Investors interested in a stock earning £1 million a month pre-tax with a market cap of less than £100 million might consider checking out asset manager City of London Investment Group’s (CLIG) website.

City of London Investment Group, not to be confused with a number of similar-named stock market companies including City of London Group (CIN:AIM), publishes regular updates on its investor relations page about the company’s current cost and revenue structure.

Data for June shows income exceeded £2 million and expenses were at or around £1 million, given assumptions around assets under management (AuM), salary increases and foreign exchange rates.

Improvements in CLIG’s trading performance are partly a result of weakness in sterling. Most of CLIG’s AuM, on which it earns fees, is held abroad while 40% of its costs are in the UK. That provides a high degree of earnings sensitivity to the exchange rate.

Under assumptions made in the model, CLIG’s tax rate is estimated at around 26%. Post-tax profits, if markets stay fairly similar for the remainder of its financial year to 30 June 2017, should just about cover a generous dividend pay-out policy.

CLIG’s board is expected to propose an unchanged final dividend of 16p when it reports results to 30 June 2016 on 12 September, taking the full year total to 24p. Shares in CLIG currently trade at 379p and, though they have rallied around 25% since Brexit, still offer a yield of 6.3%.

Transparent, shareholder friendly and a very high quality business.