Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Charles Stanley warns profits 10% lower than expectations

Charles Stanley warns profits 10% lower than expectations

Charles Stanley has warned that pre-tax profits at the group could miss expectations by over 10%.

In a pre-close trading update, the group said profits would be lower than expected due to post RDR consultancy work and other 'exceptional professional fees' that have increased one-off costs during the 12 months to the end of March. Charles Stanley also said costs associated with enhancements to its middle office including risk management head count and additional IT systems expenditure had eaten into profitability. 

Nonetheless, total assets under management and administration at 31 March had reached a new high of £20.1 billion, up 13.5% from £17.7 billion in 2013, compared to a 2.6% rise by the WMA Balanced Index. Charles Stanley noted particular growth in managed funds of 20.4% to £11.2 billion over the year.

Charles Stanley Direct now has over 15,000 clients and new funds of over £200 million. 'Whilst it is still very early days, we are pleased with progress,' the group noted.

The private client group, led by Sir David Howard (pictured) said its new Leicester branch, which has sparked a High Court battle with rival Brewin Dolphin over the recruitment of six of its staff, had brought in additional assets. Costs relating to the new office during the year amounted to £2 million, which does not include potential legal costs relating to the High Court dispute.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter