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The Pendal Group Ltd share price has defied another market wide sell off today after the company rallied upon their announcement of surging profit.


The fund manager shares ended the day over 8% higher at $5.33 a share. This is despite the ASX 200 tumbled over 2.2% during the trading day.


Pendal reported its 1HFY22 underlying profit after tax increased by 59% over the previous corresponding period to $131.4 million. Earnings per share increased 34% to 34.3 cents and fee revenue improved 31% to $362.6 million.


The strong result was upheld by the full six-month contribution from US investment management firm Thompson, Siegel & Walmsley (TSW), which the company acquired in the second half of FY21. On top of all this positivity, the group increased its interim dividend by 24% to 21 cents per share.


The company also benefitted from the cost reduction side of the business. Operating expenses indeed did increase by 20% to $209.6 million, however, this was still well below revenue growth, and it is important to note that this increase was largely attributed to the acquisition of TSW.


Speaking on the result, Pendal CEO Nick Good stated:


“Pendal Group has delivered a solid first-half result in a tough environment for asset managers. We delivered healthy growth in revenue, underlying EPS, UPAT, and the interim dividend.


While continuing to invest in our business, we have taken a more disciplined approach during the period, in response to the current market environment and tempered investor confidence.”