Bonham Carter moves upstairs as debts clear
JUPITER’S chief executive Edward Bonham Carter bowed out of the top job yesterday, just as the business declared it was finally free from debt.
The business, which manages stocks and bonds for investors, said it finally cleared the last £11m of borrowings this month, after working its way through a debt pile of £375m that it had when it floated in 2010.
Investors paid renewed interest in the firm’s shares yesterday in the hope Jupiter will boost its dividend over the coming years with its spare cash.
A pre-tax profits rise to £114.1m last year, from £73.6m in 2012, helped boost the dividend to 12.6p per cent a share – a 43 per cent increase this year.
“It’s particularly satisfying we’ve paid off all our debt,” said chief executive Edward Bonham Carter, who will be replaced by Maarten Slendebroek next month as leader of the firm.
The healthier balance sheet comes as Jupiter unveiled strong inflows into its mutual fund products. Assets under management rose to £31.7bn from £26.3bn a year earlier thanks in part to £1.2bn of inflows.
Bonham Carter said the firm was still cautious about the market and warned the flurry of London floats this year would mean some companies will lose out.
“Markets are markets,” he said, “There will be some that disappoint but that’s the nature of capitalism.”