Woodford profits leap by 212%

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Woodford Investment Management has tripled its profits to £35.4m, in the year up to March 2016, up on the £11.4m posted at the same point last year, according to company’s latest accounts.

Profits of more than £11m were allocated between the firm’s founders star fund manager Neil Woodford, pictured above, and its chief executive Craig Newman. Of this £11m in profit, Woodford took £7.2m, compared to last year’s £654,601 figure.

Newman received the additional £3.8m as dividends as part of the company’s asset allocation arrangement split between the pair.

As reported, back in April, Woodford Investment Management scrapped bonuses for the firm’s 35 staff, including both directors working at the company.

Instead of the traditional salary plus bonuses combination, Woodford’s CEO Newman said that the firm had decided to set salaries at a higher level, citing extensive researching pointing that bonuses have “little correlation with performance”.

Assets rise to £14.4bn

The figures for the last financial year, which come from a statement on Companies House published on Tuesday, also show assets under management rose to £14.4bn, from the £10.2bn reported in 2015.

Operating expenses for the firm also jumped from £21.7m from £14.8m.

Woodford currently manages two funds, the flagship £9.3bn Equity Income offering, and its £733m Patient Capital trust. Despite a series of setbacks this year for both funds, particular in the pharmaceutical stocks, Woodford has steadied the ship and

Earlier this year, as reported, international investors were able to directly access Woodford’s flagship fund via an offshore ‘feeder’ version launched for the international marketplace.

Craig Newman, CEO, Woodford IM

In an exclusive Big Interview in the November edition of International Investment Newman, pictured left, revealed the company’s vision for 2017 including the prospects of further fund launches.

The company revealed in the summer, as reported, that it was considering the launch of a higher income fund, which would not be limited to investing in UK-listed companies. Although Newman said that any fund launches would be rolled out until the time was right.

In the Big Interview he said: “We are continually evaluating our options, but as we said at launch (and since) we will not be launching a fund for product’s sake. It is about finding the right opportunity. Our plan is to build a large-scale asset management business.”

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Gary Robinson

Commercial Director, Head of Video at International Investment.