River & Mercantile profit halves as performance fees slump

Lower gilt yields to blame

River & Mercantile (R&M) saw its profits cut in half due to much lower performance fees and the "significant investment" the firm has made in its distribution and investment manufacturing divisions.

R&M said that its underlying revenues grew by 6% to £69.4m in its full-year to 30 June 2020, with assets under management (AUM) 11% higher at £44.2bn. However, its adjusted underlying pre-tax profit slipped by 37% to £13.2m and its statutory pre-tax profit halved to £8.3m. The firm declared a second interim dividend of 2.81p per share and will recommend a final dividend of 2.34p, taking the total payout to 9.54p, a lower level than 2019. R&M looks to add fund managers and further distribution hires as CEO Barham outlines five-year plan These lower figures are the result of the buil...