Investment service Brewin Dolphin has reported better than expected annual profit as an improvement in investment returns since the summer.

The company, which has an office in Cheltenham, posted a pre-tax profit for the 12 months to September 30 of £78.2million - up from £75million the previous and better than the predicted £74million.

Total income for the year rose 6.6 per cent to £361.4million with income increasing in the second half of the year due to higher market levels.

The income included £19.8million from fresh acquisitions with financial planning income growing 20.4 per cent to £33.1million.

Total funds increased from £45billion to £47.6billion - a rise which almost matched the £2.7billion from acquisitions.

The company predicted challenging economic conditions ahead with operating costs forecasted to grow by "mid-single digit" for the coming year.

Chief executive Robin Beer said: "Adapting quickly to remote working enabled us to continue to deliver against our strategic objectives and delivered a set of resilient results.

"Our sector continues to have structural growth dynamics and we intend to benefit from these by enhancing our distribution capability."