In its interim management statement Walker Crips Group said its strategy to refocus and grow its investment management and wealth management business since the sale of Walker Crips Asset Managers (WCAM) to Liontrust had showed encouraging initial results.
However, the firm did report an operation loss before exceptional items of £0.7m, compared to profit of £0.8m a year earlier.
“It was inevitable, given the disposal of WCAM and the weak trading conditions for the continuing businesses, that group revenues would fall during the period, as it did, by 17% to £8.8m (2011: £10.7m).
“In line with our strategy, efforts have been made to reduce and minimise the cost base. Despite this effort, the fall in net revenues fed through to an operating loss. However, the benefits of the steps taken are now being reflected in the group’s trading performance, with net revenue increasing steadily since May,” said the group.
The firm now has cash balances up 106% to £7m from £3.4m in 2011, with net assets at the period end up to £19.9m from £13.8m at the end of March.
David Gelber, chairman at Walker Crips, added: “We are very encouraged that 12 advisers, along with their clients, have joined the company since the beginning of the financial year bringing with them substantial new revenue streams, most of which will take effect in the second half of the year. Further recruitment is in prospect.”
After the period end the group also announce the intention to dispose of its corporate finance subsidiary Keith, Bayley, Rogers & Co for an amount expected to be approximately £345,000.
