Profits at the stockbroker Numis dropped by 17% in the year until 30 September.

The group announced on Wednesday that pre-tax profit fell to £38.3 million due to increased investment in staff numbers.

Staff costs at the broker were up by 10.6% to £64.7 million. Additionally, non-staff costs on technology also increased to £31 million.

Despite the fall in profits, revenue for the year was up 4.6% at £136 million.

”Profits were down but that’s the result of a deliberate and significant investment during the period which we think is for the good of the company,” said Ross Mitchinson, Numis’ co-chief executive.

“It is always right to hire brilliant people,” he added.

Co-chief executive Alex Ham said: “In the 12-24 months post-Mifid II there will probably be some forced consolidation among our competitors but it is not something we worry about.”

“We are floating [investment platform] AJ Bell today and brilliant, first-class entrepreneur-led businesses like that will be well-received, but the market has become more selective.”

In September, the share price in the group plunged after the firm warned of a dent to future profits amid an increase in new employees.

“Investment in talented individuals across the business has been a key priority during the year as we seek to strengthen and diversify the business for the future,” said Numis co-chief executives Alex Ham and Ross Mitchinson.

“Our track record and reputation has been a significant factor in our ability to attract highly respected individuals to the business.”

On Brexit, the co-chief executive said it was “causing uncertainty right now, you can see there is less activity than there has been.”

Shares in Numis (LON: NUM) are trading down 1.99% (0846GMT)