OM sees Skandia growth potential

According to a review of Skandia, published today, OM now expects funds under management to increase by 15% annually, tripling the expected International Financial Reporting Standard contribution to the OM group by 2008. Skandia’s ongoing cashflow is deemed sufficient to fund its own growth moving forward, with the statement that “all Skandia divisions will be strongly cash generative by 2007.” The UK market is expected to see improved growth through “synergies”, which it is calculated will boost pre-tax margins by 2% to 3%. Overall synergies are set for £70m annually from mid-2008, wit...