LONDON (Alliance News) - Argo Group Ltd said Wednesday it swung to an interim loss in the first half of the year as it recorded net losses on investments.
For the six months to June 30, the investment manager posted a pretax loss of USD714,000 compared to a USD1.1 million profit recorded a year ago.
The loss reflected a USD238,000 net loss on investments generated by the group, compared to a USD1.7 million gain in the first half of 2017.
Revenue dipped to USD2.2 million from USD2.3 million year-on-year.
The company said that its funds ended the six-month period with assets under management of USD148.6 million.
"The current level of AUM remains below that required to ensure sustainable profits on a recurring management fee basis in the absence of performance fees," the company explained.
The company did not issue a dividend in respect of the half-year, while it said that "the directors intend to restart dividend payments as soon as the group's performance provides a consistent track record of profitability".
The company last paid a dividend of 2.1 cents per share in 2012.
Argo said that its "top priority" for the second half of the year will be to boost its AuM level.
"Over the longer term, the board believes there is significant opportunity for growth in assets and profits and remains committed to ensuring the group's investment management capabilities and resources are appropriate to meet its key objective of achieving a consistent positive investment performance in the emerging markets sector," Argo added.
Argo shares were untraded at 18.00 pence each.
Argo Group (ARGO)