Independent, global investment management business, Pendal Group Limited (ASX: PDL) has reported a 26% decline in its cash net profit after tax (Cash NPAT) for 1H FY19 which has now reached to $84.5 million as compared to $114.5 million in the previous corresponding period. Further, the company’s total revenue and other income decreased to $242.44 million, down by 19.8% on pcp.
PDL’s shares were down by 12.987% during the intraday trade as on 2 May 2019.
The first half results were impacted by the significantly lower performance fees for Pendal Group, a volatile market environment particularly in the December quarter, and subdued investor confidence which has negatively impacted industry flows.
The performance fees for H1 FY19 was $4.4 million as compared to $47.6 million in the pcp, representing a decline of 91%. At the same time, the Base management fee revenue during the period was down by 4% to $237.6 million, as a result of a one per cent decline in average funds under management (FUM) and a contraction in base management fee margin, which was down 2 bps to 49 bps.
The company’s Board of directors have declared an interim dividend of 20.0 cents per share for FY19, 10% franked. The dividends are having Payment date of 26 June 2019 and a Record date of 24 May 2019.
During the half year period, the company expanded its US distribution footprint. The company launched the Concentrated Global Share strategy through a UCITS vehicle in Europe.
The company believes that the first half period was a challenging period for markets and investors with market volatility and Brexit uncertainty which resulted in cautious investor sentiment, particularly on Europe and subdued industry flows in the region.
As at 31 March 2019, the company had Funds Under Management (FUM) of $100.9 Bn, down by 0.7% from $101.6 billion at 30 September 2018, driven by negative market and investment performance of $1.4 billion, partially offset by favourable currency movements of $0.7 billion, while net flows were flat for the period.
Despite facing difficult trading conditions, the company was able to maintain a strong balance sheet with no debt and good cashflow. The company believes that it is in a firm position to take advantage of opportunities to expand its capabilities and global presence, in line with its focused strategy around growth and diversification.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock traded at a price of $8.040, down by 12.987% during the day’s trade with a market capitalisation of ~$2.94 billion as on 2 May 2019. The counter opened the day at $8.420 and reached the day’s high of $8.630 and touched a day’s low of $7.990 with a daily volume of ~ 2,655,908. The stock has provided a year till date return of 20.31% & also posted returns of 12.41%, 20.78% & -1.18% over the past six months, three & one-month period respectively. It had a 52-week high price of $10.480 and touched 52 weeks low of $7.370, with an average volume of ~1,160,530.
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