Investec down as it warns on performance

The price of shares in FTSE 250 asset manager Investec (LON:INVP) tumbled 1.52% to 136.25p (as of 14:15 BST) after the company warned that adjusted earnings per share for the six months ended 30th September would be 53-63% behind the prior year. Challenging market conditions and the COVID crisis have led to lower client activity as well as increased volatility.

CEO Fani Titi commented: “The business has proved resilient in a period characterised by COVID-19 stringent lockdowns in the first quarter, followed by a gradual reopening of the economies. Severe GDP contractions and volatile financial markets negatively impacted revenues.

“Capital and liquidity ratios remain robust and are expected to be stable. Provisions for ECL are expected to remain elevated in the period under review. Net asset value per share is expected to increase. Costs were well managed.

“The business is well positioned to support its clients through this challenging environment. We will continue to ensure the safety and wellbeing of our people and the integrity of our balance sheet. I wish to thank my colleagues for their dedication to our clients and communities around us“.