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'Really bad Brexit' hits Artemis as outflows bite

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'Really bad Brexit' hits Artemis as outflows bite

Artemis has blamed Brexit for a sharp downturn in its fortunes last year, as a net outflow of £888 million knocked profits 15% to £40.1 million. 

The results for calendar year 2016 revealed a reversal on the prior year when the group reported a £47.3 million profit on a £1.8 billion inflow.

Artemis chief financial officer Douglas Cooper said: 'Brexit was really bad for us.

'The inflows across our various franchises were flat with some up, some down, ending the period with marginally negative net inflow.

He added that the lower profitability was also due to recruitment costs, as the business upped its headcount, and accounting changes which required the company to change how it recognised remuneration.

He declined to discuss the details of the accounting changes, but said they were limited to 'technical' significance. 

Booming markets nonetheless lifted assets under management from £22.9 billion to £24.6 billion, and revenue climbed 3.7%.

Looking forward the company has returned to positive net inflows year to date, says Cooper, indicating that it has turned a corner.

'We consider 2016 a kind of investment period and expect to see the fruits of the new products we launched over the next year or two,' he added.


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