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RAB Capital doubles profits

1st August 2005

UK-based hedge fund manager RAB Capital has announced H1 pre-tax profits of GBP5.1 million, an increase of 140% over the same period in the previous year.

The company also generated revenues of GBP9.4 million for the first half of 2005. This 72% increase was complemented by strong asset growth for the AIM-listed company.

RAB Capital launched four new funds in the period, two of which were added through the acquisition of Cross Asset Management.

Commenting on the results, chief executive Philip Richards said, "We are confident that we can grow our business in excess of 30% per annum in the next few years, and we are not an expensive share."

Cross Asset Management contributed approximately GBP140 million to RAB Capital's assets. The company expects earnings to be boosted further in the second half of the fiscal year as the acquisition of the company only took place at the end of June.

Since RAB Capital was founded in 1999, it has generally been the case that the second half year has made a more important contribution to the full year results than has the first half of the year. RAB's positive results come despite a collapse in smaller natural resource shares in the Spring, which the firm attributed to a short term correction.

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