Close Brothers AM profits tumble 27% amid sale rumours

Lower income from advice and higher recruitment costs

clock • 2 min read

Close Brothers Asset Management (CBAM) profits dropped 27% in the 12 months to the end of July, amid reports a buyer is being sought for the business.

According to its final results to 31 July 2023, adjusted operating profit fell to £15.9m, down from £21.7m a year ago. The tumble in fortunes was driven by lower income from advice and other services and higher hiring costs, CBAM said. The business recruited 15 bespoke investment managers during the year, up from 10 in 2022, and opened offices in Birmingham and Cheltenham to support new teams, while also making inflationary-driven salary increases. Income from CBAM was down 2%, while the revenue margin reduced to 84bps from 87bps in 2022, due primarily to flows into lower margin inves...

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