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R&M posts 14% rise in profits as assets reach £48bn

R&M posts 14% rise in profits as assets reach £48bn

River and Mercantile’s pre-tax profit rose by 14 per cent to £15m in the year to June 30 as its assets under management rose to £48bn.

In a statement to the stock exchange today (November 5), the company's chairman Jonathan Dawson said it had been another period of strong performance for the group.

“[There has been a] significant improvement in profitability which enables us to pay an attractive dividend, including a special dividend driven by performance fees," he said.

Fee-earning assets under management rose 8 per cent to £48bn, from £44bn in 2020. This represented the seventh consecutive year of asset growth for the company.

James Barham, R&M's chief executive, said: "We have once again grown our AUM during the period, the seventh year in a row we have done so, and this is a testimony to the quality of our offering, where 92 per cent of funds and strategies by AUM have outperformed their relevant benchmarks over the last 12 months.”

Barham will soon join Schroders as part of its purchase of R&M's fiduciary arm, Solutions, and will be succeeded by Alex Hoctor-Duncan, who is currently head of Aberdeen Standard Investments.

River & Mercantile Solutions was sold to Schroders for £230m last week.

Barham said: “The recent announcement of the sale of our Solutions division to Schroders is an excellent outcome for all stakeholders and I am excited by the strength of this combination and the continuity and opportunity it provides for our clients and our people.

"Schroders will be an excellent owner of the business and for the long term future growth in an exciting and dynamic market.”

Dawson added that the sale would allow R&M to have a different focus.

He said: “The proposed sale of our Solutions business to Schroders will enable us to focus on the transformation of the remaining business into a specialist asset manager, where we see significant potential for further value creation for shareholders.”

sally.hickey@ft.com