FULL YEAR RESULTS
Summary by AI BETAClose X
Embargoed until 7.00am 4 December 2025
PREMIER MITON GROUP PLC
FULL YEAR RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
Positioned for future growth, both organic and inorganic.
Premier Miton Group plc ('Premier Miton', 'Company' or 'Group'), the AIM quoted fund management group, today announces its final results for the year ended 30 September 2025.
Highlights
Resilient performance
· £10.3 billion closing Assets under Management 3 ('AuM') (2024: £10.7 billion), a decrease of 3% for the year
· £9.7 billion closing AuM at 30 November 2025 4
· Net outflows of £618 million for the year (2024: £318 million outflow)
· Total £5 million annual run-rate savings identified during the year, with £3 million already delivered at 30 September 2025, the remaining due in 2026
· Adjusted profit before tax 1,3 of £11.5 million (2024: £12.2 million)
· Adjusted earnings per share 2,3 of 5.5 pence (2024: 6.3 pence)
· Profit before tax of £2.4 million (2024: £3.2 million)
· Cash balances were £31.3 million at 30 September 2025 (2024: £35.9 million)
· Final proposed dividend of 3.0 pence per share (2024: 3.0 pence per share)
· Total proposed dividend for the year of 6.0 pence per share (2024: 6.0 pence per share)
Strongly positioned
· Continued net inflows into Fixed Income, Absolute Return, Multi-Asset Thematic funds
· Strategic focus on building out long-short investment capabilities
· Offshore fund platform AuM now above £100m with momentum building via new distribution channels including South Africa, Ireland and the Channel Islands. Fourth fund now due to be added in early 2026
· Sustained emphasis on inorganic initiatives that progress our strategic priorities
· Christopher Williams now appointed to the Board as Non-Executive Director and Chair Designate to succeed Robert Colthorpe, following his nine-year term as Non-Executive Director. Christopher has a wealth of experience in the financial sector as well as extensive corporate finance expertise
Notes
(1) Adjusted profit before tax is calculated before the deduction of taxation, amortisation, share-based payments and non-recurring items. Reconciliation included within the Financial Review section.
(2) Adjusted earnings per share is calculated before the deduction of amortisation, share-based payments and non-recurring items.
(3) These are Alternative Performance Measures ('APMs').
(4) Unaudited estimate.
Mike O'Shea, Chief Executive Officer of Premier Miton Group, commented:
"We ended the year with £10.3 billion of Assets under Management with good investment performance across several of our strategies. We report an adjusted profit before tax of £11.5 million, a final dividend of 3.0p, bringing the total for the year to 6.0p, and year end cash of £31.3 million on the balance sheet.
During the year, Fixed Income and Absolute Return funds saw continued inflows, with a strong new business pipeline emerging. However, US and European equity strategies faced combined outflows of £689 million. These outflows have continued into the new financial year negating much of the strong positive flows in other areas of the business. Whilst this presents a near-term challenge to the business, we remain confident in the long-term prospects of these funds.
We manage strategies that are genuinely active, meaning many can take contrarian positions relative to the status quo. This conviction-driven approach combined with original thinking is what we believe will return the overall business to net inflows and strongly positions us for when market leadership broadens.
We continue to carefully manage our costs to enhance future returns for our shareholders. In April 2025, we announced annual cost savings of £3 million which were delivered by the year end. In October 2025 we noted a further £2 million in annualised savings to be delivered by 30 September 2026. These efficiencies will help offset the impact of a weaker flow environment, should it persist in the near term.
We also continue to explore strategic transaction opportunities to enhance shareholder value. Attractive inorganic growth opportunities are those that could expand our scale, introduce new investment capabilities, or provide access to new client segments. We recognise that astute execution of M&A activity will remain critical in an industry that will continue to present opportunities for inorganic growth. Our disciplined approach and proven track record position us well to identify and pursue these opportunities.
In closing, I am pleased to welcome Christopher Williams to the Board. Chris has a wealth of M&A experience in the financial sector and we look forward to welcoming him as Chair in February following our AGM."
ENDS
For further information, please contact:
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Premier Miton Group plc Mike O'Shea, Chief Executive Officer
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01483 306 090
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Investec Bank plc (Nominated Adviser and Broker) David Anderson / Ben Griffiths / St John Hunter
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020 7597 4000
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Camarco Geoffrey Pelham-Lane / Ben Woodford
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07733 124 226 / 07990 653 341 |
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KK Advisory Ltd Steve Keeling / Kam Bansil
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020 7039 1901 |
Notes to editors:
Premier Miton Investors is focused on delivering good investment outcomes for investors through relevant products and active management across its range of investment strategies, which include equity, fixed income, multi-asset and absolute return.
LEI Number: 213800LK2M4CLJ4H2V85
Chair's Statement
Results
Our financial results for 2025 reflect our continuing resilience in what are fast changing and difficult markets for many businesses focused on the UK's long-term investment industry. At the year end, our Assets under Management ('AuM') were £10.3 billion, with a Group cash position of £31.3 million and an adjusted profit before tax of £11.5 million. Further details and commentary on our business and financial performance are set out in the reports from our Executive team.
We have a well-diversified range of active funds and investment solutions focused on public markets, with a strong long-term performance track record and an efficient operating platform. We continue to develop our business model and are confident in our fundamental strengths and abilities. We remain well positioned to secure positive net inflows, including from the newer markets and capital pools we target, as investor sentiment improves in more of the strategies where we run funds and as we demonstrate performance across our fund range.
Sector background
Our shareholders will be keenly aware of the geopolitical and domestic issues affecting the markets in which we largely operate. Premier Miton's business is still materially reliant on accessing UK long-term savings and investment capital and we have a significant presence in UK equities as a proportion of our AuM.
I have commented before on the vital economic and social importance of the deep and extensive reforms needed in our domestic risk capital and investment markets. We are encouraged that further positive changes are being considered, particularly to the pensions and risk asset investment markets, although these have yet to secure full political traction and implementation.
We welcome the Government's Financial Services and Competitiveness Strategy which was published in the summer as part of its overall Industrial Strategy, and which confirmed the sector's central role in the future of our country and in creating economic growth and prosperity.
The Government's laudable aim is to make the UK the world's most innovative full service financial centre, geared towards investment. We look forward to contributing to the policy choices needed to secure this position and to securing the opportunities this is likely to bring for Premier Miton's business.
Alongside these challenges, the investment industry in the UK is also being reshaped by extensive ongoing developments in client demands, regulation, technology, distribution and related competition and business model creation.
The industry is likely to stay highly dynamic in all its aspects for some years which we believe Premier Miton can benefit from given our highly experienced leadership team, wide ranging fund diversification and track record for completing and integrating value accretive acquisitions successfully.
Strategy
At our annual Board strategy day in March 2025, we reviewed our responses to the evolving sector context and against the backdrop of this challenging operating environment for UK centred active asset management firms. We reconfirmed our overall strategic ambitions and plans which we have previously set out to deliver long-term value for our clients and shareholders. We believe that running a well‐diversified portfolio of highly active strategies and investment solutions which are sold into a range of domestic and international capital and savings pools is the right long-term approach for the business.
We remain focused on managing our portfolio of products, our operating model and our cost base to optimise the prospects of success for our stakeholders. During the year we took decisions to reduce our product range and our cost base to align with market conditions and the potential we see for Premier Miton. We continue to explore a range of new business initiatives and manage our course on these as needed.
We are considering value additive M&A activity in our sector as the industry reshapes. Given our strong acquisition track record, we are pursuing several strategic and tactical opportunities which have the scope to add significant value to the business. At the same time, we continue to seek and build valuable commercial arrangements and partnerships.
