Charles Stanley sees revenue plummet 9%
Investment management firm blames “challenging” market conditions and “entrenched” economic uncertainty for fall in revenue.
Charles Stanley Group announced today that it has seen its revenue drop 8.7 per cent to £28.2m for the three months to the end of June 2012.
The group said that challenging market conditions and entrenched economic uncertainty have continued to depress financial activities and transaction volumes.
Total client funds have fallen to £14.8bn, reflecting a modest decrease of 2 per cent from the figure of £15bn at 30 June 2011.
Within this figure discretionary managed funds increased by 3 per cent from £4.8bn to £4.9bn reflecting a net inflow of funds during the period.
The first quarter has seen a continuation of the downturn in transaction volumes and against this backdrop the investment management firm has seen a £2.4m reduction in commission revenues.
However, despite the drop in market values, the firm's fee income has been resilient, recording only a 2 per cent decline over the comparable period in the last financial year.
Fee income represented approximately 60 per cent of Charles Stanley's revenue over the period.
It said in a statement: “During the quarter, a number of cost savings were made within this division and we are confident that the second quarter will produce an upturn, due to a number of transactions being completed in the first quarter but being recognised as fee income in the second quarter.
“We anticipate that economic and market conditions will remain uncertain but are confident that our broadly based business mix and financial strength will allow us to produce a creditable performance.”