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Record increases assets under management
StockMarketWire.com
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Record reports that Assets under Management Equivalents ('AuME') increased to $32.5bn at 30 September 2012, compared to $30.9bn at 31 March 2012.
The largest component of the growth was net flows, accounting for $1.2bn. The positive equity market performance accounted for a $0.9bn increase and movements in exchange rates accounted for a $0.5bn decrease in AuME.
The financial performance of the Group saw revenue decrease to £8.7m for the six months to 30 September 2012, a fall of 22% compared to the six months to 30 September 2011.
Profit before tax for the period was £2.7m, being 27% lower than for the equivalent period in the prior year.
As a result of declining profitability, measures have been taken to reduce costs where appropriate and overall costs (before the Group Profit Share 'GPS') have fallen to £4.7m for the six months ended 30 September 2012.
This represents a reduction of £0.9m, being 16% of the cost base, over the same period in the prior year. The extent of cost savings that can be implemented is constrained by our need to maintain an appropriate level of support for investment processes and client services.
The operating margin, at 30%, was also less than that achieved in the six months to 30 September 2011 (33%). In addition to the cost savings indicated above, the cost of the variable element of remuneration, the GPS which is set at an average of 30% of pre-GPS operating profit, has fallen in line with operating profit.
Shareholder funds increased to £26.9m at the period end, versus £25.9m at the end of the comparable period in the prior year. The Group has no debt and cash balances increased to £25.6m, compared with £19.7m at 30 September 2011
At 9:55am: (LON:REC) share price was +1.13p at 27.13p
Story provided by StockMarketWire.com
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