James Brearley & Sons is in the black for the second year running but saw profits fall by 36%.
The wealth manager posted a profit of just under £151,000 after tax over the 12 months to the end of April, down from £236,000 the previous year.
‘Our board is remaining cautiously optimistic, after a challenging year,’ director Nigel Corrie told Wealth Manager.
‘Although our [post-tax] profits on paper were not as high as last years’, they were higher from a trading point of view,’ he said, pointing to a 2.2% increase in trading profits over the period.
Corrie explained the drop came from ‘certain discretionary expenditures’ such as bonuses paid across the firm. The directors have also recommended paying out a £100,000 dividend, subject to shareholder approval.
The results follow a costly restructure in 2011, when the firm slashed nearly £1 million from its wage bill by closing two regional offices, leaving the Blackpool-headquartered firm in the red with a £827,500 loss over the period.
Since the restructure, the wealth manager has increased its assets under management to more than £900 million across all divisions, from £750 million in 2011.
Managed services represented 40% of all revenues, while stockbroking services and online services made up 31% and 29% of revenues respectively, he added.
Corrie declined to comment on the impact of the Financial Services Compensation Scheme levy.