Walter Scott & Partners, the Edinburgh investment boutique sold two years ago this month to what is now Bank of New York Mellon for a rumoured £400m, racked up £27.3m of profit in 2007, against £21.9m in a nine-month period the previous year.

Walter Scott & Partners, the Edinburgh investment boutique sold two years ago this month to what is now Bank of New York Mellon for a rumoured £400m, racked up £27.3m of profit in 2007, against £21.9m in a nine-month period the previous year.

The firm's annual accounts show turnover jumping from £53.6m to £76.5m, though operating profit was similar to the previous year at £38m. Staff rose from 60 to 74.

Dividends had totalled £25.3m in the previous period, shared largely between 70% shareholder Scott and managing director Alan McFarlane who held 20%.

Last year dividends fell to £12.9m.

The highest-paid director in 2007 received total remuneration of £4.8m, a 50% uplift on the £3.2m paid in 2006 to Scott, who quit the company on May 13 2007, handing the chairmanship to Ken Lyall.

Director pay rose in total from £6.8m to £9.4m, and some £4.3m of restricted stock vested when original buyer Mellon merged with Bank of New York in July last year.

The report says a contract with Millburn World Travel, formerly Walter Scott International Travel, was terminated at a cost of £6.86m.

An office lease from Scott and two other directors was terminated at a cost of £438,151.