INVESTMENT manager Brewin Dolphin sounded an upbeat note yesterday after reporting a rise in underlying annual pre-tax profits.

The firm, which employs around 350 staff in the North East, said it had delivered a “resilient year”. It blamed a large payment into an industry compensation scheme for a 27% drop in pretax profits. Underlying pre-tax profits rose 1% to £39.6m.

The company warned the levy was “only part of the ongoing and increasing cost of regulation”.

The investment management business posted a 3.4% increase in its total managed funds to £24bn over the year as new investments outpaced withdrawals and falling markets.

Charles May, head of the firm’s Newcastle office said: “It has been a difficult year for the economy and the markets and we are very pleased to have done well in Newcastle and contributed to the group’s 10% increase in income.

“Both the team here and our clients have been stoic throughout and I am sure we will continue to be so and to grow the business in the year ahead.”

He added that the business was currently recruiting new staff to its Newcastle office.

Shares in the company closed the day down 1.8% at 131.30 pence.