Argo Group to slip to loss as fees falter
Argo Group fell on Tuesday after the company said that "difficult trading conditions in emerging markets" meant that the company had failed to replicate 2017's significant performance fees and that it would report an operating loss.
For the year ended 31 December, the alternative investment manager said management fees, which came in at $4.2m in 2017, will be broadly flat year-on-year while significant performance fees will not reach the $5.9m achieved during the prior year.
Consequently, and in spite of tight cost control, the AIM-traded company said it will record an operating loss for the year, down from an operating profit of $2.0m, when it reports its full results in early March.
In a statement, the company said that its board does not intend to declare a final dividend, but is considering a return of capital to shareholders via a buyback of shares, as to which further announcements will be made in due course.
Argo Group's shares were down 11.27% at 15.75p at 1531 GMT.