Charles Stanley  

Charles Stanley profits fall as revenues grow

Charles Stanley profits fall as revenues grow

Charles Stanley's profits fell during the six months to the end of September as the company saw revenues grow across all of its divisions.

The company posted a profit of £5.1m, down from £6.9m in the same period last year because 2017 had seen "exceptional gains" due to the sale of its self-invested personal pension provider EBS Management to Embark.

Charles Stanley saw its overall revenue increase by 5 per cent to £77.7m while funds under management and administration increased by the same amount to £25bn and discretionary funds increased by 7.3 per cent to £13.2bn.

Paul Abberley, Charles Stanley's chief executive, said: "Whilst the progression of our revenues and profit margin has been pleasing, we are fully focused on increasing the rate of improvement.

"In tandem with the efforts to improve the rate of top line growth by building higher margin assets and implementing revised pricing structures, we are also sharpening our investment capabilities in marketing and sales. In addition, we have identified several core programmes to improve operating efficiency in both the front and back offices."

All four of Charles Stanley's divisions saw revenues increase, with investment management the biggest source of revenue at £66.9m - an increase from £65.2m the previous year.

But the company's two smallest divisions saw the biggest revenue increases, with financial planning and Charles Stanley Direct growing by 20.7 per cent and 34.6 per cent respectively, with both posting revenues of £3.5m.

However, while its revenues have increased the financial planning division became less profitable in the period, with losses widening from £1.2m to £1.7m. This was because Charles Stanley has been investing in its growth, the company said.

Charles Stanley Direct, the company's online direct-to-consumer division, became profitable for the first time during the six-month period, posting a profit of £200,000 after the company increased the service's fund platform fee.

damian.fantato@ft.com