Emerging markets specialist Ashmore Group (LSE:ASHM) PLC attempted to divert attention away from declining assets under management (AuM) and profits in today’s earnings call by offering a positive spin on future projections.
Though revenues declined 24% to £195.4 million year on year, with AuM falling 23% below the prior year’s average, chief executive Mark Coombs suggested that the negative cycle may be coming to an end.
“While the group's financial performance naturally lags this pick-up in markets and relative performance, as has been experienced after previous down cycles, the consistent strategy underpins Ashmore's medium-term growth potential and the business model is designed to mitigate the impact of market volatility,” said Coombs.
He continued: "There is mounting evidence that the negative cycle has turned and, while the recovery may not be a straight line, it is well-supported by improving fundamentals across the larger emerging countries."
That being said, analysts at Peel Hunt said there was “little to suggest any upwards momentum at this point”, noting that underlying earnings, which fell 35% to £106.2 million for the year, are expected to fall below £100 million in 2024.
On the bright side, Peel Hunt was upbeat on Ashmore’s three-year investment performance, with 69% of AuM outperforming the market on a three-year basis.
Diluted earnings per share in the financial year came to 12.2 pence, 4% lower than in the prior year.
Ashmore shares knocked 0.9% higher following the earnings call, though the group remains over 20% lower year to date.