Investment manager Braveheart today revealed it had fallen into the red during the first half of the year because its former subsidiary Envestors fell victim to poor trading conditions.
The Perth-based firm last week sold Envestors to a management buy-out team, having ruled that the London-based corporate finance adviser had not made a positive contribution to the group’s financial performance since its acquisition in 2010.
Today Braveheart reported a pre-tax loss of £845,000 for the six months to 30 September, compared with a £67,000 profit a year earlier, and said £805,000 of the losses were directly attributable to Envestors, “which encountered poor trading conditions”.
Despite the setback, fee-based revenues remained broadly steady at £1.3 million.
Chief executive Geoffrey Thomson said: “Whilst the financial climate remains uncertain, there are encouraging signs that the UK economy is picking up.
“SMEs are vital to the UK economy and Braveheart remains focused on providing innovative financing solutions to this specialist market whilst building a business based on a quality earnings stream.”