Miton Group (LSE: MGR) stepped back towards recent record peaks in Thursday trading following an upbeat response to latest trading numbers, the stock last 3% higher on the day.
The fund manager announced that assets under management clocked in at £3.35bn as of June, exploding from £2.54m at the same point in 2016. And net revenues grew 7.3% year-on-year during January-June, to £10.3m.
However, Miton advised that adjusted pre-tax profit fell to £2.9m in the six months, from £3.1m in the corresponding period last year. The bottom line slip was caused by “a write-back to share-based payments… arising from the forfeiture of awards,” which totalled £430,000.
Chief executive David Barron commented: “The group continues to deliver strong investment performance and net inflows. We have continued to streamline the business and have demonstrated the scalability of our operating platform.”
And in a further reassuring step Miton advised that “trading for the full year is expected to be at least in line with current market expectations,” citing Peel Hunt forecasts predicting adjusted profit of £4.6m.
On the up
With demand for its financial products continuing to grow at a healthy rate, City consensus is suggestive of a modest 4% earnings rise in 2017. And Miton’s bottom line is predicted to pick up the pace from next year, and a 20% rise is currently predicted for 2018.
A consequent forward P/E ratio 16.2 times may not be too much to excited to get about, but I believe the AIM stock’s dividend outlook certainly is.
Last year’s 1p per share reward is expected to rise to 1.1p in the present period. And this is predicted to rise again in 2018 to 1.4p. As a consequence, yields ring in at 2.7% and 3.5% for this year and next, and I expect dividends to keep detonating as business accelerates.
Blue-chip beauty
I am convinced RSA Insurance Group (LSE: RSA) is another terrific stock selection for those seeking splendid earning and dividend expansion. And my faith is underpinned by bright broker forecasts.
The FTSE 100 star is expected to keep its recent run of double-digit earnings rises rolling with a 12% improvement in 2017. And an extra 18% rise is predicted for next year. This does not come as a surprise given that demand for RSA’s products continues to detonate — the company saw net written premiums expand 11% between January-June thanks to new business, improving client retention, as well as higher pricing and foreign exchange gains.
Current projections also make RSA terrific value on paper, the insurer’s forward P/E ratio of 14.2 times falling below the Footsie corresponding value of 15 times. And investors can bank on the firm’s progressive dividend policy to keep churning out brilliant yields too.
A payout of 21.6p per share is forecast for this year, resulting in a chunky 3.5% yield. And this leaps to 4.8% for 2018 thanks to a predicted 29.9p reward. With restructuring measures finally complete and underwriting performance picking up momentum, I reckon now is a great time for investors to pile into the financial giant.
