By Tom Burroughes
LONDON (Reuters) - Anglo-U.S. fund company Amvescap
The company, which had experienced months of client outflows after a damaging financial scandal over two years ago, recorded a net inflow of $2.3 billion (1.2 billion pounds) in the second quarter, continuing the gains of the first quarter.
"The concerns that people had had about the first quarter (net inflows) was whether they were sustainable. There is continued momentum in the turnaround story," an analyst for a U.S. bank said.
For the first six months of the year, clients put a net $3.8 billion of money into the company’s funds.
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Shares in Amvescap were up 5.5 percent at 529-1/2 pence at
1 p.m., outpacing sector peers such as Man Group
Estimates on the company’s 2007 results are likely to rise after the numbers, Carolyn Dorrett, analyst at Citigroup, said in a note. "We remain buyers of Amvescap on a 12-month view," she said.
PROFITS UP
Pre-tax profits rose to $184.2 million in the three months to the end of June, up from 111.6 million pounds a year before. For the first six months, pre-tax profits were $355.9 million.
Earnings per share, on a diluted basis, were 15 cents in the second quarter and 28 cents in the first half of the year - at the high end of analysts’ forecasts, Citigroup’s Dorrett said.
Amvescap, which runs the AIM and Invesco fund brands, said its assets under management rose to $413.8 billion from $410.9 billion at the end of March.
The company gave its results after it earlier this week acquired the U.S. buyout firm WL Ross & Co. LLC, a move it had said would will boost earnings immediately.
The purchase is among a series of deals carried out since chief executive officer Martin Flanagan was hired to the post last year.
Amvescap said it earned net revenues of $588.1 million, up from $547.8 million a year ago. Over six months, net revenues reached $1.72 billion.
Net operating margins for the six months rose to 32.3 percent up from 24.2 percent a year ago, Amvescap said.
Since last year, Amvescap has moved to state its earnings figures in U.S. dollars and issue asset numbers on a monthly basis.
The company said its net debt stood at $810 million at the end of June, down from $861.1 billion at the end of March.
