Charles Stanley revenues drop amid ‘difficult times’
Investment management firm Charles Stanley (CAY) saw revenue drop in the second quarter while funds under management and administration edged higher.
Group revenue fell 6.8 per cent to £39.9m in the second quarter, resulting in a 4.1 per cent reduction over the first half to £82m.
Total funds under Management and Administration (Fuma) rose 12.9 per cent in the six months to September, and edged up 0.9 per cent in the second quarter.
But Charles Stanley said this movement mainly reflected the market volatility caused by the pandemic.
Earlier results
In May the firm posted a 45 per cent rise in profits despite taking a £4bn hit as a result of the coronavirus outbreak and its impact on markets.
Average Fuma during the six-month period actually dropped 9.4 per cent compared to the average £24.4bn during the same period last year.
Although group revenue fell, it outperformed relative to average Fuma as a result of an improved revenue margin, which increased by 4.4bps to 74.3bps.
Chief executive Paul Abberley said: “The group has traded and operated resiliently during the first half. Our focus remains on supporting clients and staff during these difficult times, and we are confident of further progress during the second half.”
Shares in Charles Stanley rose 2.13 per cent on the open.