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River and Mercantile eyes aggressive cost-cutting to revive anaemic profit margins

Cost cutting initiatives to be revealed soon Adjusted underlying pre-tax margins over the latest interim period were 18%, down from 21% the year before. Its profit margins have been on a downward slide in recent years falling from 27% over the same period in 2017 to 24% in 2018.  Underlying profit before tax plunged 15% in the last six months of 2020 from £7.3m to £6.2m.   Revenues of £34.2m were also 3% lower than the £35.2m brought in over the comparable period in 2019, despite assets under management increasing 3.4% to £45.7bn.  Barham said the group is currently developing a series of cost cutting exercises that will be revealed in due course and is looking to “re-engineer” its operational infrastructure to slice operating costs “materially”. 

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