LONDON (Alliance News) - Wealth management firm Charles Stanley Group PLC said Tuesday its third quarter trading was in line with management expectations, with a rise in core revenue and funds under management and administration.
Charles Stanley said its total funds under management and administration grew by 0.9% in the three months to December 31, up to GBP22.70 billion from GBP22.50 billion at September 30.
Discretionary and execution-only funds increased by 1.9% and 1.3% respectively, while advisory managed funds declined by 3.8% and advisory dealing funds remained flat.
Quarterly revenue in Charles Stanley's core business increased 11% on a like-for-like basis to GBP35.2 million compared to GBP31.8 million in the same period in 2015. However, total group revenue on a year-to-date basis is down 3.0% to GBP104.1 million from GBP107.2 million due to the disposal of its Securities and Financial Solutions businesses in the prior year.
Fee income in the quarter increased to GBP22.8 million from GBP21.2 million year-on-year, with dealing commissions up to GBP11.6 million from GBP10.0 million.
"The group reported in November of last year that it had concluded the remuneration consultation, and we are now moving forward with our plan to further develop our sales channels and improve operational efficiencies across the group. We are seeing revenues improving across the business; driven by favourable market conditions, the continuing shift to fee based tariffs and higher trading activity," said Paul Abberley, chief executive officer of Charles Stanley.
By Adam Clark; adamclark@alliancenews.com
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