People and Culture
Our people are our most valuable asset and I thank them for their hard work and efforts last year and for the way they continue to drive our business for the benefit of our clients and shareholders. We expect a lot from everyone involved at Premier Miton and seek to build their skills and capabilities as well as maintain reward and retention schemes that fit our evolving business needs. To succeed we must be resourceful and maintain a positive and effective culture especially in these challenging markets.
Advances in AI are already reshaping our industry and we will continue to engage with how we bring these into our business in ways that make a good contribution to future success. The Board and leadership team are mindful of how we manage all of this and I am grateful to each of the members for their commitment and support in the year.
This is my final report as Chair having served on the Board since 2016 and as Chair since 2021. We are appointing Christopher Williams to succeed me with effect from the AGM in February 2026. He brings a strong track record of senior leadership in the financial services sector.
It has been a privilege to serve on Premier Miton's Board and to engage with the complex and evolving challenges for the business within the UK's long-term savings and investment sector. I thank all who have supported me in my role and wish my successor and all at Premier Miton well for the future.
Dividend
Our shareholders rightly expect Premier Miton to deliver value through disciplined management of the business and through the generation of cash profits that support sustainable dividend payments. In recent years, our approach to dividends has been pragmatic, reflecting the unprecedented challenges and volatility across our markets. We have consistently sought to pay the maximum dividend compatible with prudence and the capital needs of the business, with the intention of returning to our stated policy when conditions permit.
Market confidence in all aspects of our business remains central to the achievement of our commercial and strategic objectives and so to the delivery of long-term shareholder value. This confidence must extend not only to our product performance, business model and leadership team, but also to our equity, which we would expect to deploy across a range of transaction sizes to secure value-enhancing opportunities.
The UK's long-term savings and investment landscape continues to undergo deep structural change. In response, as well as maintaining our focus on our products and performance, we have placed greater emphasis on creating shareholder value through inorganic growth and strategic M&A. We are confident in our ability to execute these, supported by disciplined processes and decision-making. That said, the nature of this part of our growth strategy means there can be no certainty around timing or outcome.
We also note the changing dynamics of AIM on which Premier Miton's shares trade. There are still valuable inheritance tax benefits of holding AIM listed shares and we welcome the London Stock Exchange's initiative launched in April to address the future of the AIM market and reinforce its vital role in the UK's economy and capital markets, especially for growing and entrepreneurial businesses.
We are maintaining our pragmatic approach to dividend payment, one that aligns with our strategic direction and reflects our confidence in the medium-term outlook. We remain focused on managing our operating model to secure profitability, generate cash, and to always maintain a prudent capital position.
We therefore propose an unchanged full-year dividend of 6.0p, representing a payout of 109% of adjusted EPS. We recognise that this is marginally uncovered by our earnings for the year although our balance sheet strength and capital resources provide comfort on this decision.
We will continue to keep our dividend policy under review, ensuring it supports the market confidence essential to navigating Premier Miton successfully through these evolving conditions.
Outlook
We are in a fast changing market with high levels of volatility and uncertainty, bringing deep structural consequences for many parts of the UK's investment industry. Resilience and adaptability are essential for business success. We continue to see attractive opportunities for many of our fund strategies and we are seeking growth and ways to create value in industry consolidation and reshaping. Market developments over the past few years have been particularly challenging for us yet we have shaped a business that is well placed to secure its purpose and objectives. There are sound reasons for us to remain ambitious and optimistic while careful about how we navigate these near-term market conditions. We look forward to 2026 with energy and confidence.
Robert Colthorpe
Chair
03 December 2025
Chief Executive Officer's Statement
Business Performance
The active funds industry has continued to face significant challenges, with further outflows recorded during the current period. Nevertheless, there has been encouraging momentum in our fixed income and absolute return strategies, which together attracted net inflows of £765 million, reflecting growing investor confidence in our differentiated approach to capital preservation and risk-adjusted returns. However, this progress was offset by ongoing outflows from our equity strategies - particularly in Europe and the US - where our conviction-led approach, prioritising high active share and tracking error, diverged from highly concentrated market indices, resulting in short-term underperformance and net outflows of £618 million across our product range for the year.
The rise of passive investing has forced active managers to demonstrate clear value, as index-tracking strategies have dominated returns in recent years and penalised diversification. Funds with high active share and allocations to mid and small cap stocks have underperformed relative to index-hugging strategies, yet history suggests such market regimes are rarely permanent. Long periods of flat returns from major indices are possible. Indeed, we have seen this happen over decade long periods in both Japan and the US within the last 35 years. These periods create conditions where active managers can outperform through stock selection, even when index returns are muted.
We maintain our conviction that the environment for active management will ultimately improve as market leadership broadens. This was briefly seen between April and June this year, when increased market breadth led most of our funds to move into the top quartile for the quarter, before mega cap stocks once again lifted indices. We continue to advocate for diversification and caution against the risks of concentrated, index-heavy portfolios, believing our strategies are well-positioned to deliver superior long-term risk-adjusted returns as the market evolves.
Investment
As announced earlier in the year, we have made several changes to the management of the investment team with the aim of enhancing investment outcomes. These changes reinforce our commitment to delivering strong investor outcomes across our equity fund range and are designed to sharpen performance focus, strengthen accountability, and enhance communication with our investors.
Paul Marriage has assumed the role of Head of the UK Equity Team. Paul brings deep sector expertise and a long-standing track record, including since joining Premier Miton through the Tellworth acquisition in early 2024.
Neil Birrell has taken on the role of Head of the Global Equity Team, in addition to his responsibilities as Chief Investment Officer, ensuring strategic alignment across our global investment capabilities.
Gervais Williams has become Chair of our Equities Business, providing experienced oversight and continuity across our equity platform.
These appointments reflect our ongoing commitment to investment excellence and operational clarity and thereby achieving the best possible outcomes for our clients. By aligning leadership with areas of core strength, we aim to drive performance through focused portfolio management and enhanced team coordination, strengthen accountability through clearer leadership roles and decision making, and deepen investor engagement via more consistent and transparent communication.
While certain equity funds, particularly those focused on European and US markets, have faced headwinds, our bias toward quality growth remains intact. Both teams have strong long-term track records but what has hurt us more recently is the market's narrow focus on a handful of big tech names, which has been tough for strategies built around mid and small caps. Many clients still believe in what we do, but some have found the relative underperformance hard to live with. The recent leadership changes highlighted above, are designed to support our managers through this cycle and position us for recovery as market breadth improves.
Business efficiency
In April 2025, we announced that we had identified annual cost savings of some £3 million, the majority of which have now been implemented. More recently, we identified a further £2 million in annualised savings through additional business efficiencies and a deeper integration with our main outsourced partners. These efficiencies will help offset the impact of a weaker flow environment, should it persist in the near term. Naturally, we remain focused on actively managing our cost base to support future shareholder returns.
Distribution
A key initiative this year has been the launch of our new visual identity and advertising campaign in March, shaped by extensive consultations with clients and colleagues to better reflect who we are and what we stand for. We give our fund managers a blank sheet of paper. That is the freedom to deploy their own investment edge within a risk-controlled framework, without imposing a top-down view across investment desks. We do this because we believe the real risk lies not in thinking differently, but in thinking the same.
While equity fund flows have been more challenging this year, our fixed income range continues to perform strongly, with investors recognising the differentiated approach and consistent performance of our fixed income team. The Tellworth acquisition has contributed meaningfully, driving steady inflows into our long-short market and factor-neutral equity strategies. These strategies are resonating with investors seeking low-volatility solutions, not only in our mutual fund range, but also through a growing number of segregated mandates from international institutional clients.
We are also seeing increasing traction in our retirement income-focused Cautious Monthly Income Fund. Demographic shifts and regulatory changes are creating demand for strategies that generate natural income in retirement, further supporting flows into our multi-asset income funds.
