REG - Premier Miton Group - Half Year Results for Six Months Ended 31 Mar 2025
29/05/2025 07:00
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RNS Number : 4975K Premier Miton Group PLC 29 May 2025
PREMIER MITON GROUP PLC
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 MARCH 2025
Resilient performance and well positioned with a diversified fund range,
robust balance sheet and encouraging pipeline.
Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'), the AIM
quoted fund management group, today announces its half year results for the
six months ended 31 March 2025 (the 'Period').
Highlights
Continued resilience
· £10.2 billion closing Assets under Management (2) ('AuM') (30
September 2024: £10.7 billion)
· Absolute return saw strong net inflows during the period
· 69% of funds above median investment performance since launch or
tenure (3) (2024 HY: 68%)
· Net outflows (4) of £254 million in the Period (2024 HY: £46
million outflows)
· £3 million of identified annual cost efficiencies expected to be
implemented by September 2025
· Adjusted profit before tax (1,2) of £5.4 million (2024 HY: £5.7
million)
· Interim dividend of 3.0 pence per share (2024 interim: 3.0 pence per
share)
Strongly positioned
· £10.4 billion closing AuM at 22 May 2025 (5)
· 71% of funds now outperforming their respective sectors since launch
or tenure at 30 April 2025
· Strong pipeline emerging across fixed income, absolute return and
several of our equity strategies
· Good progress with offshore fund platform in Ireland and new
distribution channels in South Africa
· A continued focus on inorganic opportunities alongside our clear
organic growth strategy and following the successful integration of Tellworth
last year
Notes
(1) Adjusted profit before tax is calculated before the deduction of
taxation, amortisation, share-based payments and non-recurring items.
Reconciliation included within the Financial Review section.
(2) These are Alternative Performance Measures ('APMs').
(3) At 31 March 2025. The quartile performance rankings are based on
Investment Association sector classifications where applicable. This covered a
total of 42 open-ended funds since manager inception. Data is sourced from FE
Analytics FinXL using the main representative post-RDR share class, based on a
total return, UK Sterling basis. The performance period relates to when the
fund launched or the assumed tenure of the fund manager(s).
(4) This includes mandates acquired or disposed of in the period.
(5) Unaudited estimate.
Mike O'Shea, Chief Executive Officer of Premier Miton Group, commented:
"Premier Miton has delivered a resilient performance in the first half of the
financial year, despite continued market volatility and investor caution. Our
AuM closed the period at £10.2 billion, reflecting a 5% decline from the
opening position. Encouragingly, since the period end, AuM has increased to
£10.4 billion as of 22 May 2025, supported by improving market sentiment.
"We were encouraged by strong demand for our absolute return strategies,
supported by consistent performance, and continued traction in our fixed
income range, which now represents a substantial portion of our AuM. Our
diversified product mix and active investment approach remain key strengths in
navigating uncertain markets.
"Investment performance remains robust, with 71% of our funds outperforming
their respective sectors since inception or fund manager tenure at 30 April
2025. Notably, our short-term performance has also strengthened, with 70% of
funds outperforming year-to-date and 58% over the past year. This reinforces
our belief that volatile markets create opportunities for active managers to
deliver value.
"Operationally, we have completed the infrastructure review initiated in
December 2024 and identified efficiencies expected to reduce our annual
run-rate costs by approximately £3 million, or 6%. Importantly, these
adjustments will not impact our ability to pursue growth opportunities or
maintain service quality.
"Adjusted profit before tax for the period was £5.4 million, and we ended the
half year with a strong cash position of £31.2 million and no debt. Our
balance sheet remains robust, providing flexibility to invest in strategic
initiatives and respond to market opportunities.
"Looking ahead, while market conditions remain challenging, we are encouraged
by the strength of our new business pipeline across fixed income, absolute
return, and several equity strategies. We believe that Premier Miton is well
positioned to convert these opportunities into flows as conditions stabilise,
and we are focused on delivering long-term value for our clients and
shareholders."
ENDS
For further information, please contact:
Premier Miton Group plc 01483 306 090
Mike O'Shea, Chief Executive Officer
Investec Bank plc (Nominated Adviser and Broker) 020 7597 4000
David Anderson / Ben Griffiths / St John Hunter
Camarco 07733 124 226 /
Geoffrey Pelham-Lane / Ben Woodford 07990 653 341
KK Advisory Ltd 020 7039 1901
Steve Keeling / Kam Bansil
www.premiermiton.com (http://www.premiermiton.com)
About Premier Miton
Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include equity, fixed income, multi-asset and absolute return.
LEI Number: 213800LK2M4CLJ4H2V85
Chair's Statement
Results
Our financial results for the first half year 2025 reflect the ongoing
challenges facing investment markets in general and the UK's savings industry
in particular, as well as our efforts to implement our strategic plans.
I am particularly pleased by the strong performance and growth of the funds we
acquired with Tellworth which is showing itself to be a well-timed and
attractive addition to our business. The financial review section contains
more detailed commentary on our half year results.
The operating model we use and the capacity we have built to manage a range of
attractive funds and grow assets under management put us in an excellent
position to succeed. At 31 March 2025 our AuM was £10.2 billion, the Group
had a cash position of £31.2 million and our adjusted profit before tax for
the half year was £5.4 million.
Sector background
Savings and investment markets are changing at pace, both internationally and
in the UK, reflecting a large range of factors, including politics, regulation
and technology. This is driving the structural evolution of our industry
alongside the impact of more cyclical changes in the market such as the
interest rate environment. We continue to pay close attention to the matters
that affect our business and involve ourselves where we can in the debate and
creation of public policy in the UK.
There are encouraging signs that positive changes are being considered,
although the deep reforms that would strongly benefit our domestic market and
investment strategies have yet to secure full political traction.
