River and Mercantile sees profits slow in 'challenging' year

River and Mercantile sees profits slow in 'challenging' year

Investment and advisory business River and Mercantile Group enjoyed net flows of £3.7bn in the year to June 30 but warned it had been a "challenging" period as profits slowed.

Mandated assets under management rose by some 17 per cent year on year, to £25.1bn, but adjusted profit after tax fell from £12.7m in the previous year to £9.5m.

Paul Bradshaw, non-executive chairman, said: "The year to June 30 2016 was challenging for our country, global equity markets, our clients and the investment industry generally.

Article continues after advert

"We believe we did a great job for our clients, achieved and good growth in assets and acceptable - albeit reduced - profitability. This reduction arose as a result of continued investment in the business in expense and remuneration terms during a period in which advisory revenues and performance fees fell."

In a separate trading update, the company said it had achieved net inflows of £1.3bn in the three months to the end of September.