Revenue showed a modest increase, up 1.6% to £58.4m, but profits were boosted by cost cutting during lockdown as directors and senior staff accepted pay cuts.

Overall cost-cutting measures during lockdown saved the company £2.6m.

Total client assets of the group and its associate companies fell slightly from £9.4bn to £9.3bn.

The firm said that its focus on fee-based revenue meant it was “less sensitive” to market movements.

During the year the firm bought and a number of Financial Planning firms and wealth manager Hurley Partners although the Hurley deal was only completed post year end. Acquisitons have bedded in well, the firm said.

Chief executive Ian Mattioli MBE said it had been “another successful year” for Mattioli Woods despite political and economic uncertainties. 

He said: “Covid-19 is significantly impacting the UK and global economies.  We have taken positive and decisive action to protect our clients and staff, and to ensure all our core business areas remain fully operational throughout this complex time. 

"Our investment in technology has enabled our employees to work remotely and our thanks go to all our employees who have helped to protect the business by agreeing to forego bonuses that would have been paid in more normal trading conditions.  In addition, certain of our higher paid employees significantly reduced their basic salaries, with these actions reducing costs for the year ended 31 May 2020 by £2.6m.

"Recent acquisitions are performing and integrating well, with the financial result for the year including a full 12 months from the Broughtons (Financial Planning) and SSAS Solutions businesses acquired in the prior year and a positive contribution from The Turris Partnership following its acquisition in December 2019.  

"In July, we were pleased to announce the post year-end acquisition of Hurley Partners, which serves a similar client base to Mattioli Woods, with many complementary elements between our businesses.  Consolidation within our core markets is expected to continue and we will seek to build on our track record of successful acquisitions by continuing to assess and progress opportunities that meet our strict criteria. 

"We expect that uncertainty around Brexit and the impact of Covid-19 will continue to influence investor and consumer sentiment in the short-term, but we believe the opportunity for Mattioli Woods is significant, as people seek to take charge of their money and manage it through the generations.  At the same time, savings and investments are becoming more complicated.  Clients need long-term advice and strategies more than ever before.  We will continue to provide quality solutions, maintaining our focus on client service and continuing to adapt our business model to the changing market, integrating asset management and Financial Planning to build upon our established reputation for delivering sound advice and consistent investment performance, while looking to reduce clients' costs.”

The company said it expects any changes in the tax regime to create “further demand for our Financial Planning and advisory services.”