NewSmith Capital Partners, the boutique founded by former Merrill Lynch executives in 2003, has dropped advisory work to focus on asset management after skidding into loss in the year to November 2008.

According to accounts just filed at Companies House, NewSmith's income from advisory work fell from £8.65m (€9.4m) to £1.17m in the year to November 2008. This sum represented a final trading contribution from its advisory business, led by TJ Lim, following delays in its sale to UniCredit of Italy as a result of the credit crisis. UniCredit has renegotiated the sale agreement and the deal will not now complete until November.