Anchor drops on earnings alert
Shares plunge 15% on update that interim profit may fall nearly 50% on the prior period on flat market conditions and stronger rand
Anchor Group’s share price plummeted nearly 15% on Monday — to levels last seen on its listing nearly three years ago — after the group issued a trading update warning that interim profit was expected to fall nearly 50% on the previous period. While the update was "very disappointing" and a setback to Anchor’s growth path, the company’s goals and dreams were unchanged, said CEO Peter Armitage. The goal was "to build a critical-mass South African and global asset manager and deliver returns to clients". Asset managers earn fees on assets under management, which are increasing at a slower pace in the subdued market. The JSE said last week that value traded on the local bourse was down 13% year on year. The all share index has returned 11% in 2017, with almost all of that achieved in the second half. Anchor’s growth in assets remained fairly positive compared with many others in the asset management sector, said Anthony Clark, small-to mid-cap analyst at Vunani Securities. A lot of thi...
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