A protracted restructuring at Charles Stanley appears to be starting to generate modest rewards, according to the London-based firm’s latest set of full-year results.
Revenues for the year to 31 March 2018 amounted to £150.9 million, a £9.3 million or 6.57 percent increase on the previous year.
Pre-tax profits came in at £11.4 million, a £2.6 million or 29.55 percent increase on the 2017 result.
Although total funds under management and administration fell by £0.2 billion from the £24.0 billion recorded on 31 March 2017 to £23.8 million discretionary funds under management increased from £11.4 billion to £12.3 billion, a 0.9 billion or 7.89 percent increase.
Investment management services now accounts for most of the firm’s revenues. These contributed £131.2 million, or 86.94 percent of the total.
Asset management (£7.0 million), financial planning (£6.3 million) and Charles Stanley Direct (£5.9 million) accounted for the remainder.
Broking-related activities are conspicuous by their absence.
“2018 has been another year of progress for Charles Stanley,” said Paul Abberley, its chief executive, in a statement. “We completed the disposal of non-core activities, further built profitability and began to scale the business.
“The group’s transformation continues apace as we implement our strategy and deliver progress in the underlying key metrics. That said, we recognise the need to accelerate the improvement in our financial metrics to match what is being delivered across the business.
“The focus for the 2019 financial year will be on driving top line revenue growth whilst improving operational efficiency and in turn harnessing operational gearing. I am confident that we will continue to make meaningful progress toward attaining our target 15 percent operating margin. The speed with which we will attain it will in part be dependent upon the pace of investment to develop sales channels and standardise processes, and in part on how quickly the group assimilates change.”