Rensburg says revenue drop reassuring in difficult market conditions
WEALTH management group Rensburg Sheppards today reported a “reassuring” decline in revenue against a backdrop of economic turmoil.
The Leeds and Liverpool-based firm, said that net revenue for the period October 1 2008 to January 27 2009 had seen just an 11.1% like-for-like drop.
For the nine months ended December 31 it saw a 7.9% fall in net revenue to £84.5m compared to the same period 2007.
During the three months ended December 31 2008, the group’s total funds under management declined by 5.4%, compared with falls of 4.7% and 11.0% in the FTSE APCIMS Private Investors Balanced and FTSE All-Share indices respectively.
It said that the drop took into account a very sharp contrast in operating environments and a further “marked deterioration” in global financial markets.
Rensburg added that it remained soundly financed and cash generative with cash plus cash equivalents less subordinated debt totalling £27.3m.
“This leaves the group well placed to take advantage of the potential opportunities that may arise from the current environment,” it said.
“The first few weeks of 2009 have seen continuing volatility and further declines in the leading financial market indices. While fully acknowledging the prevailing uncertainty, the board remains satisfied with the group’s longer-term prospects.”
Meanwhile, investment firm Brewin Dolphin reported that income for the first quarter to December 28 was £51m – 2% lower than the same period last year .
The firm, which has offices in Leeds, said that it continued to find market conditions difficult, but that investment management had seen inflows of discretionary funds and income rise by 4%.
