Profit dives at Schroders

6th Aug 2009 07:51

Profit plunged by 56% during the first half at fund manager Schroders and by 73% after exceptional items, but news of net inflows sent the shares higher.The UK blue chip reported a drop in profit before tax and exceptional items for the six months ended 30 June to £76.9m from £173.3m in 2008. Profit after one-off items slumped to £36.3m from £135.7m.Asset Management income tumbled 30% to £283.5m, leaving profit before tax at the unit down more than half at £66.3m from £138.1m a year ago.Funds under management rose to £113.3bn from £110.2bn at the end of 2008. Net outflows of £2.1bn in the first quarter were followed by net inflows of £3.9bn over the next three months."Strong investment performance in most asset classes coupled with an established distribution capability is resulting in a significant pipeline of new business opportunities in Institutional and Intermediary," said Schroders. "We expect to see continued net inflows provided the current more confident tone in financial markets is maintained."The interim dividend stays at 10p a share.