MAM Funds increases profits as it starts on the road to recovery

FUND management firm MAM Funds showed it was on the road to recovery yesterday, with a 39 per cent increase in pre-tax profits in its preliminary results for the year to 31 December 2010.

The firm, which had suffered at the hands of the financial crash, increased pre-tax profits to £4.4bn, on revenues of £20.4m.

Funds under management at the firm increased to £1.7bn, up from £1.5bn a year earlier.

The firm said it had freed itself from restrictive banking covenants since the year end and was now set to strengthen its business.

The appointment of former Gartmore fund manager Gervais Williams, and the listing of his Diverse Income Trust on the London Stock Exchange next week, will add further strong future prospects, the firm said.

Williams added: “The business had a core operation held back by debt and the need to repay that debt.

“Now that it has raised sufficient capital, the business is now in a net cash position, so we can now dedicate cashflow and the increased scale of the management team to realising the potential of the business.”