F&C is hobbled by rush to sell

F&C Asset Management, the fund manager in which Friends Provident is trying to unload its controlling 52% stake, today admitted uncertainty over its future was hurting business.

The share price plunged more than 30% last month after Dawnay Day sold a 20%-plus stake and today it is valued at little more than £500 million, roughly half its worth when Friends Provident first said it could sell up.

Chief executive Alain Grisay, who is halfway through his three-year recovery plan for the business, admitted it would probably only be "once our ownership issues are resolved and markets begin to stabilise that we will be significantly better placed for growth".

He said talks over a deal continued but in the meantime F&C was cutting back on costs including axeing 40 jobs in the first half.

Underlying pre-tax profits dropped 13% to £27.8 million in the six months to end-June on revenues marginally down at £118 million. The dividend is held at 2p a share.