M&G (MNG) Shares Edged 4.3% on the Positive Half-Year Results

The M&G PLC (LON: MNG) share price edged 4.25% after the global investment manager reported its half-year results, which were better than expected. The company reported positive net client flows, excluding Heritage, of £0.7 billion, marking a decline from the £1.2 billion recorded in H1 2022.

The investment manager pointed out known headwinds from UK institutional clients, affecting net client flows. The company registered gross inflows into PruFund UK of £3.3 billion, marking a sharp increase from the £2.5 billion recorded in H1 2022, the highest level since 2019.

The company also highlighted the launch of all RpuFund solutions on the M&G WEalth Platform, which should support further reach on propositions and drive more client flows in H2 and beyond.  

M&G reported adjusted operating profit before tax of £390 million, marking a 31% increase from the £298 million recorded in the half year ended on 30 June 2022. The company attributed its positive performance to the strength of its diversified businesses. 

The investment management firm also reported an IFRS profit before tax of £75 million, significantly improving from the IFRS loss before tax of £1,143 million recorded in H1 2022. The company attributed the improvement to reduced losses from short-term fluctuations in investment returns. 

M&G generated operating capital worth £505 million, representing a 17% improvement from the 30 June 2022 figure of £433 million. The company attributed the higher figures to a robust underlying contribution of £352 million vs. £386 million in H1 2022 and management actions.

Andrea Rossi, M&G’s Group CEO, said: “Today's results demonstrate the underlying strength of our business model, the resilience of our balance sheet, the attractiveness of our propositions, as well as the hard work and commitment of our colleagues to deliver for our clients and execute on our strategic ambitions. Against the backdrop of ongoing market volatility and uncertainty, we have made progress against all three pillars of the strategy that we launched in March – maintaining our financial strength through capital discipline, mobilising the Transformation programme to simplify our business and improve client outcomes, and delivering growth with positive net client inflows.”

M&G (MNG) share price. 

The M&G (MNG) share price edged 4.25% higher to trade at 208.5p, from Tuesday’s closing price of 200.0p.