James Hay’s profits increased by 11% in the first half of the year – but bosses of parent company IFG have warned over the impact of Brexit.

Releasing interim results this morning, IFG said organic growth rate of new clients in both businesses was “impacted by client inertia pre and post the Brexit decision”.

The company revealed that James Hay’s adjusted operating profit was up to £4.2 million - a rise of 11% from the same period last year.

Positive results were thanks in part to the platform’s continued digital and operational efficiency drives, officials said.

Assets under administration went up to £20.3 billion as at 30 June, up 16% compared to the same time last year.

Parent company IFG Group reported total revenues for the six months to 30 June 2016 rose 16% to £39.9 million, driven by growth of clients and assets and some of the pricing changes implemented in 2015.

The company’s results report stated: “While net client growth was behind expectations, partly due to Brexit concerns, average revenue per client in James Hay continues to improve reflecting the fact that our focus is to attract clients with higher assets and more complex needs.

“In Saunderson House the growth of the discretionary management service will over time reduce average income per client levels, as the business attracts clients to a less bespoke and therefore less costly offering. Assets under administration and advice increased to £24.4 billion, with James Hay passing the £20 billion threshold in H1 2016.”

Chief executive Paul McNamara said: “We have delivered a solid first-half performance, with further growth in revenue and profits as James Hay and Saunderson House each continue to offer a compelling and distinctive proposition to their clients.

“Market conditions are more challenging, impacted by the possible consequences of Brexit, political uncertainty, lower interest rates and stock market volatility.

"We are cautious that the short-term trajectory for growth and profitability has therefore moderated, notably in the Platform business.

“However, we are confident our business model is robust and see no reason to modify our strategic plans as we continue to invest in our businesses to meet the increasing and evolving needs of our customers and to generate sustainable returns for our shareholders."

James Hay CEO Alastair Conway said: “With the continuing increase in demand from advisers and investors for flexible investment, drawdown options and improved reporting functionality, it is critical that platforms have the ability to evolve digital solutions quickly and efficiently.

“As a profitable business, we continue to invest in our proprietary technology, develop and improve our service to advisers and investors, with an on going focus on enhancing the user experience to create a digital platform for the future.”

IFG Group has also announced board and committee changes. Evelyn Bourke stepped down with immediate effect from the board and her roles as chairman of the risk committee and member of the remuneration committee. Kathryn Purves was appointed to replace Bourke as chairman of the risk committee.