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Results for the year ended 31 March 2021

Charles Stanley Group PLC today announces its preliminary results for the year ended 31 March 2021

Moves to ensure London’s listing rules are fit for the 21st century are afoot. The special-acquisition vehicle frenzy is about to come to London.

by
Charles Stanley

27.05.2021

Watch the video, read the full announcement or view the presentation.

 

Summary

  • Resilient performance and good progress made in delivering strategy despite pandemic challenges

Financial

  • Record level of Funds under Management and Administration (“FuMA”) up 26.7% at year end to £25.6bn (2020: £20.2bn)
  • Revenue stable at £171.2m (2020: £173.0m) despite a 68.8% reduction in interest income and lower average FuMA at £23.2bn (2020: £24.2bn), which reflected stock market disruption
  • Revenue margin improved to 74bps (2020: 72bps)
  • Record revenues for Financial Planning of £10.0m (2020: £8.7m), up 14.9%
  • Underlying1 profit before tax of £17.2m (2020: £19.3m)/ Reported profit before tax of £13.4m (2020: £17.3m)
  • Underlying2 profit margin of 10.0% (2020: 11.7%) • Underlying3 EPS of 26.44p per share (2020: 31.41 pence per share)/ Reported EPS of 20.16 pence per share (2020: 28.03 pence per share)
  • Balance sheet strengthened - cash balances up 12.7% to £105.4m at year end (2020: £93.5m)
    • - net assets up 5.8% to £123.3m at year end (2020: £116.5m)
    • - regulatory capital solvency ratio of 185% (2020: 189%) with capital resources of £100.6m (2020: £94.1m)
  • ​Final dividend of 9.0p per share proposed, increasing the total dividend by 33.3% to 12.0p per share (2020: 9.0p per share)

Operational

  • Effective transition to home working with high customer service levels maintained
    • - client satisfaction score of 89% across all divisions
    • - ‘Best Customer Service’ award from Boring Money 2021 for Charles Stanley Direct
  • Ongoing transformation and restructuring programme has delivered further operational gains
     
    • - IT infrastructure outsourcing completed, with digital strategy in place to enhance client proposition
  • Partnership with MSCI to assign ESG scores to portfolios
  • New Central Financial Services division to be established in new financial year to address client needs for simplified advice as opposed to full service discretionary management
    • - division will incorporate model portfolio services, foundation financial planning and execution-only services

Outlook

  • Trading conditions are expected to remain positive
  • The Group remains well-positioned to continue delivering its growth and efficiency initiatives, supported by a strong balance sheet, with no debt and good cash flows

Paul Abberley, Chief Executive Officer, commented:
“Revenues and profits were inevitably impacted by market conditions but the results highlight the resilience of the business. This is a strong performance given the prevailing economic circumstances. Our transformation and restructuring programme has resulted in continued operational efficiencies and productivity so we are coming out of the pandemic strategically and operationally stronger. As we move through the new financial year, we will be continuing with our growth and efficiency initiatives. In particular the creation of a new division, Central Financial Services, to address client needs not currently met in the marketplace is important. We look forward to the coming year, confident of further strategic and operational progress, and expect stock market sentiment to remain positive.”

 

1. Underlying profit before tax and earnings per share excludes exceptional restructuring costs, non-cash share options and the amortisation of client lists. 2. This underlying pre-tax margin is based on the underlying profit before tax excluding the charge in respect of noncash share options awarded to certain investment management teams under revised remuneration arrangements settled in 2017, expressed as a percentage of revenues

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