City of London Investment Group, a U.K.-based investment company, has announced a decrease in pretax profit for the fiscal year 2023. The company reported a pretax profit of £18.6 million, down from £23.2 million in the previous year.
Before accounting for amortization of intangibles, the pretax profit was £23.2 million, compared to £27.2 million in the previous year. City of London Investment Group had previously warned that the figure would be around £23.4 million due to higher overheads and increased employee retention and retirement costs.
The decline in revenue was attributed to lower funds under management (FuM), with management fees charged as a percentage of FuM. Revenue dropped to £57.3 million from £61.3 million. However, this was partly offset by the stronger dollar against the pound.
The company reported that FuM stood at $9.4 billion at the end of June 2023, compared to $9.2 billion in the previous year. Positive investment performance helped mitigate net outflows. Net fee income also decreased, falling to £54.6 million from £58.2 million.
The board has declared a final dividend of 22 pence per share, consistent with the previous year’s dividend payment. The total payout for the year will be 33 pence, down from 46.5 pence in the previous year, which included a special dividend.