Brooks Macdonald saw assets under management (AUM) slip in the first half of the financial year due to challenging market conditions.
AUM fell 4.5 per cent to £11.9bn in the six months to the end of December last year, however, the fall was partly offset by £241m of net new business, which was up 1.9 per cent.
Underlying profit rose 8.1 per cent from £8.3m to £9m, however statutory profit was £490,000 reflecting £4.8m of goodwill related to a Levitas sponsorship fee and a £2.3m impairment connected to its legacy acquisition of Spearpoint.
The AIM-listed investment management firm reported that revenue increased 7.7 per cent to £52m compared to the first half of last year
The firm expects profit to improve in the second half as it begins to benefit from cost cutting measures implemented at the beginning of the year.
In January the firm cut staff in a money-saving drive to reduce costs by £4m a year, and reported a £3m one-off cost related to the restructuring.
Chief executive Caroline Connellan said: “We delivered a good first half with growth in underlying profit against a backdrop of difficult market conditions and weaker client sentiment, caused by macroeconomic and political uncertainty.
“December in particular was a challenging month but our UK Investment Management business has maintained a good level of net new business over the period, reflecting the strength of our client and adviser relationships.”