Asset manager Schroders beat market forecasts during 2017, with underlying organic growth driving profits.
The group reported a 23 percent increase in profit before tax to £760.2 million for the year just gone, attributing the improvement to an improvement in organic growth and “selective acquisitions combined with rigorous cost discipline.”
Net operating revenue increased by 17 percent to £2,010.2 million, and net income before exceptional items rose by 15 percent to £2,068.9 million.
These revenue figures produced a pretax profit in the year of £760.2 million, beating analysts’ mean consensus forecast of £728.5 million.
The figures were also aided by a weakness in sterling in the first half of the year, contributed positively to profit before tax and exceptional items by around £27 million.
Peter Harrison, group chief executive, said: “Schroders has again delivered strong results in 2017”.
“Underlying organic growth and selective acquisitions combined with rigorous cost discipline led to a 24 percent increase in pre-exceptional profit. Assets under management and administration rose to a new high of £447 billion.
“There are headwinds facing the industry but we continue to believe that there remain opportunities for growth. Our diversified business model, ongoing focus on costs, strong financial position and willingness to invest mean that we continue to be well placed.”
