A software revamp, aimed at lowering operating costs, meant write downs of £33.7m from a decision to abandon plans to implement a new operating system.
Still, fee income grew by 17% to £177.3m helped by discretionary funds climbing 13% to £24bn during the year. Discretionary funds now represent 82% of total managed funds, ahead of 80% target.
The firm said it attracted new clients to its discretionary service both by expanding its relationships with financial intermediaries and by providing a managed funds service for smaller clients.
“Together with ongoing organic growth of direct private clients and transfers of accounts from advisory managed services, this led to a 7% overall net inflow into our discretionary services,” a statement read.
“2014 was a year in which good financial and operational progress was made as reflected in both the adjusted profit before tax margin of 20.7% and in improved cash generation,” said chief executive David Nicol.
“Improving revenue and efficiency are our strategic goals and we have made good progress towards our stated targets. In the process, we reassessed a significant software project and this has resulted in a material impairment charge, as previously announced.
"Nevertheless, we are well positioned for success and I remain confident that we have the right people to deliver our plans for growth throughout the business."
