Profits at Charles Stanley have fallen by 33% over the last year, the company has announced, although its total funds have risen above £20bn.
The stockbroking and investment management group reported profit before tax of £6.1 million compared to £9.1 million the year before.
Its total funds went up by 14% from £17.7bn to £20.1bn and revenue rose to £149.0 million from £127.6 million - a 17% increase.
Underlying profit before tax remained exactly the same at £13.5m.
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Chairman Sir David Howard said: "The increase in revenue and in our funds under management and administration is very pleasing.
"But this has been a year of significant cost and investment in our future, which has impacted on our profit.
"This pace of development is likely to continue over the year ahead, but the changes that are in place already should, all things being equal, deliver an improvement in our profitability.
"Nevertheless there are too many uncertainties at this early stage of the year to make any reliable predictions. So once again I approach the future with a degree of caution."
Among the major events last year for the group were opening a new office in Leicester in October and acquiring Evercore Pan Asset Capital Management Limited in December.