Schroders outlines new three-year strategy, FY24 profits down

(Sharecast News) - Asset manager Schroders detailed its new three-year strategy alongside its FY24 earnings on Thursday as it stated it would now look to draw in new business and curtail rising costs. Schroders said it will look to deliver £150.0m of annualised net cost savings over the next three years and claims it has already delivered £20.0m worth of savings in Q124.

The FTSE 100-listed group will also look to stabilise revenues in public markets, generate cumulative net new business of £20.0bn in Schroders Capital, and achieve a net new business rate in its Wealth Management arm of 5-7% of opening assets under management per year. Schroders said this will reduce its adjusted cost:income ratio from 75% to less than 70%.

Schroders also revealed profits had fallen 3% in FY24 to £640.5m due to higher operating expenses, lower performance fees and reduced returns from joint ventures and associates.

Assets under management ticked up 4% to £778.8bn, while net operating revenues, excluding performance fees and net carried interest, were up 2% at £2.29bn. Statuatroy pre-tax profits were 14% stronger at £558.1m.

Chief executive Richard Oldfield said: "We will re-focus on our considerable areas of strength and have a firm grip on our challenges. Our transformation plan is underway, and will benefit not just our shareholders, but also our people and, most importantly, our clients. We have a strong balance sheet and will deploy our resources and capital rigorously."

As of 0920 GMT, Schroders shares were up 2.61% at 761.60p.

Reporting by Iain Gilbert at Sharecast.com