Close Brothers’ asset management arm has reported adjusted operating profit of £17.8m for the year ended 31 July 2015, up 80% compared to £9.9m a year ago.
The group said the unit’s operating income increased 13% to £95.6m from £84.4m a year ago, while income on client assets increased 8% to £90.2m and other income increased to £5.4m due to the one-off income from its former private equity business.
The division’s operating expenses grew 4% to £77.8, from £74.5m a year ago less than the growth in income, reflecting the broadly stable fixed cost base and operating leverage within the business.
The unit has posted total client assets of £10.8bn, an increase of 11% from £9.7bn as of 31 July 2014reflecting both solid net inflows and positive market movements.
For the year ended 31 July 2015, net inflows into managed assets grew to £700m or 10% of opening total managed assets, while total managed assets were up 16% to £8.0bn from £6.9bn a year ago.
The rise in operating profit at the unit resulted in an improved operating margin of 19% and a return on opening equity of 39%.
Overall, Close Brothers Group has posted an adjusted operating profit of £224.9m for the year ended 31 July 2015, up 16% from £193.7m a year ago and adjusted earnings per share growth of 19% to 120.5p.