Old Mutual dividend up by almost a third as profit spikes
Old Mutual raised its interim dividend by 32% to 3.53p for the six months to end-June. Thanks to the pound weakening against the rand, this will translate into a 40% increase to 65c for its JSE investors. The insurance group’s interim revenue grew 45% to £10.8bn and its aftertax profit grew 60% to £679m, its results released on Friday morning showed. Old Mutual cut its debt repayment costs by £10m to £35m in the first half of its financial year, and intends cutting this to £21m by the end of 2017, CEO Bruce Hemphill said in the results statement. Having sold nearly all if its stake in New York-lised OM Asset Management, Old Mutual’s next step is to unbundle its UK arm, Old Mutual Wealth (OMW), into a separately London-listed company. "We expect the listing of OMW and Old Mutual Limited (OML), the South African holding company, to take place in 2018 at the earliest opportunity after Old Mutual’s 2017 full year results," Hemphill said. Old Mutual will release its final results for the...
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