Janus Henderson Group plc (ASX: JHG) unveiled its plan to return surplus capital to its shareholders through a share buy-back programme. The news came early this morning after the company announced its intention to undertake an on-market share buy-back programme for up to US$200 million on and from 5 March 2019.
The buy-back reportedly includes the purchase of Janus’ ordinary shares listed on the New York Stock Exchange (NYSE) as well as its CHESS Depositary Interests (CDIs) on the Australian Securities Exchange (ASX). Moreover, the buy-back is scheduled to continue for the next 12 months until 4 March 2020.
The asset management company, Janus, told that this buy-back would be undertaken through a Citigroup Global Markets Inc. on the NYSE and through Citigroup Global Markets Australia Pty Limited (CGMA) on the ASX. The report read that CGMA will undertake the purchase of CDIs as principal and sell the CDIs to the Company by way of one or more special crossings.
Moreover, the company reserves the right to end the buy-back earlier, i.e., before 4 March 2020. Any repurchases will reportedly be affected in accordance with the Company’s general authority to repurchase shares and CDIs granted by its shareholders at the Janus’ 2018 Annual General Meeting, subject to all relevant regulatory requirements.
During the Fiscal Year 2018, the company generated 26.8% more revenue compared to the previous corresponding period. It translates a 2018 revenue of US$2,306.4 million, an increase of $488.1 million on 2017's revenue. This increase was primarily driven by five additional months of JCG revenues totalling $542.0 million during the year ended 31 December 2018. Moreover, the Average AUM increased by 5% and positively impacted management fees during the year that was up by 31.5% to US$1,947.4 million.
Operating income for the year ended December 31, 2018, was $649.8 million, an increase of $207.5 million, or 47%, compared to the year ended December 31, 2017. The Group’s operating margin was 28.2% in 2018, compared to 24.3% in 2017.
But due to the higher effective tax rate in 2018, the Group’s net income attributable to JHG declined by US$131.7 million or 20% to US$523.8 million, compared to the year ended 31 December 2017. However, the increase in income taxes was partially offset by an additional five months of JCG operations which contributed $183.8 million to net income attributable to JHG in the year ended 31 December 2018.
The Board of JHG’s Directors declared a final dividend relating to the fourth quarter 2018 of US$0.36 per share, paid on 26 February 2019. As at 31 December 2018, the Group’s asset under management stood at approximately US$329 billion.
The record date for the Company’s 2019 Annual General Meeting is fixed to 11 March 2019.
In today’s trading session, JHG stock price slipped by 1.001% to trade at $34.620 on 5 March 2019 (1:09 PM AEST). Over the past 12 months, the stock has fallen by 21.15% despite a positive price change of 10.49% in the past three months.
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