Premier Milton blames ‘weakening’ UK investment sector for plunge in profits
Asset manager Premier Milton’s profits fell by more than a third in the year ending 30 September as the Square Mile suffers from a drop-off in dealmaking.
The AIM-listed company saw pretax profit come in at £15.7m, down 35 per cent from £24.3m in the same period last year.
Meanwhile, Premier Milton’s net revenue sunk to £66.9m from £81.2m.
London-listed investment platforms and asset managers, in particular, have suffered from a slump in flows in recent months.
“The year was characterised by investors taking a more cautious approach to new investments rather than accelerating their withdrawals,” said Premier Milton’s chief executive, Mike O’Shea.
Net outflows of £1.1bn drove a seven per cent decrease in assets under management to £9.8bn, while cash balances fell to £37.9m from £45.8m.
“While we have a well-diversified range of funds and a strong long-term performance track record, the near-term challenges have been difficult,” chair Robert Colthorpe said.
“The consequences of further weakening of the UK-centred investment industry would be deeply uncomfortable for our country, and we believe most importantly would reduce the resilience and capacity of the UK to create wealth and to build and sustain the type of society we need.”