Selling the company's private plane for $18 million helped W. P. Stewart & Co's bottom line during the third quarter but could not disguise a disappointing three months for the company as it continues its major "turnaround programme."

The Bermuda-headquartered firm has already suspended payment of quarterly dividends as it works to re-establish itself with new management personnel and investment strategies.

A year ago W.P. Stewart had $8.3 billion of assets under management, at the end of September that had shrunk to $5 billion representing a slip of $300 million over the pervious quarter.

Against that background the company posted a third quarter profit of $9.2 million, which measures well compared to the same period a year ago when the profit had been only $3.5 million, but it must be remembered that an after-tax gain of $10.2 million from the sale of the corporate plane is included within that figure.

During the quarter the company also paid out $2 million to employees who had their jobs terminated.

The year-to-date finances show a $10.4 million net loss since January.

Chairman and CEO Bill Stewart, said: "This was an important period for our company, as we continued to attract strong, experienced people into key asset management, marketing and client service positions, furthered the integration of our global research and portfolio management activities, offered a range of advisory fee options and substantially broadened our product line.

"Our financial results, while disappointing, reflect the time and effort needed to rebuild our franchise, as we are now approximately eight months into a projected one- to two-year turnaround programme.

"I've said from the start, the critical challenge is to successfully rebuild and differentiate our company for the long-term. I'm pleased that our new investment management team is virtually in place, working hard at improving investment performance and we have reduced operating expenses.

"Nevertheless, while we generated positive cash flow, this was an unsatisfactory quarter as our results reflected the ongoing outflow of assets. We continue to expect it will take time before the impact of the management and operating changes takes full effect. I remain confident we are on the right track."

The company's US investment portfolio remains disappointing for the year to date, the company said in a statement, however it has seen strong performances in its European and Asia portfolios.