- Proposed demerger of stake in Parmenion
- Change of name to River Global
- Underlying first half operating loss cut 65 per cent to £1mn on stable revenue of £6.9mn
- Positive new business flows of £39mn in latest quarter
- Additional cost savings identified
AssetCo (ASTO:31p) has slashed its operating loss and identified further cost savings to help the asset management group towards profitability. It is also spinning off its 30 per cent stake in Parmenion, a highly profitable B2B investment platform for the UK wealth and advisory sector.
Parmenion is benefiting from the digital transformation in the asset and wealth management industry. AssetCo booked interest income of £1.6mn from its investment in the group’s latest accounts. The stake was valued at £75-90mn (53p to 63p) on 20 September 2023, or a multiple of around 12-13 times cash profits, since when Parmenion has increased assets under management and administration by 10 per cent to £11.7bn.