30th Sep 2015 10:36
LONDON (Alliance News) - Asset manager River & Mercantile Group PLC on Wednesday said its pretax profit jumped in the financial year to the end of June, primarily due it booking costs related to its float in London the year before, but as its revenue rose substantially due to a strong asset management performance.
River & Mercantile said its pretax profit for the year to the end of June was GBP10.5 million, compared to a GBP73,000 pretax loss it made a year earlier when it booked costs related to its initial public offering in June 2014. The profit also was pushed higher, however, by the group booking revenue GBP52.6 million, up from GBP20.2 million.
Revenue for the group was driven higher by a big rise in net management and advisory fees in the year, up to GBP46.7 million from GBP17.5 million, as the group secured GBP2.8 billion in new inflows and saw its assets under management rise by GBP845 million thanks to a strong performance in its fiduciary management business.
In total, the group's assets under management rose 18% over the course of the year to GBP21.3 billion.
The company said it will pay a final dividend 3.8 pence per share, bringing its total dividend payout for the year to 13.0p.
"Overall, the business has experienced good growth during the year, generally consistent with the strategy we set out in last year's report. The growth in our assets has resulted from our continued focus on delivering effective, outcome-led solutions to our Clients. We remain committed to this focus on delivering outcomes, and this runs through our product range. We continue to deliver strong investment returns for our clients and the business overall remains well positioned for growth," said Chief Executive Mike Faulkner.
Shares in River & Mercantile were up 1.7% to 234.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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