Edinburgh Partners, the investment house chaired by Angus Grossart and 70 per cent owned by its employees, has recorded a slight downturn in annual pre-tax profits but is optimistic about prospects.

Edinburgh Partners’ pre-tax profits fell to £17.4 million in the year to February 29, from £19.8m in the prior 12 months, as revenue dipped from £36.7m to £34.4m.

Average funds under management during the year to February 29 were £7.34bn, compared with £7.72bn in the prior 12 months.

Chief executive Sandy Nairn told The Herald: “I am quite excited about our prospects. It has really picked up in the last six months.”

He added: “We are seeing a pick-up in interest, in speaking to our clients.”

But Mr Nairn was cautious about the outlook for stock markets, saying: “I think, in absolute terms, very few asset markets are cheap now. In relative terms, I think we are optimistic but quite a subdued outlook for absolute returns.”

He said the investment house had had the biggest exposure to financial and banking, energy, and healthcare stocks over the last 12 months.