Jessica Fino 30 Jan 2017 01:58pm

Smith & Williamson’s profits rise 22%

Accountancy firm Smith & Williamson has reported double-digit rises in its operating income and adjusted operating profit thanks to significant growth in its tax, investment management, banking and business services divisions

Its operating income grew by 10% to £117.5m in the first six months to October, despite the uncertainty around Brexit during the same period. Its operating profit also rose 22% to £17.7m, with profits in investment management and banking rising 21% and its tax and business services more than doubling from £1m to £2.4m.

David Cobb, co-chief executive of Smith & Williamson and head of investment management and banking, said, “We expect further stock market fluidity over the coming months due to likely uncertainty arising from elections in Europe, a new US president and the much-anticipated triggering of Article 50 throughout which the firm will continue to guide clients’ business and wealth planning activity.”

“From these results we can see that investments made in recent years are bearing fruit. We have recently broadened the depth and scope of our client offering by launching an investment management business from our Jersey office as well as making a number of strategic senior hires.”

In September 2015, the firm said its plans to invest in people, infrastructure and business development would have an impact on profits the following year.

At the time of its full-year results last year, Kevin Stopps, the firm’s co-chief executive said that the business was cautious about the short term outlook for the UK economy due to the “persistently challenging economic and geopolitical conditions in Europe”.

But on Monday, Stopps celebrated the half-year results by saying, “We are delighted that both sides of our business delivered so strongly in the first half of the year, despite the uncertainty around the UK referendum, positioning us well for a healthy conclusion to the financial year.”