A LIVERPOOL fund management firm has seen its profits almost triple last year.

Midas Capital Partners, the Water Street-based fund management firm, has also seen continued strong growth in new business with funds under management rising sharply.

Accounts lodged with Companies House last week show the Water Street firm’s pre-tax profits increased 182% to £3.4m in the year to last March, while turnover more than doubled to £4.88m.

At March 2007, Midas, set up five years ago by former Merseyside Pension Fund manager Simon Edwards, managed funds of £1bn. This has now increased to more than £1.65bn.

David Thomas, head of business development at Midas, said: “There is over £1.65bn in our funds and that speaks volumes about the financial health of the company.

“I think the growth is attributable to the confidence that intermediaries and clients have in our ability to manage their funds. It has been due to strong flows into the funds from independent financial advisers, private investors and other financial institutions.

“In particular investors have looked kindly on the unique diversification in our funds.”

The firm continued to grow throughout last year, although it has become more wary as the trading environment has become less benign.

“We took an increasingly cautious view through 2007,” said Mr Thomas. “In October we moved the funds onto a more defensive footing.

“We think there are a number of uncertainties in the investment outlook at the moment and it remains too early to say what the outcome of 2008 will be. That said, we are reasonably confident that our funds are positioned for more cautious investment.”

Shareholders, who include Jon Moulton of private equity group Alchemy Partners, received a dividend of 285p per share during the financial year.

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