UK - Edinburgh Fund Managers Group (EFM) revealed a 22% slump in first-half pre-tax profits.
The firm posted profits before costs of £3.13m down from £4m.
Funds under management also took a sharp fall during the first six months to £4.7bn from £7.1bn at the start of the year. Sales were down to £16.6m from £17.5m. EFM blamed volatile markets and the recent loss of the massive £1.1bn Edinburgh Investment Trust mandate.
Choppy markets also meant that EFM has scrapped its first-half dividend. Due to uncertainty over the outlook for global markets the Board will determine the dividend at year-end.
Commenting on the firm’s outlook, chairman John Wright said: “Going forward, market levels will continue to be key in determining revenues. If stock markets remain at current levels and with the full impact of cost savings not being realised until next year, it is unlikely that the second half will make a positive contribution to the business.
“However we will continue the strategy of growing the business through focusing on high margin areas such as open-ended funds and venture capital business.”
EFM recently closed its North American offices with an expected saving of £2m a year.
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