Maiden results show Jupiter profits surge

Jupiter Fund Management reported a stratospheric rise in profits with maiden results today following its listing on the stock market last summer.

Pre-tax profits surged from £7.2 million to £42.4 million, and even on the more broadly based earnings before interest, tax and depreciation measure there was a 37% rise to £124.7 million.

"We delivered a strong performance for both our clients and our shareholders in what was a pretty volatile period," said Edward Bonham Carter, chief executive.

"Given what is happening in the Middle East and the tragic events in Japan it is impossible to forecast what's ahead. But the trend from recent Government announcements on people taking more personal responsibility for their savings and pensions and rising inflation, we expect mutual funds to take a growing share of the new investment market."

More than 60% of Jupiter's funds have performed above their benchmark over the last three years. Funds under management rose from £19.5 billion to £24.1 billion with net inflows of £2.3 billion last year.

Jupiter shares have almost doubled since they floated at 165p in June. Today they slipped 10p to 308.3p.

Asked if they had not been a better investment than most of Jupiter's own funds, Bonham Carter said: "We don't float every year and at the time markets were so volatile that we had to pitch our shares at the bottom of our intended price range."

Investors will get a first dividend of 4.7p a share.