Investments  

River & Mercantile increases AUM by 22%

River & Mercantile increases AUM by 22%

The River & Mercantile Group's fee-earning assets under management have reaching £31bn.

This is a rise of 22 per cent year on year while net flows were £3.8bn, according to its unaudited preliminary results and management report for its year end on 30 June 2017.

The advisory and investment solutions business also announced its investment performance increased AUM by £1.7bn and its net management and advisory fees increased by 22 per cent year on year to £55.9m.

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The data also showed performance fees were £12.5m, compared to £1.5m in the previous year.

Mike Faulkner, chief executive of River & Mercantile, said this reflected strong investment performance and more stable fixed income yields.

He said: "The 2017 results, our best ever, show continued progress towards our stated growth aspirations. We remain true to the central idea of understanding our clients' problems and needs, and using our investment skills to solve them.

"This principle has allowed us to grow strongly in a way that has been consistent with the strategy we set out at the time.

"As a business, we are now far stronger in every way - depth of people, scale and skills, and breadth of clients - and as a result we have refreshed our strategy to reflect this. Our ambition for growth continues, but we will remain focused on our central idea, just applied to a broader range of markets, and with an emphasis on delivering returns."

Statutory net profit after tax was £13.4m, compared to £5.9m in the previous year, while statutory basic earnings per share were 16.45 pence per share, compared to 7.15 pence per share in the prior year.

The company's adjusted underlying profit before tax was £16.4m, compared to £11.1m in the prior year; while its adjusted profit after tax was £18.6m, compared to £9.5m in the prior year.

The board has now declared a second interim dividend of 8.1p per share, of which 2.8p is a special dividend and relates to net performance fees, and a final dividend for the year ended 30 June 2017 of 6.0p per share, of which 2.8p is a special dividend and relates to net performance fees.

This means the total dividends paid, declared and proposed are 19.7p per share. This represents 80 per cent of the adjusted underlying profit after tax and 100 per cent of the net performance fee profit after tax.

Peter Warry, acting chairman at the group, said: "Despite a period of unprecedented global change and uncertainty, the year ended 30 June 2017 has been a successful year for the Group, with our strongest set of results to date.

“This year has also seen us continue to use our scalable operating platform to grow our profit margins, which combined with a continuation of our high dividend pay-out ratios has led to increased dividends.”