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20 May 2020

Ninety One Plc  – FY Results

Share Price 187p

Mkt Cap £1169m

Conflict Disclosure: No Holding

  •   Results 5.4% net inflows over the 12 months to March mitigated market falls meaning AUM reduced 7.2% to £103.4bn. Net revenue increased 10% to £609m, PBT up 11% to £198.5m and EPS up 10% to 16.1p. 44% of the AUM is equities and 30% fixed interest. With 69% institutional clients the management fee yield is 47.8bps and operating margins are a healthy 32.3%. Shareholder NAV is £151m which includes £194m of cash. Outlook refers to significant revenue pressure in the coming period.


  •  Estimates  These results are strong but with market falls being weighted to the end of the year forecasts are downward sloping this year.


  • Valuation PE is 11.6X historic. The dividend policy is for a 50% payout ratio which has the potential to provide a 4% yield. EV/AUM 1%.


  • Conclusion Fund performance over the last 12 months has been poor which suggests inflows may moderate going forwards. Looks like there is no hurry to get involved, particularly with Investec Plc still holding 24%.