Close Brothers has reported a slide in profits despite a rise in client assets.
The parent company of Close Brothers Asset Management said full year operating profit was cut in half, falling to £113.5m from £234.8m last year.
Total assets under management were up though, rising 5% to £17.3bn from £16.6bn.
The company noted that new hires made a significant contribution to the inflows of client money. The firm has been on a hiring spree in recent months, including three appointments made from Investec.
The firm’s brokerage business Winterflood weighed down overall performance, as it was ‘impacted by subdued trading activity’.
Shares in the firm did not respond well to the update, falling 4% to 818p. The share price is down 20% over the past year.
Adrian Sainsbury, chief executive, said: “We continued to attract new client assets in CBAM, with strong net inflows, although Winterflood’s performance remains impacted by subdued trading activity.
“This year has been marked by a challenging market backdrop, where mixed economic conditions in the UK have created substantial uncertainty for our consumer and SME customers. Although demand levels have remained robust, the uncertain external environment led to higher forward-looking impairment provisions and difficult conditions for our market-facing businesses, CBAM and Winterflood.”
PA EVENT: Autumn Congress, September 27th– 29th | RSVP via email
Hosted at The South Lodge Hotel. Transport and accommodation will be provided for the duration of the event.
Our Autumn Congress will serve as a comprehensive platform for discussing the key trends, challenges, and innovations shaping the wealth management landscape. It will bring together thought leaders and industry professionals for enlightening discussions and networking opportunities. Register link |
Sponsors include Alliance Bernstein, Alger, Boston Partners, Baillie Gifford, CCLA, Janus Henderson, GAM, Jupiter AM and much more! Please see the full line-up on our website: AC2023