Aberdeen Asset Management has revealed that pre-tax profits for the six months to the end of March have nearly doubled to £10.4 million from a year before as it attracted strong inflows.
Aberdeen - which includes a Birmingham-based office specialising in private equity - said profit before tax, goodwill amortisation and exceptional items had risen from £5.5 million in the same period a year earlier.
Mr Harry Jeavons-Fellows, head of the group's Birmingham office, Aberdeen Murray Johnstone Private Equity (AMJPE), said the market for his arm of the business remained challenging.
But he said the office had £300 million of funds to invest and was targeting deals of £1 million to £15 million. He said: "As more and more equity houses concentrate their efforts on large deals we continue to focus on small to midsize transactions."
The office was delivering to its customers' expectations and it, and its equivalents nationally, had established there own niche, he said.
Across the group, it was revealed that earnings per share were 3.41p from 1.56p, while assets under management rose to £25.4 billion, up 15 per cent from the end of September 2004.
The company's fortunes have recovered sharply over the past year, buoyed by strength in its Asian and emerging market equity funds, inflows from institutional clients and cost cutting. Aberdeen logged a net £2 billion of new business, accounting for the bulk of its increase in assets under management.
" This performance continues to build on the progress we made in the second half of last year. We expect the group to continue to benefit from increasing revenues arising from new business inflows," said Martin Gilbert, chief executive of Aberdeen.
Aberdeen has also focused on winning business from institutions such as pension funds instead of retail clients, drawing a line under a damaging episode surrounding its management of split-capital investment trusts.
Split-capital trusts, which are investment funds which can use leverage to enhance returns and offer different share classes, suffered a near meltdown in the 2000-2002 bear market in equities. The Financial Services Authority has launched a probe into the sector for possible malpractice.