Ninety One Group (N91) H1 2025 earnings summary

Executive summary

• Assets under management (AUM) grew 3% to £127.4bn for the half year to 30 September 2024, supported by improved investment performance and positive market conditions, despite net outflows of £5.3bn.

• Basic EPS fell 12% to 7.8p, and adjusted EPS declined 11% to 7.3p; interim dividend set at 5.4p per share.

• A landmark agreement with Sanlam will transfer ~£17bn in assets, grant preferred access to Sanlam’s distribution, and result in Sanlam taking a 12.3% stake.

• Credit and alternatives strategies saw positive flows and new fund launches, with significant anchor commitments for emerging market transition debt.

• Investment performance improved across short, medium, and long-term horizons, with 68% of AUM outperforming benchmarks over one year.

Financial highlights

• Adjusted operating profit margin was 30.5%, down from 32.6% year-over-year.

• Adjusted operating profit declined 9% to £88.6m, mainly due to lower performance fees and FX losses.

• Profit before tax decreased 10% to £93.3m; profit after tax was £68.8m.

• Management fees held flat at £282.4m, with average AUM rising slightly to £126.7bn and average fee rate at 44.5bps.

• Interim dividend of 5.4p per share, down from 5.9p in H1 2024, in line with adjusted EPS.

Outlook and guidance

• Improved inflows and pipeline since September suggest a potential turning point, with optimism for lower interest rates and broadening markets.

• Strategic focus remains on core markets, cost discipline, and building leadership in South Africa and credit markets.

• The Sanlam agreement is expected to be earnings accretive from inception, pending shareholder and regulatory approval.

• Management expects continued inflationary pressure on expenses, with further IT investment planned.