Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter