Assetco profitability ’eminently achievable,’ Martin Gilbert says
Martin Gilbert’s Assetco sees “good progress” towards profitability in its half year results as the asset management firm looks to recover from an “exceptionally difficult” year for the sector.
Operating loss reduced by 65 per cent to £1.6m, the firm said in a half year update to investors today, with the total loss for the period being £3m.
New business flows are expected to be positive, sitting at £39m at the time of the update, as the firm also completed an exit from its loss-making infrastructure business.
Continuing revenues were £6.9m in March 2024, down from £7.1m in March 2023, however, Assetco chairman Martin Gilbert said it has “held up relatively well” in what has been a turbulent time for the firm.
Assetco chairman Martin Gilbert said: “The six months to end March 2024 has been a pivotal one in our journey towards profitability and cash generation.
“The work done in simplifying our business by consolidating equity asset management activities and exiting loss making and complex early stage businesses has helped clear a pathway towards profitability which, with continued hard work and effective execution of our cost saving plan, is starting to look eminently achievable.”
Gilbert confirmed Assetco was in “advanced discussions” with organisational partnerships to mutually leverage expertise and infrastructure.
“Assets under management are expected to be significant at an early stage and, while initial revenues to the Group are reduced reflecting the role we play in each case, the additional scale and future opportunities are attractive as is the opportunity to work with high calibre individuals and businesses,” he added.