AssetCo PLC on Thursday reported an annual loss as costs associated with the acquisitions of River & Mercantile Group, Revera Asset Management and SVM Asset Management hit its bottom-line

The asset and wealth manager said its pretax loss for the financial year to September 30 was £9.3 million, compared to a profit of £16.1 million the year before.

But reflecting the acquisitions, assets under management totalled £2.7 billion, up from £113 million in the previous financial year. Including SVM Asset Management, which was completed post year-end, assets under management were £3.1 billion.

Asset Co said cost reduction in its listed equities business is well underway, with cuts of £10 million made in River & Mercantile by September 30.

Chief Executive Campbell Fleming said: ‘AssetCo has now successfully invested more than £40 million in growing the business by completing the acquisitions of River and Mercantile and Revera, taking revenues from less than £0.5 million last year to over £8 million during the course of the year, with a forward-looking run rate of £17 million when the acquisition of SVM is also factored in.’

Asset Co said an interim dividend of 1.3p per share had been declared and paid.

Shares in the company tumbled 13% to 65.81 pence each in London on Thursday.

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