Old Mutual (OML) has been performing a balancing act during the first half of the year, according to finance director Ingrid Johnson. As part of its 'managed separation' the financial services group has been cutting costs at the centre, while investing enough in its businesses to ensure they can survive as separate entities.
Management has identified up to 60 more roles to cut from head office by the end of the year, which will take the reduction in headcount to 50 per cent and run-rate savings to £10m. Paying debt down is also a priority and management has accelerated the asset management arm's purchase of the seed capital provided by the plc, as well as the termination of the deferred tax arrangement between the two entities. Taken together, this is expected to release around $270m to $280m (£208m to £216m) between 2016 and 2018.