LONDON (Alliance News) - Charles Stanley Group PLC Thursday said the full benefits of the strategic decision to focus on developing its core investment management business could take years to come through, as it swung to a loss in its recent financial year.
Charles Stanley, which traces its origins back to a banking partnership established in Sheffield in 1792, has been intensifying its efforts to focus on its core business after years of aiming to develop the business as evenly as possible. It is fresh from agreeing to sell its corporate broking division to Panmure Gordon & Co PLC and also intends to sell its employee benefits business.
In April, Charles Stanley raised GBP15.8 million after expenses by selling new shares to investors to bolster its capital position.
In a statement, the investment manager said it swung to a GBP4.4 million pretax loss in the year ended March 31, compared with a GBP2.8 million pretax profit in the prior year. Charles Stanley slashed its dividend for the year to 5.00 pence from 12.25p.
Total funds increased 6% to GBP21.3 billion, as discretionary funds increased 13% to GBP9.3 billion.
Revenue increased by 5% to GBP144.3 million and administrative expense were up 6% to GBP141.9 million, both from continuing operations. A GBP8.3 million impairment of intangible assets and investments was also a factor behind the loss.
"We are confident that the core activities of Charles Stanley are sound and are committed to delivering significant progress over the coming financial year," Chief Executive Paul Abberley said in a statement.
Abberley said that financial planning, provision of platforms and wrappers, investment management and asset management will each contribute to profit and margin growth in the long term.
"Implementation of the revised strategy will be a multi-year exercise, but meaningful progress will be delivered in the current financial year," the CEO said.
Charles Stanley shares were down 1.2% at 387.32 pence on Thursday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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