Magellan Financial Group Limited’s (ASX: MFG) shares climbed up 15.99 per cent on August 09, 2018 following the release of full-year results wherein revenue grew by 34 percent to $452.6 million in FY18 as compared to the last year. Profit after tax after MGG net offer costs and amortization increased by 8% and amounted to $211.8 Mn in FY18 against the prior year. As a result, diluted EPS stood at 122 cents per share, marked a decent growth of 7% on Y-o-Y basis. Based on the robust performance of the company, the Board has revised its dividend policy and increased the payout ratio in the range of 90-95% of the funds management business net profit after tax from the previous payout of between 75% and 80%.
This indicates around a 20% rise in the dividend payout ratio as compared to previous payout ratio range. This revised dividend policy came after the board review of its ongoing capital requirements of the Group as the Board found strong balance sheet position with sustainable cash flows which are enough to support the business and its numerous organic growth opportunities going forward. However, the Board of Director declared the fully franked Final Dividend and Performance Fee Dividend of 90.0 cents per share and it will be payable on August 27, 2018.
FUM at 30 June 2018 was $69.5 billion and this was up by 37.4 per cent from the 30 June 2017 FUM of $50.6 billion. Magellan Financial Group Limited traded at a market price of $28 with the market capitalization of circa $4.2 Bn (AEST: 03:00 P.M.).
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