Walker Crips' full year profits double

Financial services firm Walker Crips’ full year profits more than doubled, although it raised concerns about Brexit uncertainty.

The company’s pre-tax profit rose to £940,000 in the financial year ending 31 December 2016 from £440,000 in 2015.

Walker Crips’ revenues rose by 13.5% to £26.1m and gross profit rose by 15% to £17.6m. Operating profit, before exceptional expenses, increased by 20.4% to £650,000.

The company incurred a £800,000 cost upgrading its information and communication systems to keep up with regulatory standards and its competitors. The company said the upgrade is due to complete next year.

In March 215 the company bought Barker Poland Asset Management, which the company said helped it steer its revenues earned as fees, rather than through transaction-driven commissions.

Walker Crips said this is changing the shape of the company’s business from traditional stockbroking to an integrated investment and wealth management model.

The financial services firm said the technology upgrade and the diversion away from new business generation contributed to a decline of operating profits last year to an operating loss this year.

In December 2015 the financial services firm sold its 1,809 Euroclear shares in a corporate by-back programme. It received a one-off payment of £900,000.

Walker Crips said that in light of the company’s progress it recommended an 8.5% increase in final dividend to 1.27p per share.

Earnings per share for the year were 2.11p, up from 0.69p in 2015, which included the one-off gain on the sale of the Euroclear shares.

Chairman David Gelber said: "Against a background of difficult markets, we have striven to set higher regulatory standards and client service levels as we deliver our strategy for growth.

"At a macro level the extent of the economic and political instability created by Brexit is difficult to predict. In addition, at a micro level, we face significant demands from continuing regulatory initiatives and their associated costs over the next 18 months.

"We will monitor diligently the impact of these factors and will react promptly as we consider appropriate. Nonetheless, despite these challenges, we consider that it is our emphasis on integrity, service and good customer outcomes which will drive our public profile and competitive positioning to deliver underlying stability and growth in the next phase of the Group's development."

Shares for Walker Crips rose 1.35% to 45.10p at 1510 BST.