Scottish merchant bank unveils £1 a share special divi

Bumper gains on the sale of the company's stakes in Aberdeen-based Submersible Technology Holdings and retailer Cath Kidston helped boost group profits before tax rising to 10.9 million in the year to 30 June from just 1.2m the previous year.

The Edinburgh and London-based bank saw revenues jump 89 per cent to 15.7m from about 8.3m last year. The firm also benefited from a recovery in advisory work in the second half of the year, working on deals including the acquisition of DFS by Advent.

Chairman Andrew Tuckey told The Scotsman the firm was starting to reap the rewards of a shift in focus.

"In the past Quayle Munro was effectively an investment trust; now we are mainly an advisory business," he said.

"The emphasis has changed completely. We are now a simple business, clearly focused, independent and free from conflicts."

Shareholders will receive the special dividend on top of a 20p final dividend declared by the bank which employs just under half its 50 strong workforce in Scotland.

Almost 4m will also be paid in bonuses to staff at the bank, although 26 per cent of the total pot will be paid in shares. The bank introduced a new incentive scheme for corporate financiers for the year, giving them a 50 per cent share of professional revenues.

Tuckey said the incentive scheme was needed to recruit people of the "highest calibre" to the business and that the bonus structure "clearly aligns revenue generators with shareholders".

Although he said it was difficult to predict the outcome for the full year, the bank was dealing with a strong pipeline of potential work and looking to recruit staff. Shares rose by 100p, or 13.8 per cent, to 825p.