Internationally, we now have seven funds registered for retail distribution in South Africa, with early flows into our fixed income strategies from South African investors. Our Dublin-based ICAV umbrella now comprises three funds, with a fourth expected to launch in the coming financial year. The next step will be to begin marketing to Swiss-based investors in the second half of the year, where our fund range is already registered, continuing our strategy to diversify our investor base. These initiatives are at an early stage, and while initial feedback is positive, we recognise that sustained progress will depend on broader market dynamics.
We pride ourselves on transparency, accessibility to fund managers, and the strength of our distribution and marketing teams. We continue to receive outstanding feedback from industry surveys, which endorse our approach and highlight the quality of our client service. Our annual investment conference, attended by 200 clients again this year, is consistently cited as one of the leading events in the industry, underscoring the relevance of our investment proposition and the clarity with which we communicate it.
Strategy
Premier Miton is evolving with a clear focus on resilience, diversification, and strategic growth.
We have built a broad and balanced product range - spanning UK and international equities, multi-asset strategies, fixed income, and absolute return. And of course, our focus on income generating strategies. This diversification is about building resilience into our business because different asset classes perform differently across market cycles, and having multiple strategies allows us to raise assets in one area when another is under pressure. It also creates multiple revenue streams, which is increasingly important in a margin-sensitive environment.
We are also focused on performance delivery and actively working with our managers to ensure they are on track to deliver for our clients. This is particularly important when market leadership is so concentrated, and highly active funds appear to be doing less well. We need to make sure that we stick to our core principles so that when market leadership changes, our clients benefit from staying with us.
We have a strong track record in M&A and will continue to assess opportunities carefully, whether they bring scale to an existing capability, introduce new investment capabilities or open access to new client segments. We are always mindful that any action will be selective and aligned with our strategic priorities.
We understand that asset management is a people business, and successful integration depends on cultural alignment and client focus. Our approach is thoughtful, strategic, and always centred on delivering value to clients and shareholders. While timing inevitably remains uncertain, our disciplined approach and proven track record position us well to identify and pursue opportunities that enhance client outcomes and shareholder value.
Outlook
As we enter our new financial year, we do so with a strong balance sheet, a focused investment leadership team, enhanced operational efficiency and a plan to position the business for future growth, both organic and inorganic. While challenges remain, we believe the steps taken to strengthen leadership, improve efficiency, and diversify our product range position us to navigate the coming year with greater resilience. We are cautiously optimistic that conditions will improve over time.
And finally, I would like to thank all the team at Premier Miton who put so much hard work, care and attention into ensuring we do the very best we possibly can for our clients. We are a people business, and it is the dedication of the people who work here that make it a success.
Mike O'Shea
Chief Executive Officer
03 December 2025
Financial Review
Financial performance
Profit before tax was £2.4 million (2024: £3.2 million).
The profit for the year is after charging £1.9 million of restructuring and non-recurring costs (see note 4).
Adjusted profit before tax*, which is after adjusting for amortisation, share-based payments and non-recurring items, decreased to £11.5 million (2024: £12.2 million).
The decline reflects the lower level of net management fee margin and the resulting management fees generated arising from the change in the Group's product mix.
Adjusted profit* and profit before tax
|
|
2025 £m |
2024 £m |
% Change |
|
Gross profit |
61.7 |
62.0 |
|
|
Administration expenses |
(52.7) |
(51.2) |
|
|
Finance income |
0.6 |
0.8 |
|
|
Non-recurring items (see note 4) |
1.9 |
0.5 |
|
|
Adjusted profit before tax * |
11.5 |
12.2 |
(6) |
|
Adjusted operating margin * |
18.6% |
19.7% |
(6) |
|
Amortisation |
(5.2) |
(5.1) |
|
|
Share-based payments |
(2.0) 7) |
(3.4) 7) |
|
|
Non-recurring items (see note 4) |
(1.9) |
(0.5) |
|
|
Profit before tax |
2.4 |
3.2 |
(25) |
* These are Alternative Performance Measures ('APMs').
Assets under Management * ('AuM')
AuM ended the year three percent lower at £10,326 million (2024: £10,683 million). Continued demand for our fixed income and absolute return products saw the AuM in these asset classes increase by 19% and 87% over the year to end at £2.5 billion and £1.1 billion respectively.
Net outflows for the year were £618 million (2024: £318 million outflows, this included net inflows from acquisitions and disposals of £440 million). The average AuM for the year increased by 1% to £10,448 million (2024: £10,336 million).
Gross profit, net management fees and net management fee margin *
The Group's revenue continues to be that of management and performance fees generated on the AuM being managed by the Group, which is presented net of any rebates paid to customers.
As noted last year, the Group's underlying business mix continues to develop. This along with the impact of client flows and markets on our existing business, has driven a four percent fall in the net management fee margin to 56.7bps for the year.
|
|
2025 £m |
2024 £m |
% Change |
|
Management fees |
60.9 |
62.5 |
|
|
Other income |
0.1 |
0.4 |
|
|
Cost of sales |
(1.6) |
(2.0) |
|
|
Net management fees * |
59.4 |
60.9 |
(2) |
|
Performance fees |
2.3 |
1.1 |
|
|
Gross profit (see note 3) |
61.7 |
62.0 |
(0.5) |
|
Average AuM * |
10,448 |
10,336 |
1 |
|
Net management fee margin * (bps) |
56.7 |
58.9 |
(4) |
* These are Alternative Performance Measures ('APMs').
Administration expenses
Administration expenses totalled £52.7 million (2024: £51.2 million), this is after the inclusion of £1.9 million of non-recurring costs predominantly associated with the announced operational efficiency initiatives. Adjusting for these, administration expenses were flat on the comparative period at £50.8 million.
Staff costs continue to represent the largest component of administration expenses. The fixed staff costs were flat at £21.9 million (2024: £22.0 million). The average headcount for the period increased from 153 to 157. The fixed staff costs and headcount reflects a full year of post Tellworth acquisition which has been offset by headcount reductions completed in the second half of the year.
Variable staff costs totalled £8.0 million (2024: £8.6 million). The reduction reflects the lower levels of net revenues and underlying profitability of the Group when compared against 2024.
Overheads and other costs increased by four percent to £20.2 million. As noted at the half year, this increase predominantly related to increased marketing activities and the launch of the Group's new visual identity in February (and the associated advertising costs) along with a full period of Tellworth related costs.
In April 2025, we announced annual cost savings of £3 million arising from a comprehensive review of our operations. The majority of the savings were delivered in the year with associated one off costs of £1.4 million. See note 4 for further detail.
A further £2 million in annualised savings are to be delivered over the next 12 months. These include additional business efficiencies and a deeper integration with our main outsourced partners. One off implementation costs are expected to be approximately £0.7 million.
|
|
2025 £m |
2024 £m |
% Change |
|
Fixed staff costs |
21.9 |
22.0 |
|
|
Variable staff costs |
8.0 |
8.6 |
|
|
Overheads and other costs |
20.2 |
19.4 |
|
|
Non-recurring items |
1.9 |
0.5 |
|
|
Depreciation - fixed assets |
0.2 |
0.2 |
|
|
Depreciation - leases |
0.5 |
0.5 |
|
|
Administration expenses |
52.7 |
51.2 |
3 |
Share-based payments
The share-based payment charge for the period was £2.0 million (2024: £3.4 million). Of this charge, £1.4 million related to nil cost contingent share rights ('NCCSRs') (2024: £2.6 million). The lower charge reflects the reduction in the number of NCCSR awards in recent years along with a lower fair value on grant.
At 30 September 2025 the Group's Employee Benefit Trusts ('EBTs') held 5,704,204 ordinary shares representing 3.5% of the issued ordinary share capital (2024: 7,429,544 shares).
