F&C profits lifted by ongoing cost cuts and higher revenues

Wed Jul 31, 2013 2:37am EDT

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* Underlying earnings per share up 66 pct in first-half

* Net revenue up 4.8 pct to 126.1 million pounds

* Group underlying pretax profit 37.3 mln pounds

LONDON, July 31 (Reuters) - British fund firm F&C Asset Management reported an increase in underlying profit, lifted by robust management and performance fee revenues and an ongoing cost cutting programme.

F&C said in a trading statement on Wednesday that its underlying operating margin rose to 37.6 percent in its half year to June 30, from 26.8 percent a year earlier.

Chief Executive Richard Wilson attributed a 66 percent increase in earnings per share to falling running costs and revenues lifted by the retail, consumer and third party businesses and performance fees at a property fund.

"These are solid results which demonstrate the significant progress being made in delivering the company's strategic objectives," Wilson said.

F&C underwent significant restructuring during 2012, including a new management team with Wilson appointed CEO from his previous post leading the institutional and investment business.

Wilson said in the earnings statement a cost reduction programme remains "on track" to deliver a 48.8 million pounds ($74.5 million) savings target by 2015.

Assets under management stood at 92.3 billion pounds, down from 98.2 billion pounds a year earlier reflecting the impact of a previously announced withdrawal of 6 billion pounds in fixed income assets at the end of June by Friends Life.

Buoyant equity markets added 1.1 billion pounds to assets over the six months period, F&C said.

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