British wealth manager Brewin Dolphin saw its statutory pre-tax profits plunge 70% from £28.4m to £8.6m in the year to 28 September 2014 as the costs associated with its technology writedown took effect.
The firm reported a total income of £290.5m, an increase of 2% compared to £283.7m for the same period last year.
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The wealth manager posted strong growth in discretionary funds to £24bn for the year ended 28 September 2014, up 13% from £21.3bn during the same period last year.
Fee income grew by 17% to £177.3m from £152m a year ago while commission income declined by 5% to £88.6m, in line with reduced transaction volumes resulting from market volatility in the second half.
Brewin Dolphin’s adjusted pre-tax profits rose 16% to £60.2m from £52.1m for the same period last year.
The wealth manager said its adjusted profit margin rose from 18.4% to 20.7% over the course of the year, in line with plans to reach a level of 25% by the end of 2016.
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By GlobalDataDavid Nicol, CEO of Brewin Dolphin, said: "2014 was a year in which good financial and operational progress was made as reflected in both the adjusted profit before tax margin of 20.7% and in improved cash generation. Improving revenue and efficiency are our strategic goals and we have made good progress towards our stated targets.
"In the process, we reassessed a significant software project and this has resulted in a material impairment charge, as previously announced. Nevertheless, we are well positioned for success and I remain confident that we have the right people to deliver our plans for growth throughout the business," he added.
