LONDON (Alliance News) - Charles Stanley Group PLC Monday warned that trading results will be materially below current market expectations when it reports half yearly results in mid-November, despite its actions to cut costs and boost income.
The group said that a trading pattern of low transaction volumes hurting commission income - as well as the costs of upgrading its service and rolling out its direct-to-client proposition - put pressure on profit margins in July and August, as was the case in the first quarter. However, the group reported improving fee income and discretionary funds.
Client funds increased to GBP20.5 billion from GBP20.1 billion in the five months to the end of August.
Separately, Falanx Group Ltd, a security and risk management consultancy, said it has appointed Charles Stanley Securities as its nominated adviser and broker.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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