Old Mutual banks £148m profit from Quilter IPO

South African company Old Mutual has seen its profits go up by 42% as a result of the sale of its stake in its British wealth division.

The results, the first since the insurer spun out Quilter – headed by Paul Feeney (pictured) – on 25 June, showed that post-tax profit rose by 42% to South African rand 10.6bn (£550m).

One of the reasons for this was because of the effects of the sale and distribution of shares in Quilter.

Old Mutual offered 9.6% of shares in the Quilter IPO as part of its managed separation.

In it results, the insurer said the share sale generated R2.85bn (£148m) in profit for the business.

Peter Moyo, chief executive of Old Mutual, said in a statement: “With our debut results as Old Mutual Limited, I am pleased to report that we are on track to deliver on the commitments we have made to investors.

“There is renewed momentum and excitement in the group following our listing and this is captured in our new, vibrant branding launched recently. Whilst we continue to see economic headwinds in the near term, our group is resilient and we are on track with our financial targets.”

Old Mutual also declared a special dividend of 100 cents per share on top of an interim dividend of 45 cents per share. This resulted in a total of R7.1bnn paid out to shareholders.

ABOUT THE AUTHOR
Pedro Gonçalves
Pedro Gonçalves is Financial Correspondent at International Investment.

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