Ashcourt Rowan halves losses as restructuring pays off
Underlying loss reversed in 2011-2012, though restructuring and redundancy costs push firm to £2.3m loss.
Wealth manager Ashcourt Rowan has reported a substantial drop in pre-tax losses following a major restructuring of the business, with the firm’s annual reports showing a £2.3m loss for the 12 months to end March 2012, less than half of the £5.75m loss for the previous year.
On an underlying basis the company actually returned to profit in 2011-2012, generating profit before exceptional costs of £450,000 compared to a loss of £180,000 in the 2010-2011 financial year.
Exceptional costs included redundancy costs of £770,000 and other restructuring costs of £370,000, as well as an Financial Services Compensation Scheme interim levy of £120,000.
Revenue for the year of £36.4m rose 4 per cent compared to the £35.11m reported last year.
Kenneth West, non-executive chairman for Ashcourt Rowan, said: “These results, whilst clearly short of what we are seeking to achieve in the longer term, are very encouraging as they arise as a result of a great deal of change within the group.
“Led by your new chief executive Jonathan Polin and a high quality management team, many of whom are also new to the group, an extensive, well-planned and executed change management programme has been positively affecting the performance of the group and will, I believe, deliver long term benefits to shareholders, as well as to clients.”
Among the companies stated goals for the upcoming year are a plan to become compliant with the Retail Distribution Review requirements by September 2012 and launching an advisory platform powered by Cofunds by 16 July.
Ashcourt Rowan also today appointed Hugh Roderick Ward to its board as non-executive director. He will also chair the asset management business.