* Net revenues 243.5 mln stg vs 267 mln stg in 2011
* Underlying operating costs 172.1 mln stg vs 202.1 mln in
* Underlying operating profit 71.2 mln vs 65.2 mln
LONDON, March 14 British investment manager F&C
Asset Management reported an increase in underlying
profits as a squeeze on operating costs helped offset revenues
curbed by fund outflows.
The fund manager said in a statement of full year earnings
for 2012 on Thursday that a restructuring of the company
prompted by executive chairman and activist investor Edward
Bramson is now "substantially completed."
"F&C is now in a position to invest for growth in new
markets and capabilities," Chief Executive Richard Wilson said.
The firm said 80 percent of its funds outperformed
benchmarks last year, and 76 percent outpaced objectives over
But net revenues slipped to 243.5 million pounds from 267
million pounds a year earlier, reflecting net outflows of 13.3
billion pounds over the year and a 1.7 billion pounds hit from
adverse foreign exchange movements.
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
Cost cutting helped take 23.3 million pounds off core
operating expenses which stood at 160.5 million pounds, the
Analysts at Numis said operating profit was in line with its
forecasts but the company will need to deliver "meaninful
organic growth," to impress investors in future.
"This still feels a long way off, as we are unconvinced that
the new retail strategy of direct selling... is going to work,"
the broker said in a note to clients.