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Fund management company City of London upped its interim dividend after reporting a rise in profit amid an ongoing recovery and a boost from the acquisition of Karpus Investment Management.
For the six months to 31st December 2020, pre-tax profit was £8.8 million, up from £6.3 million last year and funds under management grew to US$10.9 billion (£8 billion), up from US$6.0 billion (£4.5 billion) last year.
'These results include a robust three-month contribution from KIM of £3.4 million in the latest quarter and £7.8 million from CLIM over the full period, the latter equating to a 26% year-on-year increase,' the company said.
Net fee income of £22.6 million included £5.1 million from KIM and £17.5 million from CLIM, the latter representing a 6% year-on-year increase.
The company announced a 1 pence increase in the interim dividend to 11 pence per share, equivalent to a 10% increase.
'Our results through the very testing conditions of the last six months and the increasingly diverse business mix that will flow from the KIM merger, provide a sound basis for cautious optimism,' the company said.