City of London looks to put bad year behind it after sales drop

 
Michael Bow
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CITY of London Investment Group yesterday posted falls in funds under management, revenues and profits for the full year as it struggled to cope with a difficult management transition.

Funds managed by the company fell 16 per cent in sterling terms, delivering a £4.7m fall in revenues due to the smaller fee earning asset base. Overall profits for the year ending May this year fell to £8.9m from £11.5m a year earlier.

The group was rocked by the departures of its chief executive Doug Allison and finance director Valerie Tannahill in April after just three months in their roles.

Chairman David Cardale yesterday said he owed shareholders an explanation for the abrupt change of regime at the business.

Cardale said the firm had to “grapple with the problems of succession” following the departure of founder and chief executive Barry Olliff, who has since come back into the fold to run the firm on a temporary basis. Cardale said this year would be “satisfactory”.