Midas Capital sells international arms

FUND manager Midas Capital has reduced its annual losses and announced it is to sell its international fund management subsidiaries to refocus on its core UK business.

The firm, which owns Liverpool-based MIDAS Capital Partners, is to sell its Guernsey and South African fund management subsidiaries for a combined £570,000.

Guernsey based Midas Capital International, together with its’ subsidiary Midas Capital (Guernsey), will be sold to MitonOptimal International.

Meanwhile, South African-based Midas Capital Asset Management (Pty) will be sold to a management consortium led by the MCAM chief executive, Scott Campbell.

Midas Capital will get a cash payment of £300,000 for both subsidiaries, which operate under the MitonOptimal brand, with a pre-completion dividend of surplus net cash in the companies, of around £270,000.

For the year ended December 31, 2009, they had combined revenues of £1.6m, incurred a pre-tax loss of £292,000, had assets under management totaling £62m and a net book value of £298,000.
 
Colin Rutherford, chairman, Midas Capital, said: “The sale of MCI and MCAM to MitonOptimal completes the planned initial moves to refocus the group activities back to its core UK business.”

Separately, the group announced a pre-tax loss from continuing operations of £2.2m in its full-year results to the end of December 2009 – a considerable improvement on the £56.7m loss it made a year earlier.

Funds under management and advice for continuing businesses stood at £1.5bn (2008: £1.4bn).

Colin Rutherford, chairman and chief executive of Midas Capital, said: “The past year has seen the group pursue its strategy of selling non-core activities to focus on its multi-asset fund management offering. 

“The disposals of Intelli, iimia Wealth Management and international fund management subsidiaries will allow the group to concentrate on organic growth, further reductions in gearing and protecting and building shareholder value.
 
“The market in 2010 looks set to pose challenges, however, I believe that our business is now well placed with our mix of products, experience and young talent to build our position as a major player in the multi-asset fund management sector.”