AIM-listed asset manager Arc Fund Management's trading suspension has been lifted this morning with the publication of its audited results for the year ended 31 December 2007.
Arc trading was temporarily suspended yesterday pending release of the results, which showed the firm recorded a £538,540 loss last year, compared to a £485,155 profit posted in 2006.
However, Arc attributes the loss to a goodwill impairment related to the firm’s acquisition of Leicester-based IFA Throgmorton Asset Management (TAM) and other charges following the takeover of structured product provider Arc Capital & Income (ACI) during the period.
Without the charges, Arc says profits climbed from £729,903 to £827,770 last year. The ACI and TAM acquisitions increased Arc’s overall group turnover by 71% in 2007, up from £2.69m to £4.65m.
Arc says last year’s takeovers were the first step in the firm’s shift away from a specialist fund manager to a wealth management and investment house.
The business move has continued in 2008, with the £2.1m January acquisition of Cumbria IFA Independent Investment Associates and the £1.6m May takeover of Manchester IFA Throgmorton Financial Services.
As a result of the purchases, Arc now has approximately £500m in funds under management/advice.
Arc chairman Sir William Wells says the firm will push on with its growth plans despite uncertain and volatile current conditions.
“Our immediate focus is to build a national wealth management division and we are actively looking for suitable acquisitions that fit in with our existing businesses,” he says.
“We go into the future with caution but believe our strategy of building a wealth management division is the right way forward and will lay the foundations of a strong and profitable business.”
Arc shares are currently at 5.88, down 68% on its 52-week high of 18.75.IFAonline
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