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Miton surges on Psigma marriage hopes after system overhaul
by Elsa Buchanan on Sep 24, 2013 at 12:04
First half profits at Miton took a hit as it rolled out a new IT system but analysts believe the group is well placed to prosper as it welcomes recent purchase Psigma Asset Management to its ranks.
Miton, formerly MAM Funds, saw profit some 40% weaker year on year following the technological overhaul, with administrative expenses linked to the recruitment of four fund managers and the launch of two Oeics also taking their toll. Overall pre-tax profit fell from £0.5 million to £0.3 million year on year.
Other health barometer were positive, with revenues 7% higher over the period on the back of £121 million in inflows, an increase of 13%.
Managing director Gervais Williams (pictured) told Wealth Manager: ‘Although we saw outflows of £206 in our multi-asset funds due to the recent buoyant market conditions, our UK Multi Cap Income fund has done well. The fund’s current assets are nearing £175 million, from £120 million in the half year and £40 million in December 2012.’
Williams also highlighted good results from the Diverse Income trust, as well as the newly set-up US Opportunities and UK Value Opportunities funds, which have received aggregated inflows of £47 million in their short life spans.
Elsewhere the boutique was boosted by the capture of two investment trust mandates. These included the £16 million Investment Company - a fund founded in 1868 and the £81 million Henderson Fledgling Trust, which both went to Williams.
In what has been a period of transition for the group, the market applauded the firm's progress as shares shot up 14%, or 5.3p, at 42.55p, moving above their 52-week high of 40p.
Analysts are particulary excited with its link up with Psigma AM, which it acquired for £13 million in July.
Stuart Duncan of Peel Hunt repeated his buy rating on the stock and raised his price target from 40p to 46p following the numbers.
While adjusted profit was slightly down to £1.8 million from £2 million last year, Peel Hunt upgraded its full-year expectations by 11% on the back of 'good interim results', and increased his target price to 46p from 40p.
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- CF Miton UK Multi Cap Income Inst B Acc
- CF Miton US Opportunities A Acc
- CF Miton UK Value Opportunities Inst B Acc