Woodford's investment firm almost triples profits

Neil Woodford

According to accounts for Woodford Investment Management, filed with Companies House on December 21, Neil Woodford received £7.2 million of the more than £11 million distributed to the firm’s members. Chief executive Craig Newman collected the remaining £3.9 million. A spokesman confirmed the split was 65/35 in favour of Woodford.

Following its profit surge, Woodford Investment Management raised the cash on its balance sheet to £17.2 million, against £7.5 million in March 2015.

The firm’s operating profit margin was 60% of revenues totalling £58.4 million over the 12 months. This is ahead of the industry average of between 35% and 40%, as calculated by the Financial Conduct Authority in a report published on November 18, but the margin is not unusual for a limited partnership, where profits are struck before partners take their cut.

The company said it was implementing a corporate social responsibility programme. Its partners are already funding charitable work, but the firm plans to confirm an initiative involving “a major figure from the charity sector” in the near future, after giving donations to 60 organisations last year.

Neil Woodford’s £9.3 billion core fund, Woodford Equity Income, has returned 25% since launch in June 2014, against 11% from the FTSE All Share index, according to the firm’s website.

Over the year-to-date, however, the fund has fallen in value by 0.6% against a 9.8% gain in the index. Its highest weightings comprise healthcare stocks (67.4%) and financials (23.4%).

CORRECTION: An earlier version of this story incorrectly reported the CEO of Woodford Investment Management as Dean Newman instead of Craig Newman. This has been amended.

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