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Charles Stanley Group PLC - Results for the half-year ended 30th September 2017

Charles Stanley Group PLC today announces its Interim results for the half-year ended 30th September 2017. Read the full statement here.

by
Charles Stanley

21.11.2017

To view the full results document: Please click here

Interim results for the six months ended 30 September 2017

Completed the initial turnaround and continued the trend of improving profitability by focusing on core wealth management activities.”

Charles Stanley Group PLC (the Group or Charles Stanley) today announces its interim results for the six months ended 30 September 2017.

Financial highlights:

  • Reported profit before tax up by 53.3% to £6.9 million (H1 2017: £4.5 million)

  • Funds under Management and Administration up 1.3% to £24.3 billion (FY 2017: £24.0 billion)

  • Core Business revenue up 9.8% to £74.0 million (H1 2017: £67.4 million)

  • Core Business operating margin improved to 7.3% (H1 2017: 6.2%); Target of 15%

  • Balance sheet strengthened – regulatory capital resources increased to £65.0 million (FY 2017: £61.4 million)

  • Interim dividend increased to 2.5 pence per share (H1 2017: 1.5 pence)

Operational highlights:

  • Finalised the disposal of our only remaining non-core activity, EBS Management PLC

  • Reputation for client service reaffirmed with recent independent survey confirming that 58% of our clients would recommend us, compared to an industry average of 43%

  • Good progress made on a range of initiatives to drive revenue growth including: greater external marketing activity; ongoing implementation of repricing; greater focus on discretionary services; more resource devoted to developing and integrating our financial planning proposition; and launch of new mobile app for Charles Stanley Direct

  • Beginning to optimise the operating model to create capacity in the front office and efficiencies throughout our Support Functions

  • Welcomed Hugh Grootenhuis and Marcia Campbell to our Board as independent Non-executive Directors

Paul Abberley, Chief Executive Officer, commented:

“Charles Stanley aims to become the UK’s leading wealth manager by 2020. The first step toward this has now been delivered and the business has returned to profitability, achieving topline growth by focusing on core wealth management activities.

Our second step has been to put in place improved governance, better cost control and revised remuneration structures. We are now focused on the third but hardest step, that of invigorating our new business channels and more generally improving our productivity across both front and back office.

The Group continues to benefit from favourable markets which we think are likely to persist on a 6-12 month view. We do, however, face headwinds in the form of major regulatory change which is driving additional IT and process change costs and, in recent months, from lower than expected commission income. We will therefore need either a higher level of trading activity or other revenue increases to be generated in the second half in order to meet current market expectations.

Notwithstanding this note of caution, we remain confident about the long-term prospects for Charles Stanley as the benefits from the detailed execution of the third leg of our strategy begin to bear fruit.”

 

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