Ashcourt Rowan reduces losses by £14m
Wealth management service provider says £400,000 underlying profit has “reversed a trend of deteriorating profitability”.
Ashcourt Rowan announced today that its revenue for the 12 months to the end of March has risen slightly to £36.4m, up from £35.1m in 2011, and it has also significantly improved its losses after tax to £2.6m from £16.8m.
However, the wealth management service provider said it was encouraged to report a £400,000 underlying Ebitda [earnings before interest, taxes, depreciation, and amortisation] profit for the year, “which reversed a trend of deteriorating profitability during the first half of the financial year”.
This performance contributed to a reduced operating loss, which, after one-off costs and depreciation and amortisation, was £2.4m, compared with £5.9m in 2011.
In is annual review, published today (31 July), the group highlighted that its loss before tax for continuing operations for the year to 31 March 2012 was £2.3m, compared to £5.8m at the end of March 2011.
The group’s loss after tax including discontinued operations was £2.6m, a significant improvement from the £16.8m announced at the end of March 2011.
The basic loss per share also narrowed, falling from 92.9p per share to a 12.4p per share loss in the year under review.
Kenneth West, non-executive chairman, said in the report: “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.”
Following a review of its funds under influence (FUI), Ashcourt restated its reported assets at its interim results in September as being £3.9bn in total, with £1.49bn in discretionary and managed assets.
Mr West said: “ I am.. pleased to report that the group delivered net inflows in FUM of £44m despite the pressures of implementing a significant change management programme.”