CompaniesJun 30 2016

Walker Crips sees profits double

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Walker Crips sees profits double

Walker Crips saw its pre-tax profit more than double, despite costs incurred from the company upgrading its client information systems.

According to the company’s full year results ending 31 March, its pre-tax profit more than doubled to £0.94m from the previous year’s figure of £0.44m.

Its gross profit jumped 15 per cent to £17.6m from 2015’s figure of £15.3m, marking steady growth for the discretionary fund manager.

Walker Crips, which specialises in stockbroking, investment and wealth management services, posted a one-off cost of £0.8m after upgrading its use of technology to better communicate with clients.

This cost was offset by the company making a one-off gain of £0.9m after selling its illiquid Euroclear shares as part of a corporate buy-back programme in December last year.

The firm’s discretionary and advisory assets under management increased by 15 per cent to a high of £2.3bn, from 2015’s figure of £2bn.

David Gelber, chairman of Walker Crips, said the firm is looking to refine its business model.

He said: “Against a background of difficult markets, we have striven to set higher regulatory standards and client service levels as we deliver our strategy for growth.”

The results cover the first full year since it bought Barker Poland Asset Management in March 2015, which boosted Walker Crips’ revenues earned as fees.

The acquisition, however, meant the group’s Financial Services Compensation Scheme levy rose to £402,000, from 2015’s figure of £310,000.

Mr Gelber said the firm faces “significant demands” from continuing regulatory initiatives and associated costs over the next 18 months.

“We will monitor diligently the impact of these factors and will react promptly as we consider appropriate.”

katherine.denham@ft.com