The share price of the FTSE 100-listed M&G PLC (GB:MNG) gained around 1.35% yesterday after the company reported an upbeat half-yearly earnings report for FY23. The results depicted the resilient performance and strength of the company’s diversified business portfolio as it returned to profits, which were higher than analysts’ expectations. In terms of outlook, the company continues to progress steadily toward its goal of generating £2.5 billion in operating capital by 2024.
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The M&G share price saw an approximately 4% increase in yesterday’s trading session and closed the day with a final gain of 1.35%. Year-to-date, the shares have experienced a growth of almost 15% in trading.
While the company delivered a favourable operational performance, its dividend remains the primary attraction. The company announced an interim dividend of 6.5p per share, registering a growth of 5% over last year. The company’s dividend yield of around 10% places it among the top dividend-paying companies in the UK market.
M&G functions as an investment management firm, offering a diverse range of solutions tailored to meet long-term savings, investment, and asset management requirements.
Half-Year Results 2023: Strong Operational Performance
The company posted a 31% growth in its adjusted pre-tax operating profits of £390 million, compared to £298 million recorded in the same period the previous year. Profits surpassed analysts’ expectations by around £100 million. The IFRS pre-tax profits stood at £75 million, which was a turnaround from the loss of £1,143 million a year ago.
Excluding Heritage, net client inflows were £700 million, down from £1.2 billion in H1 2022. That said, net inflows have remained positive for the third consecutive year, despite challenges stemming from UK institutional clients.
By the end of the first half, the company’s assets under management and administration fell to £332.8 billion from £342 billion as of December 31, 2022. This reflects the current condition of the broader asset management industry in the UK, which has been influenced by increasing interest rates and market turbulence, leading to a decline in investor confidence.
Are MNG Shares a Good Buy?
According to TipRanks, MNG stock has received a Hold rating based on two Buy, two Hold, and two Sell recommendations from analysts. The M&G share price prediction is 217.1p, which is 7% above the current trading levels.
With the impressive H1 results, it is anticipated that analyst ratings may experience an uptick.
