Miton Group issues profit warning for 2015

Miton Group has warned that adjusted profit for 2015 will be “significantly less” than current market forecasts following outflows from its funds.

In a trading update, the group revealed that outflows from its CF Miton Special Situations Portfolio are expected to reach £250m in the second half of 2014, while outflows from its CF Miton Strategic Portfolio are predicted to amount to £60m.

The group appointed David Jane to run the funds in June this year after the departure of Martin Gray.

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Bill Mott’s retirement has also hit the group as it confirmed the former PSigma Income fund, now known as the Miton Income fund, had suffered “sizeable redemptions”, with anticipated outflows of roughly £160m over the second half.

In a statement, the group reported that it expects adjusted profit for 2014 to be at market forecasts on an underlying basis.

It stated: “Miton remains robustly profitable with ongoing cash generation on a monthly basis. Small incremental improvements to our assets under management have a sizable impact on our profitability given our efficient cost base and the impact of operational gearing.

“We remain confident of growing our business substantially over the coming years.”

Shares are trading down 16.98 per cent to 22p on the news.