Half Yearly Report

MAM FUNDS PLC ("the Company")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2010

MAM Funds plc, the AIM quoted fund management group, announces its interim results for the six months ended 30 June 2010. 

Highlights

* Adjusted Profit from Continuing Operations includes other operating income but is stated before net finance cost, tax, exceptional items, share based payments charge, management charge income from Discontinued Operations and amortisation and impairment.

Colin Rutherford, Chairman and Chief Executive Officer says:

"It is pleasing to be able to report for the period a doubling of adjusted profit before tax from continuing operations at £2.0 million.

 The name change and capital restructure opens a fresh chapter for the Group and the focus is now firmly on the fund management business.

With strength and depth of experience in the investment team, MAM Funds is one of the UK's leading multi-asset fund management specialists. Our aim is to deliver enhanced performance for investors and shareholders alike and we are now better placed for organic growth and to explore complementary value enhancing fund management opportunities."

For further information, please contact:

Colin Rutherford, Chairman, MAM Funds plc 07768 053054

Roland Cross, Director, Broadgate Mainland 020 7726 6111

James Steel / Antonio Bossi, Arbuthnot Securities Limited 020 7012 2000

Web: www.mamfundsplc.com

Chairman's statement

Introduction

The six months ended 30 June 2010 have remained challenging with continued global economic uncertainty adding to the volatile trading environment. Despite this the UK equity market remained resilient and a double-dip recession in the UK and US has so far been avoided.

We have been active during the period under review. The company divested its Wealth Management and International Fund Management businesses in the period and at the General Meeting, held on 28 July 2010, shareholders approved our capital restructuring and name change to MAM Funds plc.

The Group is now firmly focused on UK multi asset fund management with both strength and a good depth of experience in the investment team, positioning the Group as one of the UK's leading specialists. Our aim now is to focus on delivering enhanced performance for investors and shareholders alike. With these changes we are better placed for organic growth and to explore complementary value enhancing fund management opportunities.

Results and trading performance

It is pleasing to be able to report for the period a doubling of adjusted profit before tax from continuing operations at £2.0 million (2009: £1.0 million) on revenue of £9.9million (2009: £8.4 million). The Group's statutory loss on continuing operations before tax of £0.3 million compared with a profit of £7.7 million in 2009 (which included an exceptional gain of £8.4 million). No dividend has been declared.

Capital reconstruction

Following the Interims the Group completed a capital reconstruction enabling it to create additional distributable reserves through the cancellation of its non distributable share premium account, capital redemption reserve and all deferred shares in issue. The effect of the capital restructuring on 23 August 2010 has been to add a total of £27.0 million to the distributable reserves of the company.

The Group divested its Wealth Management business releasing cash of approximately £6.9 million and is bound by its bank facilities to apply the net proceeds of this sale to redeeming a portion of its Preference Shares in issue.

After setting aside funds of approximately £1.0 million required to protect creditors, the remaining £5.9 million of Wealth Management net disposal proceeds will be applied on the 30 September 2010 to redeem Preference Shares of £5.5 million and related interest of £0.4 million, leaving approximately £6.8 million of Preference Shares and accrued interest thereon still outstanding.

Your Board considers that the restructuring has delivered a more appropriate capital structure and additional distributable reserves that will assist in retiring the remaining balance of Preference Shares ahead of their July 2016 redemption date and restore our ability to pay dividends in due course.

Rebranding

The Group's change of name to MAM Funds plc opens a fresh chapter. By closely aligning the plc's name with its two fund management brands, we capture the best of both Midas and Miton and can integrate, strengthen and improve brand recognition, develop a single sales and marketing strategy and drive operational effectiveness. In practice our fund names remain pre-fixed either by CF Midas or CF Miton.

Investment performance

As at 31 August 2010 the Group's Funds Under Management (FUM) totalled £1.57 billion (2009: £1.41 billion). Performance across the range of funds reflects the volatile and continued turbulence in global markets. In the preceeding twelve months the Midas Balanced Growth fund reported top quartile performance with 10.3% growth. Miton Special Situations and Strategic funds reported performance of 6.4% and 6.7% growth respectively and maintained their top decile performance since launch. We are pleased to report that Special Situations has now gone through £500 million FUM, and the Group had net creations of £40 million in the period before allowing for market increases.

Future prospects

We have one of the most experienced UK multi asset fund management teams in the industry. Whilst the uncertain economic outlook continues to present trading challenges we have taken positive action to manage and reduce our gearing. Having completed our divestment programme and the aforementioned capital restructuring and rebranding, we are now positioned for organic growth and to build value for shareholders whilst on the lookout for complementary talent and opportunities which might accelerate our proposition

We are grateful for the support and commitment of the Bank of Scotland, our advisors and of course our employees. We have made good progress during the last six months and we look forward to continuing to strengthen our position.

Colin Rutherford

Chairman and Chief Executive Officer

29 September 2010

CONSOLIDATED INCOME STATEMENT 

FOR THE PERIOD ENDED 30 JUNE 2010

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2010

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2010

CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD ENDED 30 JUNE 2010

NOTES

Basis of preparation

These interim condensed and consolidated financial statements do not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. They have been prepared on the basis of the accounting policies as set out in the Group's Annual Report for the year ended 31 December 2009, in accordance with International Financial Reporting Standards as adopted by the European Union, and which have been published on the MAM Funds Group website (www.mamfundsplc.com).

The unaudited financial statements were approved and authorised for issue by a duly appointed and authorised committee of the Board of Directors on 29 September 2010 and a copy is available on the Company website.

The full year accounts to 31 December 2009 were approved by the Board of Directors on 30 March 2010 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498 of the Companies Act 2006. The figures for the six months ended 30 June 2010 and 2009 have not been audited.

END