Investment manager Man Group has reported a profit before tax and exceptional items of $1.19 billion, or diluted earnings per share of $0.54, for the year ended March 31, 2009, compared to $2.08 billion, or diluted earnings per share of $0.90, in the corresponding period of 2008. The company also plans to reduce its workforce by 15%.
Funds under management currently estimated at $47.7 billion, compared to $74.6 billion at March 31, 2008. Private investor sales of the company are estimated to be $11.1 billion at the end of March 31, 2009.
Reflecting the current lower level of funds under management, Man has implemented a plan to reduce the cost base of the business. This will result in a $60m reduction in the run-rate of fixed costs with effect from April 1, 2009 which includes reduction of 15% permanent employee headcount.
The one-off costs associated with this restructuring are around $40m and are included in the current year numbers as part of the exceptional items.
Peter Clarke, CEO of Man Group, said: This has been a very difficult year for global markets and our business has not been immune. We have responded by focusing on preserving our strong investment management franchise, whilst also maintaining and building the firm’s financial strength, both key differentiators in these markets. We have also reviewed efficiency and costs across the business and have reduced fixed costs by $60m for the coming financial year.
