F&C profits soar as cost-cutting drive pays off

F&C Asset Management has seen a jump in profits as its cost-cutting drive has taken hold.

The firm has been reducing expenditure following the appointment of chairman Edward Bramson to the board in 2011. The moves have seen a number of jobs cut, though Mr Bramson said in March that the programme was “substantially completed”.

The measures led to F&C’s operating costs falling 10.4 per cent in the first half of 2013 compared to the same period last year, according to its latest interim report, which has led to a 66 per cent rise in the firm’s earnings per share to 4.8p.

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The firm’s assets under management fell in the first half of the year due to the previously announced withdrawal of £6bn from mandates run for Friends Life, but its retail business saw net inflows of £0.2bn during the period, improving on the outflows from the same period in 2012.