Charles Stanley announces £3.9m loss in interim results

Charles Stanley has reported a pre-tax loss of £3.9m for the six months to September 30 2014, following a £4.9m profit in the first half of the year as it upgrades systems and processes.

It also confirmed a reduced underlying pre-tax profit of £1.5m, down from £8m in the previous six-month period.

The group confirmed that new chief executive Paul Abberley has commenced a strategic review of the business in a bid to restore it to profitability.

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Funds under management at the group grew by 0.5 per cent in the period since March 31 from £20.1bn to £20.2bn.

Funds under discretionary management climbed by 6.1 per cent over the same period to £8.7bn but other fund categories, including advisory managed, advisory dealing and execution-only, declined.

Group revenues were also up in the six months as they increased 4.1 per cent to £72.9m, from £70m in the previous six months.

Chairman David Howard said that growth had come from its financial services division and Charles Stanley Direct, up 20.6 per cent and 66.7 per cent respectively.

Mr Howard added: “We are investing heavily in a major upgrade of our systems and processes to enhance the proposition to our clients, and in several developments for the future, including our award-winning service Charles Stanley Direct.

“This has impacted on our costs in a period of static markets and revenue.”

Mr Abberley will succeed Mr Howard as chief executive, subject to regulatory approval.