Charles Stanley reports profits up 80%

by | Nov 24, 2016

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Wealth manager Charles Stanley Group has released its interim results, and announced news of a senior director stepping down and a proposed share award scheme.

For the six months ended 30 September 2016, reported profit before tax was up 80% to £3.6m (£2.0m). Reported earnings per share grew by 46% to 4.44p (3.04p). Funds under Management and Administration rose by 13% to £22.5bn (£20.0bn). The interim dividend has been maintained at 1.5 pence per share.

Charles Stanley said in its statement that it has a distinctive client focused approach offering a full and personal service across a range of wealth management services, and aims to become the UK’s leading wealth manager by 2020.

The Group also updated shareholders on revised remuneration arrangements, including two remuneration schemes now in place, one for employed investment managers and one for self-employed associates.

Operational highlights include a new client onboarding process; a restructured Investment Management Services management team; a new mobile-optimised digital website; and, a new pricing structure for Charles Stanley Direct. The Group’s London offices have also been rationalised.

CEO Paul Abberley said on the results: “The conclusion of the remuneration process is a significant milestone and marks the successful conclusion of the first stage of our turnaround strategy. We are maintaining momentum and the Group is now in a healthier position on a more sustainable basis. With operational foundations in place and productivity initiatives underway, we are well positioned to pursue the second phase of our strategy, with an emphasis on building the delivery of organic growth.”

As well as the figures, the Group also said that executive director Mike Lilwall has stepped down from the Board to focus on private client investment management.

Also, it announced details of a proposed share award scheme for the Group’s investment management teams, both employed and self-employed associates. Benefits, said the company, include being based on profit contribution rather than revenue and therefore more aligned with the interests of shareholders; encouraging behaviours that will drive positive client outcomes; and, lowering the ratio of compensation paid as a percentage of revenues.

Abberley said: “The conclusion of this agreement marks a major milestone in the continued turnaround of the Group. It has been important for us to work collaboratively with our Investment Managers to create a solution that works in the best interests of us all and which is right for the long term. I would like to thank all our stakeholders for their patience during this important time and I am delighted that the conclusion of the process will enable all our staff to come together to work toward delivering sustainable profits, with a focus on enhancing the customer experience, growing revenues and improving operating efficiencies.”

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