Nevertheless, this period is having a material impact on many market
participants, large and small, and creating interesting opportunities as well
as challenges for us. We face all of these with clear thinking, ambition and
confidence.
We are pleased that in November 2024 the UK Government identified financial
services as one of its eight sectors which are the focus of its industrial
strategy and which they believe offer the highest growth opportunity for the
UK's
economy and business.
The UK's domestic asset management industry is a core, valuable and critical
part of our financial services sector and as the Government unfolds this year
its more detailed plans and ambitions for the overall sector, we anticipate
further confidence building support.
Recent political and market events have emphasised the critical nature of
maintaining strong domestic capital markets, savings and investment
intermediation industries. Equally and importantly, if we are to benefit from
these shifting times, as I firmly believe we can and must, we need to do our
part in creating a business that is high performing, resilient and capable of
adding significant value to our clients. This way we will play a positive,
even if
minor, part in the overall financial ecosystem that is vital for the UK's
future. This means being thoughtful and strategic about how we grow and evolve
Premier Miton to create a valuable and attractive business.
Strategy
At our annual Board strategy day in March 2025, we reviewed our responses in
this sector context and against the backdrop of a continuing deeply
challenging operating environment for UK asset management firms. We
reconfirmed our overall strategic ambitions and plans which we have previously
set out to deliver long term value for our clients and shareholders.
We agreed decisions on the operational infrastructure review which we flagged
in December 2024 and have identified operational efficiencies across our
business which are expected to reduce our annual run‐rate costs
by approximately 6% or £3 million annually.
We remain fully focused on managing our portfolio of products, operating model
and our cost base to optimise the prospects of success for our key
stakeholders. Whilst market conditions remain difficult, we continue to
believe that running a well‐diversified portfolio of highly active
strategies which are sold into a range of domestic and international capital
and savings pools is the right long term approach for the business.
We also reviewed the potential for value additive M&A activity in our
sector. Given our strong acquisition track record, we remain alert to further
potential strategic and tactical opportunities which have the scope to add
significant value to the business.
We are mindful of managing our financial resources to maintain a strong
capital position which means we are focusing on those opportunities where we
can use our publicly traded share capital as a valuable currency to
secure the commercial and strategic benefits from any transaction.
At the same time, we continue seeking to build valuable commercial
arrangements and partnerships which do not involve M&A or share issuance.
Dividend
Recent trading has shown the benefits of our resilient business model
alongside challenging near term operating conditions and we maintain a
cautious and balanced view of the outlook in the short term while more
positive
about the longer term.
Our approach to dividends in this environment will be pragmatic to reflect a
mix of factors including balance sheet prudence and maintaining the support
and confidence of our shareholders in our ambition to create an increasingly
valuable business. Over time we anticipate returning to our stated dividend
policy of paying a dividend in the range of 50- 65% of adjusted profit after
tax.
Accordingly, we are paying an interim dividend of 3.0p a share, unchanged from
last year's interim and final dividends. We will of course consider all
relevant circumstances when we decide on the overall level of dividend for
this year.
People
I know that our people are highly capable and hard working and they continue
to drive the business for the benefit of clients and shareholders.
These are challenging yet professionally interesting times where our full
attention, resilience and effective use of skills and experience are all
essential for success. Our reward and retention model also drives success by
aligning effectively with client and shareholder interests.
I believe that we have the talent, culture and leadership to achieve our
business ambitions and we are continuing to evolve our reward and retention
framework to reflect our long term needs.
Outlook
Since the end of the period, market volatility has increased, driven by fears
for the global economy following the introduction of US tariffs and what seems
increasingly to be the early stages of a major geopolitical and economic reset
with deep consequences yet to be clearly understood. Looking forward, we know
from experience that market volatility and such a significant change creates
positive opportunities for active fund managers.
Despite the short term challenges, we are also encouraged by the strong new
business pipeline across our fixed income, absolute return and several of our
equity strategies and so are confident in our ability to navigate successfully
through this period.
We anticipate more encouraging times as investor confidence returns and we are
particularly well positioned to secure positive net inflows including from the
newer markets we are targeting.
Robert Colthorpe
Chair
28 May 2025
Chief Executive Officer's Statement
Performance
The first half of our 2025 financial year has been characterised by
challenging market conditions and increased volatility. Despite these
headwinds, we have maintained our strategic focus on delivering strong long
term investment performance, enhancing our distribution capabilities and
optimising our operational efficiency.
In the six months ended 31 March 2025 we reported net management fees of
£30.2 million unchanged from the comparative period. The adjusted profit
before tax of £5.4 million is broadly in line with what we achieved in the
same period last year.
AuM and flows
The Group's Assets under Management ('AuM') ended the half-year at £10.2
billion, a decrease of 5% from the £10.7 billion at 30 September 2024.
This reduction was driven by net outflows of £254 million and negative
market/investment performance of £228 million.
Our experience during the period reflects the broader market dynamics, with
continued investor caution particularly toward UK and European equity
strategies. Our European Opportunities fund experienced outflows of £175
million during the second quarter, driven by shorter term relative
underperformance. However, we maintain our conviction in this fund's long term
focus on growth-oriented European companies with high returns on capital.
Encouragingly, we saw strong inflows into our absolute return strategies,
which attracted £280 million of net inflows during the half-year period. This
growth demonstrates the appeal of these strategies in volatile market
conditions and the strength of our investment approach in this area.
