Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

River & Mercantile's AUM up 29% but IPO costs weigh heavy

River & Mercantile's AUM up 29% but IPO costs weigh heavy

River and Mercantile's assets under management surged by 29% in the first half of the year but the group's profits were wiped out by the £4.6 million cost of flotation.

Total assets reached £18.1 billion on the 30 June, but the company's pre-tax profits sank to £11,000 after the costs of restructuring and its initial public offering were factored in. Adjusted pre-profits were £4.5 million, equating to 7.69p earnings per share, up from 7.05p in the calendar year 2013. The group saw revenues of £20.2 million in the first half compared to £30.6 million in the whole of 2013 while performance fees were £2.4 million versus £3.8 million.

River and Mercantile chairman Paul Bradshaw said: 'We are encouraged by the continued solid performance of the group as demonstrated by the positive asset flows and the strong pipeline of mandates.  

The business results, after adjusting for the cost of the listing, continue to show strong underlying profit growth. The board of directors is proposing final dividend of 2.3 pence per share, representing 60% of the "adjusted profits 

after tax".'

The preliminary results are the group's first since both the merger of River & Mercantile and PSolve back in February and the combined group listing with a valuation of £150 million in June.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Play On the Road Challenge: horsing around on the polo pitch

On the Road Challenge: horsing around on the polo pitch

Libby Ashby takes to the polo pitch with Stuart Leigh-Davies from Redmayne-Bentley for an 'On the Road' challenge.

Brewin's Gutteridge: where Miton's Godber sees value

Brewin's Gutteridge: where Miton's Godber sees value

This week Brewin Dolphin's research head talks to George Godber, co-lead fund manager of the Miton UK Value Opportunities fund, about value investing.

Your Business: Cover Star Club

Profile: TAM Asset Management’s CEO prepares for a quantum leap

Profile: TAM Asset Management’s CEO prepares for a quantum leap

TAM Asset Management may be relatively small but Lester Petch has big ambitions and believes it is on the verge of a 'quantum leap’

Wealth Manager on Twitter