Charles Stanley posts a jump in funds under management after market rally

STOCKBROKER Charles Stanley yesterday reported a surge in revenue and funds under management over the third quarter of its financial year, despite the continuing tough trading conditions for the sector.

Revenue for the three months to end of December rose 5.2 per cent to £28.4m, from £27m the year before, driven by a stronger performance in the private client and financial services divisions.

Total funds under management jumped 4.3 per cent over the quarter, from £11.6bn at the end of September to £12.1bn at the end of December.

Of that, discretionary funds under management firmed 5.7 per cent to £3.7bn, while advisory funds added 4.3 per cent to reach £2.4bn. That compares to a 5.4 per cent increase in the FTSE 100 over the period and a 2.5 per cent rise in the broader-based APCIMS Balanced Portfolio Index.

Charles Stanley said it would reinstate an interim dividend of 5p, after withholding the payment over the same period of the previous year. The firm has promised to pay a final dividend of no less than last year’s 8.75p, providing the stock market does not take another turn for the worse.

“The group is well positioned across all its divisions should the economic recovery prove sustained,” the firm said in a statement. “With a strong balance sheet Charles Stanley is well placed for future growth opportunities.”