Schroders PLC on Thursday set out ‘a clear plan to return to profitable growth’ with ‘ambitious’ three-year targets, as it reported positive 2024 results.
It shares responded positively. They were up 7.2% to 407.60 pence in London late Thursday morning, the top FTSE 100 gainer. By contrast, the index itself was down 0.9%.
Schroders is a London-based wealth and asset manager. It reported pretax profit of £558.1 million in 2024, up 14% from £487.6 million in 2023.
Basic earnings per share grew by 7.3% to 26.4 pence from 24.6p, but Schroders decided to leave its final dividend unchanged at 15.0p. This also means its full-year payout remains at 21.5p.
Schroders said it intends to keep its dividend at its current level until its payout ratio comes back toward 50% of earnings.
Assets under management on December 31 were £778.7 billion, up 3.7% from £750.6 billion a year before.
Gross client inflows were £129.7 billion in 2024, up from £126.1 billion in 2023, but Schroders still suffered a total net outflow excluding joint ventures and associates of £10.8 billion last year.
Markets, currency movement, and investment performance was a positive £27.8 billion, however, and acquisitions contributed another £2.4 billion, more than offsetting the net outflow.
Schroders said its 2024 results were ahead of expectations. Looking ahead to 2025, the company said it has generated £17.5 billion in gross inflows so far in the year, and it will add another £5.2 billion via a sustainable equity mandate from wealth manager St James’s Place PLC in the second quarter
Looking further ahead to the next three years, Schroders said it aims for £150 million in annualised net cost savings, £20 million of which have been achieved already in the first quarter of 2025.
It aims to stabilise revenue in its Public Markets business, while generating cumulative net new business in Schroders Capital of £20 billion. In Wealth Management, Schroders aims for a net new business rate of 5% to 7% of opening assets under management per annum.
‘We will re-focus on our considerable areas of strength and have a firm grip on our challenges,’ said Chief Executive Richard Oldfield. ‘Our transformation
plan is underway, and will benefit not just our shareholders, but also our people and, most importantly, our clients. We have a strong balance sheet and will deploy our resources and capital rigorously.’
Separately, Schoders said Ian King will step down as senior independent director at the company’s annual general meeting on May 1, but he will remain on the board as a non-executive director. Iain Mackay will step up to senior independent director at the same time. Mackay joined the Schroders board in January last year.
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