Balance sheet and cash
Total shareholders' equity as at 30 September 2025 was £112.5 million (2024: £119.0 million). At the year end the cash balances of the Group totalled £31.3 million (2024: £35.9 million). The Group continues to have no external bank debt (2024: £nil).
Capital management
Dividends totalling £9.4 million were paid in the year (2024: £9.1 million). See note 17 for further detail.
The Board is recommending a final dividend of 3.0p per share, bringing the total dividend payment for 2025 to 6.0p per share (2024: 6.0p).
The dividend will be paid on 13 February 2026 to shareholders on the register at the close of business on 16 January 2026.
Regulatory Capital
The Group continues to maintain a strong capital base to support the future development of the business whilst ensuring compliance with regulatory capital and liquidity requirements.
|
|
2025 £m |
2024 £m |
|
Equity |
112.5 |
119.0 |
|
Non-qualifying assets 1 |
(82.6) |
(85.5) |
|
Qualifying capital |
29.9 |
33.5 |
|
Regulatory capital requirement |
(13.8) |
(13.3) |
|
Foreseeable dividends 2 |
(4.7) |
(4.7) |
|
Regulatory capital surplus |
11.4 |
15.5 |
1 Goodwill, intangible assets and associated deferred tax liabilities.
2 Proposed final dividend to be paid in February following the financial year end.
Piers Harrison
Chief Financial Officer
03 December 2025
Going concern
The Directors assessed the prospects of the Group considering all the factors affecting the business when deciding to adopt a going concern basis for the preparation of the accounts.
The Directors confirm that they have a reasonable expectation that the Group will continue to operate and meet its liabilities, as they fall due, up to 3 December 2026.
The Directors' assessment has been made with reference to the Group's current position and strategy, the Board's appetite for risk, the Group's financial forecasts, and the Group's principal risks and how these are managed, as detailed in the Strategic Report.
The Directors have also reviewed and examined the financial stress testing inherent in the Internal Capital Adequacy and Risk Assessment ('ICARA'). The forecast considers the Group's profitability, cash flows, dividend payments and other key variables. Sensitivity analysis is also performed on certain key assumptions used in preparing the forecast, both individually and combined, in addition to scenario analysis that is performed as part of the ICARA process, which is formally approved by the Board.
Alternative Performance Measures ('APMs')
The Directors use the following APMs in evaluating the performance of the Group and for planning, reporting and incentive-setting purposes.
|
|
Unit |
Used in management appraisals |
Aligned with shareholder |
Strategic KPI |
|
Adjusted profit before tax Definition: Profit before taxation, amortisation, share-based payments and non-recurring items.
Purpose: Except for the noted costs, this encompasses all operating expenses in the business, including fixed and variable staff cash costs, except those incurred on a non-cash, non-business as usual basis. Provides a proxy for cash generated and is the key measure of profitability for management decision making. |
£ |
• |
• |
• |
|
Adjusted operating margin Definition: Adjusted profit before tax (as above) divided by net revenue.
Purpose: Used to determine the efficiency of operations and the ratio of operating expenses to revenues generated in the year. |
% |
• |
• |
|
|
Cash generated from operations Definition: Profit before taxation adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals and items of income or expense associated with investing or financing cash flows.
Purpose: Provides a measure in demonstrating the amount of cash generated from the Group's ongoing regular business operations. |
£ |
|
• |
|
|
AuM Definition: The value of external assets that are managed by the Group.
Purpose: Management fee income is calculated based on the level of AuM managed. The AuM managed by the Group is used to measure the Group's size relative to the industry peer group. |
£ |
• |
• |
• |
|
Average AuM Definition: The average value of external assets that are managed by the Group.
Purpose: Average AuM removes volatility of short term net flows.
Reconciliation: Average AuM for the year is calculated using the daily AuM adjusted for the monthly closing AuM invested in other funds managed by the Group. |
£ |
• |
• |
|
|
Net management fee Definition: The net management fee revenues of the Group. Calculated as gross management fee income, excluding performance fees, less rebates paid to customers and after the deduction of cost of sales.
Purpose: Provides a consistent measure of the profitability of the Group. |
£ |
• |
|
|
|
Net management fee margin Definition: Net management fees divided by the average AuM.
Purpose: A measure used to demonstrate the blended fee rate earned from the AuM managed by the Group.
A basis point ('bps') represents one hundredth of a percent. This measure is used within the asset management sector and provides comparability of the Group's net revenue generation. |
bps |
• |
• |
|
|
New flows Definition: Total aggregate external sales/inflows into funds and mandates managed by the Group less the total external redemptions/outflows from the same funds and mandates. Where positive, these are 'Net inflows' and where negative as 'Net outflows'.
Purpose: Net flows is a key performance indicator for management and is used both internally and externally to assess the organic growth of the business. |
£ |
• |
• |
• |
|
Adjusted earnings per share (basic) Definition: Adjusted profit after tax divided by the weighted average number of shares in issue in the year.
Purpose: Provides a clear measure to shareholders of the operating profitability and cash generation of the Group from its underlying operations at a value per share. The exclusion of amortisation, share-based payments and non-recurring costs provides a consistent basis for comparability of results year on year. |
p |
• |
• |
• |
Financial Statements
Consolidated Statement of Comprehensive Income
For the year ended 30 September 2025
|
|
Notes |
2025 £000 |
2024 £000 |
|
Revenue |
3 |
63,319 |
64,041 |
|
Cost of sales |
3 |
(1,645) |
(2,045) |
|
Gross profit |
|
61,674 |
61,996 |
|
Administration expenses |
4 |
(52,714) |
(51,174) |
|
Share-based payments |
16 |
(2,033) |
(3,361) |
|
Amortisation of intangible assets |
10 |
(5,221) |
(5,098) |
|
Operating profit |
5 |
1,706 |
2,363 |
|
Finance income |
7 |
650 |
804 |
|
Profit for the year before taxation |
|
2,356 |
3,167 |
|
Taxation |
8 |
(1,135) |
(1,283) |
|
Profit for the year after taxation attributable to equity holders of the Parent |
|
1,221 |
1,884 |
|
|
|
pence |
pence |
|
Basic earnings per share |
9 |
0.78 |
1.24 |
|
Diluted basic earnings per share |
9 |
0.76 |
1.19 |
No other comprehensive income was recognised during 2025 or 2024. Therefore, the profit for the year is also the total comprehensive income. All of the amounts relate to continuing operations.