A reconciliation of AuM and flows over the six-month period to 31 March 2025
is below:
Equity Equity International Multi-asset Multi Manager Multi-asset Direct and Diversified Fixed Absolute Return Total
UK £m £m £m income £m £m
£m £m
AuM at 1 October 2024 1,910 3,274 1,132 1,727 2,062 578 10,683
Net Flows (185) (189) (121) (39) - 280 (254)
Market / investment performance (57) (172) 7 (49) 38 5 (228)
AuM at 31 March 2025 1,668 2,913 1,018 1,639 2,100 863 10,201
Investment performance
Delivering strong investment performance remains our primary focus. As of 31
March 2025, 69% of our funds and investment trusts were in the first or second
quartile of their respective sectors since launch or fund manager tenure. This
represents a slight increase from the 68% reported at 30 September 2024 and
demonstrates the strength of our active management approach in these
challenging markets.
We have seen particularly strong performance in our absolute return
strategies. This has driven the significant inflows into these products.
Our fixed income offerings have also demonstrated resilience, delivering
positive returns in a challenging environment for the asset class.
Whilst we do not generally place too much emphasis on short term performance
numbers, it is pleasing to note that our managers have coped well during
recent market volatility with 71% of our funds performing ahead of median to
30 April 2025, and approximately half in the first quartile.
We have argued for some time that a reversal of fortune for the small number
of very large US based stocks that have been driving market returns for much
of the last year would be beneficial for active managers such as us. We take
comfort from seeing this beginning to play out, albeit in the very short term.
Strategic progress
We continue to make progress against our strategic objectives. Following the
successful integration of Tellworth and the establishment of our Irish UCITs
platform last year, we are now focused on optimising our operational
infrastructure.
We have completed a comprehensive review of our operations and have identified
efficiencies which will be implemented while maintaining our core capabilities
and ensuring we are well positioned for future growth.
Our distribution reach continues to develop, with increased traction in the
institutional market and we have also enhanced our digital capabilities to
better serve our clients and distribution partners.
Outlook
While market conditions remain challenging, with increased volatility
following the introduction of US tariffs, we know from experience that such
environments create opportunities for active fund managers.
We are hopeful that market conditions will stabilise over the remainder of the
year. Indeed we have seen some tentative signs of progress recently on trade
which has been positively received by markets. Further stability should
allow us to convert our strong new business pipeline across fixed income,
absolute return and several of our equity strategies into positive flows.
Our diverse product range, experienced investment team and robust balance
sheet provide a strong foundation for navigating the current environment and
capitalising on opportunities as they arise. We also remain alert to the
possibilities for further M&A activity following the successful
integration of the Tellworth business last year.
In our view, market conditions are conducive to ongoing consolidation and
M&A activity within the sector. I am pleased to head a management team
that has gained considerable experience of successful M&A activity in the
sector as I believe this will serve us well in the current environment.
Above all, we remain focused on our core purpose: to actively and responsibly
manage our clients' investments for a better financial future.
Mike O'Shea
Chief Executive Officer
28 May 2025
Financial Review
Financial performance
Profit before tax was £1.1 million (2024 HY: £0.6 million). The profit for
the year is after charging £0.4 million of non-operating restructuring costs
(see note 5).
Adjusted profit before tax*, which is after adjusting for amortisation,
share-based payments and non-recurring items, was £5.4 million (2024 HY:
£5.7 million).
Adjusted profit* and profit before tax
Unaudited six months to 31 March 2025 Unaudited six months to 31 March 2024 %
£m £m Change
Gross Profit 32.4 30.2
Administrative expenses (27.7) (25.3)
Finance income 0.3 0.4
Non-recurring items (see note 5) 0.4 0.5
Adjusted profit before tax* 5.4 5.7 (5)
Adjusted operating margin* 16.7% 18.9% (12)
Amortisation (2.6) (2.5)
Share-based payments (1.3) (2.1)
Non-recurring items (see above) (0.4) (0.5)
Profit before tax 1.1 0.6 83
Assets under Management * ('AuM')
AuM ended the period at £10,201 million (2024 HY: £10,712 million).
Net outflows for the six months were £254 million (2024 HY: £486 million
outflows which were offset by £440 million of net inflows from fund
acquisitions and disposals).
Gross profit, net management fees and net management fee margin*
The Group's revenue represents management and performance fees generated on
the assets being managed by the Group net of rebates paid to customers.
The Group's net management fee margin for the period was 57bps. The decrease
on the comparative period continues to be driven by the changing business mix.
Unaudited six months to 31 March 2025 Unaudited six months to 31 March 2024 %
£m £m Change
Management fees 30.9 30.6
Other Income 0.1 0.4
Cost of sales (0.8) (0.8)
Net management fees (*) 30.2 30.2 -
Performance fees 2.1 -
Gross profit (see note 4) 32.4 30.2 7
Average AuM * 10,601 10,034 6
Net management fee margin * (bps) 57.0 59.3 (4)
* Indicates Alternative Performance Measures ('APMs').
Administration expenses
Administration expenses totalled £27.7 million (2024 HY: £25.3 million).
Staff costs remain the largest component of administration expenses. The fixed
staff costs increased to £11.2 million (2024 HY: £10.8 million) reflecting
staff salary increases and a full six months of post Tellworth acquisition
salary costs. The average headcount for the period increased from 155 to 164.
Variable staff costs totalled £5.7 million (2024 HY: £4.1 million). The
increase was primarily driven by performance fee shares in the period.
Adjusting for these, the variable staff costs were broadly unchanged from the
prior period reflecting comparable levels of net revenues and underlying
profitability of the Group.
Overheads and other costs increased by £0.5 million to £10.5 million. This
increase predominantly relates to increased marketing activities and the
launch of the Group's new visual identity in February (and the associated
advertising costs) along with a full period of Tellworth related costs.
During the period we completed a comprehensive review of our operations and
identified efficiencies that are expected to reduce our annual run-rate costs
by approximately £3 million, or 6%.
