Majedie Asset Management has cut staff pay and its profit before tax fell by £19.8m for the year ending 30 September 2020.
According to its annual results published on 28 June, the company’s profit before tax for 2020 was down at £16.3m, from £36m in 2019.
Net current assets for the period totalled £57.7m, compared to £71.7m in 2019.
Earlier this year, the company saw Mark Wharrier (pictured) exit as manager of the firm’s £100m UK Income fund, replaced by Majedie founder Chris Field following a period of underperformance in 2018 and 2019.
Salaries cut but dividend steady
Directors’ pay and fees were also down at £2.1m, compared to £4.1m in 2019 and the highest paid director is estimated to receive a salary of £824,673. The highest salary in 2019 was up at £1.3m.
Total employee pay, including directors’, which includes performance-related bonuses, was cut from £32.9m in 2019 to £17.8m in 2020.
Despite losses, Majedie paid an interim dividend of £6.7m and shareholders are set to receive a final year dividend of £16.8m, the same figure as 2019.
Management fee income also dipped to £44.6m, down from £79m in 2019, halving in less than three years, down from £98m in September 2018.
The full-year results also showed that administrative expenses fell to £31.5m from £47.2m,
The asset manager’s investment trust, Majedie Investments, owns 17.1% of the company.
This article was written by Georgie Lee, a freelance journalist
