Premier eyes acquisitions as it looks to return to profit

Premier Fund Managers has outlined a long-term strategy to investors that involves growing its profitability and pinpointing key acquisition targets, as it looks to edge into profit.

While Premier Asset Management Group, a non-regulated holding company, reported a retained loss of £7.06 million for the year ended 30 September, Premier Fund Managers, one of its two UK regulated companies, reported a loss of £199,000.

The second of Premier's two UK regulated companies, Premier Portfolio Managers, made a profit of £3.7 million over the stretch reviewed.

Key changes were made to Premier over during the 12 months, including the Guildford-based firm's decision to outsource its private client administration function and the installation of a fully integrated trading system.

These changes form part of Premier’s goal of building out a robust platform on which the business can grow its funds under management, which stood at £2.106 billion at the end of the period reviewed, according to accounts filed over the .

Premier finance director Neil MacPherson said: ‘Looking forward, the regulatory environment continues to evolve and the UK financial services sector faces a number of challenges, not least the implementation of the retail distribution review (RDR).  In addition, it is likely that equity markets will continue to be volatile and uncertain, for the short to medium term at least. 

'However, the group benefits from having a talented pool of investment managers and an improving performance track record. It also has an efficient operating platform and an improved sales and marketing presence so it is well placed to take advantage of opportunities for growth over the coming years.'

MacPherson also outlined Premier’s five-point longer-term growth strategy, which involves continuing to look for suitable bid targets that will deliver scale and help strengthen Premier, to grow profitability and funds under management, and wherever possible to improve margins.

Mike O'Shea (pictured), Premier's chief executive, told Wealth Manager that Premier's most likely acquisition targets were mutual funds businesses, even though the trend among asset managers is to bid for discretionary firms.

'We really like looking after retail investors,' O'Shea said.  'I cannot tell you we are going to be buying this, we are definitely on the look out.' He also pointed out Premier is backed by private equity firm Electra which remains supportive of future acquisitions of either businesses or teams.

O'Shea said that Premier has already been involved in 'a couple' of conversations relating to acquisitions, however these have not developed further.