LONDON (dpa-AFX) - Asset management company, Schroders plc (SDRC.L) reported that its profit before tax for the year ended 31 December 2018 declined 15% to 649.9 million pounds from 760.2 million pounds last year.
Profit before tax and exceptional items decreased 5% to 761.2 million pounds from 800.3 million pounds in the prior year, as the accounting benefit in 2017 of the treatment of deferred compensation partially reversed through 2018 and performance fees were lower than the unusually high levels generated in the prior year.
Profit after tax was 504.7 million pounds or 179.7 pence per share down from 594.4 million pounds or 211.0 pence per share last year.
Net income before exceptional items rose 3% to 2.12 billion pounds from 2.07 billion pounds in the prior year, with growth in Private Assets and Alternatives the largest contributor.
The Board will recommend to shareholders at the Annual General Meeting a final dividend of 79.0 pence (2017: 79.0 pence), which is unchanged from 2017. This will bring the total dividend for the year to 114.0 pence (2017: 113.0 pence), an increase of 1 pence. The final dividend will be paid on 9 May 2019 to shareholders on the register at 29 March 2019.
Separately, Schroders announced the appointment of two new Directors, Deborah Waterhouse and Leonie Schroder, effective 11 March 2019.
Deborah Waterhouse, Chief Executive of ViiV Healthcare, will join the Board as an Independent Non-executive Director and Leonie Schroder will join the Board as a Non-independent Non-executive Director. Ms Waterhouse and Ms Schroder will join the Nominations Committee.
Robin Buchanan will retire at the conclusion of the Annual General Meeting on 2 May 2019, having served nine years on the Board.
Bruno Schroder, who died on 20 February 2019, was anticipating retiring from the Board at the Annual General Meeting on 2 May 2019. Consequently, the Nominations Committee gave consideration in 2018 to his succession, consulting with the trustees of the family trusts and other members of the principal shareholder group.
Following those consultations, the Committee received from the trustees of the family trusts a proposal that Leonie Schroder was their preferred candidate to succeed Bruno Schroder on the Board. After careful consideration, the Nominations Committee decided to recommend to the Board her appointment as a Director.
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