The company said that ‘despite improving fee income and discretionary funds’ poor commission income stemming from low transaction volumes had hit profits during July and August.
This follows a similar warning in April and quarterly numbers reported in July which its directors conceded were disappointing.
It also bemoaned the costs relating to service quality upgrades and the roll out of its direct to client proposition other factors squeezing its margins, resulting in an expected level of profit which will undershoot market expectations.
Despite the bad news Charles Stanley said its board remains ‘particularly encouraged’ progress at Charles Stanley Direct, which has increased assets by 18% to £0.9 billion the five months to 31 August.
Total client funds stood at £20.5 billion at 31 August and managed funds were at £11.8 billion, an increase of 4.7%.
Charles Stanley’s full half year results confirming its numbers for the six months to the end of September will be published in mid November.
