London asset manager Jupiter surprised markets by exceeding expectations in its annual results, as profits surged to £105.2m, 15 per cent ahead of analyst forecasts.
The firm’s results for 2023, revealed that a 36 per cent jump in underlying profit before tax came largely from cost cutting, with non-staff costs coming in £7m below expected.
The bump in profits also “reflects performance fee profits and unhedged seed gains being ahead of consensus expectations”, said Numis analyst David McCann.
While Jupiter saw investors pull £2.2bn out over the year, this was below the £3.5bn lost in 2022, and Numis estimated that it had begun the year with net inflows of £200m.
Meanwhile, assets under management increased by four per cent to £52.2bn, largely on the back of strong market performance.
“Overall, we think there is little in this statement for the bears, and there are some early signs of improvement,” said McCann. “Whether the latter can be sustained remains to be seen, but it is clearly encouraging to see nonetheless.”
The asset manager’s institutional assets under management climbed rapidly over the year, from £6.8bn to £10bn.
“Our strong capital position means that we are well-placed to invest for the future,” he added. “The market outlook continues to be uncertain but I am confident that we have a strong underlying business and a strategy that can deliver growth over the medium term.”
The firm recently suffered a major blow after star manager Ben Whitmore revealed he would be leaving the firm to start his own boutique.
Whitemore manages about a fifth of Jupiter’s assets, leading investors to panic and crash its stock by 14.6 per cent in a single day.
Jupiter chief exec Matthew Beesley said the firm had delivered “robust performance this year”, noting the growth in the firm’s institutional and international businesses.