Consolidated Statement of Changes in Equity
For the year ended 30 September 2025
|
|
Notes |
Share capital £000 |
Share premium £000 |
Merger reserve £000 |
Own shares held by an EBT £000 |
Capital redemption reserve £000 |
Retained earnings £000 |
Total equity £000 |
|
At 1 October 2023 |
|
60 |
- |
94,312 |
(12,668) |
4,532 |
34,827 |
121,063 |
|
Profit for the year |
|
- |
- |
- |
- |
- |
1,884 |
1,884 |
|
Issue of share capital |
|
1 |
2,639 |
- |
- |
- |
- |
2,640 |
|
Own shares purchased |
|
- |
- |
- |
(760) |
- |
- |
(760) |
|
Exercise of options |
16 |
- |
- |
- |
4,697 |
- |
(4,697) |
- |
|
Share-based payments |
|
- |
- |
- |
- |
- |
3,361 |
3,361 |
|
Other amounts direct to equity |
|
- |
- |
- |
- |
- |
(121) |
(121) |
|
Dividends |
17 |
- |
- |
- |
- |
- |
(9,053) |
(9,053) |
|
At 30 September 2024 |
|
61 |
2,639 |
94,312 |
(8,731) |
4,532 |
26,201 |
119,014 |
|
Profit for the year |
|
- |
- |
- |
- |
- |
1,221 |
1,221 |
|
Issue of share capital |
15 |
- |
681 |
- |
- |
- |
- |
681 |
|
Own shares purchased |
|
- |
- |
- |
(954) |
- |
- |
(954) |
|
Exercise of options |
|
- |
- |
- |
5,152 |
- |
(5,152) |
- |
|
Share-based payments |
16 |
- |
- |
- |
- |
- |
2,033 |
2,033 |
|
Other amounts direct to equity |
|
- |
- |
- |
- |
- |
(137) |
(137) |
|
Dividends |
17 |
- |
- |
- |
- |
- |
(9,375) |
(9,375) |
|
At 30 September 2025 |
|
61 |
3,320 |
94,312 |
(4,533) |
4,532 |
14,791 |
112,483 |
Consolidated Statement of Financial Position
As at 30 September 2025
|
|
Notes |
2025 £000 |
2024 £000 |
|
Non-current assets |
|
|
|
|
Goodwill |
10 |
75,124 |
74,086 |
|
Intangible assets |
10 |
9,858 |
15,079 |
|
Other investments |
|
50 |
100 |
|
Property and equipment |
|
443 |
576 |
|
Right-of-use assets |
|
1,640 |
2,108 |
|
Deferred tax asset |
8 |
532 |
756 |
|
Trade and other receivables |
11 |
383 |
204 |
|
|
|
88,030 |
92,909 |
|
Current assets |
|
|
|
|
Financial assets at fair value through profit and loss |
|
160 |
22 |
|
Trade and other receivables |
11 |
102,906 |
95,491 |
|
Cash and cash equivalents |
12 |
31,279 |
35,912 |
|
|
|
134,345 |
131,425 |
|
Total assets |
|
222,375 |
224,334 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
13 |
(105,256) |
(98,930) |
|
Lease liabilities |
|
(540) |
(461) |
|
|
|
(105,796) |
(99,391) |
|
Non-current liabilities |
|
|
|
|
Provisions |
14 |
(374) |
(374) |
|
Deferred tax liability |
8 |
(2,407) |
(3,701) |
|
Lease liabilities |
|
(1,315) |
(1,854) |
|
Total liabilities |
|
(109,892) |
(105,320) |
|
Net assets |
|
112,483 |
119,014 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
15 |
61 |
61 |
|
Share premium |
|
3,320 |
2,639 |
|
Merger reserve |
|
94,312 |
94,312 |
|
Own shares held by Employee Benefit Trusts |
|
(4,533) |
(8,731) |
|
Capital redemption reserve |
|
4,532 |
4,532 |
|
Retained earnings |
|
14,791 |
26,201 |
|
Total equity shareholders' funds |
|
112,483 |
119,014 |
Consolidated Statement of Cash Flows
For the year ended 30 September 2025
|
|
Notes |
2025 £000 |
2024 £000 |
|
Net cash flow from operating activities |
18 |
6,941 |
7,945 |
|
Cash flows from investing activities: |
|
|
|
|
Interest received |
|
670 |
837 |
|
Purchase of Tellworth Investments LLP |
10 |
(1,112) |
(1,666) |
|
Acquisition of financial assets |
|
(174) |
(150) |
|
Disposal of financial assets |
|
67 |
1,373 |
|
Purchase of property and equipment |
|
(105) |
(282) |
|
Net cash flow from investing activities |
|
(654) |
112 |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Lease payments |
|
(591) |
(274) |
|
Purchase of own shares |
|
(954) |
(760) |
|
Dividends paid |
17 |
(9,375) |
(9,053) |
|
Net cash flow from financing activities |
|
(10,920) |
(10,087) |
|
|
|
|
|
|
Decrease in cash and cash equivalents |
|
(4,633) |
(2,030) |
|
Opening cash and cash equivalents |
|
35,912 |
37,942 |
|
Closing cash and cash equivalents |
12 |
31,279 |
35,912 |
Selected notes to the Consolidated Financial Statements
For the year ended 30 September 2025
1. Corporate information and authorisation of financial statements
The Company is a public limited company incorporated and domiciled in England and Wales. The Company's ordinary shares are traded on the Alternative Investment Market ('AIM').
The Consolidated Financial Statements of Premier Miton Group plc (the 'Company') and its subsidiaries (the 'Group') for the year ended 30 September 2025 were authorised for issue by the Board of Directors on 3 December 2025 and the
Consolidated Statement of Financial Position was signed on the Board's behalf by Mike O'Shea and Piers Harrison.
2. Accounting policies
Basis of preparation
The Consolidated Group Financial Statements have been prepared on a going concern basis in accordance with UK-adopted International Accounting standards and according to the requirements of the Companies Act 2006. The principal accounting policies adopted by the Group are set out in note 2 to the Consolidated Group Financial Statements.
The Consolidated Financial Statements are presented in Sterling with numbers rounded to the nearest thousand (£'000), except when otherwise stated.
Going concern
The Directors have assessed the prospects of the Group and its Parent Company considering all the factors affecting the business when deciding to adopt a going concern basis for the preparation of the accounts. This assessment has been made
with reference to the Group's current position and strategy, the Board's appetite for risk, the Group's financial forecasts, and the Group's principal risks and how these risks are managed, as detailed in the Strategic Report. The forecasts consider the Group's profitability, cash flows, dividend payments and other key variables. The Directors have also reviewed and examined the financial stress testing in the Internal Capital Adequacy and Risk Assessment ('ICARA').
Sensitivity analysis is also performed on certain key assumptions used in preparing the forecast, both individually and combined, in addition to scenario analysis that is performed as part of the ICARA process, which is formally approved by the Board. This analysis demonstrates that even after modelling materially lower levels of assets under management ('AuM') associated with a reasonably plausible downside scenario, the business remains cash generative. The Directors note that the Group has no external borrowings and maintains significant levels of cash reserves.
The Directors confirm that they have a reasonable expectation that the Group and its Parent Company will continue to operate and meet liabilities, as they fall due, up to 3 December 2026. The Directors therefore continue to adopt the going concern basis
of accounting in preparing the Consolidated Financial Statements.
3. Revenue and cost of sales
All revenue is derived from the UK and Ireland.
The Group operates a single business segment of asset management for reporting and control purposes. There are no additional operating segments to disclose.
As Group operations are solely in the UK and Ireland there are no additional geographical segments to disclose.
Cost of sales includes the costs of external Authorised Corporate Directors, Ongoing Charges Figure ('OCF') capping costs, direct research costs and corporate access charges.
Revenue and gross profit recognised in the Consolidated Statement of Comprehensive Income is presented as follows:
|
|
2025 £000 |
2024 £000 |
|
Management fees |
63,366 |
67,015 |
|
Rebates paid to customers |
(2,461) |
(4,476) |
|
Performance fees |
2,314 |
1,129 |
|
Commissions |
- |
3 |
|
Other income |
100 |
370 |
|
Revenue |
63,319 |
64,041 |
|
Cost of sales |
(1,645) |
(2,045) |
|
Gross profit |
61,674 |
61,996 |
4. Administration expenses
Administration expenses for the year totalled £52,714,000 (2024: £51,174,000), these include the following non-recurring items recognised in arriving at operating profit from continuing operations:
|
|
2025 £000 |
2024 £000 |
|
Employment restructuring costs |
1,377 |
- |
|
Acquisition and restructuring costs |
- |
482 |
|
Tellworth acquisition |
462 |
- |
|
Merger related professional fees |
51 |
51 |
|
Total adjusting items |
1,890 |
533 |
Adjusted profit is an APM, the above items are removed from the statutory measures when calculating adjusted profit.
