Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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
Play Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter