Walker Crips profits surge on broking commissions

Walker Crips Group has announced that ‘ongoing group’ revenue over the three months to the end of June increased 36 per cent to £3.2m on a like-for-like basis compared with the £2.4m achieved in the same quarter last year.

In its interim management statement, published today (19 July), the group highlighted that traditional stockbroking commission jumped by 58 per cent, driving most of the increase.

The significant increase in net commission from broking revenues has led to a reduction in the proportion of non-broking to total income to 58.1 per cent, compared to 62.1 per cent for the previous quarter.

Article continues after advert

However, the expansion during 2012/13, together with additional recruitment in the three months to June, has resulted in a 20 per cent increase in overall fee income, the firm said.

“This stands the ongoing group in good stead in the face of continuing market volatility and any future periods of potentially lower commission income.”

Discretionary and advisory assets under management at 30 June 2013 were £1.07bn compared to £1.03bn in the previous quarter.

On 31 May 2013 the group successfully completed the disposal of its corporate finance subsidiary Keith Bayley Rogers & Co Ltd for a consideration of £300,000. Following this disposal, the ongoing group consists of investment, wealth and pension management businesses.

Also during the quarter, Walker Crips Stockbrokers expanded its team with the recruitment of six investment managers in a process which ensured the swift transfer of both the investment managers and their clients.

“Albeit trading conditions remain uncertain, the board believes that its strategy for asset and revenue growth will be delivered over the medium term.”