Investment firm reports record results

LEEDS investment firm Myddleton Croft has announced that pretax profits are on the up despite “regulatory pressures” in the industry.

Myddleton Croft has announced a pre-tax profit of £224,000 on turnover of £829,000, a 23% increase year-on-year.

It was feared the “substantial” increase in regulatory costs would adversely affect profits within the industry.

But funds under management at Myddleton Croft rose by 20% to £70m,

Despite a substantial increase in regulatory costs, the discretionary investment managers reported turnover was up by 10% and funds under management rose by 20%, to £70m.

Over the same period, the FTSE All Share Index returned 1.7%.

Around half the growth was driven by investment return according to the firm, and half attributable to new business.

David Cowell, chairman, said, “The excellent performance of the company is obviously very pleasing but more importantly we have outperformed the market in terms of growing our clients’ assets. Bearing in mind that the FTSE All Share returned about the same as a cash deposit, it shows our clients and their advisers have made the right choice and their confidence in our investment management abilities has been fully rewarded.

“Our aim, as always, is to preserve and enhance asset performance whilst maintaining high service standards.”

Julie Jones, managing director, added: “Clients want a personal service, where the person choosing investments on their behalf is the same person who meets with them on a regular basis and understands their needs.

“In recent years, we have proved able to differentiate ourselves by providing such a service – both to IFAs and individuals – and these results reflect the increasing reputation we are gaining.”

Myddleton Croft has grown to an eight-strong team, working with advisers as well as private clients, charities, pension funds and trusts.