Miton profits fall as fund launch and M&A costs mount

Miton has reported pre-tax half-yearly profits of £300,000 to 30 June, down from £500,000 from the same period last year as expenses rose.

The launch cost of two new funds, recruitment of four fund managers, a new IT system, and the acquisition of PSigma Asset Management meant expenses rose by £700,000, negating a revenue increase of £400,000 to £6m. Adjusted profit fell from £2m to £1.8m between H1 2012 and H1 2013. Assets under management increased by 13% to £2.02bn, with net inflows of £121m. Chairman Ian Dighe said the acquisition of PSigma would lead to significantly enhanced earnings in the first year after acquisition. The acquisition of the group's funds will also add £750m in AUM. "Market conditions wil...