Crux plans office move as staff costs double

Crux Asset Management will move from its Mayfair offices before September as a staff hiring spree sees its wage bill double.

In the period to 30 September 2017, Crux doubled its investment staff count to six, while two additional hires took its distribution team to five, according to its latest financial statement published last week.

Over the period, staff costs have increased from £1.9m to £4m, including the cost of pensions. The highest paid director’s pay packet increased from £265,300 to £646,200. Dividends also doubled to £2.1m.

In the year ahead, the company noted a shift to new offices would incur a substantial financial cost in the next financial results for the period ended 30 September 2018. The office move will create room for future growth, the filing said.

Crux would not provide further information when questioned by Portfolio Adviser. Its current office is beside Green Park in Mayfair.

The staff hires detailed in the filing do not include the hire of Richard Penny, who joins next week following six months of gardening leave from Legal & General Investment Management, where he managed the High Alpha and UK Special Situations funds. Portfolio Adviser understands he will be launching a UK special situations fund in autumn.

While turnover at the firm hit £14.2m, up from £10.1m over the period, profits shifted only slightly, from £3.1m to £3.3m. Brexit costs and the acquisition of CFIC ICVC had created a one-off hit, the filing said.

In the period covered, Crux launched a Global Sicav to navigate the risk of European investors shunning UK-domiciled funds due to the UK’s exit from the European Union.

It also landed a segregated mandate at the end of the reporting period. “We will be selective in the number and type of segregated mandates we accept,” the filing said.

The company expects profitability to continue at the same level in its next annual financial statements.

In March, the High Court ruled in favour of Crux founder Richard Pease (pictured) regarding his claim that Henderson Global Investors (now Janus Henderson) had breached terms of his contract as it “failed and refused” to pay him £2.7m of outstanding management fees after he left the firm.

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