Charles Stanley revenue down six per cent in Q4

Charles Stanley has reported a continued drop in revenues for the last quarter of 2011, although total fees increased by almost six per cent.

In an interim management statement for the third quarter of its financial year, the company reported revenue of £27.3m for the three months to 31 December 2011, down from £32.3m for the same period in 2010. According to the company, this was due to a continuation of a trend of “downward pressures” on revenues.

Total fees reached £16.6m, up almost six per cent from £15.6m for the same period in 2010. Charles Stanley claimed this rise was “significant” as it comes in a period of falling market values, which the company said reflects the success of increasing the proportion of total revenue made up of fee income.

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Commission income was also down to £10.6m compared to £16.6m the previous year due to reduced bargain volumes resulting from a poor trading environment, uncertainty in the eurozone and the depressed UK economy.

Total client funds remained broadly level compared to six months previous at £14.48bn compared to March 2011’s £14.5bn.

Managed funds were the main driver of growth, with a net increase of 8.6 per cent compared to market performance of -6.2 per cent for the same period.