Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter