News
AssetCo on the path to profitability after restructuring
AssetCo plc reduced its operating loss by 65% to £1.6m for the six months ending 31 March 2024.
The company said it implemented a cost reduction plan, simplified operations and abandoned loss-making ventures. Additionally, AssetCo has proposed a share split to better reflect its economic interest in Parmenion and plans to change its name to River Global PLC.
Despite a total loss of £3.0 million for the period, the company is optimistic about future growth, with positive new business flows expected and the acquisition of Ocean Dial Asset Management increasing its revenue stream.
Martin GilbertChairman of AssetCo, commented: “The six months to March 2024 were crucial in our journey towards profitability and cash generation.
“The work done to simplify our business through the consolidation of capital asset management activities and the exit of complex and loss-making initial businesses has helped pave the way to profitability which, with continued hard work and effective execution of our reduction plan of costs, is starting to look eminently achievable.
“There remains a reliance on stable earnings, but in that context it is particularly pleasing to see some substantial and notable gains in UK equities, with finally some tentative signs of improvement in market sentiment towards this asset class.”
Mr Gilbert continued: “I am also pleased to confirm that we are in advanced discussions to partner with two organizations to leverage our expertise and infrastructure for mutual benefit.
“These potential joint ventures are quite different (one working with an established overseas wealth manager and the other bringing a leading global fund manager to market), but both would leverage our established infrastructure to facilitate further growth.
“Assets under management are expected to be significant at an early stage and whilst initial group revenues will be reduced, reflecting the role we play in each case, the additional scale and future opportunities are attractive, as is the opportunity to work with high caliber individuals. and companies.”
He concluded: “Continuing revenues for the six months ended 31 March 2024 of £6.9m (31 March 2023 restated: £7.1m) held up relatively well in a turbulent period and the business, although still loss-making, has demonstrated real progress towards profitability, making excellent progress in reducing costs since last year.”