Man Group says it expects pre-tax profits for the year ending 31 March 2004 to be materially in excess of current market expectations. This result has been achieved despite the adverse impact of currency translation on reported year-on-year sterling profits.
Sales have continued to be very strong throughout the year, and are estimated to be around $10.5 billion. Reflecting the level of sales and good product performance, funds under management have risen strongly and are currently estimated to be around $38 billion, up from $26.1 billion at 31 March 2003. These figures do not include the latest launch, Man RMF Multi-Style Ltd, which will close within the next few weeks.
Net management fee income will be at the top end of market expectations, up by over 45%, reflecting the increased level of funds under management. Net performance fee income will be materially ahead of last year and significantly above market expectations. Brokerage net income (before goodwill and exceptional costs relating to the integration of GNI) will be at the top end of market expectations, up over 40% reflecting the continued recruitment of producer teams, active markets and the successful integration of GNI, which has now been completed. As a result, fully diluted underlying earnings per share (represented by earnings from net management fee income plus brokerage net income) are expected to be up over 35%, which is the top end of market expectations.
Man Group will announce its preliminary results for the financial year on 20 May 2004.