Walker Crips has revealed that the sale of its asset management business to Liontrust earlier this year has allowed it to record a profit for the six months to the end of September 2012, despite the business making an operating loss for the period.
The group reported a record pre-tax profit of £7.7m following the sale of Walker Crips Asset Managers, although it also experienced an operating loss of £0.7m in the first half of its financial year compared to an operating profit of £0.8m in H1 2011.
The sale of WCAM resulted in a one-off increase of more than £10m to the company’s coffers. However, group revenue fell 17 per cent year on year to £8.8m, due in large part to the sale but also to weak trading conditions.
This follows an almost 40 per cent drop in profits for the financial year ended 31 March 2012.
Since the beginning of the financial year, 12 advisers have joined the company along with their clients. However, the added revenue streams will mostly take effect in the second half. The company said it is already considering further recruitment.
In a statement to shareholders on the London Stock Exchange, David Gelber, chairman of Walker Crips, said: “The depressed market conditions of recent years show no signs of abating, as fragile confidence stutters in the face of euro and market uncertainty.
“However, your board is confident that the group is well positioned to benefit from any longer term improvement in market activity.”