Venture management firm Angle posted strong profitability in the management services business for the year but various provisions pushed the group into losses."Angle is successfully reshaping its Management services business and has done much to protect its portfolio against clearly adverse market conditions and increased risks. The outlook is challenging but the potential for success remains," said chairman Garth Selvey. Profit before tax from Management services increased by 41% to £1.6 million. But this was offset by the costs of operating, managing and developing the portfolio by 44% to £0.9 million (2008: £1.6 million) and by planned expenditure on the controlled investments, which was down 52% at £1.1 million (2008: £2.3 million). The fair value of the investment portfolio was written down by £2.9m during the year (2008: write up £3.9m) to reflect concerns as to how the recession will affect the prospects for these businesses. After these provisions, the loss before tax was £3.4m against a profit of £1.1m last year. Revenues increased by 31% to £5.1m.The group said overheads have been substantially reduced across the business and during the year."The Management services business is well established and growing strongly. Growth prospects in the Middle East are promising and the Company is in discussions with a number of major new clients," said the group.