Brewin moves forward with ‘cautious optimism’ despite turbulent markets

However, the group, which has offices in York, Bradford and Leeds, reported a 27 per cent slump in pre-tax profits for the year to the end of September, which fell from £30m to £21.9m. It blamed the slide on higher costs, particularly £6m paid into the Financial Services Compensation Scheme, plus redundancies and the amortisation of client relationships.

Total income increased 10 per cent to £264m and the group now has total funds under management of £24bn, up from £23.2bn a year earlier.

Executive chairman Jamie Matheson said he is looking forward with “cautious optimism”.

“(Brewin Dolphin) delivered a resilient performance, despite turbulence across financial markets worldwide and the effect on the UK of the continuing difficulties in many countries,” said Mr Matheson.

“Stock market sentiment remains fractious with the eurozone debt crisis and the possibility of another recession causing concern.

“However, it is your board’s belief that long-term equity investments will continue to have an important role in the wealth management market.”

The group has 41 offices in the UK, Ireland and Channel Islands. Brewin plans to open an office in Bristol soon, and said during the year it attracted new teams to Glasgow, Leeds and London.

Michael Craven, head of Brewin in Leeds, said: “It has been a difficult year for the economy and the markets and we are very pleased to have done well in Leeds and contributed to the group’s 10 per cent increase in income.

“Both the team here and our clients have been stoic throughout and I am sure we will continue to be so and to grow the business in the year ahead.”

The Leeds team employs more than 40 staff in its investment management division, managing about £1bn of funds.

Mr Matheson said a major strategic review will take three years to achieve maximum benefits, but should improve its operating margin to more than 20 per cent. Brewin said the strategy shift involves “reinforcing standards” and “re-engineering processes” to improve shareholder returns. It is selling its corporate advisory and stockbroking arm to N+1.

“A much fitter and more responsive Brewin Dolphin will emerge,” said Mr Matheson.

Brewin is also searching for a new finance director to replace Robin Bayford, who is retir- ing.