The company swung to a 170 million pound loss for the first half of 2026, a sharp reversal from the 243 million pound profit recorded during the same period last year. This volatility stems largely from the new 250-pound annual cap on ground rents, which forced a significant devaluation of the firm's 722 million pound portfolio of leasehold assets.
In section Market Quotes
M&G Shares Slip as Ground Rent Cap Hits Bottom Line
A 325 million pound write-down triggered by U.K. government leasehold reforms pushed M&G into a first-half loss, overshadowing otherwise resilient operating results. The investment manager saw its stock dip 1.7% to 337.22 pence in early trading as investors reacted to a forecasted slowdown in profit growth.
Stripping away these one-time accounting impacts, the underlying business remains robust. Adjusted operating pretax profit climbed 15% to 435 million pounds, beating analyst expectations of 429 million pounds. Net flows from open business reached 2.4 billion pounds, while total assets under management expanded to 387 billion pounds. Despite the positive momentum, management signaled a shift toward low double-digit growth for the remainder of the year. Investors received a slight consolation in the form of a dividend increase to 6.8 pence per share.
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