A reconciliation of the adjusted amounts to the IFRS reported amounts is shown in note 9.
Employment restructuring costs relate to the implementation of operational efficiency initiatives announced in the year.
The Tellworth acquisition expense represents a final payment which falls outside the scope of the contingent consideration detailed in note 10 and is subsequently reflected within staff costs in the year.
Acquisition and restructuring costs in the comparative period related primarily corporate finance, due diligence and legal fees associated with acquisitions completed in that year.
5. Operating profit
(a) Operating profit is stated after charging:
|
|
Notes |
2025 £000 |
2024 £000 |
|
Auditor's remuneration |
5(b) |
749 |
752 |
|
Staff costs |
6 |
30,694 |
32,551 |
|
Interest - leases |
|
131 |
86 |
|
Amortisation of intangible assets |
10 |
5,221 |
5,098 |
|
Depreciation - fixed assets |
|
232 |
233 |
|
Depreciation - leases |
|
468 |
514 |
(b) Auditor's remuneration
The remuneration of the auditor is analysed as follows:
|
|
|
2025 £000 |
2024 £000 |
|
Audit of Company |
|
146 |
150 |
|
Audit of subsidiaries |
|
342 |
301 |
|
Total audit |
|
488 |
451 |
|
Audit-related assurance services |
|
206 |
247 |
|
Total audit-related assurance services |
|
206 |
247 |
|
Taxation services |
|
55 |
54 |
|
Total fees |
|
749 |
752 |
6. Staff costs and Directors' remuneration
Staff costs during the year were as follows:
|
|
|
2025 £000 |
2024 £000 |
|
Salaries and bonus |
|
23,885 |
24,748 |
|
Social security costs |
|
3,564 |
3,272 |
|
Share-based payments |
|
2,033 |
3,361 |
|
Other pension costs |
|
1,212 |
1,170 |
|
Total staff costs |
|
30,694 |
32,551 |
The average monthly number of employees of the Group during the year was made up as follows:
|
|
|
2025 Number |
2024 Number |
|
Directors |
|
7 |
7 |
|
Investment management |
|
58 |
56 |
|
Sales and marketing |
|
32 |
31 |
|
Finance and systems |
|
11 |
11 |
|
Legal and compliance |
|
10 |
10 |
|
Administration |
|
39 |
38 |
|
Total employees |
|
157 |
153 |
7. Finance income/(expense)
|
|
|
2025 £000 |
2024 £000 |
|
Interest receivable |
|
650 |
815 |
|
Interest payable |
|
- |
(11) |
|
Net finance income |
|
650 |
804 |
8. Taxation
(a) Tax recognised in the Consolidated Statement of Comprehensive Income
|
|
2025 £000 |
2024 £000 |
|
Current income tax: |
|
|
|
UK corporation tax |
2,002 |
2,184 |
|
Current income tax charge |
2,002 |
2,184 |
|
Adjustments in respect of prior periods |
198 |
(23) |
|
Total current income tax |
2,200 |
2,161 |
|
Deferred tax: |
|
|
|
Origination and reversal of temporary differences |
(1,056) |
(855) |
|
Adjustments in respect of prior periods |
(9) |
(23) |
|
Total deferred tax (income) |
(1,065) |
(878) |
|
Income tax charge reported in the Consolidated Statement of Comprehensive Income |
1,135 |
1,283 |
(b) Reconciliation of the total income tax charge
The tax expense in the Consolidated Statement of Comprehensive Income for the year is higher than the standard rate of corporation tax in the UK of 25% (2024: 25%).
The differences are reconciled below:
|
|
2025 £000 |
2024 £000 |
|
Profit before taxation |
2,356 |
3,167 |
|
Tax calculated at UK standard rate of 25% |
589 |
792 |
|
- Other differences |
5 |
2 |
|
- Share-based payments |
508 |
840 |
|
- Expenses not deductible for tax purposes |
30 |
40 |
|
- Tax relief on vested options |
(186) |
(351) |
|
- Fixed asset differences |
- |
6 |
|
- Adjustments in respect of prior periods |
189 |
(46) |
|
Income tax charge in the Consolidated Statement of Comprehensive Income |
1,135 |
1,283 |
(c) Deferred Tax
The deferred tax included in the Group's Consolidated Statement of Financial Position is as follows:
|
|
2025 £000 |
2024 £000 |
|
Deferred tax asset: |
|
|
|
- Fixed asset temporary differences |
102 |
55 |
|
- Accrued bonuses |
25 |
25 |
|
- Share-based payments |
405 |
676 |
|
Deferred tax disclosed on the Consolidated Statement of Financial Position |
532 |
756 |
|
|
2025 £000 |
2023 £000 |
|
Deferred tax liability: |
|
|
|
- Arising on acquired intangible assets |
1,550 |
2,434 |
|
- Arising on historic business combination |
857 |
1,267 |
|
Deferred tax disclosed on the Consolidated Statement of Financial Position |
2,407 |
3,701 |
|
|
2025 £000 |
2024 £000 |
|
Deferred tax in the Consolidated Statement of Comprehensive Income: |
|
|
|
- Origination and reversal of temporary differences |
(1,056) |
(855) |
|
- Adjustments in respect of prior periods |
(9) |
(23) |
|
Deferred tax (income) |
(1,065) |
(878) |
All movements in deferred tax balances relate to profit and loss.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deferred tax assets can be utilised.
Deferred tax assets have not been recognised in respect of the following items listed below because they relate to historic losses with it being unlikely that future taxable profits will arise to offset against.
|
|
2025 £000 |
2024 £000 |
|
Unprovided deferred tax asset: |
|
|
|
- Non-trade loan relationship losses |
2,594 |
2,563 |
|
- Excess management expenses |
67 |
67 |
|
- Non-trade intangible fixed asset losses |
467 |
525 |
|
Unprovided deferred tax asset |
3,128 |
3,155 |
9. Earnings per share
Basic earnings per share is calculated by dividing the profit for the year attributable to ordinary equity shareholders of the Parent Company by the weighted average number of ordinary shares outstanding at the year end.
The weighted average of issued ordinary share capital of the Company is reduced by the weighted average number of shares held by the Group's EBTs. Dividend waivers are in place over shares held in the Group's EBTs.
In calculating diluted earnings per share, IAS 33 'Earnings Per Share' requires that the profit is divided by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares during the period arising from the Group's share option schemes.
(a) Reported earnings per share
Reported basic and diluted earnings per share has been calculated as follows:
|
|
2025 £000 |
2024 £000 |
|
Profit attributable to ordinary equity shareholders of the Parent Company for basic earnings |
1,221 |
1,884 |
|
|
2025 Number 000 |
2024 Number 000 |
|
Issued ordinary shares at 1 October |
162,081 |
157,913 |
|
- Effect of own shares held by an EBT |
(6,220) |
(8,865) |
|
- Effect of shares issued |
674 |
2,778 |
|
Weighted average shares in issue |
156,535 |
151,826 |
|
- Effect of movement in share options |
4,813 |
6,951 |
|
Weighted average shares in issue - diluted |
161,348 |
158,777 |
|
Basic earnings per share (pence) |
0.78 |
1.24 |
|
Diluted earnings per share (pence) |
0.76 |
1.19 |
(b) Adjusted earnings per share
Adjusted earnings per share is based on adjusted profit after tax, where adjusted profit is stated after charging interest but before amortisation, share-based payments and non-recurring items.
