SLI’s operating profit before tax was £104m which included a 26% increase in third party revenue to £239m, it said in its half year results.
The investment firm’s EBITDA margin of 35.3% fell slightly on last year’s 38.5%. It said this was largely due to the acquisition of the private client division of Newton Management and strength of the pound, particularly relative to India’s rupee.
The company said it is aiming to bring this margin figure up to 45% by 2017, driven in part by its acquisition of Ignis. It said the deal competed on 1 July enhances its ‘strategic positioning’ and investment capabilities while broadening its third party client base.
The net inflows figure of £4.2bn meant an increase of 8% in overall assets under management and SLI claimed that the fall versus last year can be explained by the 2013 numbers being exceptionally high.
Of the inflows, £2.4bn came from outside the UK with nearly two thirds coming through the wholesale channel.
SLI said 87% of its assets beat benchmarks over one year, 89% beat them over three years 89% and 91% over five years.
Parent company Standard Life faired slight better in net profit terms as changes in pension laws around auto-enrolment helped it post a 12% year-on-year rise to £758m.
"Standard Life has continued to perform well in the first half of 2014, driven by our focus on delivering value for money for all of our customers. We have increased revenues, profits and cash, and now have assets under administration of £254bn,” said CEO David Nish.
