Old Mutual (JSE:OML) shares rose in early trading on Thursday, after confirming that it expects the company’s separation into four parts to be complete by the end of 2018.
The group reported a 22 percent rise in adjusted operating profit to £2 billion over the course of 2017, an increase of 7 percent in constant currency. AOP earnings per share rose by 25 percent to 24.3 pence.
The group reported strong performance over all businesses, with Old Mutual Emerging Markets AOP up 5 percent, Nedbank reported AOP up 4 percent and Old Mutual Wealth reported AOP up 40 percent to £363 million.
The company is currently undergoing the split into four businesses: Old Mutual Wealth (OMW), Old Mutual Emerging Markets (OMEM), South African lender Nedbank and US firm Old Mutual Asset Management (OMAM).
As part of the plan, its wealth arm will become newly-listed holding company called Old Mutual Limited (OML), which will include OMEM, Nedbank and the residual parts of Old Mutual PLC.
Bruce Hemphill, group chief executive, said: “We are delivering on both of the commitments we made in March 2016 when we announced the managed separation. First, as these results demonstrate, we have improved the performance of the underlying businesses and set them up for continued future growth. Second, we have carried out the preparation needed to give effect to the managed separation.
“The process has already delivered significant value through cost and debt reduction, and we are on track for material completion of the managed separation with the listings of Old Mutual Limited and Quilter within our expected timetable.
“A vast amount has been achieved over the past two years and I would like to pay tribute to the hard work of all my colleagues for getting us to this point. We are now focused on concluding the final processes associated with the listings, securing the shareholder and court approvals and addressing any remaining issues for the final steps of managed separation.”
Shares in Old Mutual (JSE:OML) are currently up 2.03 percent at 4,175.00 (0843GMT).