Despite the higher revenue, gross inflows fell by £70.3m from £384.4m last time to £314.1m.

In a trading update today, the firm said recent trading performance had been “resilient” against complex macroeconomic and geopolitical backdrop.

There was an increase to the new business pipeline but total client assets fell to £14.6bn. Gross discretionary assets under management were £4.9bn, down 4% in the period.

The firm said increasing ad valorem fees in second half reflected market improvements.

During the period the firm launched a D2C platform called MWise to provide a new distribution channel.

Mattioli Woods said recent acquisitions continue to perform in-line or ahead of budget and integrate well with a pipeline of new acquisition opportunities under consideration.

The firm made nine acquisitions since July 2020 and has made a total of 34 to date, snapping up numerous Financial Planning, wealth management and IFA firms.

The group’s cash pile fell from £53.9m to £38.3m but remains healthy, the firm said. There is a maximum contingent consideration of £9.8m to be paid on recent acquisitions.

Chief executive Ian Mattioli said: “The group delivered creditable revenue and profit before tax growth in the first six months of this financial year, despite the difficult economic and political complexities that persisted throughout the period.  

“Our revenue model balances fee-based revenues for specialist advice and administration with revenues linked to the value of clients' assets on an ad valorem basis, which has allowed the group to continue to grow and experience less sensitivity to movements from challenging investment markets.”

“Clients' demand for advice and proactive communications by advisers with our clients in such uncertain times resulted in an increase in advisory time, with the value of new clients on-boarded in the first half over 10% higher than the equivalent period last year.

"Our trading outlook for the remainder of the financial year is in line with management's expectations and the group remains well-positioned to deliver long-term sustainable shareholder returns."

• Mattioli Woods will be announcing its interim results for the six months ended 30 November 2022 on 7 February.