River & Mercantile posts strong pre-tax profit ahead of AssetCo takeover

River & Mercantile, the London-based investment manager, has seen its pre-tax profits soar by 78 per cent in the six months to December 31 this year, compared to the same period last year. 

Total pre-tax profit in the six month period to December 31 was £11m, while assets under management grew by 5 per cent. 

However, R&M made a post-tax loss of £6.8m due to transaction costs which arose from the sale of its solutions business, and remuneration.

These figures come prior to the £99m takeover of River & Mercantile by AssetCo, which was announced in January.

Alex Hoctor-Duncan, chief executive of R&M, commented about the group’s aim to drive growth: 

“We want to deliver impactful investment management and stand out because we are passionate about what we do, and can deliver diversified alpha returns in line with our stated investment style,” he said.

“We look to the future with confidence, notwithstanding the challenging geo-political environment.

“For me, the journey has just started, and this is an exciting time for our business.”

Jonathan Dawson, chairperson of the board at R&M, spoke with optimism about the takeover:

“Looking ahead, subject to shareholders’ approval and change of control permission being granted by the FCA, we will soon be part of AssetCo,” he said.

“I think this will be an exciting opportunity for our shareholders, executives and asset managers to participate in the building of a new and ambitious modern asset management company.”

“We are also close to launching our new infrastructure fund under Ian Berry and his team who joined R&M last year. This is a very exciting development in private markets where we can establish a very strong proposition for long-term investors.”

Mr Dawson will be joining AssetCo as an independent director.

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