Profits at Fundsmith, the investment boutique set up by former Tullett Prebon chief executive Terry Smith, fell sharply in the year ended March 31, 2016, as the firm made a near £30 million payment into a Mauritius-domiciled sister company it set up in 2014.

The asset manager reported in its latest accounts, filed at Companies House on January 11, that its profits had fallen to £2.8 million from £12.6 million a year earlier, as expenses increased to £38.8 million from £13.7 million.