Wealth manager Ashcourt Rowan posted a loss of £2.5m in the 12 months to April as the group continues its transformation into a holistic financial planning business.
The company made a pre-tax loss of £2.5m for the year to 31 March, the same figure it recorded for the previous 12 months. Losses in the 12 months to April 2011 stood at £5.8m.
But the group said underlying profit on an EBITDA basis was £2.8m, significantly up from £0.3m the previous year.
The pre-tax loss reflects costs associated with the group's ongoing restructure.
In what it said had been a "year of transformation", the company has reduced its cost base by more than £7m and further trimmed staff numbers. It has also completed the integration of its core asset management businesses, Savoy and Ashcourt Rowan Asset Management, and offloaded its SIPP and SSAS pension scheme business.
Overall revenue dropped from £35.7m to £32.6m, which the group said was primarily due to the planned exit of a number of business units and weaker non-recurring fee generation from its financial planning subsidiary as it prepared for the Retail Distribution Review (RDR).
Total funds under management were down from £4.1bn in 2012 to £3.7bn this year. Within this, discretionary funds under management stayed roughly the same, at £1.6bn.
Group CEO Jonathan Polin [pictured] said the last 12 months had been "hugely challenging", but that its core propositions will put the business in a strong position.
"Our financial planning business is the principal mechanism for attracting new clients into the group. I believe passionately in the need for holistic financial advice and see the growth in our core market of the mass affluent as the key opportunity.
"The regulatory changes of the RDR have enabled us to upscale our talent pool and deliver appropriate transparent charging and a more detailed proposition to our clients. I fundamentally believe that RDR has been good for our clients and for the industry."
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