Close Brothers limits losses to £2.6m

Close Brothers Asset Management has delivered an operating loss of £2.6m for the six months to January 31, compared to a loss of £6m for the same period the previous year, as the group completes its restructuring.

Close Brothers has been aggressive in its acquisitions buying Scott Moncrieff Wealth Management last October, Cavanagh in April, Allenbridge Group in February 2011 and Chartwell in September 2010.

The firm says the asset management division is in the final stages of its restructuring and is expected to record a further small loss over the next six months.

Assets under management fell 10% from £9.6 billion to £8.6 billion, which included the redemption of a £1 billion institutional mandate. The assets under management in its private clients business increased 6% from £6.5 billion at the end of July to £6.9 billion.

The firm says it will continue to review potential acquisition opportunities on a selective basis. Its online Sipp and direct access to its platform will be available later this financial year.