Adjusted profit for calculating adjusted earnings per share:
|
|
2025 £000 |
2024 £000 |
|
Profit before taxation |
2,356 |
3,167 |
|
Add back: |
|
|
|
- Share-based payments |
2,033 |
3,361 |
|
- Amortisation of intangible assets |
5,221 |
5,098 |
|
- Non-recurring items |
1,890 |
533 |
|
Adjusted profit before tax |
11,500 |
12,159 |
|
Taxation: |
|
|
|
- Tax in the Consolidated Statement of Comprehensive Income |
(1,135) |
(1,283) |
|
- Tax effects of adjustments |
(1,732) |
(1,277) |
|
Adjusted profit after tax for the calculation of adjusted earnings per share |
8,633 |
9,599 |
Adjusted earnings per share was as follows using the number of shares calculated at note 9(a):
|
|
2025 Pence |
2024 pence |
|
Adjusted earnings per share |
5.52 |
6.32 |
|
Diluted adjusted earnings per share |
5.35 |
6.05 |
10. Goodwill and other intangible assets
Cost amortisation and net book value of intangible assets are as follows:
|
2025 |
Goodwill £000 |
Other £000 |
Total £000 |
|
|
|
|
|
|
Cost: |
|
|
|
|
At 1 October 2024 |
81,325 |
83,547 |
164,872 |
|
Additions |
1,038 |
- |
1,038 |
|
30 September 2025 |
82,363 |
83,547 |
165,910 |
|
|
|
|
|
|
Amortisation and impairment: |
|
|
|
|
At 1 October 2024 |
7,239 |
68,468 |
75,707 |
|
Amortisation during the year |
- |
5,221 |
5,221 |
|
At 30 September 2025 |
7,239 |
73,689 |
80,928 |
|
|
|
|
|
|
Carrying amount: |
|
|
|
|
At 30 September 2025 |
75,124 |
9,858 |
84,982 |
|
At 30 September 2024 |
74,086 |
15,079 |
89,165 |
|
2024 |
Goodwill £000 |
Other £000 |
Total £000 |
|
|
|
|
|
|
Cost: |
|
|
|
|
At 1 October 2023 |
77,927 |
81,025 |
158,952 |
|
Additions |
3,398 |
2,522 |
5,920 |
|
30 September 2024 |
81,325 |
83,547 |
164,872 |
|
|
|
|
|
|
Amortisation and impairment: |
|
|
|
|
At 1 October 2023 |
7,239 |
63,370 |
70,609 |
|
Amortisation during the year |
- |
5,098 |
5,098 |
|
At 30 September 2024 |
7,239 |
68,468 |
75,707 |
|
|
|
|
|
|
Carrying amount: |
|
|
|
|
At 30 September 2024 |
74,086 |
15,079 |
89,165 |
|
At 30 September 2023 |
70,688 |
17,655 |
88,343 |
The addition to goodwill in the year relates to the contingent consideration paid upon the anniversary of the acquisition of Tellworth Investments LLP ('Tellworth').
This additional consideration payable reflected AuM growth between completion and the first anniversary of completion.
In the comparative year, the additions to goodwill and intangible assets related primarily to the acquisition of Tellworth. On the acquisition date, 30 January 2024, the consideration and net assets acquired from Tellworth were as follows:
|
Fair value of consideration for Tellworth in the comparative year |
£000 |
|
- Equity instruments (4,167,532 shares issued on completion) |
2,640 |
|
- Cash on completion |
3,079 |
|
- Contingent consideration |
755 |
|
Fair value of total consideration |
6,474 |
|
- Intangible assets |
2,221 |
|
- Deferred tax liability on intangible assets acquired |
(555) |
|
- Cash and cash equivalents |
1,412 |
|
- Property, plant and equipment |
10 |
|
- Trade and other receivables |
1,715 |
|
- Trade and other payables |
(1,727) |
|
Net assets acquired |
3,076 |
|
Goodwill |
3,398 |
The fair value of the equity consideration was calculated by reference to the number of shares issued and the ten-day volume-weighted average price prior to the acquisition date.
Intangible assets acquired relate to the investment management agreements between Tellworth and the funds to which Tellworth was the investment manager and the value arising from the underlying client relationships.
Goodwill arising on the acquisition was mainly attributable to the skills and technical talent of Tellworth's workforce, the differentiation of their funds, and the expected cash flows from new customers.
Impairment tests for goodwill
The Group operates a single CGU for the purposes of assessing the carrying value of goodwill. This reflects one operating platform, into which acquired businesses are fully integrated and from which acquisition-related synergies are expected to be realised.
The value of the Group's net assets attributable to shareholders as at 30 September 2025 of £112.5 million were higher than the Group's market capitalisation of £102.1 million. This was considered to be an indicator of impairment of the Company's investments in subsidiaries.
A full impairment review was undertaken whereby the recoverable amount was calculated using the value-in-use ('ViU') based on a five-year forecast period from 2026-2030. AuM levels were determined by assuming net flows, per fund, over this five-year period based on two key metrics - demand for the fund (past and present) and its investment performance against its sector. The Group believes these two factors are key when making assumptions about the growth of AuM in the future, and hence expected future cash flows.
Net revenue margins per fund have been assumed at current levels, unless sufficient reasons exist to deviate (for example share class consolidation). Increases in operating costs have been considered and include assumed new business volumes. No allowance has been made for performance fees or any acquired levels of AuM.
Cash flows beyond the explicit forecast period are extrapolated using a long-term terminal growth rate, see the following table.
To arrive at the net present value, cash flows were discounted using a discount rate determined by the capital asset pricing model (post-tax). The Group engaged valuation specialists in determining the inputs to the discount rate, including current assessments of comparative betas, risk-free rates and the equity market risk premium.
The increase in the discount rate shown below is due to the increase in the long-term risk-free rate. Using a post-tax rate does not produce a materially different outcome to a pre-tax rate.
The ViU calculated was greater than the carrying value and hence no impairment was recognised. As noted above, the most material assumptions used in determining this conclusion were the discount rate and AuM levels over the forecast period.
As an additional consideration the Group compared its ViU amount and net assets to market multiples within the UK asset management sector, to ensure consistency with current market valuations and no obvious impairment indicators existed.
|
|
2025 |
2024 |
|
Goodwill |
£75.1m |
£74.1m |
|
Discount rate (post-tax) |
14.5% |
14.0% |
|
Discount rate (pre-tax) |
17.7% |
16.8% |
|
Market risk premium |
5.0% |
5.0% |
|
Long-term risk-free rate |
5.6% |
4.4% |
|
Compound Annual AuM growth rate (5-year) * |
7.8% |
9.4% |
|
Terminal growth rate |
1.9% |
1.9% |
* Represents a combination of market beta, alpha and fund inflows into the Group's product suite.
Sensitivity analysis was performed to reduce the headroom to zero such that an impairment of goodwill would be considered. In one scenario the discount rate (post-tax) was increased and in another the Group's AuM levels were decreased, shown in the table below. The Group's fixed cost base during this five-year period remained unchanged.
|
Change required to reduce headroom to zero, without management actions |
% |
|
Increase in discount rate to: |
23 |
|
Reduction in the CAGR over the entire five year period to: |
0 |
The base case annual growth rate for AuM is assumed at 7.8% over the forecast period and would need to remain at or below 0% per annum over the entire five-year period before any impairment might be considered (without changing fixed costs).
Management have concluded no reasonable change in assumptions would trigger an impairment to goodwill.
Other intangible assets
The Group's other intangible assets comprise of investment management agreements ('IMAs') purchased by the Group.
The carrying amount relates primarily to two historic transactions, the largest being the merger with Miton Group plc with a carrying value of £3,975,478 and a remaining amortisation period of one year (2024: £7,515,684). In addition to the Tellworth intangible asset noted above, the remaining balance relates to a transaction completed in 2007 to acquire IMAs which now have a carrying value of £3,958,320 and a remaining amortisation period of three years (2024: £5,278,969).
The determination of useful lives, and hence amortisation period, used for other intangible assets requires an assessment of the length of time the Group expects to derive benefits from the asset.
