Successful business people and retirees are having to think harder about protecting their savings in the downturn, according to a leading wealth management company.

People with significant amounts of savings are being more cautious because of the increased risks of investments – in light of the eurozone crisis – and lower returns.

Mattioli Woods, which advises and manages individual pension schemes in the £500,000-plus range, said it had stayed profitable thanks to the conservative advice it was offering its clients.

Interim results for the six months to November 30, released yesterday, showed assets being administered by the firm were up 28.8 per cent to £2.86 billion.

Revenue at the business, which is based in Grove Park, Enderby, was up 17 per cent on the previous six months to £8.69 million, though adjusted profit before tax was down 17.4 per cent to £2 million.

Management said the figures had been affected by the company's acquisition of Scottish wealth management and employee benefits firm Kudos, last August, in an £8.7 million deal.

Chairman Bob Woods said: "We always took the view that the credit crisis was not over and that there were still more problems to come out of the woodwork, and that has caused us to counsel clients to adopt defensive positions."

Chief executive Ian Mattioli said: "When markets are so very, very volatile the 'sit tight' option is a good one and we've seen that reflected in the assets our clients are holding. As a result, our clients have not suffered any great losses, and still have £330 million in cash awaiting investment.

"It's been right and proper to be cautious over the last three to four years and by doing that we are very well positioned to take advantage of the cyclical nature of the investment markets – pension investment is a long-term business.

"Our clients still have substantial assets because we are cautious about their spending.

"We are now being asked to make sure every penny counts – historically we only looked after their pensions, but now we are more often than not asked to look after their personal investments."

He anticipated increased activity during the remainder of the financial year, maintaining the firm's record of revenue and profit growth.

Mr Woods said they were awaiting permission from the Financial Standards Authority to launch a new portfolio management service, which will provide a lower cost and more efficient investment process for many clients, and bring in more revenue.

Mattioli Woods was started in Mr Mattioli's Birstall home in 1991.