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Highlights:
• Core operating profit up 27% to £56.7m, driven by higher average AuM
• Statutory profit before tax down 6% to £51.6m due to £13.6m impairment charge
• Total dividend maintained at 46.0p per share with payout ratio of 86%

Polar Capital Holdings PLC (LSE:POLR) has announced its audited financial results for the year ended 31 March 2025, delivering a 27% increase in core operating profit to £56.7 million despite a decline in statutory pre-tax profit due to a non-cash impairment charge.

The investment management group reported an average Assets under Management (AuM) increase of 17% to £22.9 billion, compared to £19.6 billion in the prior year. However, AuM at year-end stood at £21.4 billion, a 2% decrease from £21.9 billion in 2024, primarily attributed to adverse market conditions in the final quarter. Net client flows for the year remained broadly flat.

The growth in average AuM, coupled with disciplined cost control, supported the increase in core operating profit, which rose from £44.8 million in FY2024 to £56.7 million. This included £7.9 million from performance fees, slightly below the £9.6 million recorded in the previous year.

Despite the operational gains, statutory profit before tax declined by 6% to £51.6 million (FY2024: £54.7 million), largely due to the recognition of a £13.6 million impairment charge on goodwill and other intangible assets. This charge had a direct impact on reported earnings per share, with basic EPS falling 13% to 36.6p (FY2024: 42.3p). In contrast, adjusted diluted total earnings per share rose by 22% to 53.5p (FY2024: 44.0p).

Dividend Maintained

The Board has recommended maintaining the second interim dividend at 32.0p per share, consistent with the prior year. This brings the total dividend for FY2025 to 46.0p per share, representing a payout ratio of 86% based on adjusted diluted total earnings per share. The second interim dividend will be paid on 7 August 2025, with the ex-dividend date set for 10 July and the record date on 11 July.