InvestmentsApr 16 2014

Charles Stanley tempers profit expectations

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Charles Stanley has warned that its profits before tax for the financial year to the end of March may be more than 10 per cent below market expectations.

In a trading update the group stated that “costs have continued to grow in order to support the growth of the group”, which could impact profits.

In the past 12 months Charles Stanley has acquired multi-asset boutique Evercore Pan Asset and opened a new office in Leicester.

But the group also noted “one-off costs” such as consultancy work as well as increased investment in its IT systems which have impacted on costs.

In its trading update, Charles Stanley said: “These costs have been incurred in a year of transition when the business has invested in its core foundations in order to support this future growth.

“It is recognised that there are elements of the increased costs that are not exceptional in nature, but rather represent the increased cost of doing business in a highly regulated industry. However it is part of the group’s strategy to review its cost base over the coming year in order to strengthen margins.”

The group’s assets under management and administration totalled £20.1bn, a new high for the group and an increase of 13.5 per cent the end of March 2013.

Charles Stanley’s full results for year to March 31 2014 will be published on June 20.