Wealth management and financial services group St James's Place (SJP) hiked its interim dividend by 40% after funds under management (FuM) reached a record in the first half.
However, the market gave a cool reaction to the results on Tuesday as profits came up short of analysts' expectations.
FuM totalled £47.6bn by June 30th, up 19% year-on-year and 7% ahead of the start of the year, helped by 23% higher net inflows at £2.44bn.
The company said its partners introduced 27,000 new clients during the first half who, together with existing clients, led to £3.9bn of new investments during the period, up 21% year-on-year. Results were also bolstered by a strong customer retention level of 95%.
However, pre-tax profit on an IFRS basis totalled £82.4m in the first half, down from £90.1m and below the £91m expected by analysts.
The prior year had benefitted from a one-off amount of £8.9m from a reinsurance treaty associated with a closed book of protection business. Excluding one-off items, profits improved by 1%.
The company said it would pay a dividend for the first half of 8.93p per share, up from 6.38p the year before.
"The scale, growth and maturity of our funds under management has resulted in a growing underlying post tax result in recent years, which has supported the significant increase in dividends," SJP said.
"This growth has continued in 2014 and given this performance and our confidence about the future, the board has agreed an increase in the interim dividend at the top end of the range signalled earlier in the year of 40% and anticipates a similar increase in the full-year dividend."
Numis Securities has lifted its recommendation for aerospace and automotive engineer GKN from 'add' to 'buy', after the company "plough[ed] through the currency headwinds" in its first half.
The broker said that GKN achieved a "solid first half in line with expectations" with adjusted pre-tax profit rising 6% to £296m. Meanwhile, organic growth of 6% was "positive for this large and diversified group".
Numis said that the Driveline division performed well, along with Powder Metallurgy and Aerospace, but Land Systems remains weak.
It says that the shares
"look attractive", trading at 13.1 times 2014 estimated earnings - a discount to the wider sector multiple of 16.
"The shares have underperformed the UK Engineering sector in 2014 reflecting downgrades from currencies and Land Systems division.
"No further changes to forecasts today and with currencies now appearing to have stabilised attention can move back to underlying value and prospects."
Despite the rating upgrade, Numis kept a 435p target price for the stock, saying that positive updates on third-quarter trading will be needed "before we see much upward traction".