Administration expenses
Unaudited six months to 31 March 2025 Unaudited six months to 31 March 2024 %
£m £m Change
Fixed staff costs 11.2 10.8
Variable staff costs 5.7 4.1
Overheads and other costs 10.5 10.0
Depreciation - fixed assets 0.1 0.1
Depreciation - leases 0.2 0.3
Administration expenses 27.7 25.3 9
Share-based payments
The share-based payment charge for the period was £1.3 million (2024 HY: £2.1 million).
Of this charge, £0.9 million related to nil cost contingent share rights ('NCCSRs') (2024 HY: £1.7 million).
At 31 March 2025 the Group's Employee Benefit Trusts ('EBTs') held 5,704,204 ordinary shares representing 3.5% of the issued ordinary share capital (2024 HY: 7,429,544 shares).
See note 12 for further detail.
Balance sheet and cash
Total shareholders' equity as at 31 March 2025 was £115.8 million (2024 HY:
£120.7 million).
At the period end the cash balances of the Group totalled £31.2 million (2024
HY: £30.7 million).
The Group has no external bank debt (2024 HY: £nil).
Capital management
Dividends totalling £4.6 million were paid in the period (2024 HY: £4.4
million). See note 3 for further detail.
The Board has approved an interim dividend payment of 3.0p per share (2024
HY:3.0p).
The dividend will be paid on 1 August 2025 to shareholders on the register at
the close of business on 4 July 2025.
The Group's dividend policy is unchanged and remains to target an annual
ordinary dividend pay-out of approximately 50 to 65% of profit after tax,
adjusted for non-recurring items, share-based payments and amortisation.
Regulatory capital
The Group continues to maintain a strong capital base to support the future
development of the business whilst ensuring compliance with regulatory capital
and liquidity requirements.
31 March 2025
£m
Equity 115.8
Non-qualifying assets (1) (84.5)
Qualifying capital 31.3
Regulatory capital requirement (13.8)
Foreseeable dividends (2) (4.7)
Regulatory capital surplus 12.8
1 Goodwill, intangible assets and associated deferred tax liabilities.
2 Approved interim dividend to be paid in August following the financial
period end.
Piers Harrison
Chief Financial Officer
28 May 2025
Forward looking statements
These interim unaudited Condensed Consolidated Financial Statements are made
by the Directors in good faith based on information available to them at the
time of their approval of the accounts. Forward looking statements should be
treated with caution due to the inherent uncertainties, including economic,
regulatory and business
risk factors underlying any such statement. The Directors undertake no
obligation to update any forward looking statement whether as a result of new
information, future events or otherwise. The interim unaudited Condensed
Consolidated Financial Statements have been prepared to provide information to
the Group's shareholders and should not be relied upon by any other party or
for any other purpose.
Alternative Performance Measures ('APMs')
The Directors use the following APMs in evaluating the performance of the
Group and for planning, reporting and incentive-setting purposes.
APM Unit Definition Purpose
Adjusted profit before tax £ Profit before taxation, amortisation, share-based payments and non-recurring Except for the noted costs, this encompasses all operating expenses in the
items. business, including fixed and variable staff cash costs, except those incurred
on a non-cash, non business as usual basis. Provides a proxy for cash
generated and is the key measure of profitability for management decision
making.
Adjusted operating margin % Adjusted profit before tax (as above) divided by net revenue. Used to determine the efficiency of operations and the ratio of operating
expenses to revenues generated in the year.
Cash generated from operations £ Profit before taxation adjusted for the effects of transactions of a non-cash Provides a measure in demonstrating the amount of cash generated from the
nature, any deferrals or accruals and items of income or expense associated Group's ongoing regular business operations.
with investing or financing cash flows.
AuM £ The value of external assets that are managed by the Group. Management fee income is calculated based on the level of AuM managed. The
AuM managed by the Group is used to measure the Group's size relative to the
industry peer group.
Average AuM £ The average value of external assets that are managed by the Group. Average AuM removes volatility of short term net flows.
Average AuM for the year is calculated using the daily
AuM adjusted for the monthly closing AuM invested in other funds managed by
the Group.
Net management fee £ The net management fee revenues of the Group. Calculated as gross management Provides a consistent measure of the profitability of the Group.
fee income, excluding performance fees, less rebates paid to customers and
after the deduction of cost of sales.
Net management fee margin bps Net management fees divided by the average AuM. A measure used to demonstrate the blended fee rate earned from the AuM managed
by the Group.
A basis point ('bps') represents one hundredth of a percent. This measure is
used within the asset management sector and provides comparability of the
Group's net revenue generation.
Net flows £ Total aggregate external sales/inflows into funds and mandates managed by the Net flows is a key performance indicator for management and is used both
Group less the total external redemptions/ outflows from the same funds and internally and externally to assess the organic growth of the business.
mandates. Where positive, these are 'Net inflows' and where negative as 'Net
outflows'.
Adjusted earnings per share (basic) p Adjusted profit after tax divided by the weighted average number of shares in Provides a clear measure to shareholders of the operating profitability and
issue in the year. cash generation of the Group from its underlying operations at a value per
share. The exclusion of amortisation, share-based payments and non-recurring
costs provides a consistent basis for comparability of results year on year.
Unaudited Condensed Consolidated Statement of Comprehensive Income
for the six months ended 31 March 2025
Notes Unaudited Restated(1) Audited
six months to unaudited year to
31 March six months to 30 September
2025 31 March 2024
£000 2024 £000
£000
Revenue 4 33,136 30,956 64,041
Cost of sales 4 (786) (806) (2,045)
Gross profit 4 32,350 30,150 61,996
Administration expenses(2) 5 (27,718) (25,281) (51,174)
Share-based payments 12 (1,268) (2,135) (3,361)
Amortisation of intangible assets 8 (2,603) (2,487) (5,098)
Operating profit 761 247 2,363
Finance income 333 366 804
Profit for the period before taxation 1,094 613 3,167
Taxation 6 (573) (556) (1,283)
Profit for the period after taxation attributable 521 57 1,884
to equity holders of the parent
pence pence pence
Basic earnings per share 7(a) 0.34 0.04 1.24
Diluted basic earnings per share 7(a) 0.32 0.04 1.19
1 Revenue and cost of sales have been restated to align with the requirements
of IFRS 15, see note 2.6 (t) to the Group's Annual Report for the year ended
30 September 2024. In the comparative period, revenues have been reduced by
£2.2 million with a corresponding decrease in fees and commission expenses
which have been renamed as cost of sales.
