LONDON (Alliance News) - Charles Stanley Group PLC on Thursday reported a drop in interim profit but the wealth manager increased its funds under management and upped its dividend payout.
For the six months to September 30, the company's pretax profit decreased 26% to GBP5.1 million from GBP6.9 million.
The reduction is due to a GBP600,000 loss from adjustments, compared to a GBP1.5 million such gain a year before.
Charles Stanley - a wealth management service provider for private clients, charities and smaller institutions - said it core business increased its pretax profit to GBP5.7 million from GBP5.4 million.
The company's Investment Management Services was the main driver behind the profit rise in its Core Business.
"The first half of the financial year delivered another solid set of results. Our turnaround strategy is starting to bear fruits with funds, revenues and profits from the Core Business all increasing on the prior period," said Chief Executive Officer Paul Abberley.
"I am also pleased to state that all four of our operating divisions reported higher revenues. Two of those divisions, Financial Planning and Charles Stanley Direct, saw robust increases - up 21% and 35%, respectively."
Charles Stanley increased its interim dividend by 10% to 2.75 pence per share from 2.50p paid out the year before.
The company also increased its fund under management & administration in the first six month of the year.
Charles Stanley's FuM increased 5.0% to GBP25.0 billion fro GBP23.8 billion.
The rise in total FuM was largely due to the rise in Discretionary and Execution-only funds, which grew 7.3% and 4.8%, respectively.
Discretionary funds rose on a combination of market growth, net new inflows and upgrades to the company's existing clients. Execution-only funds increased on the wealth manager's online platform, Charles Stanley Direct, seeing a rise in activity in the first half.
Abberley added: "Subject to market conditions and the level of trading activity, we expect to make continued progress in the second half of the financial year and remain fully committed to our vision of transforming Charles Stanley into the UK's leading wealth manager."
Shares in Charles Stanley were down 0.3% Thursday at 309.20 pence each.
