The firm’s profits before tax for the year to 31 March 2014 have been hit by what it says are exceptional costs incurred in a transitional year. These include post-RDR consultancy and other professional fees. It also cites costs including boosting its risk management head count and adding to its IT systems.
The investment group conceded that at least some of these costs are likely to be ongoing rather than exceptional.
Preliminary full year results will be announced on Friday, 20 June.
Although not enough to allow its profit projection to be met there has been “encouraging” growth of the firm’s funds, it said. Total funds under management at 31 March 2014 was up 13.5% to £20.1 billion from £17.7 billion at 31 March 2013. This has been largely driven by a 20.4% increase in managed funds from £9.3bn to £11.2bn. The firm took on discretionary funds from new managers totalling £0.8bn.
The Charles Stanley Direct business added new funds of over £200m and has upped its client total to 15,000. Charles Stanley said it considers this pleasing progress.
The acquisition of Pan Asset and the opening of a branch in Leicester have grown the group however Pan Asset has not made a significant impact on the firms numbers as not all assets have yet been formally transferred.
