Schroders, the UK-listed investment manager, plans to outsource administrative functions following staff cuts in the wake of a 99% fall in profits from £230m (€376m) to £1.9m in the year to December 2001.

The group's high cost base has been exposed as a result of falling markets and the loss of a huge quantity of institutional business, generally seen as a bedrock for group operations. Funds under management ended the year down from £129m to £110m.