(Alliance News) - Stockbroker Charles Stanley Group PLC on Thursday said it booked a full-year earnings rise, though funds under management fell by almost GBP4 billion, with its final quarter hit by the Covid-19 pandemic.
Revenue in the year ended March 31 was 11% higher at GBP173.0 million from GBP155.2 million, with pretax profit climbing 57% to GBP17.3 million from GBP11.0 million.
Charles Stanley raised its dividend payout by 2.9% to 9.0 pence per share from 8.75p.
Chief Executive Officer Paul Abberley said: "These strong results reflect the benefits of our ongoing transformation programme. In particular, the substantial rise in profits was achieved by the repricing exercise completed last year to bring our rates into line with market."
Funds under management and administration at the year-end were GBP20.2 billion, down 16% annually from GBP24.1 billion.
"The last financial quarter was affected by the impact on global markets of the Covid-19 virus," Charles Stanley explained.
The company added that average funds under management and administration was "maintained" at GBP24.2 billion, a notch below GBP24.3 billion from the prior year.
Abberley said: "Covid-19 is now the major challenge for everyone globally.
"Trading results for the new financial year are expected to be significantly impacted by the crisis, with lower stock market valuations and reduced interest rates. However, Charles Stanley is well positioned to navigate through the challenges and to emerge strongly. We have a very robust balance sheet with significant cash balances, and we will continue to focus on transformation and growth initiatives".
Shares in the company were 1.5% lower at 270.00p each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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