2 Merger related costs and exceptional items have been presented within
administration expenses, see note 5.
No other comprehensive income was recognised during 2025 or 2024. Therefore,
the profit for the period is also the total comprehensive income.
All of the amounts relate to continuing operations.
Unaudited Condensed Consolidated Statement of Changes in Equity
for the six months ended 31 March 2025
Notes Share Share Merger reserve Own shares held by EBTs Capital redemption reserve Retained Total equity
capital premium £000 £000 £000 earnings £000
£000 £000 £000
At 1 October 2024 61 2,639 94,312 (8,731) 4,532 26,201 119,014
Profit for the period - - - - - 521 521
Issue of share capital 11 - 681 - - - - 681
Own shares purchased 12(d) - - - (954) - - (954)
Exercise of options - - - 5,152 - (5,152) -
Share-based payments 12 - - - - - 1,268 1,268
Other amounts direct to equity - - - - - (71) (71)
Dividends 3 - - - - - (4,648) (4,648)
At 31 March 2025 (Unaudited half year) 61 3,320 94,312 (4,533) 4,532 18,119 115,811
At 1 October 2023 60 - 94,312 (12,668) 4,532 34,827 121,063
Profit for the period - - - - - 57 57
Issue of share capital 11 1 2,639 - - - - 2,640
Own shares purchased 12(d) - - - (760) - - (760)
Exercise of options - - - 4,697 - (4,697) -
Share-based payments 12 - - - - - 2,135 2,135
Other amounts direct to equity - - - - - (60) (60)
Dividends 3 - - - - - (4,413) (4,413)
At 31 March 2024 (Unaudited half year) 61 2,639 94,312 (8,731) 4,532 27,849 120,662
At 1 October 2023 60 - 94,312 (12,668) 4,532 34,827 121,063
Profit for the year - - - - - 1,884 1,884
Issue of share capital 1 2,639 - - - - 2,640
Own shares purchased - - - (760) - - (760)
Exercise of options - - - 4,697 - (4,697) -
Share-based payments - - - - - 3,361 3,361
Other amounts direct to equity - - - - - (121) (121)
Dividends - - - - - (9,053) (9,053)
At 30 September 2024 (Audited) 61 2,639 94,312 (8,731) 4,532 26,201 119,014
Unaudited Condensed Consolidated Statement of Financial Position
for the six months ended 31 March 2025
Notes Unaudited Unaudited Audited
31 March 31 March 30 September
2025 2024 2024
£000 £000 £000
Non-current assets
Goodwill 8 75,124 73,331 74,086
Intangible assets 8 12,476 17,689 15,079
Other investments 100 100 100
Property and equipment 580 690 576
Right-of-use assets 1,872 2,364 2,108
Deferred tax asset 341 522 756
Trade and other receivables 325 235 204
90,818 94,931 92,909
Current assets
Financial assets at fair value through profit and loss 13 165 26 22
Trade and other receivables 135,471 137,417 95,491
Cash and cash equivalents 9 31,150 30,689 35,912
166,786 168,132 131,425
Total assets 257,604 263,063 224,334
Current liabilities
Trade and other payables (136,243) (135,354) (98,930)
Lease liabilities (531) (203) (461)
(136,774) (135,557) (99,391)
Non-current liabilities
Provisions 10 (374) (374) (374)
Deferred tax liability (3,056) (4,348) (3,701)
Lease liabilities (1,589) (2,122) (1,854)
Total liabilities (141,793) (142,401) (105,320)
Net assets 115,811 120,662 119,014
Equity
Share capital 11 61 61 61
Share premium 11 3,320 2,639 2,639
Merger reserve 94,312 94,312 94,312
Own shares held by Employee Benefit Trusts 12(d) (4,533) (8,731) (8,731)
Capital redemption reserve 4,532 4,532 4,532
Retained earnings 18,119 27,849 26,201
Total equity shareholders' funds 115,811 120,662 119,014
Unaudited Condensed Consolidated Statement of Cash Flows
for the six months ended 31 March 2025
Notes Unaudited Unaudited Audited
six months to six months to year to
31 March 31 March 30 September
2025 2024 2024
£000 £000 £000
Net cash flow from operating activities 14 2,165 (1,525) 7,945
Cash flows from investing activities:
Interest received 336 388 837
Purchase of Tellworth Investments LLP 8 (1,112) (1,666) (1,666)
Acquisition of financial assets (158) - (150)
Disposal of financial assets - 1,218 1,373
Purchase of property and equipment (127) (283) (282)
Net cash flow from investing activities (1,061) (343) 112
Cash flows from financing activities:
Lease payments (264) (212) (274)
Purchase of own shares 12(d) (954) (760) (760)
Dividends paid 3 (4,648) (4,413) (9,053)
Net cash flow from financing activities (5,866) (5,385) (10,087)
Decrease in cash and cash equivalents (4,762) (7,253) (2,030)
Opening cash and cash equivalents 9 35,912 37,942 37,942
Closing cash and cash equivalents 9 31,150 30,689 35,912
Notes to the Unaudited Condensed Consolidated Financial Statements
for the six months ended 31 March 2025
1. Basis of accounting
The interim unaudited Condensed Consolidated Financial Statements do not
constitute statutory accounts within the meaning of section 434 of the
Companies Act 2006. They have been prepared on the basis of the accounting
policies as set out in the Group's Annual Report for the year ended 30
September 2024. They do not include all the information and disclosures
required in annual financial statements and therefore should be read in
accordance with the Group's Annual Report for the year ended 30 September
2024.
