Why Old Mutual Is Up 27% This Year

LONDON -- Old Mutual (LSE: OML.L  ) has advanced 27% to 179 pence so far during 2012, making the share one of this year's best performers in the FTSE 100.

The company, a leading international long-term savings and investment group, seems to have impressed investors with a series of promising statements.

During March, Old Mutual published its preliminary results for the year to Dec. 31. Adjusted pre-tax operating profits rallied 14% to 1.5 billion pounds, adjusted earnings per share gained 13% to 15.7 pence, and the ordinary dividend improved 25% to 5 pence per share.

During May, an interim management statement for the three months to March 31 revealed that funds under management within Old Mutual's core operations had advanced 6% to 284 billion pounds. Old Mutual also said the sale of its Nordic business for 2.1 billion pounds had been completed, which led to approximately 1 billion pounds being returned to shareholders via a special dividend of 18 pence per share.

Then, in August, Old Mutual published its interim results for the six months to June 30. Adjusted pre-tax profits were up 12% to 791 million pounds, while the interim dividend was raised by 17% to 1.75 pence per share. The group also confirmed that its cost-reduction targets had been met and debt of 603 million pounds had been repaid so far in 2012.

Julian Roberts, Old Mutual's chief executive, commented:

Against a backdrop of sustained low growth and falling interest rates we continue to deliver good strategic and operational progress. We are expanding in attractive African markets; introducing new products across the Group; and today are unveiling our UK Platform pricing ahead of the introduction of the Retail Distribution Review.

We have built a portfolio of resilient, high quality and cash generative businesses. Although economic conditions remain uncertain, we remain confident that we have the right offering, the right people and exposure to both emerging and developed markets that will allow us to continue to create value for both shareholders and customers.

Old Mutual's next trading update will be published on Nov. 7 and may reveal further positive news to impress investors.

If you are seeking a potential blue-chip winner for 2013, "The One FTSE Share Warren Buffett Loves" showcases the British household name the legendary index-trouncing investor is backing today and the investing logic behind his purchase. You can read all about the famous corporate name Buffett currently favors by downloading this exclusive report today -- it's free!

Are you looking to profit from this uncertain economy? "10 Steps To Making A Million In The Market" is the very latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- it's free.

Further Motley Fool investment opportunities:

Jon does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2067868, ~/Articles/ArticleHandler.aspx, 10/24/2016 2:26:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,227.17 81.46 0.45%
S&P 500 2,150.43 9.27 0.43%
NASD 5,304.83 47.42 0.90%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes