RAB Capital’s made a loss after tax of GBP17.1m in 2008, but it says the balance sheet remained strong and included GBP115.4m of net current assets and investments at the end of the yea
RAB Capital’s made a loss after tax of GBP17.1m in 2008, but it says the balance sheet remained strong and included GBP115.4m of net current assets and investments at the end of the year.
Revenues declined by 59 per cent, which it says was principally attributable to a significant fall in performance fees.
Assets under management in 2008 were down 74 per cent to USD1.9bn compared to USD7.2bn in 2007.
The consolidated income statement, lower management fees, significantly reduced performance fees and the need to reflect some impairment charges in respect of its investment portfolio resulted in net income falling by 69 per cent to GBP43.1m (2007: GBP137.1m).
Administrative expenses also fell by 56 per cent due to a significant reduction in incentive compensation, and allowed the group to retain positive cash flow and operating profitability.
The group has also had to recognise some exceptional impairment and restructuring costs. These exceptional costs totalled GBP17.7m (2007: GBPnil) and resulted in a loss before tax of GBP13.9m (2007: profit GBP51.1m).
Stephen Couttie, chief executive, says: ‘The markets continue to remain challenging, but the greater focus that we now have in our offering, the realisation of improved efficiency within our operations and the steadily improving liquidity of the company has better positioned RAB for this difficult period.’
The board has recommended an unchanged final dividend of 1.80 pence per ordinary share, payable on 8 May 2009, giving a total of 2.40 pence per ordinary share for the year.
