Old Mutual - Softness in the H1 F2019 result

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Old Mutual - Softness in the H1 F2019 result

Published Date: 2019-09-04 | Source: INCE|Community | Author: Mark Ingham

Old Mutual - Softness in the H1 F2019 result

Ingham Analytics issues a note on Old Mutual entitled "Softness in the H1 F2019 result" This follows on from the recent note on Sanlam and Santam (see "A sound result from Sanlam's Santam stake").

Ingham Analytics says that the reported results for the six months ended 30 June 2019 are weak and are off an already tepid historic base. 

Little has changed, and the medium-term outlook is not very encouraging. 

The results from operations for the full year in F2018 were also weak with adjusted earnings essentially flat, if the functional currency change for Zimbabwe is stripped out. A negative view is taken too of the share buyback programme and don't see it as a vote of confidence. 

There is some encouragement in that Ingham Analytics say that the capital position is strong with solvency measures toward the higher end. There is no change to estimates for earnings following these interim results.

Shareholders do get a dividend of 45 cents per share, with the last day to trade cum dividend 17 September.  The fact that Old Mutual is at a PE discount to Sanlam does not make it a compelling buy.

Click here to find out more about the Ingham Analytics view on Old Mutual.



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