Schroders hikes dividend by 35 per cent after record 2013

6th Mar 2014 07:48

- Dividend up 35 per cent- Adjusted profits rise 41 per cent- Revenues rise 24 per centSchroders hiked its full-year dividend by 35 per cent after a record year for the asset management group in 2013 as the company saw profits surge.The firm warned that 2014 is likely to be "more challenging for investors" after a year of strong returns in developed equity markets."However, Schroders is well placed for further growth in the long term," it said.The company reported that profit before tax and exceptional items totalled £507.8m last year, up 41% from 2012.Net revenues were up 24% at £1,407.6m, helped by net inflows of £7.9bn and a 24% increase in asset under management (AuM) to £262.9bn. AuM was boosted by the acquisitions of STW Fixed Income in April and Cazenove Capital in July."The momentum across our business continued through the year with £2.4bn of net inflows in the fourth quarter. This strong performance was the result of our highly diversified business and focus on growth over the long term," said Chief Executive Michael Dobson.The board has recommended a final dividend of 42p per share, lifting the total payout for the year to 58p, up from 43p previously, "reflecting these results, the company's strong financial position and our confidence in the opportunities for continued growth in the long term", Dobson said.The stock was up 3.9% at 2,690p in early trading on Thursday.BC