Midas Capital in the red

FUND manager Midas Capital declared a half year operating loss of £4.3m after a turbulent period which saw it forced to restructure its debt with its bank.

In March Midas struck a deal with the Bank of Scotland, to convert debts worth £36.5m into a combination of preference shares and a new loan facility.

As part of a major restructuring plan the Liverpool company sold off its broking business to a Canadian firm, using the proceeds of around £3m to bolster its balance sheet.

Revenue in the six months to June 30 fell from £14.9m to £12.5m, which executive chairman Colin Rutherford said was “unsurprising” given the economic climate and “our well-reported group restructuring.”

Adjusted losses came in at £100,000 against a £1.8m profit last year.

He said the group was seeing some benefits from the recent Stock Market recovery.

“Since the period end the market has risen a further 23%. Our product range is diversified and to an extent hedged against the next market shift and product performance will inevitably vary in practice.

“Your board is wholly committed to finalising the group’s restructuring plan and will focus increasingly on our multi-asset management offering as we look towards 2010.”