Cofunds files High Court papers in divided push

Cofunds has confirmed that it has filed papers at the High Court in London to ensure the legal structure of the company allows it to pay commercial dividends in the future.

In a statement to FTAdviser, Mark Williams, finance director at Cofunds, said that the firm has made profits for three years and is now “well capitalised”.

Cofunds recorded pre-tax profits of £7.9m in 2010, plus a £12.3m tax credit.

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He said: “We continue to grow profitably and, while investing for the requirements of RDR, we are also taking steps to ensure that the legal structure of the company allows us to commence dividend payments in the future.

“We would only do this when we and the shareholders deem it appropriate. In order to be in a position to do this we are restructuring our capital to iron out an accounting legacy and have filed appropriate papers at the High Court.”