Conversion/crystallisation - (114,716)
Movement in the year 493,202 289,507
At 30 September 2,902,390 2,409,779
Number of ordinary shares to be issued against converted preference shares:
(Unaudited) (Unaudited)
30 September 30 September
2025 2024
Number of shares Number of shares
Outstanding at 1 April 23,907 353,055
Conversion/crystallisation - 114,716
Issued in the year (7,969) (353,055)
Outstanding at 30 September 15,938 114,716
7. 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:
(Unaudited) Restated(1)
Six months to (Unaudited)
30 September 2025 Six months to
£'000 30 September 2024
£'000
Earnings
Profit after tax for purpose of basic and diluted EPS 20,439 16,647
Adjustments (post tax):
Add exceptional items - impairment and amortisation of intangible assets - 5,964
Add back cost of share-based payments on preference shares 1,585 978
Less net amount of deferred staff remuneration(1) (607) (357)
Profit after tax for purpose of adjusted basic and adjusted diluted total EPS 21,417 23,232
1 Comparative figures have been
restated to correct the adjusted profit before tax figure used in the
calculation for adjusted basic EPS and Adjusted diluted EPS. See Note 1 for
further information.
(Unaudited) (Unaudited)
Six months to Six months to
30 September 2025 Number of shares 30 September 2024 Number of shares
'000 '000
Weighted average number of shares
Weighted average number of ordinary shares, excluding own shares, for the 96,797 96,434
purpose of basic and adjusted basic EPS
Effect of dilutive potential shares - LTIPs, share options and preference 736 1,243
shares crystallised but not yet issued
Weighted average number of ordinary shares, for purpose of diluted and 97,533 97,677
adjusted diluted total EPS
(Unaudited) Restated(1)
Six months to (Unaudited)
30 September 2025 Six months to
Pence 30 September 2024
Pence
Earnings per share
Basic 21.1 17.3
Diluted 21.0 17.1
Adjusted basic(1) 22.1 24.1
Adjusted diluted(1) 21.9 23.8
1 Comparative figures have been
restated to correct the adjusted profit before tax figure used in the
calculation for adjusted basic EPS and adjusted diluted EPS. See Note 1 for
further information.
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 period 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 period end is as follows:
(Unaudited) (Audited)
30 September 2025 31 March 2025
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Financial assets
Assets at FVTPL 78,944 - - 78,944 63,347 - - 63,347
Other financial assets - 20 - 20 1,508 31 - 1,539
78,944 20 - 78,964 64,855 31 - 64,886
Financial liabilities
Liabilities at FVTPL 6,408 - - 6,408 5,793 - 83 5,876
Other financial liabilities 3,073 - - 3,073 - - - -
9,481 - - 9,481 5,793 - 83 5,876
Movement in liabilities at FVTPL categorised as Level 3 during the year were: (Unaudited) (Audited)
30 September 31 March
2025 2025
£'000 £'000
At 1 April 83 294
Repayment (8) (39)
Net gain recognised in the statement of profit or loss (75) (172)
At 30 September - 83
The fair value of financial instruments not held at fair value approximates to
their carrying value as at reporting date. During the reporting period 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:
(Unaudited) (Unaudited)
Six months to 30 September 2025 Six months to 30 September 2024
£'000 £'000
Profit before tax 27,891 23,131
Interest receivable and similar income (1,066) (1,198)
Investment income (250) (239)
Interest on lease 111 100
Depreciation of non-current property and equipment 917 1,246
Amortisation and impairment of intangible assets - 5,964
Increase in assets at FVTPL (8,394) (2,793)
Increase in other financial assets and liabilities 3,562 1,327
Increase in receivables (2,321) (4,768)
Decrease in trade and other payables including other provisions (14,484) (6,658)
Share-based payment 4,335 3,573
Increase in liabilities at FVTPL(1) 1,550 481
Changes relating to fund units held against deferred remuneration (3,049) 1,713
Cash flows generated from operations 8,802 21,879
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 30 September 2025 (31 March
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. All related party transactions during the period are
consistent with those disclosed in the Group's annual financial statements for
the year ended 31 March 2025 and have taken place on an arm's length basis.
12. The Publication of Non-Statutory Accounts
The financial information contained in these interim consolidated financial
statements for the period to 30 September 2025 does not constitute statutory
accounts as defined in s434 of the Companies Act 2006. The financial
information for the six months ended 30 September 2025 and 2024 has not been
audited or reviewed. The information for the year ended 31 March 2025 has been
extracted from the latest published audited accounts, which have been filed
with the Registrar of Companies. The audited accounts filed with the Registrar
of Companies contain a report of the independent auditor dated 27 June 2025.
The report of the independent auditor on those financial statements contained
no qualification or statement under s498 of the Companies Act 2006.
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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. END IR LQLLFEFLXFBK
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