Schroders Share Prices Surge After Strong Profit Report

Schroders shares rise 6% as company reports increased profit and AUM. With strong earnings and a clear growth plan, investor sentiment appears positive.

Date: 06-03-2025

AI Rating: 7

Schroders Plc reported a **14% increase in profit before tax**, reaching 558.1 million pounds, compared to last year’s 487.6 million pounds. The **Basic Earnings Per Share (EPS)** rose to 26.4 pence, an increase of 7% from 24.6 pence a year ago, indicating strong performance in profitability. However, the **Operating Profit** saw a decline of 3%, down to 640.5 million pounds from 661.0 million pounds the prior year. The **Net Operating Revenue**, excluding performance fees and carried interest, rose by 2% to 2.29 billion pounds, driven by positive contributions from Wealth Management and Schroders Capital. Additionally, the **Assets Under Management (AUM)** grew by 4% to 778.7 billion pounds from 750.6 billion pounds, showcasing robust asset performance. Furthermore, the company’s strategy includes a commitment to achieving 150 million pounds in annualized net cost savings and stabilizing revenues, which should positively influence future revenue growth. Given these factors, while the drop in operating profit may be concerning, the overall growth in profit and EPS aligns with a positive outlook for the company. However, board changes such as Deborah Waterhouse not seeking re-election may result in investor scrutiny.

Stocks: SDR.L