Old Mutual plc preliminary results for the year ended 31 December 2016

Old Mutual plc, whose managed separation strategy aims to result in four strong independent businesses, today publishes its results for the year to 31 December 2016.

Bruce Hemphill, Group Chief Executive, said:

“We are delivering on our promises: we sold down part of our stake in OM Asset Management, materially reduced our debt, cut head office costs and made significant strides in preparing the businesses for independence. While the macroeconomic conditions have been tough in 2016, our businesses have performed resiliently, with a stronger performance in the second half, demonstrating the underlying strengths of the franchises. We expect 2017 to be a year characterised by the hard work required to get the businesses ready for separation in 2018. We are confident that the managed separation will unlock and deliver long-term shareholder value.”

Summary financial results:

• Adjusted Net Asset Value (NAV) at 228.6p per share (2015: 178.9p per share), due to favourable currency movements and
an increase in the market value of Nedbank;
• Pre-tax adjusted operating profit (AOP) of £1.7 billion, broadly flat year-on-year in constant and reported currency;
• AOP earnings per share (EPS) of 19.4p broadly flat (2015: 19.3p) in constant and reported currency, basic EPS of 11.9p
(2015: 12.7p);
• IFRS pre-tax profit of £1.2 billion (2015: £1.2 billion), including impairments of £160 million in 2016 in respect of Ecobank
Transnational Incorporated (ETI), Old Mutual Southern and East Africa (OMSEA) and Old Mutual Wealth Italy;
• Second interim dividend of 3.39p; total dividend of 6.06p, representing a cover ratio of 3.2 times on AOP;
• FUM (excluding Rogge) at £394.9 billion up 30%; NCCF of £6.4 billion, excluding Rogge (2015: £6.6 billion).

Delivering the managed separation:

Managed separation aims to deliver value through the removal of plc central operational costs, by unlocking the conglomerate discount and by delivering enhanced performance of the underlying businesses.

Removal of plc central operational costs:

• Plc net operational cost savings identified of circa £95 million by 2019 from a base of 2015. The one-off costs to unlock these
net operational savings will be circa £130 million.

To see PDF of Old Mutual Prelims 2016 8 March 2017 click here.