Woodford Investment Management directors have been forced to pump money into the collapsed fund house as the costs associated with its collapse hit £5.1m in the last financial year.
With the fund house no longer running portfolios, the company has no material sources of revenue, accounts for the period ended 31 March 2021 said.
Total revenue of £590,209 appears to have mostly come from ad hoc consultancy. That compares to revenues of £14.5m in the previous financial year, which covered the collapse of the Woodford Equity Income fund in June 2019 and the subsequent loss of the Woodford Income Focus fund and the Woodford Patient Capital Trust.
The fund house controversially continued to charge fees to investors locked in its funds and last year’s results revealed Neil Woodford (pictured) and his business partner Craig Newman had taken £1.5m in dividends from the business during that year. This year they have taken none.
Administrative expenses over the last financial year were £5.1m with total losses clocking in £4.1m. The results also revealed the company has sold all its artwork for a meagre sum of £28,797.
“The results for the period, and the financial period at the year end, reflect the continued cost of operating at a much reduced level with minimal revenue,” the filing on Companies House said.
The company does not anticipate any future revenue and is dependent on the support of the directors, Woodford and Newman. Already, key management personnel have provided a loan of £186,000, which is still outstanding.
The accounts provided two reasons for the company’s continuation: firstly, “in order to fulfil certain ongoing obligations”, and secondly, “the business is being kept in existence to allow the refunds from potential contingent events”.
The accounts represent the second year Maidenhead business WP Audit has acted as auditor with BDO ceasing this role for the accounts to the period ended 31 March 2019.