Operating income at the firm, which is ranked at number eight in Accountancy’s annual Top 75 league table, rose from £199.1m last year to reach £215.1m.

Operating profit was up by 14.2% to reach £41.1m compared with £36m previously.

The tax and business services performed strongly with a 30% rise in profits to £9.1m, which the firm said was down to improved market conditions underpinning many areas of the business.

The investment management and banking division posted a 9.4% rise in profits to £31.5m, as funds under management and advice reached £16.3bn.

Kevin Stopps, co-chief executive and managing partner of tax and business services said: ‘We are delighted to report another solid year of growth at Smith & Williamson as the unique combination of investment management, tax and accounting services that we offer our clients help us to deliver progressively stronger performance across the business.’

However, he warned: ‘We are cautious about the short-term outlook for the UK economy due to the persistently challenging economic and geopolitical conditions in Europe.'

The firm said that after a review of its long-term strategic direction it would continue to focus on providing a range of complementary financial services, particularly for private clients and their business interests.

David Cobb co-chief executive and head of investment management and banking, said: ‘As part of this review, family office services, later life planning and entrepreneurs have been identified as key areas of focus and investment over the coming years, providing services which draw on the strength of our complementary financial services.

‘Our pooled funds business has also been prioritised and it has recently been reorganised to create a core of actively managed funds.’

Looking to the future, Stopps said: ‘We believe changes in the financial services environment will create opportunities for us; for example, the internationalisation of clients coupled with the importance of the UK and London as a global centre, developments in pensions and the impact of the Retail Distribution Review  on the wealth management sector — all of which point to change and potential opportunities.’

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