M&G PLC (LON:MNG) shares dipped on Tuesday as the group delivered a mixed set of results for its first year as an independent business and warned of “pressures on profitability” from the coronavirus.
The investment manager, which was spun out from the UK’s largest insurer Prudential PLC (LON:PRU) in October last year, reported that adjusted operating profit before tax had fallen to £1.15bn in 2019 from £1.62bn in the prior year, while assets under management increased to £352bn from £321bn.
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M&G also warned that the outbreak of coronavirus across the world presented “significant uncertainty” and that further market turbulence could impact its capital strength.
However, the company attempted to reassure investors by saying its balance sheet was “resilient” and its shareholder solvency coverage ratio was estimated at around 166%, firmly within its risk appetite.
"We have made a good start to life as an independent business and we are strongly positioned for growth. Our diversified investment capabilities, coupled with our client relationships in 28 markets, mean we are well positioned to meet the growing global demand for savings and investment solutions, supported by favourable long-term economic and social trends that offer growth opportunities for many years to come”, said chief executive John Foley.
The market seemed slightly less optimistic as the shares dipped 0.4% to 171.8p in early deals.