Man Group shares rise on $100m cost cut
Man Group has seen its shares surge by 8.5 per cent in early trading to 75p, after it reported plans to make another $100m (£64.5m) of cost cuts.
The group reported an adjusted profit before tax of $121m in its interim report, but it also saw its assets under management slip further to $52.7bn on June 30 from $71bn a year earlier, marking a fall of 25.8 per cent in 12 months.
Peter Clarke, chief executive of the FTSE 100-listed fund manager, said the group remained “financially robust” and promised a further round of cost cutting aimed at saving $100m on top of the $95m reduction in operating costs announced by the company in March.
This is likely to involve job cuts as well as “simplifying our product line and expense discipline” over the enxt 18 months.
The company reported a statutory loss before tax of $164m, relating to expenses incurred in the acquisition of GLG, its retail fund management arm, and Man Multi-Manager.
“We are confident that the changes we have announced today, together with the progress we have already made, position us well to protect and rebuild shareholder value,” Mr Clarke said.