The interim unaudited Condensed Consolidated Financial Statements to 31 March
2025 have been prepared in accordance with
UK-adopted International Accounting Standard 34 'Interim Financial Reporting'
and the Listing Rules of the Financial Conduct Authority.
Premier Miton Group plc (the 'Group') is the Parent Company of a group of
companies which provide a range of investment management services in the
United Kingdom and Ireland.
The Group's 2024 Annual Report is prepared in accordance with UK-adopted
international Accounting Standards, and is available on the Premier Miton
Group plc website (www.premiermiton.com).
The interim unaudited Condensed Consolidated Financial Statements were
approved and authorised for issue by the Board acting through a duly
authorised committee of the Board of Directors on 28 May 2025.
The full-year accounts to 30 September 2024 were approved by the Board of
Directors on 3 December 2024 and have been delivered to the Registrar of
Companies. The report of the auditor on those accounts was unqualified, did
not contain an emphasis of matter paragraph and did not contain any statement
under section 498 of the Companies Act 2006. The figures for the six months
ended 31 March 2025 and the six months ended 31 March 2024 have not been
audited.
The interim unaudited Condensed Consolidated Financial Statements are
presented in Sterling and all values are rounded to the nearest thousand
pounds (£000) except where otherwise indicated.
Going concern
The Group has considerable financial resources and ongoing investment
management contracts. As a consequence, the Directors believe that the Group
demonstrates the financial resilience required to manage its business risks
successfully. The Directors have a reasonable expectation that the Group has
adequate resources to continue in operational existence for a period of 12
months after the date the interim financial statements are signed. Thus, the
Directors continue to adopt the going concern basis of accounting in preparing
the interim unaudited Condensed Consolidated Financial Statements. The
Directors note that the Group has no external borrowings and maintains
significant levels of cash reserves. The Group has conducted financial
modelling at materially lower levels of AuM with the business remaining cash
generative. The Directors have also reviewed and examined the financial stress
testing inherent in the Internal Capital Adequacy and Risk Assessment
('ICARA').
2. Segmental reporting
The Group has only one business operating segment, asset management for
reporting and control purposes.
IFRS 8 'Operating Segments' requires disclosures to reflect the information
which the Group's management uses for evaluating performance and the
allocation of resources. The Group is managed as a single asset management
business and as such, there are no additional operating segments to disclose.
Under IFRS 8, the Group is also required to make disclosures by geographical
segments. As Group operations are solely in the UK and Ireland, there are no
additional geographical segments to disclose.
3. Dividend
The final dividend for the year ended 30 September 2024 of 3.0p per share was
paid on 14 February 2025 resulting in a distribution of £4,647,584. This is
reflected in the unaudited Condensed Consolidated Statement of Changes in
Equity (2024 HY: £4,413,155).
4. Revenue and cost of sales
Revenue and gross profit recognised in the unaudited Condensed Consolidated
Statement of Comprehensive Income is analysed as follows:
Unaudited Unaudited Audited
six months
six months to 31 March
year to
2024
30 September
to 31 March
2024
2025 restated
£000
£000 £000
Management fees 32,423 32,812 67,015
Rebates paid to customers (1,517) (2,232) (4,476)
Performance fees 2,125 - 1,129
Commissions 1 2 3
Other income 104 374 370
Revenue 33,136 30,956 64,041
Cost of sales (786) (806) (2,045)
Gross profit 32,350 30,150 61,996
All revenue is derived from the United Kingdom and Ireland. Cost of sales
includes the costs of external Authorised Corporate Directors, Ongoing Charges
Figure ('OCF') capping costs, direct research costs and corporate access
charges.
5. Administration expenses
Administration expenses for the period totalled £27,718,000 (2024 HY:
£25,281,000), these included the following non-recurring and/or non-operating
items recognised in arriving at operating profit from continuing operations:
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2025 2024 2024
£000 £000 £000
Acquisition and restructuring costs 381 483 482
Merger related professional fees 25 25 51
Total adjusting items 406 508 533
Adjusted profit is an APM. The above items are removed from the statutory
measures when calculating adjusted profit.
Acquisition and restructuring costs relate to operational efficiency
initiatives completed in the period (2024 HY: corporate finance, due diligence
and legal fees associated with acquisitions completed in the period).
6. Taxation
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2025 2024 2024
£000 £000 £000
Corporation tax charge 803 552 2,161
Deferred tax (credit)/charge (230) 4 (878)
Tax charge reported in the unaudited Condensed Consolidated Statement of 573 556 1,283
Comprehensive Income
7. Earnings per share
Basic earnings per share is calculated by dividing the profit for the period attributable to ordinary equity shareholders of the Parent Company by the weighted average number of ordinary shares outstanding during the period.
The weighted average of issued ordinary share capital of the Parent Company is reduced by the weighted average number of shares held by the Group's Employee Benefit Trusts ('EBTs'). Dividend waivers are in place over shares held in the Group's EBTs.
In calculating diluted earnings per share, IAS 33 'Earnings Per Share' requires that the profit is divided by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares during the period arising from the Group's share option schemes.
