Equity  

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.

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"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.