M&G platform and recommendation enterprise hit by losses

M&G’s platform and recommendation companies noticed a rise in annual pre-tax losses to £32m in 2023 (2022: £24m).

M&G mentioned the losses have been pushed by a rise in prices owing to inflation and a one-off intangible asset write-off within the first half of 2023 of £7m, in line with its annual report launched this morning.

Adjusted revenue for the wealth arm was offset by a powerful efficiency from its PruFund enterprise, with the division reporting a £22m improve in adjusted working revenue earlier than tax to £180m.

Andrea Rossi, group CEO of M&G, mentioned: “All through 2023 we continued to see robust demand for our key propositions from our wealth shoppers with PruFund Wealth gross sales growing by 17%, reaching the best degree since 2019.

“We see important alternatives to develop our wealth enterprise over the approaching years with over 12 million individuals within the UK at the moment looking for help to realize monetary safety. Purchasers need accessible recommendation, assist in planning for all times occasions, and a diversified multi-asset publicity that may scale back the volatility of their investments.

“By specializing in increasing our recommendation capabilities by way of our in-house Recommendation Coaching Academy and leveraging different multi-asset options to capitalise on development alternatives, we count on to enhance effectivity, consumer supply, and monetary outcomes in 2024 and past.”

General, M&G’s wealth division noticed internet consumer inflows stay regular at £0.2bn (2022: £0.2bn).

Wealth AUMA elevated to £87.1bn (2022: £83.4bn) pushed by constructive market and different actions of £3.5bn.

As an entire, in 2023 M&G noticed £1.1bn in internet consumer inflows, an enchancment on the £0.2bn reported in 2022.

Adjusted working revenue earlier than tax additionally rose 28% from £625m in 2022 to £797m in 2023.

M&G has been altering its working mannequin as a way to reduce prices by £200m by 2025 (from 2022). Thus far £73m in financial savings have been achieved, in line with the annual report.

Mr Rossi mentioned M&G had made “good momentum” within the first yr of its transformation programme, “making a leaner and extra environment friendly organisation and bettering our means to serve shoppers, scale back prices and unlock development.”

A few of the financial savings have been made by way of a voluntary redundancy programme, alongside lowering its UK workplace spend by 15%.

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