(a) Reported earnings per share
Reported basic and diluted earnings per share has been calculated as follows:
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2025 2024 2024
£000 £000 £000
Profit attributable to ordinary equity shareholders of the Parent Company for 521 57 1,884
basic earnings
Number 000 Number 000 Number 000
Issued ordinary shares at 1 October 162,081 157,913 157,913
-Effect of own shares held by an EBT (6,738) (10,302) (8,865)
-Effect of shares issued 139 1,389 2,778
Weighted average shares in issue 155,482 149,000 151,826
-Effect of movement in share options 5,930 8,381 6,951
Weighted average shares in issue - diluted 161,412 157,381 158,777
Basic earnings per share (pence) 0.34 0.04 1.24
Diluted earnings per share (pence) 0.32 0.04 1.19
(b) Adjusted earnings per share
Adjusted earnings per share is based on adjusted profit after tax, where
adjusted profit is stated after charging interest but before amortisation,
share-based payments, non-recurring items.
Adjusted profit for calculating adjusted earnings per share:
Unaudited Unaudited Audited
six months six months year to
to 31 March to 31 March 30 September
2025 2024 2024
£000 £000 £000
Profit before taxation 1,094 613 3,167
Add back:
-Share-based payments 1,268 2,135 3,361
-Amortisation of intangible assets 2,603 2,487 5,098
-Adjusting items 406 508 533
Adjusted profit before tax 5,371 5,743 12,159
Taxation:
-Tax in the unaudited Consolidated Statement of Comprehensive Income (573) (556) (1,283)
-Tax effect of adjustments (678) (410) (1,277)
Adjusted profit after tax for the calculation of adjusted earnings per share 4,120 4,777 9,599
Adjusted earnings per share was as follows using the number of shares
calculated at note 7(a):
Unaudited Unaudited Audited
six months to
six months to
year to
31 March
31 March
30 September
2025
2024
2024
pence
pence
pence
Adjusted earnings per share 2.65 3.21 6.32
Diluted adjusted earnings per share 2.55 3.04 6.05
8. Goodwill and other intangible assets
Cost, amortisation and net book value of goodwill are as follows:
Goodwill Unaudited Unaudited Audited
six months to
six months to
year to
31 March
31 March
30 September
2025
2024
2024
£000 £000 £000
Cost:
At 1 October 81,325 77,927 77,927
Additions 1,038 2,643 3,398
At 31 March / 30 September 82,363 80,570 81,325
Amortisation and impairment:
At 1 October 7,239 7,239 7,239
Impairment during the period - - -
At 31 March / 30 September 7,239 7,239 7,239
Carrying amount:
At 31 March / 30 September 75,124 73,331 74,086
Cost, amortisation and net book value of intangible assets are as follows:
Other intangible assets Unaudited Unaudited Audited
six months to
six months to
year to
31 March
31 March
30 September
2025
2024
2024
£000 £000 £000
Cost:
At 1 October 83,547 81,025 81,025
Additions - 2,521 2,522
At 31 March / 30 September 83,547 83,546 83,547
Accumulated amortisation and impairment:
At 1 October 68,468 63,370 63,370
Amortisation during the period 2,603 2,487 5,098
At 31 March / 30 September 71,071 65,857 68,468
Carrying amount:
At 31 March / 30 September 12,476 17,689 15,079
Other intangible assets relate to the investment management agreements
acquired in business combinations between the funds to which they were the
investment manager and the value arising from the underlying client
relationships.
The addition to goodwill in the period relates to additional consideration
paid upon the anniversary of the acquisition of Tellworth Investments LLP
('Tellworth') completed on 30 January 2024. This additional consideration was
payable depending on AuM growth between completion and the first anniversary
of completion.
The Group has determined that it has a single cash-generating unit ('CGU') for
the purpose of assessing the carrying value of goodwill.
Impairment testing is performed at least annually whereby the recoverable
amount is calculated as the higher of value-in-use versus fair value less
costs to sell.
During the period no impairment was identified.
9. Cash and cash equivalents
Unaudited Unaudited Audited
six months to
six months to
year to
31 March
31 March
30 September
2025
2024
2024
£000 £000 £000
Cash at bank and in hand 31,150 30,689 35,912
10. Provisions
£000
At 1 October 2024 374
Movement in the period -
At 31 March 2025 (Unaudited) 374
Current -
Non-current 374
374
At 1 October 2023 374
Movement in the period -
At 31 March 2024 (Unaudited) 374
Provisions relate to dilapidations for the offices at 6th Floor, Paternoster House, London. The lease on this property runs to 28 November 2028. This provision is based on prices quoted at the time of the lease being taken on.
11. Share capital
Allotted, called up and fully paid: Ordinary shares 0.02 pence each Number Deferred shares
Number of shares Number
At 1 October 2024 162,080,567 1
Issued 1,205,392 -
At 31 March 2025 (Unaudited) 163,285,959 1
At 1 October 2023 157,913,035 1
Issued 4,167,532 -
At 31 March 2024 (Unaudited) 162,080,567 1
Allotted, called up and fully paid: Ordinary shares Deferred Total
Value of shares 0.02 pence each shares £000
£000 £000
At 1 October 2024 32 29 61
Issued - - -
At 31 March 2025 (Unaudited) 32 29 61
At 1 October 2023 31 29 60
Issued 1 - 1
At 31 March 2024 (Unaudited) 32 29 61
Following the first anniversary of the completion of the acquisition of
Tellworth, the Company issued 1,205,392 new ordinary shares of 0.02 pence on
14 March 2025 in fulfilment of the additional consideration each ranked pari
passu in all respects with
the Company's existing shares in issue.
The fair value of the shares issued over their nominal value of 0.02 pence per
share has been reflected as share premium in the unaudited Condensed
Consolidated Statement of Changes in Equity and the unaudited Condensed
Consolidated Statement of Financial Position.
12. Share-based payment
The total expense recognised for share-based payments in respect of employee
services received during the period to 31 March 2025 was £1,267,569 (2024 HY:
£2,135,071), of which £945,914 related to nil cost contingent share rights
(2024 HY: £1,675,512).
