River & Mercantile profits fall 29%

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River and Mercantile has seen its profits fall 28 per cent in the the last financial year.

Net profits fell to £5.9m compared to £8.3m a year earlier.

It has also suffered net wholesale outflows of £19m over the period; however, net flows of £1.2bn in the derivatives business helped total net flows for the period total £1.3bn.

Fee-earning assets/notional under management rose 22 per cent to £25.5bn.

River & Mercantile chairman Paul Bradshaw says the year to 2016 was challenging for “our country, global equity markets, our clients and the investment industry generally”.

Bradshaw says the fall in profitability came despite “good” growth in assets.

Speaking on profits, he says: “This reduction arose as a result of continued investment in the business in expense and remuneration terms during a period in which advisory revenues and performance fees fell.”

Chief executive Mike Faulkner says near-term conditions should favour the fiduciary management, institutional equities and derivatives businesses.