Close Brothers AM profits have fallen by 27% amid rumors of a potential sale. The company’s adjusted operating profit dropped to £15.9m, down from £21.7m the previous year. This decline was attributed to lower income from advice and other services, as well as higher hiring costs. Despite the decrease in profits, Close Brothers AM saw a 7% increase in total managed assets, reaching £16.4bn. The company has been recruiting investment managers and expanding its offices to support new teams. Close Brothers CEO, Adrian Sainsbury, expressed confidence in the company’s long-term growth potential.
Close Brothers AM profits tumble 27% amid sale rumors
Close Brothers AM has reported a 27% decline in profits amid speculation of a potential sale. The company’s adjusted operating profit fell to £15.9m from £21.7m in the previous year. This decrease was driven by lower income from advice and other services, as well as higher hiring costs. Despite the decline in profits, Close Brothers AM experienced a 7% growth in total managed assets, reaching £16.4bn. The company has been actively recruiting investment managers and expanding its offices to support new teams. Close Brothers CEO, Adrian Sainsbury, remains optimistic about the company’s long-term growth potential.
Recruitment and Expansion Drive Growth
Close Brothers AM’s growth has been fueled by its recruitment efforts and expansion plans. The company hired 15 bespoke investment managers during the year, up from 10 in the previous year. It also opened new offices in Birmingham and Cheltenham to support its growing teams. Additionally, Close Brothers AM has been making inflationary-driven salary increases. These strategic moves have contributed to a 7% increase in total managed assets, which now stand at £16.4bn. The company’s focus on organic growth, future acquisitions, and investing in new hires underscores its commitment to long-term success.
Potential Sale and Rumors
Despite the decline in profits and rumors of a potential sale, Close Brothers AM has not addressed the speculation in its end-of-year results. The company’s focus remains on its “long-term growth potential” and its plans for organic growth and future acquisitions. Close Brothers AM has been a beneficiary of the exodus from Investec Wealth and Investment, hiring several investment professionals who have left the firm since its takeover by Rathbones was announced. With a good start to the 2024 financial year, Close Brothers AM aims to resume its track record of earnings growth and returns.