(a) Nil cost contingent share rights ('NCCSRs')
During the period 1,331,000 (2024 HY: 695,000) NCCSRs over ordinary shares of
0.02p in the Company were granted to 26 employees (2024 HY: 22 employees). Of
the total award, nil (2024 HY: nil) NCCSRs were awarded to Executive
Directors. The awards will be satisfied from the Group's EBTs.
The share-based payment expense is calculated in accordance with the fair
value of the NCCSRs on the date of grant. The price per right at the date of
grant was £0.64 on 12 December 2024 resulting in a fair value of £851,840 to
be expensed over the relevant vesting period of three to five years.
The key features of the awards include: automatic vesting at the relevant
anniversary date with the delivery of the shares to the participant within 30
days of the relevant vesting date.
During the period 3,127,151 NCCSRs over ordinary shares of 0.02p in the
Company were exercised over 53 awards. Of the total, 375,000 were exercised by
Executive Directors.
(b) Long-Term Incentive Plan ('LTIP')
On 20 December 2024 the Group granted 3,325,000 LTIP awards (2024 HY:
3,717,669). Of the total award, 1,225,000 were awarded to Executive Directors
(2024 HY: 1,385,467).
Vesting of awards is subject to continued employment and performance
conditions based on Total Shareholder Return ('TSR'), Earnings Per Share
('EPS'), fund performance and other operational conditions, all measured over
a three-year performance period.
The cost of the awards is the estimated fair value at the date of grant of the
estimated entitlement to ordinary shares of 0.02p in the Company. At 20
December 2024 the cost was estimated at £468,360 and is to be expensed over
the vesting period of three years. At each reporting date the estimated number
of ordinary shares that may be ultimately issued is assessed.
The fair value of the LTIP awards was estimated using a Monte Carlo Simulation
('MCS') and the prepaid forward share price, adjusting the loss of dividends
over the vesting period.
The following table lists the inputs to the model used for the period ended 31
March 2025.
20 December 2024
Dividend yield (%) 9.0
Nominal risk-free rate (%) 4.1
Expected share price volatility (%) 39.0
Discount for lack of marketability ('DLOM') (%) 11.0
Share price (£) 0.60
Performance period (months) 36
Holding period post-vesting (months) 24
The 2022 LTIP award vested on 14 December 2024. The operational performance
conditions were met and subsequently 10% of the original award vested and
automatically exercised. The exercised awards totalled 343,570 of which,
199,171 related
to Executive Directors. The shares were satisfied from the Group's EBTs.
(c) Legacy share incentive schemes
(i) Management Equity Incentive ('MEI')
There were no movements in the period (2024 HY: MEI awards over 226,395
ordinary 0.02p shares in the Company lapsed).
At 31 March 2025 there were 241,488 (2024 HY: 754,650) outstanding MEI awards
which had vested.
(ii) Management Incentive Plan ('MIP')
There were no movements in the period (2024 HY: MIP award over 60,372 ordinary
0.02p shares in the Company lapsed).
At 31 March 2025 there were nil (2024 HY: nil) outstanding MIP awards.
(d) Employee Benefit Trusts ('EBTs')
Premier Miton Group plc established an EBT on 25 July 2016 to purchase
ordinary shares in the Company to satisfy share awards to certain employees.
During the period 1,745,381 (2024 HY: 1,382,687) shares were acquired and held
by the Group's EBTs at a cost of £954,439 (2024 HY: £760,478).
At 31 March 2025 5,704,204 (2024 HY: 7,429,544) shares are held by the Group's
EBTs.
At the period-end the cost of the shares held by the EBTs of £4,533,050 (2024
HY: £8,730,410) has been disclosed as own shares held by EBTs in the
unaudited Condensed Consolidated Statement of Changes in Equity and the
unaudited Condensed Consolidated Statement of Financial Position.
13. Financial Instruments
Financial assets at fair value through profit and loss
The financial instruments carried at fair value are analysed by valuation
method.
Unaudited Unaudited Audited
six months to six months to year to
31 March 31 March 31 September
2025 2024 2024
£000 £000 £000
Other investments
Quoted - Level 1 165 26 22
Total 165 26 22
Quoted investments - Level 1
The Group holds shares and units in a number of funds for which quoted prices
in an active market are available.
The fair value measurement is based on Level 1 in the fair value hierarchy.
14. Reconciliation of net cash from operating activities
This note should be read in conjunction with the cash flow statement. It
provides a reconciliation to show how profit before tax, which is based on
accounting rules, translates to cash flows.
Notes Unaudited Unaudited Audited
six months to six months to year to
31 March 31 March 30 September
2025 2024 2024
£000 £000 £000
Profit for the period 521 57 1,884
Adjustments to reconcile profit to net cash flow from operating activities:
- Tax on continuing operations 6 573 556 1,283
- Finance income (333) (366) (804)
- Interest payable on leases 71 35 86
- Depreciation - fixed assets 120 120 233
- Depreciation - leases 236 258 514
- Loss on disposal of fixed assets 4 - -
- Loss/(gain) on revaluation of financial assets at fair value through profit 15 (37) (37)
and loss
- Amortisation of intangible assets 8 2,603 2,487 5,098
- Share-based payments 12 1,268 2,135 3,361
Working capital changes:
-(Increase)/decrease in trade and other receivables (40,509) (10,452) 29,294
- Increase/(decrease) in trade and other payables 39,420 5,035 (32,363)
Cash generated from operations 3,989 (172) 8,549
Tax paid (1,824) (1,353) (604)
Net cash flow from operating activities 2,165 (1,525) 7,945
15. Subsequent events
At 28 May 2025 there were no other subsequent events to report.
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