Despite the growth the company has scrapped its final dividend (2019: 0.33 pence) “in view of the pandemic headwinds.”
The company provides investment management and wealth management services, pensions administration and financial regulation software.
The results mostly pre-date the pandemic and the firm says it is now re-focusing for the post Covid-19 future with a strong emphasis on technology.
The firm said resources remain strong despite the impact of the pandemic and the group is confident it can pursure “strategic priorities.”
Annual revenues for the year rose 3% to £31.4 million (2019: £30.5 million) and pre-tax profit nearly doubled to £963,000 (2019: £489,000) and was up 13% to £588,000 (2019: £521,000) excluding exceptional items.
Assets Under Management were hit by the impact of Covid-19 on global markets, particularly during the final month of the company’s financial year. AUM declined by 15% over the year to £2.8 billion (2019: £3.3 billion).
Non-broking income as a percentage of total income increased to 74.3% (2019: 71.6%).
David Gelber, chairman of Walker Crips, said: “Against a backdrop of largely buoyant market conditions, most of the group’s businesses performed well until the very last month of last year, and I am pleased to report an increase in full year profit before tax of £474,000, or 97% on the prior year. However, the sudden onset of the pandemic and the effects it has wrought has marred what was a good year for the group. With management’s focus now firmly on the future, the group is repositioning itself for the changes and challenges ahead.
Sean Lam, chief executive of Walker Crips, said: “Our three-pronged strategy – Core Investment Management & Advisory Business, Alternative Investments and Software as a Service – continues to give direction to the group while the world and the financial markets look to recover from the Covid-19 pandemic. Our core objectives of shareholder value, customer service, operational effectiveness and efficiency, remain; and only by emphasising and investing in technology as the delivery mechanism will they be achieved.
“Covid-19 has made it startlingly clear how much we depend on technology. We have been fortunate that we have been building our own technology for nearly 20 years, and that we have been early adopters of cloud-based technology. We will prioritise and increase our investment into the development of our own technology, continue to innovate and create regulatory and operational technologies for ourselves, for our partners and for the industry.”