The share price of wealth manager European Wealth dropped nearly two per cent this morning after the company reported a pre-tax loss of £1m.
The alternative investment market (Aim)-listed firm reported a 20 per cent increase in funds under management (FUM) in the year to 31 December 2015.
It also completed three acquisitions during the period, taking on Greensnow, Bells Solicitors and Xcap Nominees.
European Wealth said its income from trading activities was up 67 per cent to £7.7m. Its net assets increased to £17.3m from £16.6m.
This morning, European Wealth's share price dropped around two per cent to 53p.
Why it’s interesting
European Wealth, which was founded in 2009, acknowledged that its results were affected by a “challenging trading environment” in the second half of last year.
It said “current economic and political uncertainties”, including tomorrow’s EU referendum, make it “particularly difficult” to say how 2016 will pan out.
It noted that January was a challenging month in particular, with falling oil prices and uncertainty around the Chinese economy.
The company said: “European markets have to face the UK’s EU referendum and world markets have to survive the uncertainty of the US presidential elections in November.”
What the company said
Executive chairman A J Morton:
2015 has been a year when we have continued to take advantage of growth opportunities in the industry. As with any growing business, it is the dedication and determination of the staff that help fuel the growth of the group. I would like to take this opportunity to thank everybody associated with European Wealth for their commitment and determination over the last 12 months. The board and all the staff within the Group are determined to make European Wealth a growing name within the wealth management industry both across the UK and overseas. We look forward to the future with confidence.