Singer & Friedlander sees profits halve and warns on tough trading
The banking and fund management group Singer & Friedlander warned of continued tough trading conditions yesterday as it announced profits in the first half of the year had more than halved.
While the company described the trading climate for its banking business as "not unfavourable", it predicted its asset management business would remain under pressure.
John Hodson, the chairman, said the asset management arm was "operating in some of the most difficult conditions that I can remember in my 30 years with the group" and said he could not see any signs of a turnaround in the short term.
The warning bell was sounded as the firm reported a pre-tax profit, before exceptional items, of £18.7m in the six months to 30 June, down from a profit of £55.4m in the same period a year earlier.
Shares in Singer & Friedlander, which blamed the slump in earnings on falling equity markets, closed down 8.5p at 147p.
Mr Hodson said the uncertain economic climate combined with some "high profile corporate failures" had produced "the most difficult trading conditions that we have experienced for many years".
Profits at Singer & Friedlander's asset management business slumped 27 per cent in the first half to £3.6m. Funds under management at the end of June stood at £3.2bn, a fall of 11 per cent from the end of 2001.
"Although our asset management business is experiencing extremely unfavourable trading conditions, with every expectation that they may persist for some time to come, we remain committed to its development and growth," the group said.
The company's banking division, which also includes its consumer finance and leasing operations, increased profits 30 per cent to £10.8m. Profits from the core banking business in the UK and the Isle of Man jumped 21 per cent.
Singer & Friedlander also said yesterday it had made a one-off contribution of £30m to help cover a previously announced £34.4m deficit in its pension scheme.
It is also still looking to sell its 30.9 per cent stake in the Swedish brokerage Carnegie, which was worth £110m at the end of last month.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies