Cost cutting helped Mattioli Woods maintain modest profit growth over the past 12 months in the face of market challenges.

Revenue for the SIPP and investment company which owns Amati fell slightly from £58.7m to £58.5m in the year to May but pre-tax profit rose by 4.1% to £10.2m.

Market conditions and uncertainty over Brexit and other economic challenges dented investor sentiment and resulted in “reduced levels of investment by clients” and the drop in revenue, the company said.

The company attributed the improved profits to driving down costs, investing in new technology to improve client experience, rising demand for wealth management generally and new acquisitions, such as SSAS Solutions based in Belfast and Broughtons.

The company expects further consolidation in the industry and more opportunities for acquisition.

The company believes the cost of investing and investment fees remain too high and believe there will be further downward pressure on costs. The company relies mainly on fee income rather than charging a percentage of assets but continues to make driving down costs a priority.

Chief executive Ian Mattioli said he was pleased with the results.

He said: “We continue to streamline our business, drive increased efficiency and reinforce our purpose to grow and preserve our clients’ assets, while giving them control and understanding of their overall financial position.”

He added: “Uncertainty around Brexit will continue to impact investor and consumer sentiment in the short-term, but we are confident that our focus on addressing the changing needs of our clients will position us well to deliver future growth.”