Evolution plunges £13.5m into red after ‘worst year in ages’

The firm, owner of Williams de Broë and Singer & Friedlander, saw profits of £3.2 million in 2007 turn into losses of £13.5 million in 2008 after income tumbled 25% to £65.2 million.

Chief executive Alex Snow said: "There were times when [2008] was brutal. The market was going down in a very fast way with very little support and there was a serious amount of gloom."

Brokerage and advisory firms are struggling to profit as companies scrap stock market listings and takeover plans because of the decline in economies.

But Snow — a former Harlequins rugby player — remained upbeat and said the first quarter of 2009 was "very encouraging" as Evolution won clients from larger rivals.

He pointed to the strength of the firm's balance sheet — which allowed it to snap up the investment management business of Singer & Friedlander after Icelandic parent Kaupthing collapsed — and the performance of its shares.

Evolution shares have recovered nearly all the ground they lost since falling from a 12-month high of 108p in September to a low of 65p in November.

They were down 11/2p to 961/2p today as Snow proposed a 5% increase in the dividend to 2.02p a share.

"We have strong liquidity, lots of capital and the shares have performed very well over the year and the dividend is up," he said.

Williams de Broë saw assets under management rise 21% last year to a record £3.4 billion as it bucked the City's downward trend. "Lots of clients haven't been too happy with major High-Street banks," said Snow. "The whole country was in blind panic and we were a better option."

Evolution today appointed former Barclays Capital banker Andrew Westenberger as finance director.