AssetCo PLC (AIM:ASTO), the acquisitive fund manager led by former Standard Life Aberdeen boss Martin Gilbert, swung to a loss last year as it increased its assets under management almost 24-fold to £2.7bn.
A loss of £9.2mln was made for the year to end-September, from a profit of £14.6mln last time.
During the period the group completed the acquisitions of River and Mercantile Group (LSE:RIV) and Revera Asset Management, with AUM increasing further to £3.1bn with the purchase of SVM Asset Management (LSE:SVM) closing after the year end.
An initial cost base of £32mln on an annualised basis was cut to £22.5mln by the financial year end, which was the principal driver of the loss, the company said, along with acquisition and reorganisation costs.
Chairman Gilbert and the board plan “an aggressive assault” on costs as one of the chief areas of focus of the current year.
Gilbert said: "We continue to seek out potential opportunities for further inorganic expansion in relatively difficult trading conditions for asset management businesses generally. This creates opportunities for the agile AssetCo in its mission to acquire, improve and grow otherwise attractive businesses that are experiencing challenges or whose true value is unrecognised.”
With revenues lifted from less than £0.5mln last year to over £8mln during the course of the year, chief executive Campbell Fleming said the forward-looking run rate was £17mln when the acquisition of SVM is factored in.