AssetCo PLC on Monday reported significantly higher administrative costs and a plunge in finance income in its recent financial year, which together more than offset a surge in revenue.

The London-based asset and wealth management said pretax loss ballooned to £12.9 million in the financial year ended September 30, from £5.4 million a year prior.

Revenue more than doubled to £15.0 million from £6.3 million.

Administrative expenses however increased 45% to £29.5 million from £20.4 million.

Further, finance income plunged to a negligible £74,000 from £12.4 million. Finance costs increased to £510,000 from £10,000.

AssetCo also reported no gain on bargain purchase, compared to £3.2 million in financial 2022.

‘Rising interest rates, inflation and the residual impact from the pandemic have all contributed to large net retail outflows from UK equities funds in particular, estimated at £13.6 billion, accounting for 39% of total net outflows across the industry over the period,’ Chair Martin Gilbert said.

AssetCo said it had £2.4 billion in active equity assets under management as the end of September, up 4.3% from £2.3 billion a year before.

Looking ahead, Gilbert said: ‘The company’s underlying businesses going forward - River Global and Parmenion - have the financial strength, support and agility to weather current conditions but it is only fair to acknowledge the toll that persistent outflows have had on River Global’s business and the reduced resilience that results. We are confident that the various options available to us to deal with further adverse conditions are adequate for the foreseeable future but acknowledge the pressure that puts on the business over the longer term.

AssetCo shares were down 4.1% to 35.00 pence each on Monday afternoon in London.

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