This depends on a number of factors, the most significant being the duration of customer investment timeframes and the type of underlying fund (for example the asset classes specified by the fund's investment objectives will give insight into its usual life).
An assessment is performed at each reporting period for each intangible asset for indicators of impairment. There are two core metrics used in this assessment - the first being the comparison of AuM levels at the period end with those included in the original intangible asset valuation and the second being the investment performance of each individual fund against its comparable peers and benchmarks. In addition, both internal and external factors affecting the funds are considered such as current net margin, potential regulatory changes and future demand for its asset class.
For each intangible asset mentioned above, if required, further analysis is performed on the estimated aggregate cash flows generated by each fund management team. These estimated cash flows are modelled on the current level of AuM for the funds managed by each team and are compared against the original basis used to value the intangible at acquisition date, along with the remaining amortisation period.
No indicators of impairment were noted when analysing at a fund management team level.
Notably, the largest other intangible asset has only one year left of its amortisation period, resulting in the carrying amount being 16% of its original value on inception.
The long-term investment performance for all investment teams was also assessed.
11. Trade and other receivables
|
Current |
2025 £000 |
2024 £000 |
|
Due from trustees/investors for open end fund redemptions/sales |
92,165 |
84,516 |
|
Other trade debtors |
1,673 |
596 |
|
Fees receivable |
4,536 |
6,145 |
|
Prepayments |
2,790 |
2,796 |
|
Other receivables |
1,742 |
1,438 |
|
Total trade and other receivables |
102,906 |
95,491 |
|
|
|
|
|
Non-current |
|
|
|
Other receivables |
383 |
204 |
Trade and other receivables are all classified as current. They are considered past due once they have passed their contracted due date.
Non-current other receivables represent deferred compensation awards with maturities greater than 12 months after the Consolidated Statement of Financial Position date. Deferred compensation awards are released in accordance with the employment period to which they relate.
12. Cash and cash equivalents
|
|
2025 £000 |
2024 £000 |
|
Cash at bank and in hand |
31,102 |
35,882 |
|
Cash held in EBTs |
177 |
30 |
|
Total cash and cash equivalents |
31,279 |
35,912 |
13. Trade and other payables
|
|
2025 £000 |
2024 £000 |
|
Due to trustees/investors for open end fund creations/redemptions |
92,165 |
84,439 |
|
Other trade payables |
2,538 |
921 |
|
Other tax and social security payable |
1,603 |
1,761 |
|
Accruals |
7,483 |
8,842 |
|
Pension contributions |
138 |
127 |
|
Corporation tax |
621 |
258 |
|
Other payables |
708 |
2,582 |
|
Total trade and other payables |
105,256 |
98,930 |
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
Accruals include amounts for variable remuneration of £5.5 million (2024: £6.6 million).
Other payables relate predominantly to amounts due to outsourced providers for administrative services provided to the Group's funds, the comparative period also included £755,208 of contingent consideration for the Tellworth acquisition.
14. Provisions
|
|
2025 £000 |
2024 £000 |
|
At 1 October |
374 |
374 |
|
Movement in the year |
- |
- |
|
At 30 September |
374 |
374 |
|
Current |
- |
- |
|
Non-current |
374 |
374 |
|
|
374 |
374 |
Provisions relate to dilapidations for the offices at 6th Floor, Paternoster House, London, the lease on this property runs to 28 November 2028 and the provision for dilapidations on this office has been disclosed as non-current. This provision is based on prices quoted at the time of the lease being taken on.
15. Share capital
|
2025 allotted, called up and fully paid: Number of shares |
Ordinary shares 0.02 pence each Number |
Deferred shares Number |
|
At 1 October 2024 |
162,080,567 |
1 |
|
Issued |
1,205,392 |
- |
|
At 30 September 2025 |
163,285,959 |
1 |
|
2024 allotted, called up and fully paid: Number of shares |
Ordinary shares 0.02 pence each Number |
Deferred shares Number |
|
At 1 October 2023 |
157,913,035 |
1 |
|
Movement in the year |
4,167,532 |
- |
|
At 30 September 2024 |
162,080,567 |
1 |
|
2025 allotted, called up and fully paid: Value of shares |
Ordinary shares 0.02 pence each £000 |
Deferred |
Total shares |
|
At 1 October 2024 |
32 |
29 |
61 |
|
Movement in the year |
- |
- |
- |
|
At 30 September 2025 |
32 |
29 |
61 |
|
2024 allotted, called up and fully paid: Value of shares |
Ordinary shares 0.02 pence each £000 |
Deferred |
Total shares |
|
At 1 October 2023 |
31 |
29 |
60 |
|
Movement in the year |
1 |
- |
1 |
|
At 30 September 2024 |
32 |
29 |
61 |
Following the first anniversary of the completion of the acquisition of Tellworth, the Company issued 1,205,392 new ordinary shares of 0.02 pence on 14 March 2025 each ranked pari passu in all respects with the Company's existing shares in issue.
The fair value of the shares issued over their nominal value of 0.02 pence per share has been reflected as share premium in the Consolidated Statement of Changes in Equity and the Consolidated Statement of Financial Position.
The deferred share carries no voting rights and no right to receive a dividend.
16. Share-based payments
The total charge to the Consolidated Statement of Comprehensive Income for share-based payments in respect of employee services received during the year to 30 September 2025 was £2,033,003 (2024: £3,360,560), of which £1,353,602 related to nil cost contingent share rights (2024: £2,644,244).
17. Dividends declared and paid
|
|
2025 £000 |
2024 £000 |
|
Equity dividends on ordinary shares: |
|
|
|
- Interim dividend: 3.0 (2024: interim 3.0) pence per share |
4,727 |
4,640 |
|
- Final dividend for 2024: 3.0 (2023 final 3.0) pence per share |
4,648 |
4,413 |
|
Dividends paid |
9,375 |
9,053 |
The Directors recommend a final dividend of 3.0p per share (2024: 3.0p) payable on 13 February 2026 to shareholders on the register as at 16 January 2026.
18. Reconciliation of net cash from operating activities
This note should be read in conjunction with the cash flow statement. It provides a reconciliation to show how profit before tax, which is based on accounting rules, translates to cash flows.
|
|
Notes |
2025 £000 |
2024 £000 |
|
Profit for the year |
|
1,221 |
1,884 |
|
Adjustments to reconcile profit to net cash flow from operating activities: |
|
|
|
|
- Tax on continuing operations |
8 |
1,135 |
1,283 |
|
- Finance (income) |
7 |
(650) |
(804) |
|
- Interest payable on leases |
|
131 |
86 |
|
- Depreciation - fixed assets |
|
232 |
233 |
|
- Depreciation - leases |
|
468 |
514 |
|
- Loss/(gain) on revaluation of financial assets at FVTPL |
|
19 |
(37) |
|
- Loss on disposal of property and equipment |
|
6 |
- |
|
- Amortisation of intangible assets |
10 |
5,221 |
5,098 |
|
- Share-based payments |
16 |
2,033 |
3,361 |
|
Working capital changes: |
|
|
|
|
- (Increase)/decrease in trade and other receivables |
|
(8,797) |
29,294 |
|
- Increase/(decrease) in trade and other payables |
|
7,807 |
(32,363) |
|
Cash generated from operations |
|
8,826 |
8,549 |
|
Tax paid |
|
(1,885) |
(604) |
|
Net cash flow from operating activities |
|
6,941 |
7,945 |
19. Contingent liabilities
There were no contingent liabilities as at 30 September 2025 (2024: contingent consideration for the acquisition of Tellworth).
20. Subsequent events
At 3 December 2025 there were no subsequent events impacting the Group or Parent Company.
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