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Miton profit climbs by third on booming client demand

Miton profit climbs by third on booming client demand

Pretax profit at Miton Group climbed 33% last year to £6.8 million as client funds under management rose by almost a billion pounds from £2.9 billion to £3.8 billion.

Around half of that, or £494 million, was in new client commitments, with the remainder delivered by asset appreciation. The company took another £190 million in inflows over the two months from the period end to late February, lifting funds to a recent high of £4 billion.

Shares in Miton spiked 3.8% or 1.5p at the market open to 40.5p. Peel Hunt reiterated its buy rating on the stock and upped its price target from 55p to 60p.

In his first set of full year results at the head  of the business, chief executive David Barron (pictured) said: ‘I ‘believe Miton is fundamentally well-placed in a rapidly changing sector.

‘In my first year it has been important to deliver increased profitability, higher operating margin and improved returns to shareholders.

‘Markets remain volatile, and there could be further setbacks, which may impact client confidence. However, by the key measures of the health of an asset management firm, investment performance and whether clients wish to commit more investment to our strategies, Miton is performing well.’

Reflecting wider pressures on fund costs, fee margins fell from 68.2 basis points to 64.9 basis points. The benefits of greater scale lifted operating margin from  26.8% to 31.2%, however.

The company has lifted its dividend 40% to 1.4p per share.

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