AssetCo performa well as it plans River and Mercantile takeover

Asset and wealth management company AssetCo reported £9.6bn in assets under management in its preliminary results on Friday, up from nil year-on-year.

The AIM-traded firm said profit before tax came in at £16.1m for the 12 months ended 30 September, from £3.4m in the 2020 financial year.

It recorded an improvement in its capital position to £56.1m from £32.3m, with a tender offer returning £27m to shareholders.

During the year, AssetCo adopted a new strategy focussed on building and operating an asset and wealth management business, and took equity stakes in four businesses - River and Mercantile, Saracen Fund Managers, Rize ETF and Parmenion.

Its share price more-than-quadrupled during the financial year, to close at 1,700p per share, compared to 411p at the end of the prior period.

“The asset and wealth management industry is going through a period of significant change including technological advances, evolving investor needs and habits,” said chief executive officer Campbell Fleming.

“To address these structural shifts the businesses we have invested in encompass four key areas - active management in both public and private markets, high growth thematic investing, ESG and digital solutions.

“Saracen Fund Managers, Rize ETF and Parmenion are well placed to take advantage of the changing landscape to meet client needs.”

Fleming said the potential acquisition of River and Mercantile, subject to shareholder and regulatory approval, would augment AssetCo’s strategy, becoming a “core part” of its equity platform, and the cornerstone of its private markets offering, as well as increasing assets under management to more than £12bn.

“I am confident that AssetCo has established the foundations to continue to grow organically and through selective acquisitions and most importantly to deliver for investors.”

At 0946 GMT, shares in AssetCo were up 0.67% at 1,489.9p.