M&G PLC (LSE:MNG) reported a net client outflow for the first half of this year as it ramped up cost-saving and operating capital targets.
A £1.5 billion net outflow was recorded during the six months to June, excluding its largely closed Heritage business, against a £0.7 billion inflow over the first half of last year.
Adjusted operating profit also took a knock, dipping 3.8% to £375 million, with chief executive Andrea Rossi highlighting this followed “excellent results” last year.
“We have materially improved the financial strength of the business,” he added, pointing to an improved shareholder solvency ratio from 203% to 210% since the end of 2023 and a £461 million reduction in debt on last year to £2.9 billion.
M&G unveiled a higher cost-saving target of £220 million by 2025, against £200 million previously, and said it was now aiming for operating capital generation of £2.7 billion rather than £2.5 billion come the end of this year.
Leverage wound down from 35% to 32% between December and June, M&G added, ahead of targets to take the figure below the 30% mark this year.
“Against the backdrop of a challenging market environment in the first half of the year, we have delivered another resilient financial performance,” Rossi said.
“We have made considerable progress across all of our financial targets.”
A 6.6p per share dividend was declared for the first half of the year, against 6.5p previously.
Shares fell 2.6% following the report.